When you start your own farm, you will need to think of it as a business. If you are using it as your main source of income, then it will certainly be a business anyway. However, for many people who run their farm as a hobby and alongside their main line of work, they often don’t regard it as a business, even though they should. That is because running a farm, no matter how big or small, can be expensive. If you don’t think of your farm as a business, then it could make it very difficult to manage your money.
First of all, you will need a budget. Make sure you include these main expenses so then you know what you are regularly spending money on each month.
Buying Or Renting The Farm
One of the biggest expenses that any farmer will have to deal with is the mortgage payments of rent that you pay for the farm. You will need to be able to afford this otherwise you might have to give up the farm completely. So, make sure that you can easily cover this cost with the income that you have coming in from the farm. If you are struggling to make your rent or mortgage payments, then it could be worth downsizing to a smaller and more affordable farm.
You will have to buy livestock from the likes of djexport.dk if that is what you want to farm. Most common farm animals, including cows and sheep, can be very expensive. But it’s not just the initial purchase of the animals that is going to prove to be quite costly. After all, you will need to pay for their food and regular vet checkups. You will also need to maintain the buildings in which the animals live. As livestock can be quite expensive overall, a lot of new farmers choose to start off by just farming crops as they aren’t quite so costly as looking after farm animals.
Farm equipment can also be quite expensive, but there are a few ways to bring down the cost. Firstly, it’s worth going to a reputable company like pomi.dk/en/ who are known for selling food quality equipment. As it is of a high standard, you won’t have to replace the machinery any time soon. Not only that, though, but you might also want to look into leasing some equipment as well. This is usually more affordable than buying a piece of heavy equipment outright.
It is also essential that you take out insurance to cover your farm. There are different types that you will be able to take out, but at the very least you need to cover your livestock and any machinery. If you are serious about running the farm as a business, then you should also consider taking out some company insurance as well.
As you can see, there are quite a few expenses that farmers need to deal with. Make sure you cover them in your budget!