Capital and Equipment for New Farmers

How much money will it cost to start my farm?

This number will vary wildly based on a variety of factors (size of operation, land ownership/leasing, kind of crop, markets, etc.). Developing a business plan as described above will help you to figure out your start-up costs. You may be able to start very small with very limited upfront cost, but to set yourself up well, for a 1-2 acre market vegetable farm is likely around $10,000 – $20,000 in tools, seed, irrigation materials, soil amendments, season extension equipment, and marketing materials. It’s best to plan for the high side of costs because there are inevitably extra expenses you didn’t account for. Most of the successful farmers we talked to started small with a minimal amount of equipment and let their business grow organically, purchasing additional equipment and tools along the way as they could afford it.

Here’s a video that talks about the costs you might not think about when starting your farm.

Accessing capital with little to no credit history:

If you don’t have that kind of money in savings (which most folks don’t!), there are still ways to access funds to start your farm. The US Department of Agriculture’s Farm Services Agency (FSA) and some local organizations offer loan opportunities for those with little to no established credit. See the section on Loans and Grants for various governmental and private grant and loan opportunities. If you have a strong business plan, you may also be able to get a personal or business loan at your local bank, but be very aware that these loans often have quite high interest rates. 

Equipment sharing, cooperatives, tool libraries:

One great way to cut down on start-up costs is by building relationships with other producers in your area who may be willing to lend or rent equipment that you need for short bits of time (like tractors, seeders, etc.). If you don’t already know the farmers in your area, it might be useful to attend local ag events, talk to folks at the market and ask your local farmers’ market manager for connections. 

• This is a website that lists various tool lending libraries across the state.