A regular phone call or walk in question in my office is ‘what do I need to start an income-generating farm or other agricultural venture?” This question has been common over the years, but it seemed to have been picking up in the last few weeks.
When considering a new agricultural enterprise, and certainly one that you hope to generate a profit, there are several considerations to keep in mind. First, you need to take a hard look at the land and water you have on your property. Not all soils are suited for crop production. Certainly not all soil is suited for fruit production. Much of Angelina County has a clay subsoil that limits what grows well enough to be a viable, financial endeavor.
Available water sources would also be an important question. Wells and ponds need to be evaluated. Ponds are fantastic for livestock, but will it be large enough to serve all your livestock, especially during times of drought? Regarding wells, not every water well provides quality water and several more don’t provide the volume of water needed to cover acres at a time. There are several water wells in the county, including mine, that aren’t suitable for very sensitive crops. While my well does make enough volume to provide several acres of irrigation, I could never raise blueberries with the lower quality of water that I have.
The next big question that you need to address is “where is there a market?” My favorite example of this is okra. At farmers’ markets and grocery stores you’ll always find a demand for fresh cut, locally sourced okra. But the question is just how many acres of okra would it take to satisfy that demand? One can grow a lot of okra on a quarter acre but what volume will be needed to satisfy the market demand. And how profitable would okra be considering all the labor that it requires to have it harvested? If you were just going to run with a cattle operation, it is true that you could always find a market for that at the local auction barn. Yet the question is whether or not you have the knowledge and expertise to provide calves of the right weight, breed, and condition to earn top dollar at that market.
Infrastructure comes to mind next as we discuss what is needed for a profitable agricultural business. Is fencing adequate for livestock? Are barns and shelters needed for your livestock that you’re considering? What about working pens or other handling facilities? Those must all be present and in good working order. Tractors and in the implements that you’ll need for any orchard, truck crop, or livestock operation can be costly and may take some time to get organized.
Financing the expected operation certainly brings some challenges. It is true that there are opportunities at both the federal and the state level for some cost-share programs, or matching grants. You’ll need to have an honest visit with the banker and with others already involved in similar ventures to understand what the total costs could be.
I know nearly every person I speak with has the intention of working this themselves, of being independent, and certainly of doing their endeavor on their own. But the truth remains that you will probably need assistance and labor to help work livestock, or to help harvest a fruit crop. This was a struggle that I had with my own venture in watermelons. I could grow watermelons, but finding help to harvest them was much more difficult that I imagined.
Lastly, one needs to be incredibly aware of all the networking resources that are needed as you start this venture. You’ll want technical guidance on crop management or livestock management, someone very experienced with maintaining tractors and machinery, someone who knows the markets and how to access them, and others to help you with the financial hurdles that you will invariably come upon. Finding these valuable resources, or should we say teammates, will tremendously aid in navigating the challenges that are certain to come your way.
The above discussion is in no way a complete list of concerns one must consider. To help those who are interested in starting the process of having their own agricultural business, the Texas A&M AgriLife Extension Service in Angelina County will be hosting a two-hour seminar on Tuesday, May 6th at their office at 2201 S Medford in Lufkin. The class starts at 6 pm and there is no fee for the class. Participants should expect to receive a tremendous amount of resources, in-depth information for numerous adventures, and details on both the federal and state available cost-share funding opportunities.
For more information call the Angelina County extension office at 936-634-6414 extension 2.
