The agricultural industry is one of the most profitable in the world. Worth billions of dollars in this country alone, it’s easy to see why so many people look to start an agricultural business. But it’s not an easy business to start and run by any means.
You’ll not only have to have experience in the industry, but you need to have the finances to purchase the right equipment, obtain the correct licenses in your state, etc.
If you’re unsure as to whether the agricultural industry is right for you, here are some helpful pros and cons that you can use to help shape your final decision:
Let’s Start With the Pros:
#1 There’s Always a Demand
A great thing about entering the agricultural industry is that you know that there will always be demand for your produce. Whether you’re thinking of selling milk, eggs, meat, vegetables or a combination of all of them, there’ll always be consumer demand.
Once you’ve established yourself in the industry and start to retain loyal customers, you can become very profitable.
#2 Opportunities to Diversify
Another notable benefit that comes with this choice is that there is a prospect of diversifying your business in the future. As mentioned above, you don’t need to stick to one particular area of farming. You can expand what you have to offer so that your customers can purchase various items from you.
Along with offering more products, in the future, you could also build a cafe on-site or add overnight accommodation on your land to help further your income. Ensure that you only consider this when your business is thriving and the future is looking promising, however, as you don’t want to find yourself in debt.
#3 A Job You’re Passionate About
If you love farming and have always loved being in the great outdoors, then an agricultural business could be the way to go. Unlike a job that you’re doing just for money, it’s something that you’re passionate about.
Because of this, you’ll be more determined to succeed and for your business to grow over time.
Now, Onto the Cons:
The competition that you could face could be a downside that’s worth paying attention to. If you’re planning on setting up your business in a location that several other agricultural businesses operate, you need to know how you’ll differentiate yourselves from them. Chances are, they will already have loyal customers that have always opted for their produce.
To overcome the competition, discover what they offer and their prices and see if you can offer customers lower prices; you could also invest in marketing to get the word out about your business. However, with pricing lower, you’ll need to ensure that you’re still profitable and that you never sacrifice quality.
#2 Equipment Can Be Expensive
Another thing that you’ll have to consider is the price of equipment. After factoring in the cost of tractors, combines, mowers, etc. you might find that you don’t initially have the money upfront.
Along with the machinery, you’ll also need to budget for fuel and other associated costs. Of course, there are red diesel stockists online that offer this more affordably, but on top of the other costs, it could prove to be too much.
#3 It’s Hard Work
When starting an agricultural business, at first, it might just be you and a few other team members. Therefore, you shouldn’t expect it to be easy. Farming takes time and it’s a skill that needs to be perfected.
In the beginning, you’ll undeniably face very early mornings and late nights. You’ll also have to consider the physical labor of it.
#4 Harsh Weather Can Affect It
You’ll have to be prepared to face all types of weather conditions when you’re working in agriculture. If you’re starting a business in a location that’s known for tornados, for example, you’ll have to consider what safety measures you put in place.
Harsh weather can also damage your farmland, resulting in a loss of profit over time.