A company that has existed for a long time but that has become less common is agriculture. Although agriculture was mainly an activity to support the farmer and his family, agriculture can be a company to make money. The two main avenues of income for an agricultural business are using the farmland and leasing the land to another farmer. If you lack the necessary background or experience in agriculture, you can lease the land to an experienced farmer.
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Invest in the necessary infrastructure if you decide to cultivate the land yourself.
This infrastructure can include various equipment such as a tractor and a fence that surrounds the land. Talk to local farmers to get recommendations for infrastructure.
Hires workers for the farm.
Unless the farm is small, you will probably need assistance to carry out many activities, such as planting, harvesting and raising animals.
Investigate crops to make money and animals to raise on your farm to activate the greatest benefit.
Your research should include talking to other farmers about your experiences. For example, you may want to grow organic carrots because they are in great demand in the nearest urban center. When you finish your research, develop and execute a plan for the farm.
Harvest and sell your crops and animals at prices higher than the investment costs.
You must include not only the cost of seeds, water, feed and other tangible costs, but also the cost of labor. Increase your profitability by selling in greater volume. The market can not always buy your products and animals at a profit and there is no reliable method to sell always making a profit, since the prices are driven by the market. The most profitable markets on the farm are usually niche markets, like organically grown vegetables. These market niches get a higher profit and are more consistently profitable.
Rent your land to a farmer or agricultural company if you lack the skills or capital to operate a farm.
The contract may include, in addition to a regular monthly payment, a portion of the farm's profits. This can be an effective way to obtain benefits if you can assure a tenant that he is an experienced farmer.
The 11 steps to start a livestock farm
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Follow the 11 steps.
One:
Do an analysis of yourself and the livestock industry that you want to train. What kind of cattle you want without seeing any breeder, and what kind of farm you want to work.
Keep in mind to start small. Do not spend your money in the first two years before buying or inheriting a farm or ranch.
If things need repairs, repair the fence, the most urgent repairs like renovating the barn or the house, or renewing the handling facilities of your plan. Buy the machinery and tool you need now, not when you want. (Read: Sustainable Livestock: an initiative forged with resources and innovation)
You will buy what you want in about 5 or 10 years when your business grows.
You will try to start as a low cost producer, it is the safest way to make money, and the best way to start if you do not have much capital.
Two:
Locate an area where you want to be for the next 10 to 30 years.
This is important because you need to find one that you like and where you have confidence to leave your animals.
Factors such as weather, seasonal variations, market, vegetation and topography are different from the one you choose.
Three:
Once you make the decision of where you want to settle, find a land for sale.
Take into account that you must make the payment only once, or a mortgage if you do not have enough money.
Land increases in price in areas where there is more population, or where land has more demand.
It is highly recommended to buy a ranch that has facilities and the fence established for the cattle that you will buy and it will become one of your dreams.
Four:
Find more information about this land.
Contact the municipality or state where this town is located to know the type of vegetation, soil and carrying capacity in that soil.
Also visit the ranches near the area and talk with them.
Often the farmers in the area give you more information than in the government offices. (Read: With Sustainable Livestock profits are doubled)
Five:
Analyze your operations, and your financial situation so you can see what you need not what you want.
The type of facilities, equipment, machinery, irrigation, drinking fountains, feeders, is the most necessary above other needs.
A tractor with hay equipment, trailers, facilities and other buildings are also needed.
If you decided on a dairy production, you need different buildings and a milking parlor. In addition to the props for you to be able to start your operation, in addition to the facilities of the calves, a barn for them and a barn for cows when they are dry.
To decide the type of strut you need for the milking parlor, there are more things to consider: which cows have been milked before, which ones are used?
It is better that you maintain a type of production. If you are going to raise yourself, research the different types of production so you can decide which is the best for you.
With beef cattle, fences, sheds, water sources, it is all you need, especially if you expect it to grow, if the calves will end up on the pasture or if it is a cow calf operation.
The exception is if you want to spend extra money in winter feeding and increasing costs and supplementing your livestock with grain, or if you want to be waiting for a natural fattening.
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Six:
Determine the type of livestock according to the budget and your objectives. The most popular is dairy or fattening. Keep in mind that putting dairy cattle is much more time and money than fattening it, plus it requires more equipment to fatten it.
Seven:
Determine the variety of livestock you want.
Determine what type of livestock according to your goals for the type of ranch or farm, not what you like but what you are willing to work so that a particular race does not fall.
If you are in the production of meat choose a cattle that is of good temperament and does not require a strenuous management. (Read: Create new supplement for sustainable livestock)
Docile races like: Hereford, Red Poll, Shorthorn, Galloway, British White.
If you are insistent in raising the quality of the cattle depending on the market that is in the area, be very careful in selecting the type of livestock you want, find out first of the different races, for example the Angus.
If you are thinking of a dairy production, the best and most popular are: Holstein, Jersey, Brown Swiss, Guernsey and Ayrshires. This is the most popular cattle for dairymen.
Eight:
Start with a handful of cows. Do not start with a large herd or you will not be able to handle it.
Buy good cows that have conformation, temperament, maternal ability, conversion of forage and rejects those that look thin and that are about to fall, the heifers are a good option if you want to wait 2 years until they have their calves, another option is to buy a cow with its calf next to it.
Experienced cows are easier to handle than heifers.
Avoid buying a stallion if you only have 4 or 5 females; buy one if you have at least 10 cows, if you prefer you can inseminate. If you have 2 or 5 cows you can inseminate it is the cheapest and most effective. If you do not want to use the AI, rent a stallion or find a breeder who wants to cooperate with your stallion and keep the cows on his farm for about two months.
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Nine:
Determine the amount of pasture that is required for the breed of cattle you want and if you will have to buy pasture.
Determine if you will plant the pasture or you will have to buy it, make sure to buy quality.
Keep in mind that feeding livestock is a commitment of 26% of total costs.
Having enough pasture in summer reduces costs immensely, and will be of better quality.
Also take into account your plans for the pasture if you do not want to get caught buying the forage all the time, grazing is different for many areas so your plans vary.
Ten:
Start by having a good record in your finances, breeding, birth, health, vaccinations, purchase, sale and the assets of the operation.
The most important are your goals. These determine if your operations are producing or you are losing.
Eleven:
Best of all, have fun! This is demanding, but you will always be learning and will keep you occupied with feeding and maintaining the health of the cowboy.
Starting livestock farm business
Cattle exploitation of cows destined to milk production. Of the total of cattle that make up the cattle of the farm, more than half are usually adult cows for milk production, while the rest are young calves that are intended for replacement or cows that are in the reproductive cycle. To start this activity, only the production and sale of milk is proposed, but the elaboration of dairy products can also be considered once the business has been consolidated.
The objective pursued by a business of these characteristics is the maximization of dairy productivity per cow and year (each cow produces an average of 30 liters of milk per day), trying to maintain a minimum cost in feeding per liter of milk obtained, in the care of the cattle and in the maintenance of the milking and storage facilities. In turn, the parallel production of calves should not be forgotten so that dairy cows are periodically renewed.
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The exploitation system for a farm with these characteristics can be extensive, intensive or mixed, but the second one is recommended to start the activity. This system requires a greater investment, but the exploitation and the yield will be much higher and the production costs will be, consequently, lower. In fact, it is the majority system in the country. Another important decision is the election of the race; Within the dairy cattle can be found autochthonous breeds in danger of extinction and breeds integrated in Spain.
The fundamental factor to access this type of business is to have the necessary facilities to carry out the operation; for this reason it is recommended that the entrepreneur possesses, at least, the land where the farm is to be installed (ship or ships), in such a way that the initial costs do not trigger. In case of having a ship already manufactured, the costs of adapting the premises would be considerably reduced, since this project has been prepared with the construction of a specific ship for breeding.
The main customers will be companies producing dairy products, supermarkets, supermarkets and markets, although it could be interesting to create a commercial relationship with some type of restaurant chain or restaurants in the area to offer a product of superior quality that allows a constant sale . In a second place, you can have as clients public agencies that have large-scale dining services, such as hospitals or soup kitchens.
The main strategies that occur in this type of company are usually based on the quality of the product and its differentiation. For this purpose, a greater effort is usually made in:
Improve the quality of animal feed.
Use an extensive breeding system.
Search for a variety of higher quality animal.
As for the differentiation of the product, many farms are committed to ecological feeding and maintenance. The price of the resulting product in the market is much higher, as are its potential customers, but so are its production costs. Most farms then opt for a mixed breeding system that serves both types of customers producing more than one variety of milk.
Activities:
The key activities are sourcing or buying of calves and / or dairy cows; its care, maintenance and feeding; milking; reproduction control; control of possible pests, infections or other problems that may arise and reduce production; marketing and sales; and after sales service (consultations and claims).
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