After all the plans and intentions to start a farm, “where do I raise money to start a farm”.
Well, we have a couple of ideas we think might help.
1. Do it yourself
Providing funds yourself to start a farm is something that most people do for a significant amount of time until other funding opportunities become realistic.
If you believe in your vision and are ready to keep on despite the challenges, then you should feel comfortable investing your own money to start a farm.
2. Friends and Family
Seeking start funds from friends and family is a widespread and effective way to raise money to start a farm. They are the closest people who are likely to believe in your ability to make your vision a reality.
But, be careful. You could be risking a relationship if the farm business fails. We recommend you treat the funds as a loan payable over a year and take just as much as you need.
3. Small Business Loan
We all know getting loans from commercial banks and financial institutions is not easy particularly when it is for a start-up of a farm. However, you can enhance your chances with a good business plan and a good pitch. You may also need to satisfy some other conditions as they may require.
An existing farm with very good farm records on production and sales could be an advantage.
4. Grants
There are organizations, individuals and governments that have set aside some amount of money to support agriculture. In this case, you may not be required to pay back. These funds are set aside to support various policies and initiatives.
You can also attempt to access these funds to start your farms by looking out for the requirements and satisfying them to stand a chance.
Procedures may differ from different grant sources.
5. Angel Investments
Angel investors will provide the seed money for the farming venture in exchange for part-ownership of the venture.
You can usually find them among your friends and family.
Trust and transparency are essential in such arrangements since you would be running the farms in the best interest of the business and the shareholders.
In conclusion
As your farm grows, you may likely do all that in raising funds. Find a good funding solution that allows you to concentrate on the farms and profitability.
