The Business of Farming

Long before the Industrial Revolution and the internet, one industry dominated the country’s landscape: farming. In fact, 90 percent of the population lived on farms back in the 1700s. And though this number has dwindled since, the USDA’s latest America’s Farms and Ranches at a Glance report indicates that there are still approximately 1.9 million farms in America today, with nearly 97 percent of them owned by families. When you look at the challenges and rewards of modern farming, you can gain a greater appreciation for the innovative spirit of those in this essential field.

Challenges

Much like any other businesspeople, our agriculturists face numerous trials, some of which would test even the most seasoned entrepreneur.

Uncertainty
Risk seems to be in never-ending supply in this sector. For example, success largely depends on the weather, a fact made even more critical when you consider that many farms are already seasonal. And if that weren’t enough, farming is highly subject to market fluctuations.

Money
Because of such volatility, farming revenue can be inconsistent and profit margins tight; the venture tends to have a lower ROI than in other industries as well. Another huge factor in all these money concerns is the complex American agricultural system, which involves many channels and great distances—our food travels between 1,300 and 1,500 miles on average to get to our tables. Because of this, a mere 15 percent of customer food spending makes it to those who grow the crops, per the American Farm Bureau Federation.

Time
Long hours are the norm for farmers, rivaling those of many entrepreneurs. “We juggle a lot,” says Katey Evans, who owns Evans Farms with her husband, Kevin, in Bridgeville, Delaware. “Kevin and I regularly work eighteen-hour days and almost seven days a week. We have three kids, and sometimes even family time becomes work time. At night, I’m on the phone, researching, doing social media, or texting our vendors for orders for the next day. Kevin sets his alarm clock for the middle of the night to check on irrigation. I tell people that we don’t sleep much; we just nap.”

Rewards

Despite the inherent and new challenges in the twenty-first century, the appeal of farm life persists. Here are just a few reasons why.

Self-sufficiency
While being a farmer isn’t totally self-sufficient, these businesspeople are close to it: living on their own land and running their own enterprises while making all the critical decisions. The results of their effort can make the venture even more worth it (though the payoff can vary widely based on the size and type of farm, of course). For example, the USDA predicts the average net cash farm income to be almost $129,000 this year, an over 11 percent increase from 2024.

A greater purpose
“Make a difference” is a sentiment that’s incorporated into most companies’ mission statements, but arguably no profession personifies this like agriculture. It is a rare dynamic where your hard work helps people survive—it’s estimated that each American farm feeds 169 people around the world annually. In addition, family farming fosters, if not necessitates, closer-knit community ties by nature and allows you to sit back during your downtime and enjoy the wide-open space that is your homestead.

Legacy
Agricultural entrepreneurs thrive on building something that becomes a lasting legacy. As mentioned earlier, most ranches have been family owned for generations, and passing down property and knowledge continues not only a farm’s hard-earned reputation for production and reliability but also, in many cases, a family’s name. Similarly, sustainable agriculture is a growing trend, meaning that best practices are being used to minimize the impact on the environment, potentially increase income for farmers, and better guarantee food availability in the future.

Advice for agriculturists

If you have considered the farm life or are just starting out, it’s vital that you adopt a businessperson’s mindset. As Dr. Cindy Ayers-Elliott, owner of Jackson, Mississippi’s community-focused Foot Print Farms, succinctly told Heifer USA, “I don’t care if you’ve been in business for one month or twenty years—you need to be looking at everything it takes for you to get from seed to sales.”

Formulating a solid business plan is a must for staying on top of your responsibilities rather than being overwhelmed by them. Think about your goals, and determine how they’ll mesh with your chosen market. Then calculate what kind of initial investment is needed and develop a budget, assessing your likely expense and income categories. And don’t neglect to establish key relationships and possibly hire workers.

Concerning the ample financial risk involved, you can take steps to mitigate it. Sound fiscal management from the get-go helps, such as starting small and earning proof of concept before allocating for growth. Minimizing debt as much as possible is also ideal, though it isn’t always completely avoidable. If you need to borrow, consider contacting the USDA about its various agricultural loans to get vital financing.

In addition, farmers today are finding that, much like a stock portfolio, having a diversified portfolio of products can pay dividends—and they are getting more creative than ever with their offerings. As an example, Ayers-Elliott, who has long incorporated agritourism into her business, started an ag-education podcast for greater reach. And several years ago, Evans Farms launched The Frozen Farmer to make ice cream and sorbet with its unused “ugly” fruit, which led to a Shark Tank deal and national distribution.

In the end, the agricultural path isn’t for everyone. It requires seeds of passion, steadfast commitment, and wise business practices—but the harvest is also often more meaningful than any other entrepreneurial venture. Evans perhaps summarizes the business of farming best: “Work is life to us, and life is work; farm and family are one and the same. No day ever seems like ‘work,’ though, when you love what you do as much as we do. I couldn’t see myself doing anything else.”