Starting a Farm

Interest in vegetable production in Maryland is on the rise. The state of Maryland produces approximately 56 million dollars of vegetable crops each year on 33,000 acres of farmland. The local food movement has resulted in increased marketing opportunities for fresh local grown vegetable products. The relatively small acreage requirement coupled with strong local demand makes vegetable production a popular enterprise for beginning farmers.

High tunnels, also called hoop houses, are structures that can be assembled outdoors to contain plants and extend their growing season. High tunnels are an environmentally conscience way to get the most out of your gardens throughout the year.

There are many aspects of grain production such as crop budgeting, nutrient management, integrated pest management, weather, new equipment technology, grain marketing and regulation requirements. Farmers have to be well equipped with a great deal of information to be successful.

It is essential for a farmer to practice conservation and stewardship on their land for the health of the environment and to sustain the productivity of agricultural lands. The Chesapeake Bay watershed is especially sensitive to sediment, nutrients and other substances that reach its’ waters.

Considerations for Setting Up a Farmstead - Selecting the Best Farm Property. A successful farm operation requires thoughtful property selection, whether you are leasing or purchasing land. When looking at properties, you need to consider how the property will support the goals in your business plan.

Developing an overall farm strategy is an important component of business development. This strategy includes a number of steps focused on market segments, attributes of those segments, and forming a strategy around the needs of each segment. Formulating a strategy is an ongoing process of discovery and creativity. Strategy formulation is not easy, but it doesn’t have to be hard either.

It is important for your farm business to project financial statements for the next 3-5 years depending on a loan application, long-term goals, or a new enterprise decision. Projected financial statements are also referred to as pro forma budgets. By projecting your business’s financial statements, you discover whether your business will anticipate a profit over the long term.

Small farms will often consist of many different enterprises that contribute to the whole farm operation. For instance, one farm operation may have a retail produce market, horse hay sales, and a fall petting zoo. It is important to understand the returns, various costs, and ultimately the profitability of each enterprise versus another. The “Enterprise Budget” enables you to do that.

Planning is essential to any business, no matter how large or small your inventory, payroll, and bank account. To be successful a farm operation must know its current status and future plans. Having these plans in your mind is not enough! Taking time to formulate thoughts, evaluate your business, devise a strategy, and anticipate possible problems will help your business be successful.

The University of Maryland Extension has a website devoted to supporting beginning farmers.