![]() Check with your county Planning and Economic Development Agency/Dept. Some county governments have micro-enterprise loan funds with attractive interest rates and repayment terms that can be used to finance farm operations. Micro-Enterprise Loan Funds or Revolving Loans Funds for Small Business If you reach the stage where you’re ready for a loan, you will need to present potential investors or lenders with a solid business plan that exhibits a realistic strategy for paying it off (See Fact Sheet #12 in this Guide). Once your products have a clear demand and are not able to keep up with sales, assuming you want to continue growing the farm, it is time to consider a loan or financing to allow more rapid expansion of the profitable aspects of your farm. Chances are, you will be more inspired and creative with your purchasing knowing you have to stretch those dollars. ![]() When you earn income from the sale of farm goods, replenish this farm account and continue buying what you can afford for your farm. Set aside the personal cash you have available for your farm in a separate bank account called your “farm account.” Use this money judiciously for your start-up expenses. If you do have money saved up to buy land, don’t make the mistake of spending it all on the property! A good guideline is to spend no more than 50% of what you have available on the land itself save the rest for infrastructure and start-up needs. ![]() Obviously avoiding the expense of purchasing land greatly reduces the need for start-up capital. Most farms can easily begin operating with <$5,000 cash, whether on leased land or land you already own. ![]() It is worth the patience to build up your own farm start-up account. Relying too much on loans-at least in the very beginning-puts your farm dreams at too great a risk. Getting Money for Your New Farm Enterpriseīy far, the most appropriate source of money for your new farm is your own cash – no loans, no home equity, no family loans, and no credit cards. ![]()
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