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Horticulture

Considerations and Resources for Starting a Produce Farming Operation

Overview

Prepared by:

Justin Ballew, Extension Fruit and Vegetable Research Associate
Zack Snipes, Area Horticulture Agent
Kevin Burkett, Extension Agribusiness Associate
Steve Richards, Extension Agribusiness Associate

Starting a farming operation is as complex as starting any other business. Whether the goal is to produce row crops, specialty crops, or livestock, many prospective farmers have great ideas but may overlook key steps required to successfully implement them. Others may try to do too much too soon and end up burned out, or out of funding, before their ideas have time to fully take shape.

This publication lays out steps that prospective farmers are encouraged to think about and follow throughout the process of starting a new operation and offers tips on achieving success years down the road. Extension agents are available for assistance while moving through these steps, though the ultimate success of the operation depends upon the farmer.

Prior to Getting Started

This section is for the brand-new or prospective farmer with 0-3 years of experience. These steps center around considerations and logistics that should be thought out before the first plant goes into the ground. Only once these considerations and logistics are taken care of are growers ready to proceed with their first growing season.

Step 1

Operational Considerations (more detailed information located here)

  1. What do you want to do (hobby farm, part-time, full-time)?
  2. What are the time constraints and what lifestyle changes may need to occur?
  3. What is your vision for the farm, land, and your family?
  4. Are your dreams, goals, and expectations realistic?

Step 2

Economics

  1. Become familiar with the input costs and returns per acre associated with the crops being considered. Look up enterprise budgets for the crops being considered.
  2. Learn the commodity market.
  3. Determine if operating loans will be needed and establish relationships with FSA and/or ag lenders.
  4. Understand how to use a financial recordkeeping system to keep track of the revenues and expenses of the operation. One example is the Clemson Farm Excel Account Book
  5. Resources like AgPlan and CropCost can be useful to develop a framework for the operation.
  6. Consider cash flow requirements throughout the season.

Step 3

Marketing - Be sure you will be able to sell a crop before attempting to grow it.

  1. Investigate existing markets to determine potential demand for crops being considered.
  2. Research potential retail prices by visiting local farmers markets, checking out Clemson’s FarmGate Reports, and by searching the internet for what other farmers are charging.
  3. Research potential wholesale prices through the SCDA / USDA Ag Marketing Service
  4. Determine who your intended customers will be (restaurants, grocery stores, processors, individuals) and research the requirements of these customers.
  5. For high value crops, allow demand to steer which crops are grown and how much is grown.

Step 4

Compliance – determine what business licenses/permits are required for your planned operation.

  1. Local business licenses
  2. Agricultural Tax Exemption and SCATE Card
  3. Most farmers in South Carolina will need to obtain a private applicator license prior to applying pesticides. Anyone involved in custom work (ex. spraying another farmer’s fields in exchange for payment) is required to obtain a commercial applicator license.
  4. Set up a separate business bank account for your farm to keep track of the farm finances
  5. Become familiar with the Schedule F Tax Form used to report farming activities for tax purposes. IRS Publication 225 Farmers Tax Guide is a helpful resource.
  6. Become familiar with labor laws if you plan to hire employees
  7. Research types of business structures
  8. Obtain a FSA Farm Number, which will allow you to participate in disaster relief and other farm support programs through the US Department of Agriculture.

Step 5

Study the production requirements of the crops being considered. Prepare a master plan to guide operations through the next season/s.

  1. Establish relationships with local university extension agents, NRCS, and experienced farmers. Check the calendar of events and participate in Extension meetings, trainings, workshops, and field days. Consider taking the Clemson University Farming Foundations class to learn some of the basics of farming.
  2. Consult crop handbooks and production guides for the following information:
    1. The potential for a crop to grow successfully and economically in your area. If no one is currently growing a crop commercially in your area, there may be a reason why.
    2. pH, fertility, and water requirements of the crop.
    3. Common pests and issues associated with the crop.
    4. Appropriate crop varieties for your area.
    5. Appropriate growing practices for your area (row spacing, plastic mulch vs bare ground, staking, row covers, crop rotation, etc.).
    6. Time required to grow each crop to maturity and seasonality of harvest .
    7. Equipment (planter, sprayer, disc harrow, cultivator, bushhog, etc.) and/or manpower (number of employees) needed.
    8. Seasonal availability of labor (internal and external). Labor may be in high demand during peak harvest times.
    9. Post-harvest requirements of each crop (refer to the SE Vegetable Crop Handbook and Wholesale Success Manual for cooling and washing specifics). Consider packaging materials needed, cooling infrastructure, and transportation.
  3. Determine the food safety practices needed on the farm. FSMA is a federally mandated food safety program with requirements based on farm size, while programs such as GAP and PrimusGFS are voluntary, but may be required by a buyer.

Getting Started in the Field

Once everything in the previous section has been investigated/completed, if the grower is willing to proceed, it is time to get started in the field. The first few seasons will be challenging, causing many to ultimately decide to pursue other ventures. To achieve success, follow and master the following:

  1. Start small. Select just a few crops to start with and grow small acreages until comfortable with the crop.

  2. Master the basics first.

    1. Soil pH and fertility. Start with a soil test to determine pH and fertility levels and needed amendments. Samples may be submitted through the local Extension office. Another useful tool is the NRCS Web Soil Survey which can provide a general overview of your soil types and classifications.
    2. Irrigation requirements and timing
    3. Weed, insect, disease, and wildlife management
    4. Production practices specific to the crop grown (pruning, staking and tying, managing cold events, etc.)
    5. When to harvest to ensure produce is at peak ripeness/quality.
    6. Shipping/storing
    7. Budgeting and keeping records of revenues and expenses.

  3. Be timely. The success of many of the above practices hinges on completing them in a timely manner.

  4. Scout regularly to monitor pest populations and the overall progress of the crop. There is no better way to learn and keep up with a crop than by being in the field as often as possible.

  5. Build a pest management inventory (equipment and pesticides). Be ready to act in a timely manner when necessary.

  6. Keep detailed records of field observations, practices, finances, etc.

farmer holding strawberries
  • Image description
    • Strawberry varieties vary in color at peak ripeness. Knowing when to harvest is key to achieving the best taste. Justin Ballew, Clemson Extension 2022

Next Steps for Intermediate Farmers

This section is for farmers with approximately 4-10 years of experience. These farmers have survived the first few seasons and, in the process, have experienced obstacles as well as success. The next steps are aimed at figuring out what works best for the farmer and modifying the operation accordingly. Now that experience has been gained with the basics, the farmer can explore more advanced practices and certifications, if they desire.

  1. Assess the success of your operation. Determine what works and what doesn't.

    1. If something isn't working, determine why and adjust accordingly. Try to be proactive in managing or avoiding future problems.
    2. Adjust acreages and crop management practices accordingly.
    3. Assess profitability. Focus on crops that are profitable and consider dropping those that aren't or decreasing their acreage. Using revenue and expense records to make decisions will be critical. Also consider comparing your actual results to those found in the previously mentioned enterprise budgets.

  2. Continue to refine the basics of crop and pest management.

    1. Periodically review production records from previous seasons and use past experiences to plan how to better approach an issue the next time it arises.
    2. Continue to attend Extension meetings, trainings, workshops, and field days.

  3. Assess environmental sustainability needs.

    1. Cover crops for improved soil fertility, erosion control, and weed suppression
    2. Terracing for erosion control
    3. Pollinator and beneficial insect habitat
    4. Consider pursuing NRCS programs where appropriate.

  4. Consider pursuing optional certifications. This may be determined by the demands of your customers.

    1. Organic certification
    2. GAP, PrimusGFS, or other food safety certifications (course can be beneficial to all types of producers, not just fruit)

  5. Consider off-loading tasks to ensure you can focus on the critical aspects of the farm

    1. Do you have the ability to hire new / additional employees?
    2. Should you invest in equipment / machinery that can save time and labor costs?
    3. Are there third-parties service providers that can help in critical areas?
    4. Partial budgeting can help an operator weigh decision making
a meeting of farmers, growers and agents
  • Image description
    • Attending meetings regularly allows farmers to get up-to-date knowledge and interact with agents and growers from many areas. Zack Snipes, Clemson Extension 2024.

Next Steps for Experienced Farmers

This section is for farmers with approximately 10+ years of experience. The farmer's goal is now to continually adapt to the ever-evolving landscape. Weather, consumer taste, pest management techniques, etc. all change over time. What brought success 10 years ago may not necessarily do so 10 years from now. Strive to be on the cutting edge. Anticipate change and continually take steps to move the operation forward.

  1. Continue to learn and develop skills.

    1. Attend grower conferences, Extension meetings, field days, and farm tours locally and in other regions to observe and stay up to date with: 
      1. New varieties
      2. Latest pest management techniques
      3. Latest crop management techniques
      4. New technologies, methodologies, opportunities
    2. Participate in research with Extension and private industry. This can be a great way to test new techniques or products on your farm.
    3. Keep up with certifications and licenses

    a grower using a new technology
    • Image description
      • New research opportunities with both public and private sectors allows growers opportunities to try new technologies to solve issues on their farms. Zack Snipes, Clemson Extension 2024. 

  2. Host routine audits or checkups of the farm by someone not working for the farm. Outside eyes can help reveal issues that may go overlooked by someone that sees them every day. This could include finances, marketing, food safety, etc.

  3. Continue to explore new markets. This is optional for growers looking to expand or diversify their operations.

    1. Explore opportunities to sell to new customers.
    2. Explore new crops. Some of the most successful farmers are those with diverse operations.

  4. Share your experiences with the farming community

    1. This could include serving on local, regional, or even national associations or boards
    2. Host farm tours and field days
    3. Become a mentor to someone looking to get started in agriculture
    4. Share needs and ideas with researchers

  5. Begin to think about transition planning to ensure the success of the farm beyond the current generation.

    1. A Farm Transfer Pre-Agreement Sample
    2. Doing business together: a Joint Business Agreement Guide
    3. Farm Transfer Guide: Junior Generation
    4. Farm Transfer Guide: Senior Generation
    5. Using Farm Assets for Retirement
    6. Estate Planning for Farm Families