Every year the number of start-up entrepreneurs increases, paying attention to the village. In the city, finding a profitable and unoccupied niche with minimal investment is problematic; in the village, everything is different, if you know where to start a farm.
Advantages and disadvantages of farming
Continuing the topic of the article, we consider the main advantages and disadvantages of farming. If you plan to start farming activities, realize in advance what difficulties you will encounter. As a result, avoid solutions that make you regret.
Farm - reproduction or cultivation of crop or livestock products for the purpose of further marketing.
6 main advantages
- Fresh air. Farming is associated with rural areas characterized by clean ecology. As a result, farmers work in the fresh air, which increases efficiency and benefits health.
- Consumption of clean products. People engaged in farming, consume organic products grown independently. This is an indisputable advantage of farming, since health is the main life asset of a person.
- Doing family business. Often, the farm is organized in the form of a family business, where each family member performs certain functions. In the conditions of modern life it is extremely convenient and efficient.
- Choosing a business direction. Farming specializes in various areas, including livestock, poultry, fish farming, beekeeping, horticulture, vegetable growing, growing greens, cereals or berries. Each will choose a direction that matches finances and preferences.
- Benefits for registration and taxation. Often, farm activities are registered and taxed on preferential terms. A small farm that produces products for its own consumption does not need to be registered. Therefore, there are no taxes. For example, a farmer in the south can easily grow pomegranates.
- State Support Program. Farms producing agricultural products are allowed to participate in government support programs.
As you can see, the main advantages of farming are many. Came the turn to talk about the shortcomings.
- Farm activity is a capital-intensive type of business, especially when it comes to large-scale crop production or animal husbandry. Farmer’s main asset is land. Of course, the cost of a hectare of land is low, but not limited to small areas. In addition, effective farm management is impossible without the use of special equipment, the cost of which is simply enormous.
- The farm does not immediately generate income. Almost all types of business from the first minutes bring certain cash receipts, but not farming. To count on the first substantial income is possible only in a few years.
- Farming is subject to the bad influence of the vagaries of nature. The farmer has many enemies of a natural nature who can unexpectedly and almost instantly cause damage. These include epidemics, diseases, drought, rainfall, hurricanes and others. It is impossible to resist nature, so you have to prepare for possible losses in advance.
- Farm activities can not be left on time. A farmer without administrative staff cannot rest in the summer, especially if he is involved in animal husbandry. Cattle, like plants, require daily care.
- Farming is a seasonal business. The entrepreneur receives the main income several times a year. During the remaining time alone expenses. Personal finances have to dispose of correctly and correctly. If you do not plan, there will come a period of "lack of money".
- Farmer hard to get a loan. Banks hardly lend to farmers because they are at risk.
- Many difficulties arise when selling products. Sales in most cases more difficult production. Farmers have to deal with bureaucratic procedures, receive quality certificates and health certificates.
In this part of the article I presented the main advantages and disadvantages of farming. Now you can think over everything and make the best decision before setting up such a business.
How to make farming profitable?
In conclusion, we will talk about ways to improve the financial results of farming and increase profitability. I will consider the question on the example of animal husbandry. As practice shows, the industry can successfully develop and generate income. Striking evidence are the American and European farms.
Not all farmers from Russia manage to succeed due to the lack of skills. This does not mean that in the livestock will have to put a cross. With it, you can become a millionaire, if you further stimulate the land, upgrade equipment and assets, use advanced development.
If the activities of farms in Russia are subjected to a thorough analysis, we understand that the production of milk and meat was unprofitable before the imposition of sanctions in 2014. Now these industries are the first contenders for profitability growth.
If the cost of producing meat and milk is covered only by 50 percent due to the lack of incentive measures, the ideal solution is to change the diet of animals. The ration should be optimized so that the output of gross output increased. During the procedure, the veterinary requirements and the health benefits of livestock must be taken into account.
Leading cattle farms use drugs that improve the diet and assimilation of nutrients by the body, restore and normalize the intestinal microflora, and disinfect food.
In a situation which develops in farms of Russia, other ways of increase of profitability are applicable also. It is about optimizing the structure of animals. For this, several types of livestock should be bred. For example, European and American farmers breed different animals. This strategy maximizes profitability and profits. If one part of the structure in the season is unprofitable, the second covers the costs and leads to a plus.
Alternatively, you can open a production line or a small plant and process the resulting products. Be sure to look for new wholesale customers and new markets.
The article has come to an end, where to start a farm in Russia. You have learned the advantages and disadvantages of farming, how to increase profitability and increase income. I hope the implementation of knowledge in practice will help to achieve success. See you!