Do you know which industry is the second-most profitable in the U.S. after pharmaceuticals? Agribusiness. The global agriculture market, valued at $11,287.56 billion in 2021, is anticipated to grow to $18,814.21 billion at a CAGR of 10.7%. That’s a whopping number.
If you plan to start an agribusiness, now is the right time. Irrespective of whichever type of agriculture business you operate, agribusiness is lucrative.
However, launching an agriculture business isn’t as easy as it may seem. Careful planning and dedication are required to cultivate a successful agricultural business.
Here, we’ll share a few tips to help you start an agribusiness from the ground up.
#1 Conduct Thorough Market Research
Before you sow seeds for your business, take time to research and understand the specifics of agriculture.
Many agriculture entrepreneurs often commit the mistake of starting their business without adequate research. Hence, their success is short-lived because they neglected the key ingredient for success, i.e., research.
Your agribusiness will be successful only if you sell products that are in demand in your area. If the products you sell aren’t in demand, your business won’t survive in the market, let alone thrive. Therefore, conduct thorough market research before you lay the foundations of your agriculture business.
Researching well in advance will help you understand the demands of consumers. Once you identify that demand, it will become easy for you to decide what you should grow and market.
If you’ve already decided what to sell, research that market. Start by researching your competitors. Doing so will help you understand their marketing strategy. Plus, you will be able to identify gaps that you can fill.
#2 Figure Out Your Finances
Every business requires funds to run, and agribusiness is no exception. However, the agriculture business requires a significant amount of overhead compared to other businesses. Land, labor, equipment, licensing, and insurance are a few things that you will need to get started.
Starting a commercial farm could cost you millions, but a small farm requires about $10,000.
As you’re just starting out, a small farm will be your best bet. Using your savings is the best way to start an agribusiness. But not everyone has that much money. In such situations, applying for a loan is the best bet. Seeking out investors is another way to secure finances to start your business.
Just make sure to calculate how much money you will need to start your new venture.
#3 Invest in the Best Farming Equipment
Equipment is an essential part of agribusiness. Without the right equipment, performing agriculture-related chores will be difficult.
Many farmers opt for used equipment to save money, whereas others buy new ones. You can go for used ones if you want. But bear in mind that used machinery isn’t as efficient as new ones.
Therefore, it’s best to purchase new machinery. Even though it will cost you more, you will save a lot that would otherwise be spent on frequent repairs and maintenance.
A tractor is an essential piece of equipment you will need for your agribusiness because it can perform an array of tasks. These include plowing, tilling, seeding, planting, and many more.
Those equipped with cultivators help farmers maintain a weed-free environment by controlling weeds between rows of crops. In areas with less rainfall, tractors can be used to tow irrigation equipment.
To increase your tractor’s efficiency, opting for the PTO speed increaser gearbox will be wise.
PTO speed increaser gearbox, which stands for Power Take-Off, transmits power from the tractor’s engine to an external implement. It increases the speed of the engine to that of the driven equipment, allowing the engine and load to function at optimal efficiency, asserts Cotta.
This versatile, high-performance product can power an array of implements, including balers, combines, sprayers, plows, and hay balers.
One significant benefit of the PTO speed increaser gearbox is that it makes it possible for farmers to complete their work in a short period. Plus, it prevents the engine from stalling when the implement is engaged, thereby improving safety.
As pickup trucks are a convenient means of transporting bags of seeds, feeds, fertilizers, and other supplies to different locations on the farm, they are another piece of equipment that is a must-have. When buying a pickup truck, make sure to consider its payload capacity, i.e., the maximum weight it can carry in its bed.
Seed drills, cultivators, manure spreaders, mowers, rakes, and a composting system are other equipment that you will need.
To sum it up, starting an agriculture business could appear overwhelming, but it isn’t.
You can build a successful agriculture business by following the tips mentioned above. To improve your business’ efficiency and productivity, leverage technology. From crop-monitoring apps to GPS-guided tractors, technology can streamline an array of tasks.