If farming has been your life and your way of making a living, you might dream of one day expanding your business and purchasing a larger farm. While it can be exciting to take steps toward a dream, it can also be challenging. Owning a larger rural property means you’ll have more responsibilities and increased operational costs.
When it comes to investing and making sound business decisions, you know you have to think beyond your emotions unless you are willing to put your money at risk.
Here are some important things to remember if you’re considering expanding your farm operations.
You need to know the rules in order to play the game
Do you want to have more than just a few pigs, sheep, or cows? Make sure you’re aware of the local regulations so as to avoid making mistakes and being penalised. Being penalised will not only cost you money you could have used for better purposes, but will also delay the development of your project.
Familiarise yourself with the local planning regulations and guidelines before expanding your farm.
As an example, you will encounter specific rules regarding land and environmental care, which may include regulations for the use of pesticides and weeds. You will also probably find local regulations related to animal care and protection; you will also have to learn about the permitted or forbidden use of certain animals for different purposes.
Considering that local regulations vary from state to state or even from town to town, get in touch with the local council and ask for the planning guidelines that apply to the location you plan to establish your large farm.
Transport to local markets
Do you plan to buy a large farm that is far from the local town?
Be sure to consider the logistical aspects of being in an isolated area. The further you are outside of town, the higher the costs and time commitment of transporting your livestock or agricultural product to the local markets will be.
Do your homework
When buying a rural property, you need to do your homework. You will have to analyse the plans and find out if there are easements linked to your future property. You’ll have to ensure that the soil can adequately support your livestock or agricultural plans. You’ll also have to find out if there will be any future changes that could somehow affect your future farm, such as new routes or industrial developments that may interfere with your planned activities.
Expanding your farm operations can be a highly beneficial endeavor when you do your due diligence.
If you have questions about rural real estate or buying or selling a home, contact us to speak to a qualified real estate agent. We’d be happy to offer advice.
You can also check out our blog for more helpful tips and information.