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    4 Replies Latest reply on Jun 14, 2008 8:54 AM by Farmguy29

    Looking to start farm business

    Farmguy29 Newbie
      Hi I am looking to start a egg farm and the building I need to put up to house them needs to be 40x600 and the loan amount needs to be about 500,000 I have the land and I will be under contract with pete and gerrys organic egg farms to get rid of the eggs. I am new to all of this business stuff yet the actuall hands on labor I'am not. Pete and gerrys is going to help me with the raising of the birds due to the fact that the birds are theirs. The contract will last as long as I want it to. So my question is what do I need to do to be able to get the financing I need? Will the contract secure a loan for me or will there be other factors I need to consider? any kind of help will be greatly appreciated
        • Re: Looking to start farm business
          LUCKIEST Guide
          Looking to start farm business, Welcome.

          Tell us more. First question is HOW SOON do you plan on starting this egg farm??
          WHAT is your background?? and WHY an egg farm?? Where??
          Have you prepared a Cash Flow?? Do you have a Lawyer to review the contract??
          To get financing you will need a Business Plan.

          Good luck, LUCKIEST
          • Re: Looking to start farm business
            Farmguy29 Newbie
            As far as how soon do I plan to start would be as soon as I can. My background is carpentry by trade and my father grew up on a farm well into his teens mostly taking care of chickens. The company I will have the contract with is willing to send people up to the farm to guide me throughout the process until I am comfortable. They are also going to show up and inspect the facility frequently. The reason for an egg farm is my family and I want to get into organic farming with having a contract with pete and gerrys organic egg farm it will be a steady flow of cash, also due to my sons illness I want to be closer to home for him. The farm will be located in new gloucester, maine. I also have a lawyer to look over the contract. I will be looking for help on writing a business plan so any info on that would be greatly appreciated.
            • Re: Looking to start farm business
              Lighthouse24 Ranger

              The first step in your high level planning might be to break down that $500K into how it will be spent -- site prep, barn purchase, barn construction, livestock, cages, equipment, and other start-up costs -- plus major categories of operating costs like caretaking, feed, utilities, transportation, etc. Rather than seeking one large loan from one bank, you'll probably find that financing is more readily available for specific things from various sources (for instance, many manufacturers of modular livestock barns offer financing).

              Another early step (if you haven't already done it) is to visit with your local agriculture extension agent and other state/county/local officials. There may be incentive programs, grants, and low interest loans available for some of what you're planning. In addition, these officials can help you avoid or deal with problems that may cost you more money before you even get started. (For instance, even though the size farm you're describing is tiny by egg farm standards, it will have an environmental impact that may concern the surrounding community or involve certain restrictions you haven't considered. Also, once an initial permit is issued, it may receive scrutiny from animal rights groups that sometimes mobilize protestors from across the U.S. and from foreign countries to block construction access, vandalize equipment, and so on when new chicken/egg farms are being constructed. People who know agri-business in your locale can offer invaluable experience, assistance, and advice in regard to not only financing -- but all the other things you need to be aware of).

              Of course, as Luckiest mentioned, SCORE is a great resource -- if there was a SCORE counselor in your area with agri-business experience, that would be terrific.

              Hope this helps. Good luck with your new enterprise.