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Dreaming of starting your own farming operation?
Whether it’s growing crops, raising livestock, or running a dairy business, starting-from-scratch farming is one of the most rewarding adventures anyone can embark on.
Unfortunately, it’s also one of the most expensive.
From property and seeds to farming tools and heavy equipment… starting a farm from nothing will set you back tens of thousands (if not more) right out the gate.
Don’t let that discourage you though.
By taking a budget-friendly approach to building your operation you can start farming without spending every dollar you have. Here’s how…
What you’ll learn:
- Why Starting a Farm Costs So Much
- The Smartest Ways To Save On Equipment Costs
- How To Shop For Affordable Combine Harvester Deals
- Budget Friendly Tips Every New Farmer Should Know
- Where To Look For Financial Assistance
- Bringing It All Together
Why Starting a Farm Costs So Much
Listen… farming isn’t cheap.
Entry level costs for purchasing farm land have increased an astounding 158% since 2010. That’s according to the USDA’s 2024 Land Values report which puts the average cost of cropland at $5570 per acre.
For the new farmer who’s watching their bank account drain away, expenses like that can seem downright impossible.
And that hasn’t even touched on seeds, fertilizer, fuel, taxes, insurance, or equipment yet.
You’ll need tractors, planters, sprayers, tillers… the list goes on. And if you plan on doing things correctly those are big-ticket items that cost thousands of dollars each. Brand new? Even more.
It shouldn’t come as a surprise then that smart farmers take advantage of used combine equipment dealers to outfit their operations without breaking the bank. Well-maintained pre-owned combines allow farmers to save tens of thousands on equipment costs.
Here’s how to save on equipment and where to find those affordable combine harvester deals.
The Smartest Ways To Save On Equipment Costs
Every farmer will tell you that equipment costs are the biggest budget killer for new operations. But it doesn’t have to be that way.
Farmers who lean on startups know how to economise on equipment. They don’t go out and buy a brand new tractor, planter, harvester, sprayer… you get the idea.
Instead they take a methodical approach to growing their farm and purchase equipment that aligns with current revenue.
If you’re going to grow crops you’re going to need at least one reliable tractor and a combine harvester. That’s pretty much non-negotiable.
Beyond that there are plenty of ways to keep equipment expenses in check:
- Buy pre-owned equipment. Purchasing used machinery from a reputable dealer is the quickest way to save on equipment costs. Buying used can net you 30-60% savings when compared to buying new. Always confirm hours and service history before purchasing.
- Co-op with neighbouring farms. Sharing expensive equipment with your farming neighbours is a great way to access tools and machinery at a fraction of the cost.
- Lease equipment before buying. Lease to own options allow farmers to access the equipment they need for harvest season without committing long-term.
- Invest in maintenance. Taking care of your equipment stops problems before they start. Proper maintenance will extend the life of your equipment and keep downtime to a minimum.
There’s no doubt about it: finding affordable combine harvester deals and discount equipment is one of the easiest ways to trim your farming budget.
How To Shop For Affordable Combine Harvester Deals
Combine harvesters are some of the most expensive pieces of farming equipment around. But that doesn’t mean affordable deals aren’t available.
Here’s where to find the best combine harvester deals:
Online farm equipment dealers. Consignment equipment dealers are your best bet when looking for affordable farm equipment. Reputable dealerships will always inspect (and often service) their used equipment before listing it for sale. That means you get gear that’s been taken care of by someone who knows what they’re doing. Plus you’ll often get a dealer warranty with your purchase.
Farm auctions. When farms close down or upgrade their equipment the leftover pieces usually go up for auction. Farm auctions are a great way to score used equipment at rock bottom prices. The biggest downside is competition. If there are a few combines up for auction you can bet there are a lot of farmers looking to buy one. Bid wisely and know your budget.
Online Marketplaces. Want to look at farm equipment dealers from all across the country? Online marketplaces make comparing prices and equipment easy. Farming has come a long way and technology lets you browse pre-owned equipment right from your phone.
No matter which method you choose, remember to do your diligence before buying. Inspect every piece of equipment in person before you spend a single dime.
Budget Friendly Tips Every New Farmer Should Know
Trimming unnecessary equipment costs is just one part of starting a farm on a budget. There are several other things new farmers should do to stretch their startup funds.
Start Small. You don’t have to farm 500 acres your first year. Start small and expand as you learn the ins and outs of running a farm. Not only does this reduce your upfront costs but it mitigates your losses if things don’t work out.
Plant high-value crops. Don’t just grow things because you like eating them. Focus on high-value crops that will earn you more money per acre. Do your research and learn what grows best in your region and has the highest demand.
Take advantage of government programs. The USDA has several programs farmers can use to jumpstart their business. From microloans to cost-share programs there’s a lot of money out there for the taking. According to USDA budget documentation over 60% of farm service agency (FSA) loans went to beginning farmers in 2023.
Network with other farmers. Talk to other farmers in your area and build relationships in the community. You never know who might be willing to let you share equipment, rent extra acreage, or give you a great deal on that combine harvester you’ve been eyeing.
Where To Look For Financial Assistance
It’s unrealistic to think you’ll be able to pay for everything with cash. There are plenty of financial resources out there for new farmers looking to get creative.
USDA offers microloans specifically for small or beginning farmers. Eligible farmers can receive up to $50,000 in funding through a simplified application process. Microloans can be used toward purchasing equipment, seeds, livestock, or general operating expenses.
The EQIP cost-share program helps farmers offset the costs associated with conservation. Beginning farmers are eligible to receive up to two-thirds coverage of expenses, with some practices allowing farmers to be reimbursed up to 90% of cost-share.
Your state probably offers financial assistance as well. Programs will vary from state to state but many offer financial assistance to new agricultural businesses. Your local USDA office can help you navigate available state-specific funding.
The hardest part about farming on a budget is knowing where to look for extra funding. Take some time to do your research and apply for every grant and loan that looks promising.
Bringing It All Together
Starting a farm from nothing is tough. But if you take a budget-minded approach it can be done.
Here are the big takeaways:
- Shop around for affordable used equipment.
- Start farming on a small scale and grow from there.
- Take advantage of government funding and loan programs.
Qamar Javed