Your farm is more than your business. It’s your life’s work, and there’s always room for improvement. However, expanding your farm is no easy task. You have to deal with property laws, paperwork, and unforeseen costs. Consider these factors before taking the leap.
Reason For Expansion
When you’re growing a business, it’s important to have a clear image of how you want it to expand. You can make things clear by getting down to the specifics. Are you expanding to improve the quality of your products? Are you increasing production with storage options like fabricated tanks? Do you plan on creating accommodations for your employees? Note these specific reasons down so you’ll be sure about what you want once you’re in the major stages of planning.
Renting vs. Buying Land
Just like financing any property, deciding to rent or buy farmland is mostly based on your income. In 2016, the national value of cropland was $1,330 per acre. In areas like central Illinois, farmland may cost you up to $10,000 per acre. If you want complete control over your farmland and you have the funds, buying is the best option. This way, you won’t have to allocate any expenses to pay rent. If you’re still starting out, you might want to consider renting. The average rental rate for US cropland is about $136 per acre, which you will pay annually.
Your Environmental Footprint
You should take into account the effects that your planned expansion might have on the environment. Always check with your local authorities about your plans. You can also enlist the help of environmental engineers to assess your farm’s effect on the land where you’re expanding. It helps to ask your neighbors as well about what they think of your proposed development.
The expansion of your farmland calls for more employees. You’ll have to spend money on hiring and training new workers. You also need to acquire new leaders to manage your employees.
It’s important to talk with your insurance agent about your planned development. Your current plan may not cover expansion. Ask your agent how you can upgrade your current contract. This is a critical step to make sure your business and property are protected.
Throughout the course of your expansion, there’s a good chance you’ll experience construction delays and unexpected costs. If your development will directly affect one of your current operations, you might not be able to produce as many products as you normally would. You also have to deal with paperwork and inspections from your local government.
Architects, builders, engineers, and contractors are all major players in your expansion. It’s important to choose the best people for the job. Don’t hire them because they have the cheapest contract. It helps to think and list every possible challenge you’ll face during development. This way, you can study these issues and prepare for them.
Growing your farm is no easy task. The cost of farmland itself is not that affordable for some. There are also logistical challenges that may arise. You have to think of property files, hiring construction professionals, and expanding your workforce. While it might seem like an uphill battle, it won’t be long before you’re working to grow your empire once more.