How To Start An Organic Farming Business?

‘Organic’ is the new trend in town and is surely here to stay. In times of chemical and pesticide infected fruits and vegetables, Organic farming business is a total winner. Till not very long ago, everything was synthetic and mass-produced on machines and assembly lines. Even crops were grown using pesticides and chemicals. Owing to this mass production of goods a drastic reduction in the quality of products was noticed. And these synthetic, low-quality products further had unwanted effects on the health of individuals, as well as on the surroundings and the environment at large. Considering the present sensitive times and increased awareness about using products that are more natural, and authentic, an increasing number of individuals are veering towards organic products. The term organic refers to the process of how certain foods are produced and is chiefly used to describe food products. While most crops are grown using pesticides and chemicals, organic foods are those that have been grown or farmed without the use of artificial chemicals, hormones, antibiotics or genetically modified organisms. Organic crops are obtained using various scientific farming practices which do not employ the use of pesticides or toxins of any kind. These practices also help improve the quality of the soil, thus improving the quality of all the crops planted later in the soil.

As an increasing number of people are making the switch to organic food products, it is important to understand the importance and benefits of organic farming business via organic farming techniques.

• Organic food is good for health as it is free of pesticides and chemicals, thus reducing the harmful effects these chemicals would otherwise have on human bodies.
• Organic food has a number of health benefits such as- 
  • It is rich in antioxidants
  • It improves cardiovascular health
  • It improves antibiotic resistance in the body
  • It builds a strong immune system
• Organic food is devoid of poisonous toxins and tastes better apart from being nutritious. This is because the sugar content in the organic foods is richer due to better quality nutrients absorbed by the plants.
• Organic food crops are structurally and metabolically superior to other crops. This makes them less vulnerable to rotting or moulding and can be stored for longer periods.
• Organic food is beneficial for the environment as it doesn’t have chemicals that are otherwise harmful for the surrounding soil and animals too.
• Organic farming practices employed to produce organic food products are relatively easier to carry out and maintain. This is because the input costs are significantly lower compared to conventional farming. Therefore organic farming thus requires a lower investment.
• Organic farming practices also have fewer risks, since organic plants can tolerate drought better and can grow even in areas with meagre irrigation facilities.
• Also, organic farming techniques naturally repel or deter plant diseases, pests and weeds owing to scientific crop rotation and several other beneficial methods.
• Organic farming practices provide higher yields from the same piece of land, thus being advantageous to the farmers.

These are just some of the advantages of organic food and organic farming to obtain these foods. Further, organic food encourages organic farming on a larger scale, which in turn gives a boost to the farming sector. This, in turn, makes a greater number of farmers turn to organic farming practices, thus getting more people involved and employed in the process. Therefore, owing to the steadily rising demand for organic products, entrepreneurs who have a green thumb and wish to make a positive contribution can cash in on the organic farming business. The organic farming business assures the security of income as well as rich returns on investment, thus encouraging more number of entrepreneurs to turn into organic farmers.

How To Start An Organic Farm Business

Plan For The Business

Starting an organic farming business is a great idea, especially for individuals who already have a liking for farming, rearing crops and are passionate agriculturists. However, before starting an organic farming business, the entrepreneur must question the purpose of starting the farm and decide the essential elements of the farm. The most basic decision to make is-

• What type of farm the entrepreneur wants to start and the purpose of starting the farm?
• Whether it will grow fruits or vegetables?
• Whether the farm will have trees, shrubs, herbs or flowering plants?
• Whether the crops will be exotic such as vanilla or lavender or food used every day?
• If the farm will have a greenhouse or the plants will grow in the open?
• What will the farming method be- poly-cropping, vermicomposting, biodynamics, microbe culturing, water harvesting for soil conservation, or any other?
• Will the crops be further processed into food products such as sauces, jams, squashes, etc?
• Will starting the farm require any special education degree or certification, in order to acquire the knowledge and skill?
• Will organic products cater to a niche market or to a wider market?
• What will be the ways the farmer will carry out the marketing of the products?

These are just some of the questions that the entrepreneur must consider in order to have a clear vision and finite goals for the organic farming start-up. These questions will also help create a detailed business plan of the organic farming business. A business plan is a formal written document that acts as a road map which the entrepreneur can follow while actually starting the farm and running the business. This business plan outlines the business goals, the methods to be employed to complete these goals, along with the time frame, thus acting as the perfect starting point for setting up the organic farming business.

Decide The Site

The site for the farm is of utmost importance and must be chosen carefully. The location of the farm is detrimental to its success. 

First, the quality of the soil must be examined to check whether it is suitable to grow the desired crops. For instance, if the entrepreneur plans to cultivate flowering plants of exotic varieties the soil must be suitable for the plants to grow and produce yield. The soil condition is thus very vital to the business and must be checked first, while finalising the farm site.

Secondly, the farm must be close to a water source since water is an inevitable necessity to carry out farming. If a water source is not available close to the site, there must at least be a reliable irrigation system in place. 

Lastly, if possible, the farm must be close to the marketplace. This will help get the products to the market in less time. And also save on transportation needed to ferry the produce to the market along with the cost of fuel as well as transportation.

Alternatively, the soil condition of the site can be examined first keeping in mind its landscape, elevation, temperature and the available resources and then the type of crop that can be cultivated in this soil can be selected.

The site of the organic farm must thus be chosen wisely, taking various farming methods and requirements into consideration.

Study The Market

The entrepreneur must carry out market research to analyse the needs of the consumers. The entrepreneur can accordingly plan the production and marketing of the crops. In order to ensure that the business remains sustainable the entrepreneur must be aware of the audience it caters to. The market analysis can include understanding the agricultural needs of the market, along with its buying capacity and also how often does the market or consumer buy the specific produce cultivated by the entrepreneur. The market study will help the entrepreneur plan its products to be cultivated, and even provide an understanding regarding the popularity of certain organic produce and of the needs of the consumers.

While studying the market, the marketing plan to sell the products must also be decided. The farmer can sell the products either directly at a farmer’s market or bazaar or fair. Else, the farmer can supply the products to vendors who can sell them via their grocery stores or supermarkets or even through online grocery apps and websites. The farmer’s can even supply the organic products directly to the consumers as a direct door to door delivery marketing. The market analysis and the marketing plan are important factors to keep in mind while starting an organic farm.

Arrange The Funds

When learning how to start an organic farming business, entrepreneurs think of the farming methods, the land for starting the farm, the quality of the soil, the crops to be sown and all the details regarding the farm but one of the main factors that they miss out on is the financials to start an organic farm. New farmers will require capital investment, mostly in the form of loans, to purchase the land for the farm and also finance the procurement of equipment and infrastructure. The exact financial requirement for the business must be noted by taking into account all the necessities of the business, apart from purchasing the land and the equipment. These could include the salaries of helpers employed at the farm, the cost of maintaining the crops, the cost of the resources used for helping the crop grow, the cost of packaging of the produce, the cost of transporting the produce, the cost of marketing the business and the produce, and several other miscellaneous expenses.

The most common way of arranging for the funds is via a loan, which can either be from a bank or from a non banking financial institute. In order to apply for the loan, the entrepreneur/farmer needs to submit the necessary plans for the business and various documents which can be known by downloading the facilitation of funding list. The financials are an important criteria to factor in while starting an organic farming business.

Apart from these the organic farming business also requires certain certifications and permits to operate the business. Further the entrepreneur can even acquire specialised skills and undergo training to learn the various details of how to grow organic crops, such as learn how to make compost, learn about soil conservation, learn how to tend to the crops, learn how to grow seasonal crops, learn how to package the produce, etc. For any business related doubts, the entrepreneur can always visit deAsra to allow his agricultural dreams to bear fruit.