Designing Your Business
Start with a small farm and a handful of cows at first. Most farmers start off with 2 to 5 cows. They may not have the money or experience to handle more. Focus on getting a few healthy cows, then turning them into profit so you are able to afford more. Sell your products at a local level to get started. Keeping only a few cows means your land won’t be overwhelmed. Cows take up a lot of space and may eat pastures to ruin if you aren’t careful. If you have the money and experience, starting with a whole herd is possible, but be careful. Make sure you have barn and pasture space.
Choose beef ranching for a lower-maintenance cattle farm. A beef farm is much more flexible than a dairy farm. Cattle ranchers sell cows once or twice a year, usually in the fall. They spend the rest of the time tending to their herd, ensuring that the cows grow strong and muscular. Beef ranchers tend to rely on public lands or good pastures. To have a healthy herd, you need plenty of land space. The cows roam around and forage a lot. The overhead cost to start up is comparatively low besides purchasing land. You may not be able to find good grasslands in some areas, while the beef market may be competitive in others.
Start a dairy farm for a more intensive but constant product. Dairy farmers need to be very diligent to ensure their cows produce as much milk as possible. Dairy cows require a specific diet filled with nutrients, which makes them costlier to raise. They have to be fed and milked at the same time every day, but the result is that good cows produce milk year round. The startup costs are greater in dairy farming than beef farming. Dairy farms need extra equipment, such as stanchions and milking machines. The cows require quality hay. To get the cows to produce milk, you may wish to keep a bull around. Bulls are a little trickier to handle safely. If you don’t want bulls, use artificial insemination, then sell male calves for extra profit.
Raise calves for a unique farm that may fill a local need. Calving farms are useful, but most farmers don’t recognize the opportunity to sell calves. It is somewhat similar to dairy farming, except without the need for milking equipment. You raise the calves either as veal or sell them to other people, from other farmers to show clubs like 4-H. You need a separate calving bard and also have to consider keeping a bull or using artificial insemination. Calves are quick profit because you don’t need to wait for them to grow up. Don't sell all of your calves, though. Keep a few for your farm.
Aim on having plenty of pasture space for your cows to roam. Each cow needs about 1 ⁄2 to 2 acres (0.61 to 0.81 ha) of pasture space per cow calf pair. This amount of space provides enough roughage for a year. Most farmers are able to keep multiple cows on a single pasture if they’re careful. If you leave too many cows in a pasture, they eat all of the grass. To prevent this, farmers rotate the cows to different fields. As long as you’re careful not to strain your resources, your fields will continue to produce roughage.
Completing Required Legal Documents
Make a business plan. Take time to outline how your business will operate. Go into as much detail as possible about your strengths, weaknesses, opportunities in the cattle industry, and possible threats your business will face. Also, include relevant information like what kind of farm you will operate, what kind of cows you want, how much money you need to operate, and who you will sell your products to. Refer back to your plan when you need to refocus on your goals or deal with problems. Keep in mind that all businesses start small. A cattle farm requires a lot of initial investment before you begin making money. Focus on proving how you plan on opening a sustainable business first, then how you intend on growing it.
Register your business name with the government. Speak with your government’s trademark and business office to fill out the required applications. Registering your business not only protects your brand, but it enables you to choose a structure for it. You usually need to go to your state government for this. Check their website for an electronic application. Structuring your business as a sole proprietorship often saves you tax expenses, but you are liable for all debts, even if your business fails. A partnership is similar to a sole proprietorship, except you share costs with another investor. Consider bringing in a partner that provides additional start-up money or farming knowledge. Starting a limited liability corporation means more taxes, but you aren’t personally liable for your business debts.
Apply for a tax ID number with your government’s tax agency. Go to the nearest agency office or access an online application on the government’s website. The application is short and simple. You need to describe what your cattle farm does and how you set up your company. The tax ID number allows you to legally hire employees, if you need them. After you receive your tax ID number, be sure to submit a copy to your local or state government. They usually need it as well.
Get a business license and any permits needed. You will need to apply for a small business license at the nearest county clerk’s office. On the application, you outline what your cattle farm does and how it operates, including the number of employees you will have. Have your tax ID number with you, pay the processing fee, then wait up to a month to receive your official certification. You may need to apply for a federal license if you transport animals across state lines. In the U.S., you do this on the Department of Agriculture’s website. Use your business license to fill out zoning and other permits required to operate a business. The exact forms you need differ from place to place, but you usually do not need a federal permit. Look for small business organizations such as the Small Business Administration in the U.S. They will help you get your business up and running.
Choosing a Farm Location
Obtain loans and other financing so you can pay for your farm. This depends on how much money you need to open. Starting a cattle farm gets pricey, so most people need help. If you wrote a business plan, you will know how much money you have available to get land and supply your farm. Borrow responsibly from people you know, lenders, or banks. Speak with agricultural and small business organizations. Many of them can direct you to more reasonable loans than what you would get from banks. Bring your business plan with you. It increases your chances of getting a loan. Remember to start small to avoid overspending. Many farmers continue doing other work until business picks up.
Search for land that is up for rent or sale. Unless you have a decent amount of savings, you will need to invest in a down payment, loan, or mortgage to obtain the land you wish to buy. It’s important not to overspend when you’re starting out. Keep your expectations modest at first and make sure the land is sustainable before you purchase it. Land prices increase in areas of high population or high demand. Compare land prices across different areas and keep an eye on how many cattle farms are in each place. To save money, try buying an existing farm. Many places already have facilities and fencing laid out for cattle, which saves you some of the work needed to convert the land. Another option for beginning a farm is to rent someone else’s land. You may be able to find landowners who can’t farm the land themselves or aren’t willing to.
Choose farmland with enough pasture space to feed your cattle. Find a stretch of land thick with grass where you are able to create pastures and build housing for your cattle. Bigger areas with better soil will sustain your farm as you expand it over time, but you may not be able to afford them without a loan. Plan on needing about 1 ⁄2 to 2 acres (0.61 to 0.81 ha) of pasture space per cow calf pair per year. Factors such as climate, seasonal variances, local cattle markets, regional vegetation, and topography differ from place to place. These all affect your farm, so select your location carefully. The amount of pasture space you need may vary. Fit more cows onto limited space by providing more hay. Rotate pastures frequently to prevent overgrazing.
Contact an extension office for information about land before buying it. Many areas have agricultural extension offices that help people begin and maintain a farm. Ask them any questions you have. In particular, find out how the land was used previously, what type of soil is in place, and what vegetation grows naturally there. They will also be able to tell you about the demands of the local cattle market. Find out if the land is suitable for a pasture or a range. Rangelands have natural vegetation for grazing animals like cattle. Pastures require seeding, irrigation, and mowing to be sustainable. Speak with your neighbors as well. Many farmers are open to visitors. Even commercial farms have open days for the public. These people often know the land better than anyone and will provide a lot of useful information about beginning a farm.
Building Your Farm
Select cattle breeds to raise when starting your farm. There are over 100 breeds of cattle in the world, and all of them are different. For the greatest chance of success, choose breeds according to the goals of your farm or ranch, not what you like or are willing to work with. Find out which cows are commonly available in your area, since they will be cheaper and easier to raise than other breeds. If you are into beef production, start with a docile breed. Herefords, Red Polls, Shorthorns, Galloways, and British Whites are some examples. Black Angus cattle are a popular source of beef, but they are a little tricky for beginners. Angus bulls are known to be more aggressive than those from other breeds, so be careful. For dairy production, the most popular breeds are Holstein, Jersey, Brown Swiss, Guernsey, and Ayrshire. Jersey cows are the most versatile breed. They are often used for both beef and dairy as well as for breeding calves.
Purchase healthy cows to stock your farm. Don’t go whole-hog and buy as many cows as you can stock on your property! Seek out a few quality cows that are right for your farm’s purpose. Look for ones with great conformation, which means a proper skeletal and muscular structure. Also, factor in the cow’s age, temperament, and overall health. Heifers are an option if you don’t mind waiting 2 or more years to produce calves for sale. You may also be able to buy a bred cow with their previous calf to get a return on your investment right away. You do not need to get a bull unless you do not wish to use artificial insemination. If you choose to keep a bull, wait until you have 10 or more cows.
Build barns and other facilities needed for your cows. No matter what kind of farm you start, you need a good barn to keep your cows when they’re not out to pasture. For calves, you have to have a calf barn and a calving facility. If you’re beginning a dairy farm, you will also need a milking parlor with stanchions. Beef cattle don’t require much in the way of extra facilities beyond well-supplied barns.
Install water sources for your cows. You need plenty of clean water to keep your cows hydrated and your pastures green. Install irrigation systems as needed to compensate for dry environments. For your cows, have water troughs available. Make sure you are able to reach them with a hose, refilling them when necessary. Having ponds or reservoirs on your property also helps. Depending on the land you start on, you may need to install plumbing or irrigation systems. Hire a contractor to direct water to your fields and barns.
Plant grass and alfalfa to use as a food source. Cows eat a lot of food per day, so you need a constant supply of it. Hay is most of their diet, but they also benefit from foods like corn and grains that provide more protein. The easiest way to do this is to make hay by seeding a pasture with grass and alfalfa. Harvest it with a hay baler. You may need to buy hay or other feed, especially during the winter. This gets pricey, so you will be better off if you have good pastures. Cows graze for food, but they may destroy your fields if you’re not careful. You do this by moving the cows to different pastures every day so they graze each field lightly.
Set up fences to keep your cows in the pastures. Cattle can easily destroy fences, so hire a professional as needed to get good barriers. Fence posts need to be about 16 ⁄2 in (42 cm) apart. Connect them with electrified, high tensile wires. Use the fences on your farm’s perimeter and any areas you wish to protect so the cattle can’t reach them. Confining your cattle ensures they can’t wander off your farm. It also prevents them from getting into pastures and destroying them by overgrazing..
Managing Your Farm
Get in touch with a nutritionist, veterinarian, and other professionals. These people will help your cattle farm succeed. A good nutritionist and veterinarian keep your cows healthy. Calves need annual vaccinations starting right after they are born. A nutritionist will help you get the right food. Maintain good relationships with these people to increase your chances of success! Some other people to think about are your buyers and suppliers. Have a guy that sells you feed, for instance. Get friendly with anyone you sell to. You all benefit by working with one another, so they may be able to help you during tough times. Avoid neglecting your neighbors, farming organizations, or similar groups. They can all provide support and resources for your new farm.
Create a waste management and compost plan for cow manure. Manure is a great way to put nutrients back into your pastures. You’re going to have plenty of it, so you might as well find a use for it. Unfortunately, you can’t let the manure drop anywhere, because it has parasites that taints pastures. You have to shovel it into a box, then keep it warm, moist, and mixed for several month until it turns into a potent fertilizer. If you don’t wish to make your own compost, have a disposal plan for throwing away the manure. Check your local laws. Some areas have regulations on what you can do with the manure
Set up record keeping books covering your cows and finances. A crucial part of staying in business is tracking your farm properly. The financial records are the most important. Keep a running tally of how much money you have available, your purchases, sales, and any assets you exchange. Creating additional records for your animals also helps you stay engaged with your operations. For example, keep health records for your animals. Use the records to remind yourself when the cows need vaccinations or are calving. Proper documentation may help you identify health problems before they get serious. In some countries, having records for all of your animals is mandatory. You may need to get a radio frequency tag for each animal bought, sold, or born on your farm.
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