What Is a Microfarmer, Anyway?
The term “garden” indicates hobby-growing to me while “farm” and “ranch” refer to growing with the goal of making a profit. So, to my way of thinking, a large garden and a microfarm could be identical except for their purposes. A microfarmer does have a fair amount of land, usually between one-quarter of an acre and a maximum of five acres and is growing to make money, not just for a hobby or to feed the family. People who grow ginseng, cow milk for cheese, oysters, oyster mushrooms, superhot chile peppers, garlic, blue corn, killer bee honey, medical marijuana, or other surprising crops. These are the microfarmers.
If you’re seriously considering starting a microfarm, I have a few preliminary questions for you.
What are you trying to accomplish? If you’re thinking that a microfarm can support your entire family, you’d better change the plan to a macrofarm, because that’s unlikely to happen. It is better to think of microfarming as an enhancement to what income you already have, and that’s why I recommend it for retirees, people who work from home already (like writers), or entrepreneurs who will use the microfarm to supply the basic goods for food products they manufacture.
Do you have time to farm? No, this is not a trick question. Spread out over the entire growing season, I estimate that I spent two hours a day maintaining my microfarm in 2013. But since the summer days are long, many of those hours can happen before 9 a.m. or after 5 p.m., and you can always catch up on weekends if you have a real job.
What do you like to grow, or want to grow? My father taught me how to grow tomatoes more than sixty years ago, and I’m still doing it. It’s a crop I love to grow and I’m good at it, so it made sense for me to experiment with tomatoes first. Or, there could be a crop out there that you’ve always wanted to grow, like mushrooms or medical marijuana. My point here is that you have to be motivated by growing something you like and have the desire to grow it, and grow it well.
What is your skill/knowledge level? This book is not a guide to growing microfarm crops, but rather a guide to help you decide whether or not to farm, and if you decide to do it, helping you formulate a plan of action. Experience is always helpful, but it is not necessary. For example, Leo Lascaux, whose story is in Part 2, had never grown any plant before in his life. Yet he made a profit his first year of growing medical marijuana, and it was a significant one.
What do you know about running a business? This is actually more important than having gardening skills, because a microfarm is a business, not a garden. If you’ve never been an entrepreneur before, there are many books and courses on the subject. This is a microfarm-specific guide, so I recommend that you find a basic book on entrepreneurship and study it. Check out the last part of this book, Suggested Reading.
Where would you grow your microfarm crops? Unless you’re growing medical marijuana, your microfarm does not have to be on your own property. Fields and farms are often leased to other growers, and many arrangements of that nature can be made. There are some greenhouse operators who shut down greenhouses during the winter because they don’t grow crops or bedding plants in them, and if you can convince the owner that you can handle the tasks and pay the lease fee, you’ll have expanded your microfarm dramatically into the winter months. Also, many cities and towns have community garden plots available for rent, although you may have to drive to them on a daily basis to care for your crops.
Are you physically fit for gardening? Although gardening and microfarming don’t necessarily involve backbreaking labor, you have to be fit enough to lug around sacks of manure and potting soil, move some large pots with a hand truck, chop weeds sometimes, dig holes, mix and rake the garden after rototilling, and that sort of labor. If you suffer from any ailments that would prevent this work, you should think of another project or find a worker bee to help you.
Do you mind doing manual labor or repetitive tasks? In the sun? Some people find gardening work boring and just can’t keep their focus on it. I think of it as exercise outdoors that will result in either cash or delicious meals or both, and don’t even worry about the repetitive labor. Besides, there’s always a bunch of things that need work on a microfarm, so water for a while, then harvest some tomatoes, check for weeds, water some more. Vary your tasks and give yourself rewards along the way—take a break for a beer, for example. Get all of your tasks done early, like before 9 a.m., and the sun will not be a problem.
Writing a Simple Business Plan
The purpose of writing a business plan is to formalize your ideas for a business by getting organized. If you are seeking financing or business partners, a written plan is a great start. By showing your plan to business people—like bankers, lawyers, and other business owners—you will receive valuable feedback and sometimes good advice. Business plans are not set in stone and you will be amazed to look back at your plan after concluding the first year of your microfarm and see how much it’s already changed. Over time you will amend and revise your business plan because you cannot predict the future with perfect success. Here are eight steps outlining how to write a plan. Be succinct and keep the plan short and to the point.
1. The Plan. Outline the overall plan for your business. Specify what you are creating and write down what you think your business will be like in one, three, and five years.
2. The Mission. State why you are starting this business and what its purpose is.
3. The Goals. List your most important business goals and state how you will measure your success in achieving those goals.
4. The Strategies. Specify how you are going to build this business. Define what you will be selling and what your unique selling proposition is. In other words, what makes your business different from the competition?
5. The Funding. Estimate and break down the startup capital you will need to launch your business and state the source(s) of your funding.
6. The Expenses. Estimate your microfarm’s monthly ongoing expenses upon launch, in three months, six months, and a year.
7. The Income. Estimate your microfarm’s ongoing monthly income upon launch, in three months, six months, and a year.
8. The Action. Outline the actions you need to take now to get started. Set a number of future milestones, like what you hope to achieve in three months, six months, and a year. Then specify what actions you need to take to accomplish those milestones.
Remember to review and revise your plan periodically during your first year in business.
Determining Your Business Structure
It is important to examine the possible structures of your microfarm in order to decide which is best suited to you and your family. Pick the simplest structure that provides the most protection from risk. You should discuss these options with your attorney or other business advisors, like your accountant.
Sole Proprietorship
Definition: This is the simplest and one of the most common structures. The business, even with a trade name, is an extension of you. You own it, you run it, you receive all the income and are personally responsible for the debts, losses, and liabilities. Freelance writing is a good example of a sole proprietorship.