Building a Future From the Ground Up

Becoming a first-generation farmer is no small feat. You’re stepping into agriculture without a family legacy to lean on—but you bring passion, vision, and determination. That’s powerful. However, strong farm management strategies are essential to turn your startup farm into a sustainable business.

This guide is designed specifically for new and beginning farmers who are learning how to manage land, finances, risk, and growth—often all at once. Whether you’re in Iowa, Missouri, Illinois, or Nebraska, these insights can help you build confidence and profitability.

Step 1: Start With a Solid Farm Business Plan

Planning is your power tool. Whether you’re farming 50 acres or 500, your business plan should answer:

• What will you grow or raise?
• What are your input costs and revenue goals?
• What equipment do you need?
• How will you fund your startup phase?

💡 Pro Tip:

Use USDA’s Farm Business Planning Tools or work with a local FSA office to access templates and planning support.

Step 2: Understand and Manage Your Risk

Risk is part of every farm—but it doesn’t have to control your future. First-time farmers often underestimate the impact that one bad season can have. That’s where risk management strategies come in.

Core Risk Areas:

• Weather: Drought, hail, excess rain, etc.
• Market Volatility: Price swings and poor basis
• Input Costs: Fertilizer, seed, fuel, and labor
• Equipment Failure or Theft

Risk Management Tools:

• Crop Insurance: MPCI, Crop-Hail, and WFRP policies protect your revenue and yield.
• Livestock Insurance: Margin and mortality coverage if you're raising animals.
• Marketing Contracts & Diversification

Step 3: Leverage Beginning Farmer Resources

The USDA and many states offer programs built for new and beginning farmers, including:

• FSA Loans(Operating, Ownership, Microloans)
• EQIP and CSP Grants for conservation and soil improvement
• Beginning Farmer and Rancher Development Program (BFRDP)
• Premium Discounts on crop insurance policies

These tools exist to level the playing field for farmers who are starting from scratch—use them!

Step 4: Get Serious About Recordkeeping

Good records are the foundation of good decisions. They help with:

• Filing taxes
• Getting approved for loans
• Planning next year’s input costs
• Tracking insurance claims

What to Track:

• Crop yields
• Input costs and sales
• Equipment usage and maintenance
• Labor hours
• Marketing outcomes

Consider using farm management software or even simple spreadsheets to get started.

Step 5: Think Like a Marketer, Not Just a Producer

You don’t just grow food—you sell it. And smart marketing is what sets sustainable farms apart from struggling ones.

Basics of Farm Marketing:

• Understand Basis and Futures Pricing if you’re growing row crops.
• Explore Alternative Channels: CSAs, direct-to-consumer, co-ops.
• Know Your Breakeven Point to avoid underselling.
• Develop a Marketing Plan before harvest.

At AgriPeril, we offer grain marketing guidance to help you move beyond elevator bids and into strategic selling.

Step 6: Surround Yourself With Knowledgeable Support

You don’t have to figure everything out alone. Tap into:

• Local Extension Offices
• Mentorship from experienced producers
• Online beginning farmer networks
• Advisors like AgriPeril who specialize in insurance, planning, and marketing for new farmers

Final Thoughts: Lay the Groundwork for a Resilient Future

First-generation farming is one of the most challenging paths in agriculture—but also one of the most rewarding. By developing strong farm management habits early, you’re not just growing crops or raising livestock. You’re building a legacy.

Ready to Take the Next Step?

Let AgriPeril help you align your insurance, strategy, and planning for a smarter first season. 📞 515-570-8547