Frequently Asked Questions
Researching your new agricultural business
Before you start researching for your new agricultural business, think about your information sources. There is an immense amount of information out there, and especially when we use the internet, not all information is reliable. One important distinction to consider is the difference between primary and secondary information. Primary information is either research you yourself do or research written by the person or entity that did the study. Publication in a peer-reviewed journal increases the credibility of the information. This means that other experts in that field have examined the research and agree with the methods and conclusions. For example, we get a lot of background information on agricultural trends from the National Agricultural Statistics Service and production information from University scientists.
Secondary research involves looking at information that has been reviewed and interpreted by another individual. This information is often easier to read and more concise. But, keep in mind, the person who read the original research may interpret the research according to their biases. For example, newspapers such as Lancaster Farming can be excellent sources of secondary information.
When you are doing an Internet search there are a few easy ways to filter your information. (1) For production related information, add “Cooperative Extension” or “Penn State” to your search terms. This will not only get you researched-based information, it will also help you keep the information local and relevant. When you look at a website consider whether it is a (.org), (.edu) or a (.com). In general, (.org) designates a non-profit, (.edu) designates a university. In contrast, (.com) usually designates a business that is more likely to have a stake in convincing you of their information.
Before you start to research, focus on your question. There is an immense amount of information out there. It is easy to get lost as you find more and more information. Write down your question and think carefully about where you might find the answer before you jump on the Internet or the phone.
Researching laws and regulations for your product or service -
Often a good place to start your legal/regulatory search is your local township office. Give them a call and see what rules apply to your area or the product that you hope to purvey. Talking to neighboring farmers can also be very helpful. They may already have dealt with your local inspectors and know what issues may come up later.
There are a number of resources where you can search for regulations related to your product or service. The Pennsylvania Department of Agriculture has a search tool which is generally easy to use. For example, I searched for raw milk regulations and found their guidance document. Pennsylvania Farm Bureau has fact sheets under farmer resources on labor laws and farm vehicle codes. PA Code is the official source for Pennsylvania legislative code.
Producer organizations will often list regulations that are pertinent to that industry. For example the Pennsylvania State Beekeepers Association has the “Bee Law” posted on their website, as well as a more reader-friendly summary.
Penn State Extension educators will sometimes provide summaries of important rules and regulations. For example John Berry, Penn State Agricultural Marketing Educator, has summarized many meat processing regulations in the “Farmers Guide to Processing and Selling Meat or Poultry”.
How much paperwork will my product require? Registration and Licensing –
The Pennsylvania Department of Agriculture offers a list of registrations required in Pennsylvania.
If you are considering organic production, Pennsylvania Certified Organic offers an overview of certification requirements. Keep in mind that you will always have to ask your certifier about individual practices.
How much work will it take to produce my product?
Penn State Extension production guides for agronomic, fruit, berry and vegetable crops provide a comprehensive resource describing the soil management, seeding, irrigation and pest management requirements of individual crops. Even if you plan to use organic practices, these guides are very helpful to give you a basic overview of what you may encounter. Cornell recently produced a set of organic production guides. They are not available for every crop, but are available for some vegetables and fruits.
Penn State Extension and producer newsletters cover current considerations for many production areas. Subscribing to these newsletters before you begin production will give you a preview of what may be in store for you.
Experience is the best teacher. Working or volunteering on another farm is still, by far, the best way to learn what is required to raise a crop and livestock.
How much will it cost to raise or produce my product?
In order to compare the cost of production for a number of possible enterprises, it is useful to complete an enterprise budget. If you are not familiar with enterprise budgets, an excellent place to look for help is Agriculture Alternatives, a service of Penn State University. They provide sample budgets for a wide range of products. It is important to use these sample budgets as a template and insert your own costs of production which are likely to be different than those entered in their samples.
How can I finance my operation?
Pennsylvania Association for Sustainable Agriculture lists grant and loan opportunities.
Conservation Districts and the Natural Resources Conservation Service offer cost share programs that may help you pay for fencing, integrated pest management, and other conservation efforts. Find your local conservation office by visiting the Pennsylvania Association of Conservation Districts or contacting them at 717-238-7223. They can give you the most up-to-date information on cost shares and conservation opportunities available in your county. In Lehigh County, the local NRCS office is in Bethlehem. Contact Peter Zakanycz, 610-625-8382, ext 3.
The Farm Service Agency operates several farm loan programs.
The Northeast Sustainable Agriculture Research and Education program offers grants for farmers interested in testing new ideas and farm techniques.
Alternative Farming Systems Information Center (AFSIC) has an index of federal grant and loan programs for agriculture and rural development. It is titled “Building Better Rural Places”.
The National Congress for Community Economic Development can help you locate community based organizations such as Community Development Corporations in the area you plan to farm. These local organizations often have financing programs for small businesses.
Contact your local financial institutions about mortgages and commercial loans. In our area a few that work more often with farmers are:
- Ag Choice Farm Credit - 717-796-9372
- MidAtlantic Farm Credit - 800-477-9947
- Agfirst Farm Credit Bank - 800-845-1745 -
Case studies can be a great way to see how other farmers found innovative ways to acquire the start-up costs for their farms. One place to listen to farmers tell their stories online is Cornell’s “Voices of Experience Videos” as part of their Beginning Farmer Program.
How do I find the most appropriate market strategy for my operation?
Doing your own research is often necessary. When you are starting out, it is often best to limit the depth of research that you do. Try to focus on who your customers might be, how much you think you can produce, how much you think you can sell, and what is the revenue potential.
Case studies can be a great way to get ideas about potential marketing strategies. Remember to evaluate whether the strategy that works in the case study fits your goals, comfort with risk, personal and family constraints. A number of websites list case studies including Penn State Ag Marketing.
Direct Marketing - ATTRA overviews direct marketing with a section on market research and developing a marketing plan.
Organic Marketing Resources - ATTRA also offers a Resource list of publications, websites and organizations about the marketing of organic products and organic market resources.
"Growing for Market" - Magazine for small growers, with monthly wholesale price reports on herbs and cut flowers, along with articles on market gardening. There are many articles on legal, liability and management issues.
