From Crops to Capital: Training New Farmers in Business Basics

UConn Extension provides new and beginning farmers with resources to ensure their businesses grow and thrive

Woman farming sunflowers

Brown Farm, Scotland, Connecticut. (Contributed photo)

Managing a business is difficult, with statistics showing that approximately 20% close after the first year. Staying viable as a new farm is just as challenging.

In Connecticut, new and beginning farmers identified a need for more business training, and UConn Extension is filling that void with its Business of Farming course, a short, hybrid, fee-based course with modules on everything from business plans to balance sheets.

The program is part of the Solid Ground Beginning Farmer Training Program, funded through a USDA Beginning Farmer and Rancher Development Program grant.

“We really wanted to give farmers an awareness of the things that they need to know to operate a farm business in Connecticut,” explains Robert Chang, program co-director.

The course is geared toward farmers with zero to three years of experience. Chang, who owns Echo Farm in Woodstock, is also an alum of the Solid Ground program. Although he now has over ten years of farming experience, he attributes much of his success to what he learned through UConn Extension and other educational opportunities.

“When I had the opportunity to collaborate on this project, I was thrilled to be able to give back to the community what I received from Extension.”

Managing a Farm Business

Farmers in their first three years spend a lot of time figuring out crop production systems — what they can grow and how to do it well. It is an exciting time, but to stay in business, they must be equally good at managing the business side of farming. Many are small operations or solo entrepreneurs without staff, and they face challenges with legal issues, sales, marketing, accounting, insurance, and financial management.

“As farmers, we have to be honest, we’re really good at growing,” Chang says. “We’d rather be out in the field than inside in front of our computers. So, I think it’s really important for the Solid Ground training program to give farmers awareness of all these issues that they simply cannot ignore. We show farmers what that map looks like of all the things they’ve got to figure out, either themselves or get someone to help them figure out or handle if you want to stay in business.”

Land access is one of the biggest hurdles new and beginning farmers face. Connecticut has some of the most expensive land prices in the country, and development adds further pressure. Financial investments are another obstacle, with infrastructure, equipment, and labor costs stacking up quickly on a new farm.

Having a solid business plan helps when meeting with lenders or investors, and the Business of Farming course gives participants the tools to understand challenges, calculate realistic costs, and build plans that set them up for success. Classes cover topics such as sales and marketing, tax management, and financial planning, and include lively discussions among participants and instructors.

“Most folks interested in farming are aware that it’s going to be challenging to succeed on the production side, given how hard it is to find suitable land, access to capital, plus the threat of climate and weather-related risks. For this reason, they often focus heavily on building their production skills and converting land into agriculture use, without realizing they also need to build their business management skills just as quickly.  We aim to help them see the outline of business matters that should concern them from the outset and let them know there are lots of people and resources to help,” says Jiff Martin, senior extension educator and co-director of the Solid Ground Program.

Planting the Seeds of Success

The course is offered each winter, when production slows down. It runs over two months in a hybrid format with both online modules and in-person sessions. Participants receive course packets with presentation slides and contact information for all instructors to use as a resource after the program ends. Office hours throughout the course offer additional support.

Instructors include UConn Extension professionals, staff from the Connecticut Department of Agriculture, Farm Credit East, USDA, and others. The New Connecticut Farmer Alliance is also a partner, and their input has helped refine the course based on the needs of beginning farmers.

To date, 60 farmers have completed the course, representing a wide range of operations — from larger farms with more than 50 acres growing tobacco, hay, or beef cattle, to smaller diversified vegetable farms. Many participants also take advantage of UConn Extension’s one-on-one technical assistance services after the class ends.

“If there’s one singular message that I want students to take away from the training, it is that yes, there are a lot of things that are really important that they’ve got to figure out and manage as a business owner. But they don’t have to do that by themselves. In a state like Connecticut, there is Extension, the Department of Agriculture, USDA, and others available to assist them,” Chang explains.

Participants also gain access to Extension specialists in fruit, vegetables, and livestock production, and to the research from the College of Agriculture, Health and Natural Resources (CAHNR).

“As Extension professionals, there is no meter running, it’s not like hiring a lawyer or an accountant. We’re willing to come out to your farm and walk with you in the fields, see what is going on, and help you along the way. That’s a tremendous resource. Through Extension, there’s a whole college here available to help farmers,” Martin adds.

Harvesting the Benefits

Over the next decade, Connecticut agriculture will continue facing pressure from farmland loss, rising land costs, and farmer retirements. But there is also enormous opportunity as a new generation steps up to start farms or take over existing operations, says Chang.

“What seems really exciting about Connecticut is there’s this sizable group of new young people who are really interested in making a career out of farming, and that’s truly exciting and hopeful for the industry.”

This project is supported by USDA-National Institute of Food and Agriculture, Award 2023-49400-40870