Another important decision to make would be what type of equipment you will need for your farm. If you do not already have access to any equipment, this can quickly become a very expensive investment. You may need to look at buying the bare minimum equipment at first, while hiring someone else to complete other tasks for you, such as planting and spraying grain crops. Another option that may be beneficial would be leasing equipment instead of buying all of it.

There are many other critical decisions that need to be made before you decide to farm your newly purchased land. Finding the right lender and tax accountant for your operation is extremely important. There are all types of lending institutions, but you need to find one that is very familiar with agriculture because they may not understand your needs if they are not familiar with it. This is the same story with accountants. There are some very specific tax rules that farmers have to deal with that other businesses do not. Finding a tax accountant that is familiar with those rules can sometimes save some costly tax errors. Nobody likes paying taxes, but you could cause yourself to pay a lot higher tax bill if you choose an accountant who is not familiar with farming.

One final, often overlooked, decision you need to make is one involving record keeping. This is an area that many farmers fail in because they do not like “doing bookwork”. Without proper records, you will not be able to determine what type of profit, if any, the farm is making. This may also cause problems when trying to get financing or tax preparation because it will take the lender and accountant a lot more time on your operation if you do not provide them with proper records. There are many different accounting software products available for personal use. You just need to decide which one best fits your needs and then actually use it the way it is intended to be used.

Regardless of your situation, it is extremely important to examine these decisions among many others before you decide whether you want to farm. It is also very important to seek advice from others that have more knowledge on a topic than you may have. You may also consider developing a written business plan. There are business advisory centers, like the Kentucky Center for Ag and Rural Development (KCARD) that can help you create a business plan. Your local extension agent is also a wealth of knowledge, can help you narrow down potential enterprise options and point you toward numerous resources through the UK Cooperative Extension Service.