Between the costs of buying or renting land to purchasing vital crop inputs, starting a farming business can be a complicated and expensive process. However, non-profit group Practical Farmers of Iowa (PFI) is making starting a farming business in the Midwest a little easier with its annual savings incentive program (SIP), which provides financial and business support for new growers.
Started in 2010, SIP provides mentorship, business support, and educational resources to farmers as part of a 24-month program. On completion of SIP, a farmer will receive a dollar-to-dollar match on money saved up to $4,000 to be used for capital farm investment, Amber Mohr, business development manager at PFI, told AgNavigator.
Farmers interested in learning more about the program and applying for next year’s SIP, can learn more here. Farmers need to reside in Iowa or one of adjourning states and must be PFI members to participate in the program.
Through her role within PFI’s farm viability department, Mohr is crucail to supporting and delivering the savings program, but she also graduated from the program in 2017. Having launched as a farmer-first organization, PFI prides itself on peer-to-peer networking and fostering learnings and connections through SPI and other programs, she noted.
“Being involved and enrolled in the SIP program is not only access to all this education, networking, and of course, capital investment, but you’re going to be in a cohort of your peers,” Mohr said. “When you’re still farming 30 years down the road, you’re still going to be checking in on each other.”
Owner of beekeeping and flower farm Hive & Petal in Prairie City, Iowa, and SIP participant, Catherine Schut, echoed these remarks, saying in a press release, “This program has been invaluable in helping me think of my farm as a business — choosing the right scope and focus, making smart investments and operating lean and efficiently. Just as importantly, SIP has connected me with other beginning farmers, mentors and a community of people who have faced similar challenges.”
Farming 101: Securing land, building diverse revenue streams
When it comes to actually creating a farming business, newer farmers must overcome a host of challenges, from buying or renting land to building a resilient business model, which often requires different revenue streams, Mohr explained.
The fall season means that many Midwest farmers are opening up their farms through pumpkin patches, farm tours, and other seasonal activities. Diversifying revenues streams and crops is crucial to the overall success of a farming business, Mohr noted.
“Diversity is sometimes your only crop insurance,” she emphasized.
Securing land access is a key barrier to a new farmer as they often have to compete against bigger operations, Mohr noted. PFI helps growers find land through a land access navigator and its land transition services, she said.
“Many real estate transactions in Iowa are arm’s length. … You got to get your name in there early because that land is getting snatched up very quickly, so access is an even bigger issue,” she added.
