When you consider starting a farm, your farm finances are important to plan out and track. Keeping track of fixed expenses – such as seeds, water, power, fertilizer, & equipment costs – are a good way to know what you plan on spending in the future. It is also important to keep track of variable expenses – employment, maintenance, marketing – too. These should be adjusted when a change happens so that it is not forgotten later. It is always best to overestimate the costs to avoid running out of funds at an important moment. You will also want to think about insurance on the crops, the farm, or vehicles. Additionally, fuel is another expense you will want to plan into your finances.
Another thing to keep in mind is that there are government grants and loans that can help you out. Check out our ‘4 Things to Consider when Financially Planning for a Small Farm’ blog post to learn more about some grants and loans that the government offers.
FarmBee takes into account these finances in the steps to setup an account. There is a labor section and planned expenses section that help you think about what sort of money you will be spending – and can be as detailed or broad as you would like it.