Farming is an ever-changing business, and sometimes people need to follow an non-traditional path to find success.
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Alpaca farmer Janie Forrest knows this first-hand, and shared her advice on how to start an alternative farming business at a Bowral Co-op workshop.
She said the Highlands was a relatively drought-proof area, and thus provided many opportunities for experimentation.
“This area attracts a lot of organic farming, retirees, people hunting for sustainable living and people wanting to escape the rat race to live in a healthy environment,” she said.
“In this area there are people farming in olives, viticulture, truffles, nuts, lavender, goats, cattle, sheep, alpacas – it goes on.”
She explained farming is a business, and people needed to consider income streams that could be viable with a product.
“Using alpacas as an example, we could gain income from stud stock, fleece, meat, genetics, herd guardians, companion animals and international exports,” she said.
When heading into a new field of farming, Ms Forrest suggested people:
- Identify respected industry mentors
- Explore local knowledge, resources and businesses
- Join a peak industry body
- Go to field days and agriculture shows
- Research on the internet
- Gain accounting and taxation advice
“Every farmer needs to be an entrepreneur, salesperson, agronomist, stud master, vet, economist, meteorologist, banker, accountant, business manager and possibly an international trader,” Ms Forrest said.
“If you’re going into this field as a business, it’s not easy, it is just as much work as any other business.”
She said knowing why you were entering farming was important, be it for business, profit, fun or a hobby.
“Regardless of what you want to do with your parcel of land, you need to know what you’re doing it for, examine your objectives,” she said.
She also shared these reasons why farms fail:
- No business plan
- Underfunded
- No operating goals
- Failure to benchmark
- Poor cash flow management
- Lack of industry and customer understanding
- Poor differentiation
- Poor market targeting
- Underestimating the competition
- Not cost competitive
Overall, Ms Forrest’s advice was to think creatively and be brave.
“Be prepared to take risks and, if you stumble, you can try again,” she said.
“You’ve got to be prepared to give it a go.”