The cost of starting a new farm
Orlen Bates Jr., Zanesville, Ohio
We purchased a home with five acres of land. I plan to grow fruits and nuts, and I want to start the business off as an LLC. I will sell wholesale only. What risks are there selling to just one or two local stores?
I also see big startup costs, and I want to use cash only as I build the farm. Do we loan the money to the LLC? How long can I have write-offs before the IRS thinks I am not a real business?
What do you recommend? Leave a comment below with your answer.
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From Jeff, Kemp Texas I have done basically the same thing as Orien Bates, but I have 14 AC and 300 pecan trees. I have invested about 50K of my own money, and now need a SBL to buy processing equiptment to sell my product. What would be the best approach to the banker for a loan..?
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I would not look to a bank for a capital equipment loan. The depreciation on the equipment and industry would not appeal to an investment advisor at a bank. I would seek out government grants from the USDA or SBA for micro loans which are up to $50k or 7(a) loans which can be used for capital improvement. Also look for state sponsored loans. Banks at least right now are the last place to look. Hopefully that helps.