Des Moines, Iowa: While there are a number of diverse barriers to entry that new farmers face, three challenges stand out as the most common obstacles to getting started in agriculture.
1. Land Access: “Whose Got Land Anyway?”
The first thing any beginning farmer needs to get started also happens to be the biggest barrier to entry: land. According to the 2022 National Young Farmer Survey, access to land is the biggest challenge for young farmers.
As a result, many beginning farmers are forced to lease land to get started. Although this can create an affordable entryway into agriculture, leases lack stability and certainty. Banks may not be willing to finance a burgeoning operation without a guaranteed land base for at least the beginning of the loan period. With a short-term lease, there are disincentives to setting up the necessary infrastructure and improvements on leased acreage without any guarantee of recouping set-up costs.
The best way to combat the land-access situation is to seek the longest-term lease possible and to cultivate a strong rapport with the landlord. Working with landlords can be challenging, especially if the landlord does not understand agriculture or doubts a young farmer’s acumen. It is crucial to always get a lease arrangement in writing and to include terms that will protect the tenant—like when and how the lease can be terminated and which farming practices will be explicitly allowed. Several online resources provide example farm-lease contracts that hopeful tenants can modify to their specific needs.
Networking can help open doors to lease opportunities that are not advertised on public forums. Many aging farmers are seeking beginners to help manage their property as they shift toward retirement or face prohibitive health problems.
2. Student Loan Debt Can Make Financing Impossible
Next to land access, student loan debt puts a massive financial obstacle between aspiring farmers and setting up their operations. Forbes reports over half of students in the U.S. leave school with debt and, as of 2024, owe a collective $1.75 trillion. This can make it difficult to obtain financing, or it can discourage someone from leaving a steady paycheck to make a living as a producer.
Although the USDA offers beginning farmer loan programs that provide preferential treatment and favorable terms—like down-payment assistance—an applicant with substantial student loan debt may be turned away. Most loan programs use debt-to-income ratios to determine whether you will be able to afford additional debt. With some beginning farmers facing student loan payments each month, there isn’t much room leftover to add a monthly mortgage payment.
Over the last several years, the National Young Farmers Coalition (NYFC) has advocated for legislation that would include full-time farming in the Public Service Loan Forgiveness Program. The program provides government workers, nonprofit employees, and other public-oriented workers with loan forgiveness if they stay employed in that capacity for 10 years. Although the legislation gained some support on Capitol Hill, NYFC has been unable to get it passed.
For those saddled with student debt, paying down debt is the only way most beginning farmers facing this obstacle will be able to afford land or receive financing to start their operations. Understanding the USDA beginning farmer loan programs and their criteria can help debt-ridden beginning farmers develop a strategy for positioning themselves to receive financing. Setting up a meeting with local Farm Credit and FSA representatives is also a good way to start figuring out what steps you need to take to qualify.
3. Not Everyone Understands How to Run a Profitable Business
Finally, even if a beginning farmer finds a land opportunity, it can be a struggle to run a profitable farm business. The excitement and thrill of launching your own farm operation can distract from the necessity of keeping thorough balance sheets and making sure that the operation can support itself. Even if beginning farmers are aware of the need to create a business plan, they may not have the training or background to put one together unassisted.
Producers located near urban centers or in areas with a strong food-oriented culture should take advantage of farmers markets, local food-focused restaurants, food hubs, and other direct-marketing channels.
Gary Matteson, a small farmer for many years and now a senior advisor to Farm Credit Council, says: “Let’s face it, beginning farmers don’t go start farm operations in order to learn how to be accountants. What they need to know is how to interpret good financial records and that it is OK to get help to set up and maintain a good record-keeping system”.
There are many online resources geared toward general business planning and free trainings hosted by a variety of sources that can be found through basic internet searches. The USDA offers resources at Farmers.gov on how to start a farm operation, as does the agency’s National Agricultural Library.
