2005 Year in Review

Business Opportunities for Small Acreage

Source: John Pike, Extension Educator, Community & Economic Development, jpike@uiuc.edu

Questions concerning how to generate profits from a small acreage seem to occur more frequently each year. What is a big yard to one person is a small farm to another. And while there are many possibilities for property owners to do "something" with a limited amount of acreage, that "something" is different for everyone.

"In many cases, opportunity is limited only by the imagination. But, careful consideration should be given to developing realistic goals and examining the resources that are available," says John Pike, a University of Illinois Extension community and economic development educator.

Several magazines that focus specifically on small farm opportunities and rural living have been developed in recent years. A quick web search can direct you to specific examples, and many of these publications are free of charge. The magazines cover a variety of topics, and they can be a good source of ideas. Although most of the featured articles do include a lot of valuable information, don't be drawn in by some of the advertising. No matter what the product, if it sounds too good to be true, it probably is.

Pike says a great deal of thought should also be given to fitting an enterprise to the specific situation. Landowners should decide whether they are looking to create employment for themselves or a family member, or whether they just want to generate enough money to offset a portion of living expenses or finance the family vacation. Making this determination early in the planning process will help eliminate a lot of potential possibilities and dead-end leads.

Assessing the potential strengths and challenges associated with the property is also important. Factors such as location, topography, drainage, quality of access roads, zoning and conditions on neighboring properties can all be valuable assets or barriers to developing certain site-based enterprises.

"Liability is another important issue that should be addressed," says Pike. "We often think about liability when visitors or customers come on to a property. But, a visit with your insurance provider should be one of the first discussions in the planning process regardless of whether customers will be on site. Many times, the general homeowner or farm policy does not cover commercial businesses. In these cases, additional coverage will have to be obtained. And, while it is possible to find coverage for about anything, these policies may not be available from your local agent, so advance planning is the best bet."

Several profitable business opportunities are suited to small acreage situations, but each situation is different. What works for your neighbor might not hold the same opportunity for you. Careful planning is essential regardless of the type of business you are considering. Some of the best information and leads come from attending workshops, consulting with people involved in similar businesses, and seeking out appropriate technical advisors.

by  Editor, theCity1.com
October 17, 2005