Top Farming States to Launch Operations in During 2021
The agriculture industry in the United States continues to thrive, with significant contributions to the economy and a promising outlook for modern farmers and ranchers. According to a recent study by LawnStarter, several states stand out as ideal locations for those looking to start a farming business.
Although the exact top 10 states for farming startups in 2021 are not explicitly listed, we can infer some of these top states based on their strong agricultural sectors and business climates.
California, known for its Central Valley and Salinas Valley, ranks very high as an agricultural powerhouse, supporting over 230 crops and significant organic production. The state's ability to produce a large variety of high-value crops, coupled with extensive irrigation infrastructure, makes it a strong contender for farming businesses.
North Carolina, noted for its business-friendly environment, ranks highly due to its supportive state policies promoting growth, a skilled workforce, and the presence of universities and community colleges. This combination of factors creates an ideal environment for starting and sustaining farming businesses.
Other states that rank highly for business, which would influence the ease of starting farming businesses, include Texas, Florida, Virginia, Ohio, Michigan, Georgia, and Tennessee. These states offer a favourable business climate, skilled workforce, and infrastructure, making them attractive locations for farming ventures.
States in the Upper Midwest, such as Illinois, Iowa, and Minnesota, lead in soybean production, indicating a strong agricultural base that benefits farming businesses.
Factors contributing to these states' rankings for starting farming businesses include agricultural productivity and diversity, business climate, workforce and education, infrastructure, crop suitability, and land availability.
In terms of agricultural productivity and diversity, California's extensive production of a wide range of high-value crops is a significant factor. States with large farmland areas suitable for major crops, such as soybeans in Illinois and Iowa, provide natural advantages for farming businesses.
Business climate plays a crucial role, with states like North Carolina ranking highly due to their business-friendly policies that reduce barriers to entry, promote investment, and foster competition.
The presence of a skilled workforce and support from universities and community colleges help sustain business growth in agriculture. Good transport and communication infrastructure also assist in efficient farm production and access to markets.
Recent innovations in the agriculture industry offer modern farmers and ranchers far greater opportunities to expand their operations. Investments in farms have been lucrative, and the U.S. agriculture industry contributed $1.109 trillion to the US economy in 2019, covering 5.2% of the nation's income.
However, it's worth noting that California performs poorly in the study despite having the highest return on investment, due to high average per-farm production expenses. On the other hand, states like Kentucky, Oklahoma, and North Dakota rank high in the study, offering a more favourable cost structure for farming businesses.
In conclusion, the top states for starting a farming business in 2021 likely include California, North Carolina, Texas, Florida, Virginia, Ohio, Michigan, Georgia, Tennessee, Illinois, Iowa, and Minnesota. These states offer a combination of robust agricultural productivity, supportive business climates, skilled labor, infrastructure, and suitable natural conditions, making them ideal locations for those looking to start a farming business.
Consider choosing a farm app from a list of 20 of them to help manage your farming operations more efficiently. The Department of Agriculture encourages modern farmers and ranchers to take advantage of these opportunities to grow and expand their businesses.
An entrepreneur considering small-business opportunities within the agriculture industry may find success in starting a farming business in states such as California, North Carolina, Texas, Florida, Virginia, Ohio, Michigan, Georgia, Tennessee, Illinois, Iowa, and Minnesota due to their robust agricultural productivity, supportive business climates, and ideal natural conditions.
Finance is a crucial factor in starting a farming business, and states like Kentucky, Oklahoma, and North Dakota may offer a more favorable cost structure with lower average per-farm production expenses.
