Funding For a Dairy Farm

You will have to save some money you get out of selling milk. This will allow you to buy another cow. Do not sell calves because they usually grow very fast and they will be giving you more milk in the future. If the interest rates are high don't go for another loan, but if they not high then you can borrow more money to expand your business.

 

You might want to go on a site like craigslist..this seems like your best bet. Your local farmers market may know where to lead you. I'm sure you can Google this information and maybe get a better solution.

 

The best approach is asset financing. You negotiate with the company or institution where you sell your milk for capital (additional cows) or fixed assets which would be paid with a portion of your milk proceeds. Congrats, at a100 litres a day, your cows are productive. All the best.

 

Sometime in the year 2000, we went to Bulacan, the province beside Metro Manila, to visit a family friend of my husband. They were living in a homestead of 24 hectares by the foot of a mountain. With business in mind, my husband inquired on the cost of land. And after a brief consultation with me, I agreed that we buy 2 hectares to have a dairy farm. What's on our mind was a small ranch of 10 heads for milking and breeding also. It is a slow business but we like the idea of fresh milk.

However, the family friend discouraged us. He said that when the rebels see our ranch, they would ask for a tax of maybe 1 cow. And then when the military learns of our tax, they too would ask us of the same favor. In short, our ranch will lose all the cattle that we had invested. What a sad story.

 

Sometimes because of the lack of capital outlay a business will not be able to operate well and will not be able to meet the demands of its customers. Having a low investment will also prevent business to further widen its growth as a business.

You said you had loyal customers already buying your milk but you are not able to meet their demands. And what you are thinking is right that you have to invest more so that you can expand your business. But be careful if you are planning to make a loan check wisely the interest rates before you decide in doing so. All the best of luck!

 

I am not a fan of borrowing. I would suggest you keep brainstorming and trying to come up with alternatives to borrowing. I had a very tiny dairy and broke even while I very slowly expanded. I worked with my neighbor and used his bull to breed my cows at no charge. I butchered and sold the males as grassfed beef to friends and family. I raised then sold or traded females so I had fresh genetics. It is a long process, but better not to owe in case of an unforseen disaster! Let us know what you end up doing - best wishes to much success!!

 

I think, behind this high-interest rates because Federals Federal Reserves. Remember, Federal is the one decide whether to raise or lower rates in a state, in this a chain reaction will be started affecting various clusters in a bank.

Source: Interest Rates Update