3 Simple Ways for Homesteaders To Start Monetizing Their Hobby Farms

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We are pleased to introduce our first-ever guest writer, Emma Croft, from www.getgardening.info.

According to Open Access Government, hobby farms have become wildly popular due to their owners' ability to engage with nature, connect with the local community, and participate in sustainable agriculture. They're also a great side gig for retirees, parents, and anyone who wants to start making a living in the countryside.

Whether you grow crops to sell at the local farmers' market, practice beekeeping, or raise animals, you're already well-versed in the idea of living off the land. You may not be a career farmer, but you wish to monetize your hobby, gain customers locally or throughout the nation, and find a way to engage your audience on social media.

Managing your hobby farm as a small business requires a different mindset than simply operating it on a day-to-day basis. Consider the following three tips below (brought to you courtesy of Be Kind Ranch) before you start selling your products or services as a business.

1. Create a Unique Brand and Marketing Strategy

Branding is all about storytelling — and who has a more entertaining and inspiring story than someone who has started a hobby farm for fun? Create a website for your hobby farm that features what you sell (products such as honey, milk, homemade fudge, or meat, or services such as horse rides, tours, and seasonal fruit picking) and tell your story to your audience — the Be Kind Ranch website is a great example.

Your narrative doesn't have to be complicated, and it doesn't have to include your entire life story. Simply tell your audience why you started a hobby farm and outline your mission for your business. For example, you may wish to fill the gap in local organic soap production by creating products from your farm's goat milk.

2. Manage Your Farm as a Business

To monetize your products and services, you should begin by transitioning your hobby farm to a small business model. Take into account funding opportunities such as government grants for family farms and double-check your budget before launching as a proper business.

If you don't have a professionally designed website or social media accounts, now is the time to set them up — or hire a freelancer who can help you do so. You may wish to bring in family members or those who work on the farm as hobbyists and promote them to more professional roles.

Many entrepreneurs started their businesses as fun side gigs or passion projects. Though you are beginning to view your former hobby as a business, don't lose sight of what brought you into hobby farming in the first place.

3. Register as a Legal Business

Before you launch, don't forget to register your new business as a legal entity. Forming a limited liability company can separate your personal assets from your hobby farm business, and it can help you at tax time with certain perks that are only available to registered LLC owners. You'll also enjoy less paperwork, more flexibility, and zero lawyer fees when you register online. Check your state's laws before registering, as every state has different rules. Alternatively, you could work with a trusted formation service to ensure everything is handled properly.

A hobby farm can be a wonderful source of enjoyment for your whole family, and when managed correctly, it can turn a profit as well. If you want to monetize your hobby farm, start with the three steps above and build a loyal audience with constant engagement and professional marketing tactics.