Custom Spraying Business

Asked September 23, 2014, 12:25 PM EDT

Is starting up a custom spraying and fertilizer business for grain farmers profitable. What is the initial cost for equipment needed.

Butler County Iowa farm management farm machinery

1 Response

Starting up a business is a very complex issue. If you go to the AGPLAN web site you can start to work on a business plan. http://www.cffm.umn.edu/products/AgPlan.aspx

The start up costs vary a lot depending on if you go with new equipment or used, if you have facilities that can be converted or if you need new. Typically you are going to be competing against very large and very well capitalized cooperatives so you need to have to be able to reach a special group of producers. Fertilizers are bulk commodities noted for very low profit margins. The spraying business can be very profitable but it also has unique risks. As you develop your business plan you might work with the Small Business Development Center http://www.iowasbdc.org/services/regional-centers/waterloo-cedar-falls