Agriculture is very much weather reliant, so it’s very easy to be wiped out with unseasonal weather patterns.
If you are in debt before you have your first harvest, the debt cannot be repaid. So the farm is sold to repay the debt.
The best teacher of Agriculture is not having all the money you want.
Those with capital behind them tend to over capitalize the farm.
To many times i have met good farmers, that look to be doing well. In fact they are drowning in debt. They borrowed to the limit to purchase the land and machinery. If prices fall, very heavy rain or no rain. The farm is finished.
Farmer must learn to budget for the bad times not the good. When i was a kid a farmer gave me some advice i have kept for 60 years.
Spend when you are in the red and save when you are in the black.
If you have little money you cannot spend yourself into trouble. If you save when you have money then you as a farmer will survive.
My comment was don’t start heavily in debt. If you do sooner or later you will be bankrupt.
The business must pay for the business. If the business cannot do that, then you don’t have a business.

German, that statement was not a point in the post. However, I believe the point is to dissuade people from the borrowing mentally. People borrow, yes, but before you do you should be very sure of your experience and the potential of the venture. Having the no-borrow mentality helps you to build and gather enough experience and reduce the risk of failure, then at some point when you are very sure, maybe you can.

Thank you.

With your first point of “do not borrow to start agribusines”, i think you can explain feather. Because i know people borrow to start and people borrow to expand and people reinvest their profit into their farm to make viable.

It is of course, important to note the psychological tips too.

Thank you, Dennis.

Price of the produce must give profit to the farmer and customers willing to pay.

Customers are difficult to get when you are new. But they are lost very easily. Inability to supply, forces your customers to got else where. But even more difficult to get them back when lost.
4. Speed is important, to fit the season. Time is not wasted, so your land is always producing not idle.
5. Only use appropriate technology. Never waste money for no return.
6. Experiment with different crops to best return for expenditure. Per square metre. Never stop learning.