How Much Does It Cost to Start a Farm? A Complete Breakdown
- Nate Jones, CPCU, ARM, CLCS, AU
- Dec 8, 2025
- 2 min read
Starting a farm can be the beginning of a rewarding business, but it requires careful budgeting and upfront investment. Whether you plan to raise livestock, grow crops, or run an equine facility, understanding the cost of land, equipment, operations, and insurance will help you launch your farm successfully and avoid financial surprises.
Below is a complete breakdown of the typical expenses involved in starting a farm, along with resources to help you plan.
Key Farm Startup Costs
1. Land Costs
Land is typically the largest investment.
Average cost per acre: $3,000–$8,000 (varies by state and soil quality)
Check zoning laws, water rights, and soil reports before buying.
2. Equipment and Machinery
Essential items include tractors, plows, irrigation systems, and storage facilities.
Estimated cost: $50,000–$250,000 for mid-sized farms
Leasing equipment can reduce upfront costs.
3. Seeds, Fertilizers, and Livestock
Crop farms: $5,000–$20,000 annually
Livestock farms: $10,000–$50,000 depending on animal type
Read More: National Agricultural Statistics Service
4. Labor and Staffing
Hiring farmhands or seasonal workers adds to your budget.
Average wage: $15–$20/hour
Automation can help reduce labor costs.
5. Utilities and Infrastructure
Includes irrigation systems, fencing, barns, and storage facilities.
Estimated cost: $10,000–$100,000 depending on farm size
Essential Farm Insurance Coverage
Protecting your investment is critical. Here are the most common insurance types for farm owners:
Purpose: Covers injuries or property damage to third parties on your farm.
Estimated Cost: $500–$1,500/year
Purpose: Protects barns, silos, and other structures from fire, theft, or natural disasters.
Estimated Cost: $1,000–$3,000/year
Purpose: Covers farm-owned vehicles for accidents, property damage, and liability.
Estimated Cost: $900–$2,500/year per vehicle (varies by vehicle type, usage, and coverage limits)
Why It Matters: Personal auto policies typically do not cover business use. If you haul crops to markets or deliver products, you need commercial coverage.
d) Livestock Insurance
Purpose: Protects animals against illness, accidents, or theft.
Estimated Cost: $200–$500 per animal (depending on species and coverage)
Purpose: Covers tractors, harvesters, and other machinery against damage or theft.
Estimated Cost: $500–$2,000/year
Purpose: Required if you hire employees; covers workplace injuries.
Estimated Cost: $1,000–$3,000/year (varies by payroll size)
Final Thoughts
Starting a farm requires careful budgeting—not just for land and equipment but also for insurance to safeguard your investment. Wexford Insurance specializes in farm coverage tailored to your needs.
Contact us today for a personalized quote.
