27 Most Profitable Small Farm Ideas (2024)

Technology and imagination have created more opportunities for farmers to develop a profitable business. Small farms (earning less than $50,000 annually or occupying less than 180 acres) in particular can profit from less traditional farming like beekeeping, microgreens, or even hops, as well as alternative income sources like agritourism.

According to the USDA, in 2023 net farm income will be 26.6% above its 20-year average (2002–2021) of $115.2 billion in inflation-adjusted dollars.

Looking for new ways to add life to your farm? Here are 27 of the most profitable small farming ideas:

Rural Agriculture Small Farm Ideas

Rural farms are located in outlying areas of the country. The vast land area is perfect for cultivating food crops, rearing livestock, and hunting; however, farming activities are highly dependent upon the seasons and natural weather conditions. Here are some profitable small farming ideas suited for rural areas.

1. Tree Nursery

A tree nursery can be a great investment when done right. Most farmers start with 10–20 seedlings on a small plot, and with the right marketing strategy, have the baby trees sold out before they mature. Seedlings run from 15 cents to $1.50 per tree, and a sapling of two years can sell for $20 to $100, making for a large profit, if you have the time to wait.

Spend some time researching how to organically source the trees you want to grow. Fruit tree propagation, for example, can be done by grafting or budding (joining parts from multiple plants), and this increases your chances of producing the same variety of trees as opposed to using seeds.

If you have 10 or more acres, experience growing trees, and the right climate, Christmas tree farms can be a profitable option. You need to watch the trees as they grow, pruning them to make sure they are healthy and bushy for the holidays.

You might also consider this spin on the tree nursery idea:

2. Fish Farming

Fish farming is an ideal business idea for investors with available land, and it doesn’t always require a body of water. You can start a fish farm either by creating fish ponds or investing in fish tanks; it’s a highly scalable business idea. Once you have the proper knowledge of fish raising, you will be able to decide the type of fish to raise. According to FinModelsLab, a well-run fish farm can produce a return on investment (ROI) of 5%–10%.

Fish such as tilapia, cod, trout, and catfish are popular because they are easy to raise and in high demand. Small-scale farms are the usual suppliers of fish in their local supermarkets and restaurants.

Other popular varieties of fish that are commercially raised are:

• Yellow Perch
• Eel
• Grass Carp
• Tuna
• Salmon

Not all fish are raised for food. Goldfish and koi are popular fish to farm as well.

The decision as to which fish you want to raise will ultimately rely on your skill, financial capacity, market demand, and agro-climatic condition. This refers to the normal soil types, rainfall, temperature, and water availability that affects the type of vegetation in the area.

3. Dual Crop Farming

Dual crop farming or multiple cropping can be either mixed cropping or intercropping. Mixed cropping refers to raising two or more types of crops in the same area while intercropping is raising different crops in close proximity. Dual crop farming is very popular among farmers because it optimizes the use of equipment, soil, and water as well as farming supplies; it also maximizes the production of a small farm all year-round.

Farmers like that it reduces the risk of total loss from calamities, drought, pests, and diseases. Some good examples of multiple cropping are growing strawberries and watermelons in Florida or wheat and soybeans in addition to corn and canola in the Carolinas.

4. Goat Farming

Goats are highly versatile livestock. Goat milk products are expected to expand at a compound annual growth rate (CAGR) of 4.7% from 2023 to 2030 as more and more people seek an alternative to cow’s milk for infant food, allergies, and nutrition. A quick look online shows goat milk selling for $4.50 to $23 per gallon, and the milk can be made for cheese or even soap. The initial outlay for milking equipment can be expensive, and goats need to be milked twice a day.

Goats aren’t just for milking. Angora goats produce mohair and cashmere. Plus, you can rent goats out for brush removal, as petting animals, for photo shoots, and even for goat yoga! The demand for goat meat is increasing as well and can sell for as much as $22 per pound. Different breeds of goats are needed for milking or meat (although they all will eat the weeds).

5. Alpaca Farming

Alpaca ranching is easier than cattle or horse ranching, and with as little as an acre of land, you can raise five alpacas. They are best for fleece, which is sheared annually. Raw fleece runs $3 an ounce, so they are better as a supplement to your farm. The bigger profit is in breeding and stud fees. Plus, they’re so cute that some farms get side income from photos or social media.

Alpacas will live amiably with other livestock and are good guard animals, ready to run off a fox or defend their territory or fellow animals. Some farmers have found a side business in renting out their alpacas as “guard sheep.” You can also sell their manure, as it’s a good source of nitrogen and potassium.

Low-capital Small Farm Ideas

If you’re short on capital, there are some low-cost business ideas that are easy to start. While these types of farm businesses usually earn less than other farms that invest in land and equipment, they continue to provide a steady stream of income.

6. Herb Gardening

According to Profitable Plants, “Just one small backyard growing bed with 100 square feet of growing space will hold 400 potted herb plants with a retail value of over $2,400.” When starting your own herb garden, emphasize variety and choose herbs in local demand for easier sales. You can start an herb business with small farmers market sales from your backyard, selling herbs that you cut, the plants, seeds, or all three, but also check with local restaurants, herbalists, or essential oil makers. If you grow catnip, you can sell it to pet stores, or make catnip toys. Also, consider selling your herb and herb products online.

7. Bee Farming

Apiculture or beekeeping often starts as a hobby, and the capital needed to begin is quite low. According to Beekeeping for Newbies, it costs about $760 for the first year for a single hive, protective gear, and basic tools. In addition to honey, you can sell bee byproducts such as beeswax, bee pollen, and royal jelly. Bee pollen and royal jelly are considered superfoods and are sold at a high price. You can also rent out beehives for added income.

You only need a small area in your backyard but need to check local ordinances (and HOA if applicable) to make sure beekeeping is allowed.

There are many ways to get your first set of bees:

• Catch a swarm: If you live at a location where bees are often found, you can opt to catch your own swarm for free.
• Buy a bee package: This package consists of about 3 pounds of bees with a young, mated queen. Large bee farms regularly sell bee packages in the spring for about $180 each.
• Nucleus hive: Typically consists of a box with five frames of bees, brood, pollen, nectar, and a fertile, laying queen bee. They are sold between April to June for about $200.
• Full hive: This simply means an entire hive setup, including an existing colony that large beekeepers sell to beginner bee farmers for around $300 each.
• Split hive: Split hives are created when several frames of an existing colony are moved to a new box where a new queen is introduced. They’re often sold for around $200 each.

Beginner bee farmers are encouraged to purchase a nucleus hive as it helps them learn the basics of beekeeping and nurture its growth. You will also need other equipment such as protective gear, hive tools, a bee brush, and a honey extractor.

8. Aquaponics

Aquaponics is a farming method that combines aquaculture (raising aquatic animals) with hydroponics (cultivating plants in water). This means farmers produce crops using less water and land. That means lower investment and a faster yield. Experts advise beginners to start small and expand as they learn how to maximize their production.

Aquaponics is expected to have a CAGR of 7.15% between 2023 and 2027. Getting started costs between $2,000 and $7,000 for equipment and stock, and a well-run farm can generate profits of $5–$10 per square foot per year, per BootstrapBee.

9. Microgreens Farming

Microgreens are young vegetables or baby plants that are around 10–14 days old and one to 3 inches tall. They are the small edible vegetables that restaurants use in salads or as garnish. Chefs add them to create depth of flavor. According to Microgreens Farmer, a standard rack can produce $800 or more. The microgreen market grew from $1.71 billion in 2022 to $1.94 billion in 2023 with a CAGR of 13.7%.

Beginner farmers should consider this business because microgreens are easy to grow, turnaround time is high, and it requires little investment to start. You can grow them indoors or outdoors, although for year-round yield, you need a greenhouse, which can get pricey. Plus, most microgreens like temperatures similar to our homes. While any young vegetable can work, here are some of the more popular microgreens:

• Mustard greens
• Cabbage
• Kale
• Broccoli
• Radish
• Peas
• Basil
• Swiss chard
• Arugula
• Sunflower

Urban Agriculture Profitable Small Farm Ideas

Urban agriculture is a farming business located in densely populated areas such as cities. This mostly refers to cultivating, processing, and distributing food products but can also include small-scale livestock and fishery. Space and pollution can be challenges, but local restaurants and supermarkets may seek urban farmers for a closer supply of fresh produce.

10. Vegetable Landscaping

Starting a landscaping business can be expensive, but farmers who want to opt for a greener path should enter this world of edible landscaping. This option creates more flexible opportunities so your required startup capital will be considerably lower. You will mostly be investing in tools to grow vegetables either on freshly tilled soil or in containers. When using pots, remember to purchase the ones that are eight to 12 inches deep; also, space them out evenly, so you can maximize your yield.

11. Hydroponic Farming

Hydroponics is the process of growing crops with nutrient-rich water kept in contact with the plant roots instead of using soil. This process significantly reduces the risk of wastage and pollution that can harm the produce and cause diseases, which appeals to health-conscious consumers. Like aquaponics, the minimal use of land area needed also makes hydroponics a low-cost investment. Plus hydroponic plants grow 40% faster and produce 30% more than those grown in soil. This means you will have more products available to sell.

There are different hydroponic systems farmers can learn and try:

• Static: Plants are grown in tubs or plastic buckets. Water may be unaerated or gently aerated (water infused with gas).
• Continuous flow: The nutrient-rich water solution constantly flows past the roots, so plants can absorb oxygen better.
• Aeroponics: Plant roots are only misted with a nutrient solution instead of submerged in liquid.
• Ebb and flow: Plants are flooded with water and then drained several times a day.

Hydroponics is all about careful management of the environment for your plants. So while it seems like an easy business to try as a beginner farmer, take your time analyzing your options and learning about hydroponics from experts before you start your own.

12. Cannabis Farming

If you live in an area where cannabis use is legal, cannabis is another profitable farming alternative. Although you can produce better quality plants in a controlled environment, the easiest way to start is by growing them outdoors. Having a large backyard is an advantage; It helps keep your investment low while giving you a flexible space with which to work.

Growing cannabis outdoors can cost as little as $10 per square foot, although a greenhouse helps by providing an efficient, controlled environment. According to Medicgrow, a 5’x5’ grow space indoors costs about $225 per pound, with a 10.5-pound yield.

Related:

• Best Cannabis Payment Processing Companies in 2023

13. Rooftop Tea Garden

A rooftop tea garden, a twist on the more common rooftop gardens found in many cities, has many potentials for profit. Naturally, you can grow a variety of aromatic and medicinal herbs and greens to sell directly to consumers. But if you have the ability, you can also create a rustic coffee and tea shop directly on the rooftop. You’d need to partner with the landlord or whoever has legal right to use the rooftop, and of course, it helps to know or partner with someone for running the cafe.

Some important things to consider before designing your rooftop garden:

• Review building codes: Check with your local government to see if there are rules about creating rooftop gardens in your area. Also, ask about possible restrictions that can affect the kind of business you want to put up.
• Monitor how much the roof is exposed to the elements: Sun and wind exposure are critical if you want to properly grow your tea garden. Make sure that your plants will get enough sunlight and shade and are protected against strong gusts of wind; it’s a good idea to include solutions for these issues in your business plan.
• Determine your rooftop’s loading capacity: Rooftops do have a maximum limit to the weight they can hold, and it is important to know and take this data into account when designing your garden. Consult with a structural engineer who can determine this information exactly and keep the building and your business safe.

It can take a lot of work to start your own rooftop tea garden, but a well-designed and run tea garden cannot only provide profit but also a beautiful escape from the city without having to leave the neighborhood.

B2B Profitable Small Farm Ideas

B2B farming is a business method that farmers use when producing agricultural products to supply business clients. Businesses—including restaurants, grocers, and even brewers—prefer to deal with farmers directly for the low cost and quality. While many of the suggestions above can also work in the B2B market, here are some favorites.

14. Snail Farming

Heliciculture, or snail farming, can be a very lucrative business venture. Most large snails are edible and can be sold at a high price, but some breeds are more popular in specific locations, so find out what businesses in your area are after. That helps you create the right habitat and food sources, too.

Some of the things you need to consider when starting a snail farm are:

• Climate control: The ideal temperature for growing snails is between 16° to 24°C (60° to 75°F); they also need humidity, so include sprinklers and humidifiers.
• Soil requirements: Snails thrive in well-cultivated soil and groomed gardens because of their nutrient-rich quality. Calcium in the soil is important for the snail’s shell. Soil should also be at least 2 inches deep for egg-laying purposes.
• Farming system: Protect and contain snails in pens that are either inside a building or greenhouse or with plastic tunnel houses.
• Food source: Snails drink water and eat various types of feeds, but they also survive on natural food such as vegetables like cabbage, flowers, fruits, most green leaves, and microscopic algae.
• State regulations: Interstate movement and shipping of snails are strictly controlled by the U.S. Department of Agriculture as these creatures are considered invasive plant pests. Check for your state’s rules and requirements on raising a snail farm so you can obtain the necessary permits to operate.

Snail farming is still considered a niche in the US, so there is more opportunity for farmers to profit by supplying fresh snails to restaurateurs and other snail enthusiasts. There’s also a growing demand for snail slime in the cosmetics industry and even live snail facials.

15. Mushroom Farming

Mushrooms are relatively easy to cultivate, considering that they can grow in the wild, even in the harshest of conditions. Making a profitable business out of mushroom farming will depend on knowing which mushroom strain to cultivate and how to maximize your production to become a steady supplier to other businesses.

Gourmet mushrooms such as oyster and shiitake are some of the most sought-after variations of mushrooms in the market. Indoor production provides a better harvest; they can even be grown in bags. It only takes an average of six weeks to grow and harvest mushrooms that are ready to be sold. Mushroom farmers harvest an average of 25 pounds of produce per square foot every year and sell them for $6 to $8 per pound.

16. Organic Farming

Generally speaking, organic farming is a method of raising crops and livestock, but thanks to a growing market of health conscious-consumers, this method has created a niche of its own. Nowadays, you’ll find restaurants and supermarkets that market specifically for organic produce. These businesses rely on organic farmers to supply them with organically grown fruits and vegetables and organically raised, or free-roaming, livestock.

While the yields are generally less than conventional farms, organic foods command a higher price. You may also need to go through a certification process to be registered as officially organic in order to sell to businesses that promote their foods as such.

Some of the popular organic farms to consider are:

• Farm-to-Table Restaurant
• Organic Grocery Wholesaler
• Organic Dairy Farm
• Organic Produce Farm
• Organic Livestock Farm
• Organic Fish Farm

The global organic farming market is expected to grow to $187.84 billion in 2023, at a CAGR of 11.1%, and to $287.83 billion by 2027 with a CAGR of 11.3%. It’s also a more environmentally friendly way to farm and good for the health-conscious farmer as well as consumer.

17. Poultry Farming

Chicken farms, especially organic ones, can achieve profits of 60% or more per batch of chickens. Plus, you can sell eggs and even poultry manure. Some farmers find profit (and fun) in raising rare breeds of chickens to sell the chicks. The downside is that poultry farming is highly regulated to ensure the safety and health of the residents within the community.

It costs anywhere from $200 to $8,000 to build a chicken house, depending on the complexity and size. When building, think about protection, ease of access for gathering eggs, and whether you need climate control. You’ll need different breeds of chickens for different purposes.

18. Plant Nursery

If you simply love gardening, then a plant nursery might be a way to indulge that love for a profit. Backyard nurseries can turn as much as a 95% profit. Plants can be grown from seeds and sold for an average of $7. If you grow outdoors or use pots, the startup costs are minimal, although if you need a greenhouse, this can cost hundreds to thousands of dollars, depending on size and complexity.

When starting a nursery for profit, research what kind of plants are in demand in your area. Is there a local flower shop that would welcome quality orchids? Is there a demand for poinsettias during the Christmas season? Does the local nursery always sell out of ground cover plants?

19. Hop Farming

The growth of microbreweries has led to an increase in the demand for quality, local hops. Hops can be grown in as little as 1 acre of land. Starting costs can be expensive—about $12,000 per acre—and usually need a year to establish their root system before they produce well. If you have the time, however, you can harvest up to 1,800 pounds of hops, which sell from $3 to $15 per pound.

Hops require at least 120 frost-free days. They grow on bines (the technical term for hop vines) that can reach 25 feet and weigh over 20 pounds, so you need strong, tall trellises. The soil needs to be loose and well-drained.

Agritourism Profitable Small Farm Ideas

Agritourism or farm tourism is a business model that derives the majority of its income from attracting visitors to experience and learn about farm life. Agritourism activities include visiting a working farm and selling fresh, organic, or even homemade produce. Both urban and rural farms benefit from this business structure, but business owners will have to invest more in advertising and marketing strategies.

20. Flower Farm

Flower farms are a popular destination for tourists, but apart from that, this type of business is versatile. It can create other avenues for income such as supplying flower shops and event organizers. You can start a low-cost flower farm in your backyard for about $2,000 and grow from there. Like other businesses, research is key to growing your flower farm.

21. Forest Gardens

Forest gardens are picturesque and make efficient use of the land to grow a variety of fruits and vegetables together. It requires a canopy of mature trees (nut trees are good, although any native tree works), shorter fruit trees, berry-producing shrubs, perennial vegetables like rhubarb or dill, root vegetables like carrots, ground cover like Canadian ginger, and edible vine plants like cucumbers or beans.

These kinds of gardens are great community projects, although small farms can use them as part of an overall tourist experience—imagine a hike through the woods where you pick the ingredients for your own dinner!

22. Recreational Fish Farming

Fishing is a very popular recreational activity in the US, so if you’re a fish farmer, you can start accepting visitors to fish in your ponds or lakes. Extra-large fish farms can even host different types of sport fishing and draw in more crowds. You can charge visitors by day or per pound of fish that they catch. A good marketing strategy to help you boost sales, especially if you charge per pound of fish, is to create an area for barbecuing or a rustic-style restaurant where visitors can ask to have their freshly caught fish cooked for them.

23. Animal Petting Farm

Most farmers get into the petting farm business to augment their income from selling eggs, dairy, and livestock. Petting farms are not only for student field trips; families like them because they provide a more interactive experience for their children. A traveling petting zoo can be a big sell for birthday parties. Some businesses use them as an opportunity to hold team-building events. Also, be open to giving customers a sample of the products (eggs, dairy) you get from each animal and have a small store where they can buy more food products to bring home.

Customers who pay the entrance fee expect an educational experience, so have them engage with the animals while being supervised by your staff. Safety will be your first priority when you invest in a petting farm. Make sure your staff is well-trained to instruct and supervise. They will also need to know how to administer first aid.

24. Fruit Picking Farms

Fruit picking is a popular weekend activity for families, and small farms have found this to be a lucrative venture. While most entrepreneurial farmers who consider offering fruit picking have had a running farm for some time, hobbyists can also use this to generate income from the tourism aspect of the farm.

One advantage of having a “pick-your-own farm” model is that you’re able to hire fewer people to harvest your products, which reduces overhead costs. Additionally, buyers come to you, so you also reduce the cost of transporting your produce.

Fruit-picking farms interact directly with customers, so there are additional things to consider:

• Consider planting more than one type of produce if possible. Berry picking is also popular and can attract more customers.
• Provide ample parking space for visitors.
• Carefully consider the pesticides you use for your crops because your customers can be exposed if not properly handled.
• Invest in customer service training for your staff.
• Don’t ignore opportunities to supply other businesses with your produce.

Your business will largely depend on customer feedback. Be sure to make your farm safe and clean and ensure that your staff is efficient and helpful. Also, have a QR code handy at the exit or end of tours so that it’s easy for customers to leave a review on Yelp.

25. Wedding Venues

Farms can be idyllic locations, which makes them a big demand for couples that want a beautiful backdrop for their wedding. Even small wedding venues can bring in $10,000 or more per year. Converted barns are popular places for ceremonies and receptions. Of course, the longer you keep them celebrating on your property, the better your profit, so also think about preparation rooms, co*cktail hours, after-party arrangements, and even a rustic honeymoon suite.

However, it requires more than just clearing out the barn and throwing open the doors. Here are some minimum requirements:

• Check local ordinances including noise and parking.
• Check with the local fire marshal about how many people your barn or venue can hold.
• Make sure you have a clear (and preferably mud-free) walk from parking to the event area or areas.
• If the wedding is planned for outdoors, do you have a last-minute foul-weather alternative?
• Consider whether you’ll rent or purchase tables, chairs, place settings, etc.
• Get to know local caterers and florists.
• Do you need an alcohol license? (It may be covered by the caterer.)
• Check to see if there is any liability insurance you may need.
• Invest in a website and photographer to take beautiful photos of your land.

If you grow flowers or vegetables, consider offering these for the catering and decor. With some imagination, beautiful centerpieces can be made with local foliage as well.

Wedding venues are profitable but can have a downside. Wedding venues can be time-intensive for the days leading to the big event. You may also be dealing with high emotions from the families during plans. Guests may get drunk and wander from the area.

Learn more:

26. Educational Farms

Educational farms take petting farms to the next level. You provide tours, hands-on experiences, or even classes about the animals and crops on your farm. If you have a farm craft, like making herb soap or raveling alpaca fleece, then you can teach these as well. You can offer tours and classes to schools or home schooling groups, 4-H and other clubs, or local universities. You can also sell farm products or educational materials on the side.

Like with other agritourism ideas, you’ll need to check your liability insurance and consider having students sign waivers. You’ll also want to develop a program and practice beforehand, including anticipating questions. However, it’s a great way to share your love for the farm life, and in some cases, even get some help.

27. Farm Stay Experience

Farm experiences, where a vacationer stays on a farm, actually participating in farm life, have been popular since the 1990s. Farm stays are about having a wholesome experience in a natural environment, which makes small farms well-suited, especially those with organic farming. You can advertise online or through services like Airbnb.

Usually, vacationers stay on the farm (sometimes in a cabin or dedicated campsite) and help out with the chores, like feeding the animals. They may be treated to a tour or a small course on farming; others will simply take part in daily farm lifelike one of the family. Be sure to research the applicable liabilities and ordinances, decide what you want to offer, and, like with all agritourism experiences, consider extras like souvenirs, samples from the farm, or add-ons like actual classes.

Bottom Line

Small farms are often started for the love of the land, a desire to be self-sufficient, and an appreciation for the farming lifestyle. However, that doesn’t mean they can’t turn a tidy profit. If you are seriously considering going into the farming business, our list of farming business ideas can help you get started.