A Recap of my $225k Farm Experiment
2.5 years ago, I made a $2,500 investment across 30 acres, hoping it would turn into a $225,000 return. Did that happen? Yes—and no. Today, I’m sharing how it worked, where it didn’t, and breaking down two key business principles that are essential for anyone starting a farm—or any small business, really.
My Journey into Farming
In 2020, I left my background in marketing and retail management and jumped headfirst into agriculture, raising Dorper sheep on 30 acres in Northeast Texas. I didn’t have any farming experience, but I had been an entrepreneur since the age of 10 and had managed a retail business straight out of high school. I understood the reality of entrepreneurship: often working twice as hard for half the pay.
With the tough economics of conventional American agriculture, I knew farming would be one of the hardest ways to earn an income. But I also wanted food security for myself and my family. Deep down, I believed that managing land and animals to produce clean, healthy food is a form of wealth that goes beyond dollars and cents. Fast-forward to 2023, and through diversifying my on-farm income streams, agriculture is now my full-time job.
If you’d like a detailed outline of the marketing steps I used to reach $100K in revenue within three years, click the link in this post, and I’ll send it to you for free along with a video explaining the process.
The $225,000 Project
When I set out to make farming my full-time job, I thought I needed more land to achieve my goals. I was already leasing 30 acres, but I wanted to acquire an additional 15 acres next door. Small acreage in my area costs between $15,000 and $18,000 per acre, meaning this expansion would require a $225,000 investment—an expense I wasn’t ready to take on.
Lesson #1: Maximize Existing Resources
When expanding isn’t an option, you have to ask, “How can I pursue increased revenue with what I already have?” Around that time, I was reading two excellent books, Quality Pasture and Management Intensive Grazing (MIG), which discuss ways to boost the productivity of a single acre. These books encouraged me that with a $2,500 upgrade to my management system, I could get the productivity of 45 acres out of my 30-acre pasture.
I invested in an electric fencing and watering system, spending a month on the installation. After these upgrades, I stocked my land as if I had 45 acres, almost doubling the number of animals I raised by introducing a mix of sheep, goats, and cattle.
It worked for a while, and we grazed through the summer smoothly. But by the end of the year, I ran into two significant issues.
- A Narrow Buffer for Drought: If we had even a single month of below-average rainfall, I’d quickly run out of grass and have to buy supplemental feed. This put extra pressure on the farm’s budget.
- Profit Margin Didn’t Scale with Production: Adding animals didn’t instantly double my farm’s profitability. I didn’t have a market ready to buy goats and cattle at the same premium prices as my sheep, resulting in lower profit margins. In fact, when I evaluated the farm year over year, I found I was more profitable with fewer animals.
This led me to the second critical principle:
Lesson #2: Establish Your Market Before Expanding Production
When I doubled my animal count without a developed market for each type, I found myself selling those animals at a lower profit margin just to keep cash flowing. I went from raising 35-40 sheep at a 50% profit margin to a 75-head mixed herd at a 20% margin. I was making the same amount of money while working twice as hard, so in real terms, the larger operation was less profitable.
Looking back, my small size was actually an advantage, allowing me to build out a premium market for my flock gradually. When I added new animals without an incremental market, I ended up with more product but no profitable way to sell it. This experience drove home an essential lesson for profitability in any business: Find your market first.
The Balance of Market, Product, and Process
To achieve profitability and long-term success, you need to balance three elements: market, product, and process.
Most startups—and I made this mistake myself—tend to over-invest in the product and the process while making the market an afterthought. The key is to establish access to your market first, whether it’s a local farmers market, an online store, or a direct email newsletter.
Here’s what this looks like in practice:
- Farmers Market: Before becoming a vendor, visit your local market. See what customers are buying. Which booths are busy, and which are empty? This can reveal gaps in the market that your product could fill.
- Online Sales: For premium products, try a pre-order launch. Gauge interest by seeing how many people are ready to sign up for seasonal shares, like spring dairy herd shares or autumn beef shares. This lets you know if an investment in the product and process is justified.
Where I Am Now
Today, I’ve returned to a smaller operation with a focus on higher profit margins. I decided to set aside raising goats and beef for now, redirecting my energy toward building the highest-quality Dorper flock in Northeast Texas while expanding my premium marketing channel, primarily through my email list.
That initial $2,500 investment has reduced my daily time on pasture from two hours to just 30 minutes, saving me about 550 hours each year. Time is money, and this investment has paid for itself many times over.
Looking back, I’m grateful I didn’t have $225,000 to buy the 15 acres next door. I didn’t need it to achieve my goals. This experience taught me a lesson that extends beyond farming: sometimes, the limitations in our lives can be our greatest advantage. Instead of pushing past boundaries as if they’re obstacles, consider them as guardrails guiding you toward the path you’re meant to follow.
For more details on my pasture infrastructure upgrade, watch my original installation video here:
“For thus saith the Lord God, the Holy One of Israel; In returning and rest shall ye be saved; in quietness and in confidence shall be your strength: and ye would not.” Isaiah 30:15
