Kid goats in why some big farm fail

11 Reasons Why some big farms fail, Just After Few Years of Starting.

Why Some Big Farms Fail, Just After Few Years of Starting

The reason why some big farms fail today, might not be because the farm owners don’t want to succeed or they deliberately wants to shut down their farms.


In fact, most new farm owners or starters I have met so far came into the farming business with so much enthusiasm.


You begin to wonder what really went wrong along the line.


Unforeseen reasons and circumstances just begin to crop in. And with time the reasons and problems if not properly handled begin to overwhelm the farmer.


In most cases may lead to the closure or end of his farming enterprise.

An orchard in why some big farms fail

A mango fruit orchard



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A number of points or reasons, as to why some big farms fail, are outlined to help you understand. And to guide against the sudden or unintentional closure of your farm:


1. The occurrence of Disease or Natural Disasters

This is one of the major reasons why some big farms fail. Not having a plan B or a back-up plan. In the event of a serious disease outbreak or natural disasters.


When setting up a new farm, do not underestimate the devastating effects of these dual disturbing factors that may come up at one time or the other.


Diseases such as avian influenza, infectious bursal disease (gumboro), Newcastle disease, and Marek’s disease.


These are viral infectious diseases that can wipe away completely your entire flock.


God forbids if you are managing just a poultry farm and your entire flock is gone.


And no intervention from government, cooperate organizations, or help from friends and family.


These might probably be the end of your farming enterprise.


Fortunately, most of the viral diseases affecting farm animals are 90% to 100% preventable.


If you follow strict farming practices vaccinating your birds and farm animals properly.


One of the chief reasons why some big farms farm is the lack of preparedness to tackle some of the naturally occurring disasters.


For natural disasters such as floods, hurricanes, bush fires and tornadoes can strike at any time.


A rooster perching

A rooster perching


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2. Why Some Big Farms Fail, Most of Them Fail To Put Into Consideration the Location of Their Farms

In most cases, natural disasters don’t announce when they will strike. Fortunately with the modern technology meteorological agencies can help us predict beforehand impending disasters.


Giving us ample opportunities to prepare beforehand.


Most natural disasters occur in certain regions of the world, at a certain period of the year.


Putting into consideration geological location, extreme weather, and climatic conditions before investing heavily in your farming enterprise. Will greatly help in abating future disaster and loss.


Another reason why some big farms fail is due to the fact that the owners of such farms. Put cheap land and cheap labor above diseases and natural disasters.


Most diseases are endemic in certain regions as well as natural disasters.


For instance, avoiding flood-prone areas, and areas bedeviled with wild, bush fires should never be choosing as farm location.


Not having proper insurance coverage for your farm. And also registering with appropriate government agencies could be a reason why some big farms fail.


Having proper documentation of your farm with the appropriate authorities.


These will help your farms in seeking for assistance or palliatives. In the case of natural disasters or major disease outbreak.


Which will help in resuscitating the farms in the case of any eventuality.


A Calf in why some big farm fail

A young calf in a rural Fulani settlement


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3. Why Some Big Farms Fail Is the Inability of the Farm Owners to Provide Adequate Security for Their Farm

Another serious reason as to why some big farm fails is the inability of the farm owners to consider security, as a serious issue from the onset of the farm.


With the menace of farm theft, banditry and cattle rustling. When building your farm security equipment, and gadgets such as CCTV cameras, floodlights barb wires, and electric fencing are a serious necessity.


Most importantly it won’t’ be wise to locate your farm far away from human habitation because of cheap land. 


Your farm should be located in a rural setting close to human habitation where you can easily access cheap labor and security.


Security is another factor as to why some big farms fail

Lack of security is another factor as to why some big farms fail


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4. Lack of Tutelage and the Involvement of your Children

Another important reason why some big farms fail especially family-owned big farms.


Many farmers don’t want to come to terms that one day they would be no more or one day the farm will exist without them.


The honest truth is, a day will surely come when your farm will exist without you.


What happens when you are gone, how do you keep the farm alive?


How do you intend to run the farm in the future whether as an enterprise or a limited company?


What are your answers? There has to be a framework that will sustain and keep the farm moving, as a profitable venture beyond your existence.


Kid goats in why some big farm fail

Kid goats, Catching them young.



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5. Making Farming Appealing to Your Children

This brings the question of tutelage and the involvement of your children, especially if it is a one-man business or sole proprietorship.


Depending on how you structure the operations of your farm, some farmers are in the habit of running their farms just by themselves and their farm-workers.


Leaving their children in big cities, they make the money and their children spend the money.


That is not a good idea in the future the children would grow up and have no interest in the farm.


It is very important you carry your children along educate and teach them the art of farming.


The day to day runnings and operations on the farm. Make farming interesting and appealing to your children.


Always make them enjoy what they are doing so they can pick-up interest and take after you when you are gone.


If you don’t do that you are only training your farm workers or whoever is helping in managing the farm.


Involving and assigning responsibility to your children on your farm is one of the bravest things to do.


If you really want to sustain and keep your farm alive for the next generation.  


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6. Also, Another Reason Why Some Big Farms fail is Lack of proper record and account keeping

One of the major reasons why some big farms fail is the inability of the farm owners to keep accurate records on the day to day running’s of the farm.


For any business venture to succeed there has to be proper record keeping and auditing of both the expenditure and profit earnings of the organization.


The farm owner has to have a clear understanding of the number of feeds consumed, the money spent on drugs, labor, transport, and taxes paid to the appropriate authorities.


The farm manager should be accountable for any penny spent on the farm. This will help in curbing excessive and unnecessary expenditure on the farm.



improper record-keeping could be the reason why some big farms fail


7. Why Some Big Farm Fail is Lack of monitoring and involvement by the Farm Owners

If you really want to succeed in your farming venture, you have to be actively involved in the day to day running’s or happenings in your farm.


The reason why some big farm fail is due to the owners of such farms being non-residence farmers.


They live or work in a different city other than where their farm is located.


Thereby entrusting all the management of their farm to a farm manager, friend, or a close family member.


Just being a financier of a big farm will not guarantee the success of the farm.


To breeze in once in a while to see what is happening could be detrimental to the success of your farm.


It doesn’t work that way you have to be actively involved both financially and physically in the day to day running’s of your farm.


Except if you are sure you have a trusted manager to help you manage your farm properly. But the safest thing to do is to be actively involved and be highly informed about the farming operations on your farm.


8. Death or disability of the owner

Many farms operate these days as sole proprietorship business i.e. a business that legally has no separate existence from its owner.


Income and losses are taxed on the individuals’ personal income tax returns.


If a farm is owned and operated by an individual once that person is dead that might lead to the end of that particular farm.


Especially if he is the sole financier or contributor to the farm the knowledge, information, and running’s of the farm solely depend on him.


If you are the sole owner of your farm it is very important you pass the knowledge to your family.


Involve them in the day to day runnings on the farm. Teach them the basic information and knowledge on how to handle and manage the farm.


Rabbit farming

Rabbit farming

9. Doing too many things at the same time

Do not plant more than you can handle, planting multiple crops at the same time without adequate knowledge or finance. And expertise to manage them might also lead to failure or end of your farm.


If you have the capacity to stock in for instance 2000 birds as a beginner, why not stock in 500- 800 birds.


And watch your business grow so that as time passes you will gain more experience.


From personal experience stock in birds or livestock, you are sure you will be able to nourish, feed to maturity don’t be over-ambitious.


One step at a time, you will make a profit in no time you will get to your desired goal.


Poultry production

Poultry production

10. Lack of in-depth knowledge and Research.

Why some big farm fail might be due to a lack of in-depth knowledge and research on what they are going into.


A lot of people especially new players in the farming business are just excited.


Most new farmers are filled with enthusiasm and have high expectations about the new business they are about to begin.


There is nothing wrong with having high expectations and enthusiasm in what you are about to do.


The problem is, those expectations and excitement are not just enough to sustain and keep the business rolling for a long time.



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11. Having a Backup Plan

There are other very important factors you have to put into consideration such as Risks factors, having in-depth knowledge as mentioned earlier, pros and cons.


When making inquiries about new business people often tell you about the positive aspects of that particular business. Without telling you about the negative aspects of it.


Asks questions about the negative aspects of the business so that you can forearm yourself.


Do not always work with assumptions and estimation, learn to work with facts and accurate figures.


Have plan A, B, and C so that you can always have what to fall back to.


In case of failure in the future, God forbids what happens because, in reality, it can always happen.


In fact, recent surveys suggest that about 70% of start-ups fail initially. These statistics should put you in a better position to face the challenges that might arise headlong.


Most times it is when you start the farm that you begin to learn and discover so many things.


It’s a learning curve, you learn so many things that were not told initially.


That is the more reason why some big farms fail about two to three years of starting the farms.


Having in-depth knowledge and understanding of your new venture can never be overemphasized.


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If you really want to succeed and expand your farm and pass it on to the next generation, don’t just jump into it take your time.


Make extensive and elaborate research, make wider consultation with qualified professionals in the particular sector you want to go into be it: 


  • Crop production




  • Fish farming


Make sure you have the financial capability to help you weather the storm and make the farm succeed.


Take a deep breath and ask yourself if you are really sure of what you are about to starts. It can be really painful and frustrating to fail and see your resources go down the drain.


Note that good things take time, a lot of hard work and perseverance.


It is always a good idea to consult higher powers, to pray for God’s guidance and providence, if God’s hands are in it you cannot fail.

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