Much of the cost of this project can be offset by future potential profits. Our initial goal is a startup on a small size of 500 to 1000 acres with some room to grow and prove the concept. The costs I have here are to the high side to cover the first-year growth of the community and project requirements. Our goal is to be profitable by the end of 1 year are at the very least be able to procure further funding from the government or other sources towards nonprofit growth based on our success. As the project progresses and we have documentation to prove its viability we will be bringing more experts and workers. This is not even close to a detailed cost list … it is just to give a general idea.
ANTICIPATED STARTUP COSTS: $10,000,000
- LAND
- EQUIPMENT: water reclamation, farming tools, welding, refrigeration, cooking, air conditioning, vehicles, generators
- WATER: storage tanks, reservoirs, desalinization, transport, reclamation systems
- BUILDINGS: greenhouses, materials, living quarters, food storage, equipment storage, office, barn
- UTILITIES: waste disposal/water treatment, solar panels, windmills, communications
- ROADS
- FOOD: livestock, non-perishables, refrigerated
- LABOR
- INSURANCE
- LEGAL FEES / PERMITS
- TRAVEL AND RELOCATION COSTS
- OTHER: fencing, fertilizer, earth, specialty systems for dry climate plant growth,
Partial Estimated Cost For Initial Investment
| ITEM | QTY | COST | EXTENDED |
| LAND | 1 | $2,000,000 | $2,000,000 |
| WATER RECLAMATION | 1 | $1,500,000 | $1,500,000 |
| FARM EQUIPMENT | 1 | $1,000,000 | $1,000,000 |
| WELDING SHOP | 1 | $25,000 | $25,000 |
| COMMUNITY FOOD PREP | 1 | $50,000 | $50,000 |
| WATER TANKER | 2 | $125,000 | $250,000 |
| ELECTRIC MINI BUS | 1 | $70,000 | $70,000 |
| ELECTRIC COMPANY CARS | 3 | $40,000 | $120,000 |
| WATER TANK | 1 | $30,000 | $30,000 |
| BACKUP POWER SYSTEM | 1 | $20,000 | $20,000 |
| WATER RESERVOIR | 1 | $100,000 | $100,000 |
| SOLAR FARM | 1 | $1,500,000 | $1,500,000 |
| GREEN HOUSES | 10 | $75,000 | $750,000 |
| LIVING QUARTERS | 15 | $50,000 | $750,000 |
| LABOR | 15 | $40,000 | $600,000 |
| MANAGEMENT | 1 | $400,000 | $400,000 |
| INSURANCE 1 YEAR | 1 | $50,000 | $50,000 |
| OTHER | 1 | $500,000 | $500,000 |
| $9,715,000 |
LAND: Initially, we would find land for sale in a suitable location with easy access and possible water sources.
https://www.landwatch.com/california-land-for-sale/deserts-region/acres-over-500
https://www.landwatch.com/imperial-county-california-recreational-property-for-sale/pid/411669890
WATER RECLAMATION: With expectations of the community growing to 500 by the end of 1 year we would need to purchase an industrial system to handle that growth.
https://www.samcotech.com/how-much-does-an-industrial-water-treatment-system-cost/
FARMING TOOLS: Since we are trying to create an eco-friendly community it will require all of our investments to be made into the latest advancements.
https://www.deere.co.uk/en/agriculture/future-of-farming/
SOLAR POWER GRID: The community will be run on solar power. If possible and wind conditions allow there will also be windmills in place.
https://www.dynamicslr.com/communal-solar-use/
STANDARD FARM COSTS
https://www.agriculture.com/farm-management/business-planning/how-much-does-it-take-to-become-a-farmer
The basic list would include: a combine with a corn head and grain platform for $175,000; a big tractor for plowing and planting at 125K; a grain truck for 60K; a planter that runs about 75K; a grain drill for 40K; a disk at around 30K; a chisel-plow for 30K; a field cultivator at 25K; a pull-type sprayer costs 35K; a grain dryer is 30K; a utility tractor for brush-hogging/ditching/grading at 35K; a grain cart for 15K; a trailer at around 15K; an ATV for 10K; and a full complement of tools costs 15K.
We may be missing something here, but that’s already $715,000 in equipment.
The building requirement probably includes a couple of metal buildings ($200,000) and at least a few grain storage bins to hold 75,000 bushels, about $75,000. There is no hard-and-fast land requirement. However, the farmers I spoke with said that someone would need at least 500 owned acres and 1,000 leased acres to make a living.
The quality of the land certainly affects those numbers. For this article, let’s assume 150-plus corn bushel-per-acre land for about $7,500 an acre. If you bought 500 acres as a base of operations, the total land cost would be $3,750,000.
The total thus far is $4,810,000. However, we still need operating capital to plant the first crop and survive for the first growing season. To plant, fertilize, and spray 750 acres of beans and 750 acres of corn right now will cost you about $140 an acre for beans and $290 an acre for corn – $322,500 in total. To survive for six months until harvest will cost at least $25,000.
Add it all up, and we arrive at $5,157,500. Wow! That’s a big number, and it’s out of reach for most young entrepreneurs.
Because of the cost of land and equipment today, some farmers are concerned about who will be able to follow them into the industry. How will they fund the enterprise, even with family land and equipment?