The Best Credit Cards for Agriculture Businesses in the US: Agriculture is a major industry in the United States, and farmers and other agriculture businesses need a good credit card to help them manage their finances. The right credit card can help you save money on purchases, earn rewards, and build your business credit.
The agriculture business, also known as agribusiness, is the aspect of agriculture that deals with monetary values. The agriculture business is very important; knowing how to navigate your way through will add more value to your farm produce.
Best credit card for agriculture business
1. American Express Blue Business Cash Card
The American Express Blue Business Cash Card offers a flat 2% cash back on all purchases up to $50,000 per calendar year. This card is a great option for businesses that make many purchases, as you can earn significant cash back each year.
2. Ink Business Unlimited Credit Card
The Ink Business Unlimited Credit Card also offers a flat 2% cash back on all purchases, with no limit on your earnings. This card is a good option for businesses that make various purchases, as you won’t have to worry about earning different reward rates for different categories.
3. Ink Business Cash Credit Card
The Ink Business Cash Credit Card offers 5% cash back on the first $25,000 purchases each year in office supplies and internet, cable, and phone services. It also offers 2% cash back on gas stations and restaurants and 1% on all other purchases. This card is a good option for businesses purchasing in these categories.
4. Capital One Spark Cash
Capital One Spark Cash for Business offers 2% cash back on all purchases, with no limit on your earnings. This card is a good option for businesses that make various purchases and want a simple way to earn cash back.
5. American Express Business Gold Card
The American Express Business Gold Card offers a welcome bonus of 75,000 Membership Rewards points after you spend $10,000 on purchases in the first 3 months from account opening. It also offers 4x Membership Rewards points on travel and shipping, 4x points at restaurants, and 2 points per dollar on all other purchases. This card is a good option for businesses that spend a lot on travel and dining.
Importance of agriculture
The importance of agriculture remains a necessity concerning rapid human population growth globally. Agriculture has been to be the oldest occupation for man. Agriculture not only provides food for human survival but also serves as a full-time occupation for crop growers, animal producers, farm technicians, operators, and all other services related to agriculture production.
Agriculture is capital intensive. You will need a huge sum of capital to start an agribusiness. In most places in the United States, you must acquire licenses to run or operate a farm. Legal protocols must be followed to provide healthy and awesome food to consumers.
Agriculture business to start with zero capital
Growing up in agriculture, I thought everyone needed to own farming land, farm machinery for farm mechanization, a working staff to work on the farm, and all other inputs needed for successful agricultural production, but the narrative changed over time.
In modern agriculture, real investors do not have any agricultural backgrounds or training. They rely on statistics on growing commodities with high-profit margins and reputable agro firms to invest their money. Investing in agriculture is a high-risk decision but comes with high returns, provided everything works well. So, you should know who you are investing with.
Suppose you ever had the chance to specialize in any agriculture course with an expert. In that case, you can leverage your agricultural skills in so many ways, and one thing you should know is that you are working with resources that come to you because you’re running a service. Therefore, you have to be held accountable for every profit and loss you will make.
List of Agribusiness Services
Agriculture Consultancy
Agriculture consultancy, in simple terms, is guiding someone interested in building a business in agriculture with the knowledge they need. Starting a business can be challenging when you don’t have the right information. Maybe you have heard, “Going into food production is profitable,” but trust me, that is not enough research for you to start planting and producing crops without guidance from an expert.
I enjoy consulting with my team at Phoenix Agri Consult. We provide all the information you need to start a successful agribusiness. We provide consultancy services in pig farming, poultry farming, irrigational farming, agribusiness planning, agribusiness proposal, general livestock farming, farmers market linkage, and food processing and registration guidance.
Agribusiness planning
As mentioned above, people invest in agriculture production based on hearsay and later fail when things get tough. Out of such ignorance, we have a lot of individuals preaching agriculture as a risky and no-go area for investment due to the high risks involved. Most developing countries, including Ghana, have good resources for agriculture but fail to produce more agro-products due to poor structures in the agriculture industry.
On the hand of agriculture in these same developing countries, we have farms making it to the extent of exporting their produce to nearby countries where they have the target market. So, technically you can go global if you can leverage resources in your locality and sell to nearby countries. At Phoenix Agri Consult, we help to plan your agribusiness to sell within and outside country borders.
Agribusiness finances
Another major problem rising in the agriculture industry is finances. Going into an agribusiness without a proper finance layout can bring production to a halt. Instances such as the rise in input and production costs are variable factors prone to changes due to external interactions in every economy. This, however has collapsed many agro firms.
Seeing existing firms collapse or perform poorly is not encouraging for industrial growth. With good financial planning, an Agri firm must navigate in times of high-cost input and still leverage an approximate or expected output.
Agricultural marketing
How do you market your farm produce? Most farmers I came in contact with run this system of inviting middlemen to their farms to negotiate prices on the harvested produce. In states where their price standards, farmers lose much profit on farm produce. Getting a direct market can be frustrating and a time waste for active farmers. The middleman trap’s result has been the day’s order.
Final Thoughts
Successful agribusiness depends on how well you plan and the strength of finance, processing, and management planning.
