Farming has never been about getting rich, but it doesn’t mean small-scale farming isn’t financially viable. You can make a good farm revenue while being a grower! Understanding what a small farm can earn and how it compares to other professions can help set realistic expectations and guide strategic planning. For both new and experienced growers, success lies in prioritizing efficiency, strategic crop planning, and maximizing the potential of a small-scale farm. This is the essence of market gardening.

Understanding Farm Revenue

A diversified market garden operating on 1.5 acres with a mix of high-value crops and direct-to-consumer sales can generate substantial revenue. For example, a farm employing three seasonal staff for nine months annually might earn $220,000 in gross revenue again, reflecting the potential of market gardening strategies.

This income typically comes from three sale channels:

Take into consideration that the averages are accounting for sales to be much larger during peak season and also represent an opportunity for greatly increased sales and higher overall gross (with some farms reporting weekly sales in excess of 10k per week during peak season for markets/wholesale)

• Wholesale/Retail sales to regional restaurants, grocery stores or online retail customers might account for $80,000, averaging $2000 per week over a 40-week period. These consistent and reliable bulk-sales channels form a solid revenue foundation that lasts for a long season and can help to move smaller volumes of product in the shoulder seasons without a larger commitment.
• CSA programs with 100 members for a 20-week season could generate $70,000, translating to an average of $3500 per week during peak production. CSA sales offer stability in the spring through pre-sold produce and a consistent avenue to move product when the gardens are in peak production.
• Farm Stand and/or Farmers Market could bring in another $70,000, averaging $1945 per week over 36 weeks. This outlet benefits from direct consumer engagement and flexibility in product offerings.
  

Breaking Down the Expenses

Running a small farm involves a variety of costs, reflecting the complexity and operational needs of a 1.5-acre market garden.

Here’s a detailed breakdown of typical annual expenses:

• Labor Costs: Employing three seasonal staff at $18/hour for 40 hours per week over nine months totals $86,400, the largest single expense. The target for labour should be around 33%. For this scenario the farm is very close, with labour at 39%. To remedy this the farm manager/owner could either cut labour in the shoulder seasons to reduce cost or look at ways to increase the overall revenue to meet that goal.
• Seeds, Fertilizers, and Inputs: High-quality seeds should be around 3% of gross, totalling $6600. Organic amendments are critical, costing roughly 2% of gross, totalling $4400. $11000 for seeds, fertilizers and inputs.
• Utilities and Fuel: Essential overheads like electricity for farm operations, propane to heat the greenhouse, and fuel for deliveries total roughly 5%, $11,000 annually.
  Equipment Maintenance and Depreciation: Regular upkeep of tools and infrastructure contributes $3,000 annually.
• Cost of Land: Mortgage payments for land, including space for warehouses and farm operations, based on a monthly cost of $2200, total $26,400 annually.
• Loan Repayments: For initial investments such as a greenhouse, cold room, and delivery truck, loan repayments amount to $16,960 annually, based on a $100,000 loan over seven years at a 5% interest rate.
• Insurance: Comprehensive farm insurance covering liability and equipment adds $3,000 annually.
• Marketing and Distribution: Costs for packaging, transportation, and promotional activities represent $3600 annually.
• Certifications and Compliance: Organic certification and associated fees typically cost $1,000 annually.
• Legal/Accounting: $3000/year

Summary of Expenses:

• Labour: $86,400
• Seeds, Fertilizers & Inputs: $11,000
• Utilities & Fuel: $11,000
• Equipment Maintenance & Depreciation: $3,000
• Land (Mortgage): $26,400
• Loan Repayments: $16,960
• Insurance: $3,000
• Marketing, Fees & Distribution: $3600
• Legal/Accounting: $3000
• Certifications & Compliance: $1,000

Gross Revenue: $220,000

Net Income: $54,640

Total Expenses: $165,360

When these expenses are subtracted from $220,000 in gross revenue, it leaves a net profit of $54,640 approximately 24.8% of gross revenue. These numbers reflect familiar outcomes for experienced market gardeners, highlighting the importance of operational efficiency and financial discipline.

Net Income

For farmers, this net income represents more than just cash in the bank. Unlike salaried workers, farmers categorize many expenses, such as equipment purchases, fuel, and even certain housing-related costs, as business deductions, reducing personal financial obligations.

With modest personal living costs of $18,000 annually, the farmer’s disposable income before tax is approximately $36,640. Since income tax is applied to net farm income ($54,640), a 15% rate results in about $8,200 in taxes. After subtracting both tax and personal living costs, the farmer’s final disposable income is around $28,454.

• Gross revenue: $220,000
• Total expenses: $165,360
• Net income: $54,640 (≈24.8%)
• Personal living costs: $18,000
• Disposable income (pre-tax): $36,640
• Estimated farm income tax (15% of $54,640): ≈ $8,196
• Post-tax disposable income: $28,454

Comparing Farm Revenue to Teaching

If we compare this to another profession, such as a high school teacher, the financial results reveal an interesting contrast. High school teachers in the U.S. earn an average gross salary of $70,000 annually. After a 20% income tax rate, their take-home income is $56,000. Subtracting comparative expenses $6,000 for car-related costs, $21,600 for mortgage or housing payments, $18,000 for living costs, and $3,000 for household extras such as purchased vegetables or small home upgrades, the teacher’s disposable income amounts to $7,400 per year.

A market gardener will also pay income tax, though typically at a lower rate due to business rates, around 15%. With a net income of $54,640, this leaves the grower with approximately $46,444 after taxes. Subtracting $18,000 for personal living costs, and considering that other comparable expenses are already accounted for within the business, the grower has a disposable income of $28,454, still nearly four times that of the high school teacher in our example.

Even in a more conservative scenario, with a net income of $50,000, the farmer’s disposable income, around $24,500 after taxes and personal expenses, still far exceeds the teacher’s.

A Balanced Comparison

While these numbers highlight the financial advantages of profitable small farms, it’s important to consider the broader context. Teachers benefit from job stability, consistent income, and fewer operational risks, whereas farming demands discipline, efficient management, and resilience in the face of unpredictability. That said, many market gardeners would argue that they wouldn’t trade the stability of a 9 to 5 for the freedom of working outdoors and being their own boss.

The Path to Profitability in Farming

Farming doesn’t become profitable overnight. Most farms spend their first two to three years establishing systems, building customer relationships, and fine-tuning operations. Loans often play a vital role during this phase, enabling investments in infrastructure like greenhouses and tunnels, irrigation systems, and tools, which are critical for long-term success.

Over time, disciplined planning, diversified farming revenue streams, and effective financial management help transform small farms into thriving businesses. Beyond the numbers, small-scale farming offers an unparalleled opportunity to create a sustainable, purposeful lifestyle.

A successful farm isn’t just about profits—it’s about aligning income with values and creating a lifestyle that sustains both the grower and the land. That said, a small farm can provide more than just a decent living

Dreaming of Becoming a farmer?

Ready to be part of this movement? At the Market Gardener Institute, we offer online courses that empower growers to embrace sustainable, small-scale farming practices. If you’re just starting, you should start your journey and join our introduction course: Market Gardening & Organic Farming for Beginners!