Gosh, it doesn't have to be that complicated. I like to keep things small and simple, with minimal money invested. Yes, it can work. I am currently making a living for myself and my son for 6 months out of the year on 4 1/2 acres with no tractor. I have worked off farm in the winter months only. I did invest in a commercial greenhouse ($10,000 - paid for itself in less than 2 years), and a troybuilt rototiller (used - $300), a deer fence for two acres ($1100), and drip irrigation for 1 acre ($1200.) I have applied for no loans or grants, and do not have a rental unit. I pay as I go - always! No credit purchases - None! None! None! Am I profitable? If you figure that I raise most of my own food, am healthier than any horse I've ever known, and live a clean, healthy, simple lifestyle that costs very little money, don't need to spend money on gas and vehicle maintenance for commuting, then yes, I am profitable. I buy clothing, equipment, etc, used. I make do without spending money whenever possible. We utilize the library instead of buying books, etc. There are so many ways to simplify and make your living expenses lower than you ever thought possible. Do I feel deprived? No! My 9 year old son said yesterday, " Mom, we'll never be rich." I replied, "Not in money, but we're rich in more important things." He said, "Yes, like love and freedom to do our own thing." Wow. I probably put those words in his mouth over the years, but it sure was nice to hear.
So, you need to ask yourself, what farming model do I want to follow? Big and expensive and up to your ears in debt? That model has not been working well in recent years. How about small and low input/labor intensive /specialty crops? That has been working reasonably well for quite a few small farmers. If that's the route you want to go, consider these things:
1. Go where there is a market consisting of people with money who want finer things.
2. But don't pay alot for your land. Having no mortgage would be ideal, but if not that, then as small a mortgage as possible. Realize it may be some time before you can live in anything other than a trailer. But, so what? Many of us are perfectly content with our simple, cheap, low maintenence trailers. If freedom from debt appeals to you more than luxuries, you may have what it takes to be a small farmer.
3. Diversity is the key to stability. One crop fails, three others thrive. Plan to market several different things in several different ways. I currently sell veggie and plant starts through a catalog and Farmer's Market, and sell produce through my CSA and at Farmer's Market. I also sell eggs. The eggs are not very profitable, but as has been mentioned, pay for my eggs and meat, too. And it keeps my CSA customers happy.
4. Produce what your customers want. Listen to them. Try knew things every year. You will be surprised, and may end up producing things that you had no intention of producing, but they sell and you make money on them.
5. Consider a CSA. It is working very well for me. Talk about security! The crops are all paid for before you plant them! And your customers will be your biggest fans and will give you loads of encouragement, even if you have a weather disaster that destroys some crops. It happened to me last year. Had I been relying on Farmer's Market sales only, I would have floundered. But my CSA customers never lost faith or got upset. They knew they were taking a risk along with me when they signed up. And you know what? They all signed up again this year and referred friends as new customers.
6. Keep it simple. You just don't need a lot of land and equipment to produce great stuff that you can sell for top dollar. In fact, I believe that the bigger you get, the lower your quality.
7. Grow the best and charge top dollar. Seek out markets where your great stuff is appreciated and folks are willing to pay for it. My sister grows and sells bouquets at our local Farmer's Market. There are lots of folks selling bouquets there for $5 and $6 each. No one can make a living at that price, so my sister was quite discouraged her first couple of years because she produced bouquets much like theirs and charged $5 and $6 dollars. She wasn't making it. So, last year she changed tactics and grew huge flowers (lilies, gladiolas, delphineum, sunflowers, etc,) and arranged them in massive, stunning bouquets and priced them at $16 to $20. She sells out most weeks. She now makes $250 to $450 every Saturday. You should know that she has less than 1/4 acre in flowers and works 2-3 days a week as a nurse.
8. Study, study, study. Read all the books about small farming that you can get your hands on. I highly recommend "The New Farmer's Market" if you intend to sell at one. Pay very close attention to the chapter about display. It is very right on. Display makes the initial sale, quality brings them back. I have so often heard farmers complain that they had poor sales on days I had banner sales. I look at their display (or lack there of), and I know why.
9. Consider hosting interns. I've had wonderful experiences with them. Their youth, energy, enthusiasm, and strong backs will do much more for your farm than just providing cheap labor.
10. Remain flexible. If you have your heart set on producing one thing, but the market in your area is flooded, either do it way better than anyone else or do something else.
Anyway, this is just a list of things to mull on that provide a different angle than the SBA's business plan information.
Good luck to you!