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Remember to draw the district and the chose farming speshalisation, from tab 2,,BEFORE adding the actual zoning to avoid polluting the ground.
Buildings that are spawned by districts are never bigger than 4x4 blocks so you can pack alot in a small patch
I would suggest using a targeted industry district early on or in a small growing zone, as they are easy to set up and don't need much room ore cash to set up.
Later if you have room and the cash you can set up a Farming Industry area, which will take up more room, as area building can get very large, and can cost a lot more money but give better returns as you get any profet's as well as the ground tax's.
Managed to bounce the city back from the brink even better than before though, got some unique factories for forestry and farming with some adjusted policies putting me in the green pretty quick. Was 43k in debt, a bailout, and down to around 3000 people from over 11000 before it came back.
I've only been playing the game for about 3 days so I'm bound to hit more snags :P