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You build a farm and you get +1 food.
You build a castle and you get -1 food.
To build the next level of farms, you need the farm tech on the farthest right of the tech tree.
This is really great advice.
I'd just like to add that one should remember that not all provinces have the same agricultural fertility.
A new player may not realize this.
If you hover over either the farm's building slot or the little farm building on the map, a tooltip will tell you the soil's fertility rating for the province. There are five levels: barren, meager, average, fertile, and very fertile.
Upgrading the farms will not increase the inherent fertility for the province; it will only maximize how much yield from that fertility. So "improved irrigation" upgrades in a province with "barren soil" will actually bring in less than the base farms in an area with "fertile soil."
So when you upgrade your farms, it's almost always best to upgrade the most fertile areas first, because you will see a bigger koku increase for the same construction costs. A barren province might garner, say, an extra 115 koku from improved irrigation, whereas the same upgrades in a fertile province will generate around 270 extra.
Once you have the money and other things in place to allow for upgrades all over your provinces, then ideally you'd want to upgrade all farms. But when money is tight in the early game, you'll want to agriculturally upgrade only your most fertile provinces.