grain storage business plan pdf

• CHIEF AGRI USA

Your complete guide to planning a farm grain storage facility

by katie simmons | Mar 14, 2023 | Blog

Farming involves making big decisions that impact the nation’s food supply — one of which is grain storage. Wisely deciding when to store harvested grains can be a smart economic move, as prices typically increase over time.

Commercial grain elevators often pile their grain outside for temporary storage. Though this is initially an inexpensive investment, it leaves grain exposed to the elements and increases the possibility of spoilage. An alternative solution is renting permanent on-site storage at a commercial facility or another farm; although it’s an extra expense now, farmers are likely to see returns in saved bushels down the line.

For farmers wanting to retain control of their grain and ensure maximum protection from the elements, constructing a long-term storage facility on your farm is essential. Before you connect with your dealer to make a purchase, it’s critical to think through all the essential planning steps to ensure long-term success storing grain on your farm. Here’s some good advice as to why and how a farmer should store grain on their property.

Two key reasons for on-site storage

Jose Meza, Iowa district manager for Chief Agri, gives two primary reasons farmers decide to invest in an on-site  grain storage facility . “The convenience of having a facility on the land they farm improves truck turnaround,” says Meza. “There’s nothing more frustrating for a farmer during harvest than having a combine sitting in the field waiting to be unloaded because the trucks can’t get back to the field fast enough,” he says.

The other reason is basic economics — supply and demand. A grain storage facility allows farmers to choose when and where to sell their grain based on their best market conditions.

Remember to plan for expansion

Meza emphasizes the necessity of long-term planning for grain storage. He often sees commercial elevators adding storage to current facilities as they transition from piling grain on the ground to a more secure storage system. “If they’ve traditionally been piling a million bushels of grain, they know storage for 1 million bushels will fill quickly, and they’re more likely to take that step towards building a larger storage facility,” says Meza, who acknowledges that kind of storage is something most farmers evolve into over the years.

 Farmers typically know how much grain they might produce every year, but typically facilities are expanded over time.  “Every year, new species and hybrids hit the market for better yields,” says Brent Whitefoot, Chief Agri’s district sales manager for Nebraska. “Whatever they think their capacity needs are today, they’re probably going to need more storage space in future years.” Whitefoot counsels farmers to consider the benefits of planning for a facility with a larger capacity than they think they need right away.

Both Meza and Whitefoot can recall examples of folks who’ve spent more money modifying poorly planned facilities than they would have if they had planned for a larger facility in the first place. And since Chief products are built to last, you can trust your Chief facility will serve you many years as you grow in your business and increase your yields.

Before you get started, consider these three tips:

1.  Invest in quality equipment for the long term. While it can be tempting to cut corners and reduce your costs, remember that getting it right the first time is more cost-effective than being forced into changing it later.

2.  Make sure you have a master plan. Just like your business plan for your farm allows for growth and change over the years, you should have a master plan in place for your buildings, including grain storage facilities. Knowing where you want to be 10 or 20 years from now will guide your decisions today, such as where you will build any new structures and additional handling equipment. The specialists at Chief Agri and Chief Agri’s dealers can help you develop a master plan to include grain storage facilities that incorporate space for a future truck load out system or bucket elevator.

3.  Keep up on maintenance. A grain storage facility isn’t just a long-term investment for you; if you take care of it, it will last decades. “When the bin is empty, do your inspections and cleaning, and you will be able to pass it on to another generation,” says Meza.

Storage site considerations

With your master plan in hand, here are some considerations to ensure your facility will enhance your operations for years to come.

Water and weather.  Examine your property to determine where water will flow and where it will run. Do you have drainage systems in place? How will they affect your grain storage facilities? Of course, keeping your driveways dry is critical. Another consideration is the weather. When it snows, where does the snow drift on your property?

“You don’t want to build too close to a shelterbelt to avoid snow drifts that could close access to your driveway and prohibit your semi from getting through in the wintertime,” says Whitefoot.

Overhead and underground utilities.  Overhead power lines are a big concern when building your grain storage facility. Make sure your current building site and future expansion plans allow for proper clearance from power lines. Remember to check underground, too, and know before you dig. Consult a company that will mark utilities on your property to avoid expensive and potentially dangerous situations like building on top of a natural gas pipeline, for instance.

Room for augers, trucks and expansion.  It’s worth repeating: Planning can save you giant headaches and expenses down the road. For example, your grain storage facility needs space beyond the concrete footprint on which it will sit. Think through truck traffic on your property — will loaded trucks have room to turn? Does your plan allow adequate space for augers? And if you expand in the future, ensure these elements still have the required space.

Airflow.  One of the most critical planning elements to consider is airflow. Keeping grain at the right moisture content for long-term storage can be difficult — especially in large commercial facilities due to the sheer volume of grain — but proper airflow helps. “Regardless of what they build, you have to make sure it has adequate airflow,” says Whitefoot.

“I always tell people that if you design a system around 1/10 of cubic feet per minute per bushel, and if you put good quality grain in the bin at the proper moisture level, you can keep it there at 1/10  CFM,” says Whitefoot. “Poor quality grain or grain with higher moisture content needs more airflow to establish equilibrium to allow storage for several months.”

“But remember that more horsepower doesn’t always equate to more air,” says Meza.

Elevate your operations with Chief Agri

If you’re ready to elevate your operations with long-term grain storage facilities or if you’re unsure  what type of grain storage facility is right  for you,  contact  the folks at Chief Agri today. After all, they’ve been in the grain storage business for 60 plus years and know exactly what you need to consider.

Adding grain storage to your property is one of those big decisions that will significantly impact your operations. And if you do it right, it will benefit you and the next generation of farmers for years to come.

Sponsored content by Amy Carpenter-Driscoll, Brand Ave. Studios contributing writer

How to write a business plan for a grain farm?

Putting together a business plan for a grain farm can be daunting - especially if you're creating a business for the first time - but with this comprehensive guide, you'll have the necessary tools to do it confidently.

We will explore why writing one is so important in both starting up and growing an existing grain farm, as well as what should go into making an effective plan - from its structure to content - and what tools can be used to streamline the process and avoid errors.

Without further ado, let us begin!

In this guide:

Why write a business plan for a grain farm?

What information is needed to create a business plan for a grain farm.

• How do I build a financial forecast for a grain farm?

The written part of a grain farm business plan

• What tool should I use to write my grain farm business plan?

Understanding the document's scope and goals will help you easily grasp its structure and content. Before diving into the specifics of the plan, let's take a moment to explore the key reasons why having a grain farm business plan is so crucial.

To have a clear roadmap to grow the business

It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...

In this context, running a business without a clear roadmap is like driving blindfolded: it's dangerous at best. That's why writing a business plan for a grain farm is essential to create successful and sustainable businesses.

To write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.

Once you know where you want your grain farm to be, you'll have to identify:

• what resources (human, equipment, and capital) are needed to get there,
• at what pace the business needs to progress to get there in time,
• and what risks you'll face along the way.

Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.

To anticipate future cash flows

Regularly comparing your actual financial performance to the projections in the financial forecast of your grain farm's business plan gives you the ability to monitor your business's financial health and make necessary adjustments as needed.

This practice allows you to detect potential financial issues, such as unexpected cash shortfalls before they escalate into major problems. Giving you time to find additional financing or put in place corrective measures.

Additionally, it helps you identify growth opportunities, like excess cash flow that could be allocated to launch new products and services or expand into new markets.

Staying on track with these regular comparisons enables you to make well-informed decisions about the amount of financing your business might require, or the excess cash flow you can expect to generate from your main business activities.

To secure financing

A detailed business plan becomes a crucial tool when seeking financing from banks or investors for your grain farm.

Investing and lending to small businesses are very risky activities given how fragile they are. Therefore, financiers have to take extra precautions before putting their capital at risk.

At a minimum, financiers will want to ensure that you have a clear roadmap and a solid understanding of your future cash flows (like we just explained above). But they will also want to ensure that your business plan fits the risk/reward profile they seek.

This will off-course vary from bank to bank and investor to investor, but as a rule of thumb. Banks will want to see a conservative financial management style (low risk), and they will use the information in your business plan to assess your borrowing capacity — the level of debt they think your business can comfortably handle — and your ability to repay the loan. This evaluation will determine whether they'll provide credit to your grain farm and the terms of the agreement.

Whereas investors will carefully analyze your business plan to gauge the potential return on their investment. Their focus lies on evidence indicating your grain farm's potential for high growth, profitability, and consistent cash flow generation over time.

Now that you recognize the importance of creating a business plan for your grain farm, let's explore what information is required to create a compelling plan.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Writing a grain farm business plan requires research so that you can project sales, investments and cost accurately in your financial forecast.

In this section, we cover three key pieces of information you should gather before drafting your business plan!

Carrying out market research for a grain farm

Before you begin writing your business plan for a grain farm, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your grain farm.

Your grain farm may have the potential to attract more customers who are interested in organic products. Market research could reveal that there is a growing trend of consumers who are interested in buying organic and sustainably-sourced produce. Market research might also indicate that there is a potential for increased sales from consumers who are looking for locally-sourced grain. This trend could be driven by a desire for fresher, more locally-produced food.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your grain farm.

Developing the marketing plan for a grain farm

Before delving into your grain farm business plan, it's imperative to budget for sales and marketing expenses.

To achieve this, a comprehensive sales and marketing plan is essential. This plan should provide an accurate projection of the necessary actions to acquire and retain customers.

Additionally, it will outline the required workforce to carry out these initiatives and the corresponding budget for promotions, advertising, and other marketing endeavours.

By budgeting accordingly, you can ensure that the right resources are allocated to these vital activities, aligning them with the sales and growth objectives outlined in your business plan.

The staffing and capital expenditure requirements of a grain farm

Whether you are starting or expanding a grain farm, it is important to have a clear plan for recruitment and capital expenditures (investment in equipment and real estate) in order to ensure the success of the business.

Both the recruitment and investment plans need to be coherent with the timing and level of growth planned in your forecast, and require appropriate funding.

A grain farm could incur staffing costs for hiring an experienced farm manager to oversee the operation of the farm, as well as additional workers to plant and harvest the crops. In addition, the farm could incur costs to purchase and maintain the necessary equipment such as tractors, combines, seeders, irrigators, and other tools necessary for successful grain production.

In order to create a realistic financial forecast, you will also need to consider the other operating expenses associated with running the business on a day-to-day basis (insurance, bookkeeping, etc.). 

Once you have all the necessary information to create a business plan for your grain farm, it is time to start creating your financial forecast.

What goes into your grain farm's financial forecast?

The financial forecast of your grain farm's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a grain farm are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

Your grain farm forecasted P&L statement enables the reader of your business plan to get an idea of how much revenue and profits your business is expected to make in the near future.

Ideally, your reader will want to see:

• Growth above the inflation level
• Expanding profit margins
• Positive net profit throughout the plan

Expectations for an established grain farm will of course be different than for a startup. Existing businesses which have reached their cruising altitude might have slower growth and higher margins than ventures just being started.

The projected balance sheet of your grain farm

The balance sheet for a grain farm is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

• Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
• Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your grain farm's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your grain farm's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your grain farm has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your grain farm business plan.

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

• Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
• Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
• Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your grain farm business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your grain farm as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

Having this table helps show what costs are involved in setting up your grain farm, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your grain farm business plan, let's shift our focus to the written part of the plan.

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

The written part of the business plan is where you will explain what your business does and how it operates, what your target market is, whom you compete against, and what strategy you will put in place to seize the commercial opportunity you've identified.

Having this context is key for the reader to form a view on whether or not they believe that your plan is achievable and the numbers in your forecast realistic.

The written part of a grain farm business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The first section of your grain farm's business plan is the executive summary which provides, as its name suggests, an enticing summary of your plan which should hook the reader and make them want to know more about your business.

When writing the executive summary, it is important to provide an overview of the business, the market, the key financials, and what you are asking from the reader.

Start with a brief introduction of the business, its name, concept, location, how long it has been in operation, and what makes it unique. Mention any services or products you plan to offer and who you sell to.

Then you should follow with an overview of the addressable market for your grain farm, current trends, and potential growth opportunities.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Finally, you should detail any funding requirements in the ask section.

2. The presentation of the company

The second section in your grain farm's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure of the business, who the owners are and how much each has invested and owns. If you are seeking financing it is important that the reader gets a clear picture of which legal entity is receiving the funds, and who controls the business.

The location part should give an overview of the premises from which the company is operating, and why that location is of particular interest (catchment area, accessibility, amenities nearby, etc.).

When describing the location of your grain farm, you could emphasize its proximity to major transport hubs, such as airports, seaports, or rail networks. You may also want to mention the availability of local resources, such as water, fertile soil, and access to labour. Additionally, you could point out the potential for growth in the area, both in terms of population and economic development. This could include the possibility of increased demand for grain or other agricultural products. Finally, you could highlight the potential for capitalizing on new technologies, such as automated farming or precision agriculture.

Finally, you should introduce the management team. Explain each member's role, background, and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, and how long they've been working together, as this will help potential lenders or investors understand why they should trust in their leadership.

3. The products and services section

The products and services section of your grain farm business plan should include a detailed description of what your company sells to its customers. 

For example, your grain farm might offer the sale and delivery of grain crops such as wheat, rye, barley, and oats to its customers. Additionally, you might offer crop consulting and soil testing services for farmers to optimize their yields. Finally, your farm might offer storage and drying services to ensure the grain remains in top condition before delivery. These products and services can help customers improve their farming operations and ensure they always have access to the grains they need.

The reader will want to understand what makes your grain farm unique from other businesses in this competitive market.

When drafting this section, you should be precise about the categories of products or services you sell, the clients you are targeting and the channels that you are targeting them through. 

4. The market analysis

When presenting your market analysis in your grain farm business plan, you should detail the customers' demographics and segmentation, target market, competition, barriers to entry, and any regulations that may apply.

The goal of this section is to help the reader understand how big and attractive your market is, and demonstrate that you have a solid understanding of the industry.

You should start with the demographics and segmentation subsection, which gives an overview of the addressable market for your grain farm, the main trends in the marketplace, and introduces the different customer segments and their preferences in terms of purchasing habits and budgets.

The target market section should follow and zoom on the customer segments your grain farm is targeting, and explain how your products and services meet the specific needs of these customers.

For example, your target market might include large-scale grain producers who are looking for a reliable source of grain to meet their needs. These customers would typically be commercial farmers who require large amounts of grain to feed their livestock or to be sold to customers. They would also appreciate the convenience of dealing with a single grain farm as opposed to multiple smaller farms.

Then comes the competition subsection, where you should introduce your main competitors and explain what differentiates you from them.

Finally, you should finish your market analysis by giving an overview of the main regulations applicable to your grain farm.

5. The strategy section

When crafting the strategy section of your business plan for your grain farm, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your grain farm faces a variety of risks. For example, your crop may be damaged by weather events such as droughts, floods, and extreme temperatures. These could lead to reduced yields, which could cause financial losses. Additionally, your farm could be at risk of pests or plant diseases. This could lead to a deterioration of the quality of the crop, or even complete crop loss. Both of these risks could have a major impact on the success of your farm.

6. The operations section

The operations of your grain farm must be presented in detail in your business plan.

Begin by addressing your staff, specifying the main roles and your recruitment plan to support the anticipated growth. Outline the qualifications and experience needed for each role and discuss your recruitment strategies, which may involve using job boards, referrals, or headhunters.

Next, clearly state your grain farm's operating hours, allowing the reader to gauge the adequacy of your staffing levels. Additionally, mention any considerations for varying opening times during peak seasons and your approach to handling customer queries outside regular operating hours.

The key assets and intellectual property (IP) required to run your business should also be highlighted. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, ensure they are well-documented in this section.

You could have key assets such as land, equipment, and buildings that make up your farm. You may also have intellectual property such as unique farming techniques and patented seeds that you use on your farm. These assets and IP could be valuable to your farm operations and may help you to become more successful.

Finally, provide a comprehensive list of suppliers you intend to collaborate with, along with a breakdown of their services and main commercial terms, such as price, payment terms, break clauses and contract duration. Investors often seek insight into the reasons behind your supplier choices, which may include a preference for higher-quality products or established relationships from past ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a grain farm business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my grain farm's business plan?

There are two main ways of creating your grain farm business plan:

• Using specialized business planning software,
• Hiring a business plan writer.

Using an online business plan software for your grain farm's business plan

Using online business planning software is the most efficient and modern way to create a grain farm business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Hiring a business plan writer to write your grain farm's business plan

Outsourcing your grain farm business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the grain farm business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your grain farm's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your grain farm business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your grain farm business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

• Having an up-to-date business plan is key to maintaining visibility on your future cash flows.
• A business plan has 2 parts: a financial forecast highlighting the expected growth, profitability and cash generation of the business; and a written part which provides the context needed to interpret and assess the quality of the forecast.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this guide helped you to better understand how to write the business plan for a grain farm. If you still have questions, do not hesitate to contact us.

Also on The Business Plan Shop

• How to write a 5 years business plan
• Business plan myths

Know someone who owns or wants to start a grain farm? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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According to Corral, Díaz, Monagas andGarcía (2017),the objective of increasing agricultural incomes in developing countries ranks high on the political agenda. Especially, in Sub-Saharan Africa (SSA), the majority of the population lives in rural areas with higher levels of poverty than in urban areas, and almost all rural households depend directly or indirectly on agriculture. Rwanda " s agricultural policies are embedded in a frame work of conventions and protocols such as the Millennium Development Goals (MDGs), Sustainable Development Goals (SDGs), the New Partnership for African Development (NEPAD), Common Markets for Eastern andSouthern Africa (COMESA), the East African Community (EAC), Vision 2020, the Economic Development and Poverty Reduction strategy(EDPRS) and finally the Plan for Strategic Transformation of Agriculture (PSTA). The government has initiatedCrop Intensification Program (CIP) to increase productivity for six priority crops namely Maize, Wheat, Rice, Irish potato, Beans and Cassava. Taking Maize as a case study, the present research analyzed the role of agriculture policies in improving maize production in Rwanda during 1995 to 2018. The data were provided by the National Institute of Statistics of Rwanda (NISR) and Index Mundi and they were analyzed using Eviews 8 software. The research found that agriculture policies have led to important achievements: Maize production passed from 57 metric ton to 660 metric tons; The individual consumption of maize passed from an estimation of 9.87 kg per year to 43.24 kg; Maize importation passed from 4 metric tons to 107 metric tons; Rwanda started exporting maize since 2010 starting from 5 metric tons to 10 metric ton since 2012 up to 2017. However, despite such impressive achievements, the research noted that many efforts have to be engaged because the production remains lower that required to satisfy the food security for the population.

kayitana fred

chrisco rwanda

Rwanda Biomass fuel supply baseline

Chris Huggins

Land‐scarce Rwanda is an unlikely place in which to find ‘land grabbing’. However, an ongoing legal, institutional and financial re‐configuration of the agricultural sector in Rwanda facilitates increased penetration of rural smallholder farming systems by Rwandan and international capital which may include some large‐scale ‘land grabbing’ by foreign corporations. More often, foreign agricultural investment in Rwanda is likely to take the form of involvement in contract farming arrangements with cooperatives. Such contracts are facilitated by the state, which when necessary uses coercive mechanisms as well as highly interventionist strategies (such as regional crop specialization policies and mandatory land use consolidation)to create an ‘enabling environment’ for agricultural investment. The Rwandan government has adapted neo‐liberal tools, such as ‘performance management contracts’, through which it makes local public administrators accountable for agricultural ‘development’ targets, which are often explicitly linked to corporate interests. Philanthropic activities by international development agencies are also often intertwined with the activities of the state and foreign capital, so that a variety of actors and objectives are collaboratively changing the relations between land and labour, and exposing smallholder farmers to regional and global markets. Such processes suggest that the global ‘land grab’ is only one aspect of broader patterns of reconfiguration of control over land and labour in the Global South, and that critical attention should be paid to various modes of ‘agricultural investment’, not just acquisition of large areas of land.

Joris Schapendonk

KABANDA Callixte

Hilda Vasanthakaalam , M. Sankaranarayanan

Rwanda is implementing the self-sustaining extension system through Farmer Field Schools (FFS) and Farmer Promoters (FP) approaches. The objective of this paper was to find out the impact of self-sustaining extension system in order to help stakeholders to improve its current implementation. The methodology includes a desk review of reports, face to face interview with 60 participants and 5 focus group discussions between February and May 2016. It also includes the interview of 400 trained farmers and 400 non-trained farmers. It was found that 92% of the trained FFS facilitators and 62% of the farmer promoters were very active in extension services. It was also found that for beans, the highest average yield was 1.2 t/ha for non-trained farmers, 1.5 t/ha for FFS farmers, 1.3 t/ha for FP farmers and the average yield of all the farmers was worked out to be 1.4 t/ha. It was found that FFS trained farmers produce 37.5% more than non-trained farmers while farmers trained by Farmer Promoters produce 10.8% more than non-trained farmers. In general, 37.8% of farmers apply Good Agricultural Practices (GAP) among the non-trained farmers, 73% of FFS farmers use the GAP and 68.3% of the FP farmers adopt the GAPs. It was found that 20% of the FFS group activities are involved in various income generating activities compared to non-trained farmers (10%). It is concluded that the implementation of self-sustaining agricultural extension system in Rwanda has a strong impact in agricultural development through motivation and increased trainings of farmer promoters.

Christopher Huggins

Godfrey Manasseh

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How to Start a Profitable Grain Storage Business in Nigeria/Africa: 5 Key Steps to Success

Muhammed Alhassan

Starting a grain storage business in nigeria or any african country can be a lucrative venture due to the increasing demand for grains and cereals..

Table of Contents

Introduction:

Starting a grain storage business in Nigeria or any African country can be a lucrative venture due to the increasing demand for grains and cereals. With a growing population and the need to ensure food security, grain storage plays a crucial role in preserving these valuable commodities. This guide will walk you through the essential steps to kickstart your grain storage business, including the required capital, profitability factors, and valuable reference links.

Capital Required for Starting a Grain Storage Business:

• Storage Facilities: To begin, you’ll need a suitable storage facility. The capital required can vary widely based on your chosen scale and location. Smaller warehouses can cost between ₦500,000 to ₦2 million, while larger facilities might demand an investment of ₦10 million or more. It’s essential to assess your specific needs and budget accordingly.
• Grain Handling Equipment: You’ll need equipment for loading, unloading, and processing grains. This can include conveyors, grain elevators, weighing scales, and moisture testers. Budget for these items based on your business size, but it’s wise to allocate at least ₦1 million for essential equipment.
• Safety and Security Measures: Ensure the safety and security of your stored grains with investments in fire suppression systems, pest control measures, and surveillance equipment. Allocate around ₦500,000 to ₦1 million for these purposes.
• Licensing and Permits: Obtain the necessary licenses and permits, which can vary by location. Budget an estimated ₦200,000 to ₦500,000 for legal compliance.
• Working Capital: You’ll need working capital to purchase the initial stock of grains and cover operational expenses (staff salaries, utilities, maintenance, etc.) until revenue starts flowing. Allocate at least ₦2 million for this.

Profitability Factors:

• Market Demand: Assess the demand for grain storage services in your area. Nigeria and many African countries experience seasonal fluctuations in grain prices, making storage services invaluable to farmers and traders looking to preserve their crops for better market prices.
• Location: Your storage facility’s proximity to grain-producing regions and transportation hubs can significantly impact profitability. A strategic location can attract more clients and reduce transportation costs.
• Quality Management: Ensure proper grain handling and storage practices to maintain the quality of stored grains. High-quality grains can command premium prices in the market, increasing your profitability.
• Diversification: Consider offering related services such as grain cleaning, drying, and packaging to diversify your income streams.
• Marketing: Develop effective marketing strategies to reach potential clients, including farmers, cooperatives, and agribusinesses. Utilize digital marketing and partnerships with local agricultural associations.

Reference Links:

• Nigeria Investment Promotion Commission (NIPC) : Check for investment guidelines and resources in Nigeria.
• Food and Agriculture Organization (FAO) : Access valuable information on grain storage best practices and global agricultural trends.
• Central Bank of Nigeria (CBN) : Explore financing options and agricultural development programs in Nigeria.
• Nigeria Agribusiness Group : Connect with industry associations and networks for support and market insights.

Conclusion:

Starting a grain storage business in Nigeria or Africa can be a profitable venture, but it requires careful planning, investment, and dedication. Assess your capital needs, consider profitability factors, and ensure you maintain high-quality standards in grain storage. By following these steps and leveraging the provided reference links, you can embark on a successful journey in the grain storage industry.

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Free Agriculture Sample Business Plan PDF + How to Write

Elon Glucklich

6 min. read

Updated February 7, 2024

Free Download:  Agriculture Business Plan Template

As a farmer, you’re in the business of putting food on the table. Agriculture is one of the world’s oldest professions.

Today it accounts for over 5% of U.S. Gross Domestic Product, and 1 in 10 American workers are in agriculture, food, and related industries.

But starting a new agriculture business requires intensive planning and upfront preparation. If you’re looking for a free, downloadable agriculture sample business plan PDF to help you create a business plan of your own, look no further.

Keep in mind that you don’t need to find a sample business plan that exactly matches your farm. Whether you’re launching a larger agricultural business outside a bustling city or a smaller organic operation, the details will be different, but the foundation of the plan will be the same. 

Are you writing a business plan for your farm because you’re seeking a loan? Is your primary concern outlining a clear path for sales growth? Either way, you’re going to want to edit and customize it so it fits your particular farm. 

No two agriculture farming businesses are alike.

For example, your strategy will be very different if you’re a dairy operation instead of a soybean farm. So take the time to create your own financial forecasts and do enough market research for your specific type of agriculture so you have a solid plan for success. 

• What should you include in an agriculture farm business plan?

Your agriculture business plan doesn’t need to be hundreds of pages—keep it as short and focused as you can. You’ll probably want to include each of these sections: 

1. Executive summary

An overview of your agriculture business, with a brief description of your products or services, your legal structure, and a snapshot of your future plans. While it’s the first part of the plan, it’s often easier to write your executive summary last.

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2. Business summary and funding needs

Details about your farming operation, including how much capital you will need and the types of funding you’re considering. Include your business history, your current state, and your future projections. It should also cover your business location, the equipment and facilities needed, and the kinds of crops or livestock you plan to raise.

3. Products and services

Provide details on the types of crops, farming methods, and any value-added products you plan to offer, such as finished goods or even  agritourism offerings .

4. Marketing plan

Compile your market research findings, including the demand for your products or services, your target customers , and your competitors. It should also outline your marketing strategy—how you plan to attract and retain customers. 

5. Financial plan

Your revenue projections, cost estimates, and break-even analysis. Your financial plan and forecasts should demonstrate that your business has a path to profitability.

• Building on your farm business plan sample

With a free agriculture business plan template as your starting point, you can start chipping away at the unique elements of your business plan.

As the business owner, only you can speak to aspects of your agriculture operation like your mission and core values.

You’re putting in the long hours to start a thriving farm business, so aspects of your mission – like a commitment to sustainable farming practices – will be best explained in your own words. Authenticity will help you connect with a growing market of consumers who value transparency and environmental stewardship in their food sources.

As for more conventional aspects of business planning , you will want to take on things like your marketing and financial plans one at a time. Here are a few specific areas to focus on when writing your business plan.

Invest time in market research

Starting an agriculture operation requires significant startup costs. When you throw in the unique land use considerations involved, it’s crucial to conduct thorough market research before investing hundreds of thousands – or even millions – of dollars into a farm business.

Start by researching the types of farms operating in your locality and wider region, and the specific crops or livestock they specialize in. You will need to understand seasonal trends, including crop yields and livestock productivity.

Note the demographics of the local community to understand their buying habits and preference for local produce. Also, be aware of the competitive landscape and how your farm can differentiate itself from others. All of this information will inform your service, pricing, marketing, and partnership strategy.

From there, you can outline how you plan to reach your target market and promote your farm’s offerings.

Craft your agriculture go-to-market strategy

One of the things that makes an agriculture farm business plan different from some service-based business plans is that you might decide to work only with one or two businesses that purchase your goods.  

You may offer different tiers of products to different types of buyers, such as produce for an organic farmers market, and corn for another farm’s animal feed. If that’s the case, make sure you include ideas like setting aside land for organic growth and maintenance.

Discuss your advertising and promotional strategies, emphasizing channels relevant to your target market. Also, consider how partnerships with local businesses, farmers’ markets, and other industry stakeholders can enhance your visibility.

Include your pricing strategy and any special promotions or loyalty programs. Also, consider public relations and media outreach efforts that can raise awareness about your farm and its sustainable practices.

Prepare for unique farming challenges

Running an agricultural business comes with its own set of challenges, including weather-related disruptions and market volatility. Your business plan should identify these potential risks and present contingency plans to address them.

Include a plan to mitigate weather-related risks, such as crop diversification, employing weather-resistant farming practices, investing in appropriate infrastructure like greenhouses or drainage systems, or taking out insurance to cover weather-related losses.

Detail the operational aspects of your business , including land ownership, employee status, farm maintenance, and safety requirements. Also, illustrate your strategies for managing crop production, livestock care, land stewardship, and regulatory compliance.

Plan for the future

Contingency planning is important in all businesses.

But the unique challenges in agriculture of changing market dynamics, regulatory changes, and climate impacts make it especially necessary to plan for the future. Detail how you’ll measure success, and how you will be prepared to adapt your offerings if you need to change the focus of the business due to factors outside your control.

Also, be ready to discuss opportunities for scaling your business over time, such as introducing new crops, expanding farm operations, or opening additional locations.

• Get started with your farm business plan sample

There are obviously plenty of reasons farm owners can benefit from writing a business plan — for example, you’ll need one if you’re seeking a loan or investment. Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.

Download this  agriculture farm sample business plan PDF  for free right now, or visit  Bplans’ gallery of more than 550 sample business plans  if you’re looking for more options.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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GRAINS & CEREALS WHOLESALE & DISTRIBUTION BUSINESS PLAN

This is a complete business plan for grains (rice, maize, millet)  agro product which can be use to apply for grants, NIRSAL microfinance bank loan, CBN and BOI or business proposal. It is complete and contains all the necessary things for you to submit a bankable business plan for your investors, banks or government to raise fund.

In order to go into grains and cereals wholesaling or retailing, you now have business plan for loan and grant.

You can check the table of content below to know what is contain in the business plan

TABLE OF CONTENT

EXECUTIVE SUMMARY

1.1 OBJECTIVES

1.2 MISSION

1.3 KEYS TO SUCCESS

1.4 BUSINESS OWNERSHIP

1.5 OUR BUSINESS STRUCTURE

2.0 HUMAN RESOURCES

2.1 MANAGEMENT TEAM

2.2 ORGANOGRAM

2.3 ROLES AND RESPONSIBILITIES

2.4 SALARY SCHEDULE

3.1 MARKET ANALYSIS SUMMARY

3.2 MARKET SEGMENTATION

3.2 STRATEGY AND IMPLEMENTATION SUMMARY

3.3 COMPETITIVE EDGE

3.4 CUSTOMERS

3.5 COMPETITION

3.6 PRICING AND DISTRIBUTION

3.7 STRATEGY AND IMPLEMENTATION

3.8 SALES FORECAST

S.W.O.T. ANALYSIS

5.1 FINANCIAL PLAN

START UP COST

5.3 CASH FLOW  PROJECTION STATEMENT

5.4 PROJECTED PROFIT OR LOSS STATEMENT

 EXECUTIVE SUMMARY

AREWA enterprise is primarily a wholesaler of various grains and agro products in Nigeria, located in Kaduna. This company is intended to provide customers with the finest quality grains for in our location The business is primarily wholesale to retailers, area restaurants and people who want to buy in large quantity.

We will purchase our grains directly from local local farmers and sole distributors. This allows us to buy from the farmers with the finest output available anywhere. WE plan to sell for countless numbers of customers who are always in need of wholesale price for most of the grain we sell in our location.

AREWA Enterprises plans to expand our storefront and sell direct to company in nearest future. In our expanded market, we will bring our commitment of quality, freshness and great prices to the public. By purchasing in large quantities we are able to pass the savings on to our customer.

The planned setting up of the business will cost  N5,000,000. This is for renting of store, buying of stock, equipments and payment of staff cost. Ibrahim Garba, owner of AREWA Enterprises, will invest N500,000 and also secure a N4,500,000 short-term loan.

Establish AREWA Enterprise as the leader in selling grain in Nigeria

Increase the number of customers buying from AREWA Enterprise by 10% over the next two years.

The mission of AREWA Enterprises is to offer customers the best grains at the cheapest price.

Superior products will promote customer loyalty.

A location that will assure walk-in traffic.

A program that will create customer loyalty.

AREWA enterprises is privately owned by Mr. XXX and managed by him. Mr. XXX leveraged her wealth of knowledge in trading agricultural produce.  Due to our dream for the business, other investors may be allowed to co-owned the business.

How To Download The Complete  Groundnut Farming  Business Plan

For you to download the complete  business plan straight to your email address,kindly Click on the>> DOWNLOAD for immediate response

You’ll pay the sum of #5000

BANK: UBA ACCOUNT NAME:  AJETUNMOBI OLANIYI A ACCOUNT NUMBER: 2089760594

Immediately after the payment, send your email address to 08133717775  through text message and you will receive the complete groundnut farming business plan once your payment is confirmed.

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Grain storage infrastructure

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Country & Regions

• Sector & Subsector

Pipeline Opportunity

Business case, impact case, enabling environment, target locations.

Provide storage facilities for grain value chains like maize, rice, cassava, yams through silos, grain conveyors, grain dryers, vacuum hermetic fumigation and gas hermetic storage. Also offer complementary logistic services to aggregate production.

Address post-harvest losses and contribute to food security of agricultural households.

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Sector Classification

• (I) World Bank database. https://data.worldbank.org/ (II) IHS Markit. Comparative Industry Forecast Tables, Agriculture, ISIC Classification Rev. 4. (III) Republic of Ghana (2017). Medium-Term National Development Policy Framework: An Agenda for Jobs: Creating Prosperity and Equal Opportunity for All (First Step) 2018-2021. https://s3-us-west-2.amazonaws.com/new-ndpc-static1/CACHES/PUBLICATIONS/2018/08/23/Medium-term+Policy+Framework-Final+June+2018.pdf (IV) Sachs, J., Schmidt-Traub, G., Kroll, C., Lafortune, G., Fuller, G., Woelm, F. 2020. The Sustainable Development Goals and COVID-19. Sustainable Development Report 2020. Cambridge: Cambridge University Press. (V) Ministry of Food and Agriculture (2018). Investing For Food and Jobs (IFJ): An Agenda for Transforming Ghana’s Agriculture (2018-2021). https://mofa.gov.gh/site/images/pdf/National%20Agriculture%20Investment%20Plan_IFJ.pdf (VI) Send Ghana (2014). Women and Smallholder Agriculture in Ghana - Policy Brief 2014. https://www.sendwestafrica.org/phocadownload/Women%20and%20Smallholder%20Agriculture%20in%20Ghana%20Policy%20Brief%20-%20Copy.pdf
• (1) Ghana Investment Promotion Centre (2017). Doing business in Ghana - To Know and Invest in Ghana. (2), (4), (5), (6), (7) Manandhar, A. and Milindi, P. (2018). An Overview Of The Post-Harvest Grain Storage Practices Of Smallholder Farmers In Developing Countries. Agriculture. https://www.researchgate.net/publication/324539264_An_Overview_of_the_Post-Harvest_Grain_Storage_Practices_of_Smallholder_Farmers_in_Developing_Countries (3) Smith, P., House, J. and Sobocka, J. (2016). Global Change Pressures on Soils from Land Use and Management. Global Change Biology, Wiley. https://hal.archives-ouvertes.fr/hal-01444070/document (8) Jebuni, S. (2014). Evaluation Of Farmers Storage Structures And Their Effects On The Quality Of Sorghum Grain In WA West District In The Upper West Region Of Ghana. Kwame Nkrumah University of Science and Technology. http://ir.knust.edu.gh/bitstream/123456789/7727/1/STEPHEN%20NGMENGU%20JEBUNI.pdf (9) Rutten, M. and Verma, M. (2014). The Impacts Of Reducing Food Loss In Ghana. A Scenario Study Using The Global Economic Simulation Model MAGNET. LEI Wageningen UR. https://edepot.wur.nl/328240#:~:text=Each%20year%2C%20Ghana%20is%20estimated,topic%20for%20the%20Dutch%20government (10) Worldometers (2020). Ghana Population 2020. https://www.worldometers.info/world-population/ghana-population/ (11) Aphlis (2020). Dry Weight Loss: Ghana - All Crops - All Years. https://www.aphlis.net/en/page/20/data-tables#/datatables?country=279&tab=dry_weight_losses&metric=prc (12) National Development Planning Commission, Ghana Statistical Service (2018). Ghana SDGs Indicator Baseline Report 2018. https://www.gh.undp.org/content/ghana/en/home/library/poverty/ghana-sdgs-indicator-baseline-report-2018-.html (13), (14) USAID (2018). Ghana: Nutrition Profile. https://www.usaid.gov/sites/default/files/documents/1864/Ghana-Nutrition-Profile-Mar2018-508.pdf (15) Dasori, W., Korbli, M. and Cumba, R. (2016). Emergency Food Security And Market Assessment: Ghana. United Nations World Food Programme (WFP). https://www.wfp.org/publications/ghana-emergency-food-security-and-market-assessment-june-2016 (16) Opoku, H. (2020). Food Security and Nutrition Monitoring System (FSNMS) Ghana. United Nations World Food Programme (WFP). https://reliefweb.int/sites/reliefweb.int/files/resources/WFP-0000119574.pdf (17) Statista (2020_. Ghana - Population Growth 2019 https://www.statista.com/statistics/447519/population-growth-in-ghana/#:~:text=In%202019%2C%20Ghana's%20population%20increased,compared%20to%20the%20previous%20year (18), (19), (20a) Ghana Statistical Service (2020). Production of Agriculture Statistics. https://statsghana.gov.gh/nationalaccount_macros.php?Stats=MjM3NTIyNzgzMy44ODU=/webstats/985rp49861 (20b) National Development Planning Commission (2014). Ghana Shared Growth Development Agenda II (GSGDA II) (2014–2017). Republic of Ghana. http://extwprlegs1.fao.org/docs/pdf/gha152510.pdf (21) Ministry of Food and Agriculture (2007). Food And Agriculture Sector Development Policy (FASDEP II). Republic of Ghana. https://www.grain.org/media/W1siZiIsIjIwMTMvMDIvMjgvMTRfMjhfMTZfNzUxX0ZBU0RFUF9JSV9GSU5BTC5wZGYiXV0 (22) Ministry of Food and Agriculture (2018). Investing For Food And Jobs (IFJ): An Agenda For Transforming Ghana’S Agriculture (2018-2021). http://mofa.gov.gh/site/images/pdf/National%20Agriculture%20Investment%20Plan_IFJ.pdf (23) Government of Ghana (2016). National Nutrition Policy. https://www.unicef.org/ghana/media/1311/file/UN712528.pdf (24) Ministry of Environment, Science, Technology and Innovation (2015). Ghana National Climate Change Master Plan Action Programmes For Implementation: 2015–2020. Republic of Ghana. https://www.weadapt.org/sites/weadapt.org/files/2017/ghana_national_climate_change_master_plan_2015_2020.pdf (25) Ministry of Health (2012). Public Health Act 2012 (Act 851). Republic of Ghana. https://www.moh.gov.gh/wp-content/uploads/2016/02/Public-Health-Act-851.pdf (26) Government of Ghana (2012). Standards Authority Act 1973 (N.R.C.D173). http://extwprlegs1.fao.org/docs/pdf/gha17277.pdf (27) Ghana Investment Promotion Centre (GIPC) (2013). Ghana Investment Promotion Centre Act (Act 865). https://www.gipcghana.com/press-and-media/downloads/promotional-materials/3-gipc-act-2013-act-865/file.html (28), (29), (30), (31) Aphlis (2020). Dry Weight Loss: Ghana - All Crops - 2019. https://www.aphlis.net/en/page/20/data-tables#/datatables?country=279&tab=dry_weight_losses&metric=tns&year=20 (32) Aphlis (2020). Dry Weight Loss: Ghana - All Crops - All Years. Financial Value Of Loss (USD). https://www.aphlis.net/en/page/20/data-tables#/datatables?country=279&tab=dry_weight_losses&valuechainstep=1&metric=fin&dataview=1&fct=2 (33) Regassa, S. (2014). Does it Pay to Invest in Postharvest Management? An Ex-Ante Cost Benefit Analysis of Reducing Maize Storage Losses in Darimu Woreda, Ethiopia, 2014. https://www.shareweb.ch/site/Agriculture-and-Food-Security/focusareas/Documents/phm_regassa_cba_ethiopia.pdf (34) PwC analysis based on Prof. A. Damodaran data, 2020. (35) International Silo Organisation (2021). Nothing works like a tower silo. https://silo.org/storage-methods/ (36) Štaba, D., Blanda, M. and Dolaček-Alduk, Z. Organization and technology during construction of cement silo. https://www.irbnet.de/daten/iconda/CIB15859.pdf (37) Silos Cordoba (2019). Silos Córdoba has signed a contract for the construction of a grain terminal in Nigeria. https://siloscordoba.com/blog/new-projects/silos-cordoba-has-signed-a-contract-for-the-construction-of-a-grain-terminal-in-nigeria/ (38) Agro Met (2015). Agro Met silos provider. https://www.silos.com.pl/faq,64.html (39) Rutten, M. and Verma, M. (2014). The Impacts of Reducing Food Loss in Ghana. 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Wholesale Grains: Starting a Wholesale Grains Business

About 12,000 years ago, the Agricultural Revolution changed the landscape of the world. Since then, grains have been an important part of our diet. Things are not likely to change in the near future. Crops will be part of our meals for millennia to come. Production of both food and beverage services and products is highly dependent on grains. In this article, we’ll examine the topic of wholesale grains, what they are, and how you can profit by starting a successful wholesale distribution business in that niche. If you’re currently a business owner in that field, you’ll probably find some useful information as well.

What Are Wholesale Grains?

Buying grains in bulk quantities is a standard business practice used by restaurants and other companies. The main benefit of bulk buying is that it usually comes at a lower price. Furthermore, the prices of commodities such as wheat, oat, and rice are constantly changing. Therefore, if businesses believe they’re about to increase, it might be better to stock these agricultural products while the prices are low.

Some of the most popular grains are wheat, corn, rice, barley, and oats. Wholesale vendors of these products trade primarily with food producers, food industry suppliers, retailers, and animal food producers. Since grains have a fairly long shelf life if stored properly, it can be beneficial for companies to buy bulk grains .

Key takeaway: Starting a wholesale grains business requires a fairly big investment. However, as the need for food is constantly expanding, there are many growth opportunities , and it can prove to be a very profitable one.

What Is Needed to Start a Wholesale Grains Business?

If you want to start a company in the field of wholesale grain trade, there are a few main steps to prepare the enterprise. 

Develop a Detailed Business Plan

It should include major components such as goals, competition, financial projections, and marketing channels. A wholesale grains business requires an investment of tens of thousands of dollars. Therefore, things such as the current macro environment should also be taken into consideration. The business plan needs to have future predictions on key metrics such as business growth, revenue, and profit. This way, it will serve as a roadmap for the business.

Research the Market Regulations

Before you start your wholesale grains business, check how the grains should be stored, what permits are needed to buy and sell them, and how long it will take to obtain the needed licenses. Getting a tax ID number and business license are fairly common procedures. The ones that might require more time and additional investments are the certifications required to operate a grains business. They depend on the scale, the types of traded products, and other factors.

Find the Right Producers

A wholesale grains company acts as a middleman between agricultural producers and businesses such as food manufacturers. This means you need to take care of finding both clients and producers. Make sure to establish partnerships with farming companies in places such as trade shows or via membership in industry associations.

Additionally, choose the right types of grains to buy and sell. If your business investment is not very big, you should start with the most common types such as corn and wheat.

The Location Shouldn’t Be Underestimated

Finding a proper location is very important. It should be with good logistics in terms of roads. Proximity to railway stations and ports is also a bonus. Probably the main factor is the space itself. It should be enough to store the different grains. Also, cold temperatures and dry conditions are required in any grain storage . 

Tools and Machinery

The main investments in that regard should be related to trucks, forklifts, pallet jacks, and other tools related to warehouse management.

Marketing and Pricing

If you’re planning to sell bulk grains , you should create a detailed marketing plan. It should include channels, personas, and ad budgets. In this business niche, attending local and international conferences can be a great way to find new customers and partners. Also, benefit from the opportunity to become a member of all relevant associations.

Consider your pricing carefully. As mentioned above the price of agricultural commodities is constantly changing. Thus, you need to be flexible and base your prices not only on business costs and competition but also on factors such as future crop yields. 

What Clients Does a Wholesale Grains Business Aim For?

A variety of businesses can be clients of a wholesale grains business. Let’s check the main ones.

• Food manufacturers . Whole grains are key ingredients in a variety of foods like whole grain breakfast cereal. Manufacturers usually buy bulk quantities so acquiring even a few clients in that market has the potential to maximize revenue .
• Retailers . Grocery stores and supermarkets sell packaged grains in small and large quantities. If your business has the right packaging equipment, you can offer your products to supermarkets.
• Restaurants and catering businesses . A lot of recipes have grains as the main ingredients. That’s why restaurants are valuable potential clients to a wholesale grains business .
• Animal feed producers . These companies buy wholesale grains in very large quantities. Corn, barley, and wheat are used in the animal feeding of poultry and livestock. Keep in mind that animal feed producers or livestock management companies primarily focus on the price, and you should consider giving a discount for long-term commitment or large quantities ordered.
• Exporters . The US is the biggest producer and exporter of corn in the world. But corn is not the only thing exported. The fertile soils of America combined with modern agricultural solutions equal high yields. Ergo, a wholesale grains business should aim to partner with exporters and international buyers. This is especially true for countries with worse climates or regions that have suffered a drought as the prices there might be higher.

Can You Sell Wholesale Grains Online?

Nowadays, the eCommerce market is growing rapidly. All kinds of products and services can be bought online and grains are no exception. Having a modern website can be a big benefit for a grain wholesaler. It allows using modern digital marketing channels such as email marketing , social media, or search engine optimization. 

One of the reasons why a grains wholesale business should have a website is the fact this is your online business card. If you’re attending trade shows or international conferences, businesses and potential customers will look you up online. Additionally, an online store will help your business sell directly to customers as well. If your plan includes being both B2B and B2C business, a well-maintained eCommerce solution is a must.

Among the most important eCommerce marketing channels for a wholesale gran business is eCommerce email marketing . You can collect customer data and create different audiences based on your B2B or B2C customers. Furthermore, you can promote informational content such as blogs to your current customers. This creates brand loyalty and increases the likelihood of people buying again.

Frequently Asked Questions about Wholesale Grains

Are you considering starting a grains wholesale business? Or maybe you’re generally interested in this market niche? Either way, allow us to answer some of the most common questions on this topic.

Where to Buy Wholesale Grains?

You can find wholesale vendors in online marketplaces such as BlueCart . Additionally, there are many websites, such as Webstaurant Store, that specialize in products for the food industry. 

Should I Buy Bulk Grains?

There are many benefits to buying large quantities of grains. For starters, they have a long shelf life if stored properly. Additionally, food prices are always rising and bulk buying makes fiscal sense. 

How Are Grains Traded?

Like most commodities, a large part of grains trade is in the futures market. That makes sense as businesses plan for how many grains they will require in the future. On the other hand, producers benefit from the opportunity to sell their future yields.