agro business plan

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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How to Start a Farm: Plan Your Operation

Think about your operation from the ground up and start planning for your business.  A good farm business plan is your roadmap to start-up, profitability, and growth, and provides the foundation for your conversation with USDA about how our programs can complement your operation. 

Keep reading about planning your business below, get an overview of the beginning farmer's journey , or jump to a different section of the farmer's journey.

On This Page

Why you need a farm business plan.

A comprehensive business plan is an important first step for any size business, no matter how simple or complex. You should create a strong business plan because it:

• Will help you get organized . It will help you to remember all of the details and make sure you are taking all of the necessary steps.
• Will act as your guide . It will help you to think carefully about why you want to farm or ranch and what you want to achieve in the future. Over time, you can look back at your business plan and determine whether you are achieving your goals.
• Is required to get a loan . In order to get an FSA loan, a guarantee on a loan made by a commercial lender, or a land contract, you need to create a detailed business plan . Lenders look closely at business plans to determine if you can afford to repay the loan.

How USDA Can Help

Whether you need a good get-started guide, have a plan that you would like to verify, or have a plan you’re looking to update for your next growth phase, USDA can help connect you to resources to help your decisions.

Your state's beginning farmer and rancher coordinator  can connect you to local resources in your community to help you establish a successful business plan. Reach out to your state's coordinator for one-on-one technical assistance and guidance. They can also connect you with organizations that specifically serve beginning farmers and ranchers.

It is important to know that no single solution fits everyone, and you should research, seek guidance, and make the best decision for your operation according to your own individual priorities.

Build a Farm Business Plan

There are many different styles of business plans. Some are written documents; others may be a set of worksheets that you complete. No matter what format you choose, several key aspects of your operation are important to consider.

Use the guidelines below to draft your business plan. Answering these kinds of questions in detail will help you create and develop your final business plan. Once you have a business plan for your operation, prepare for your visit to a USDA service center. During your visit, we can help you with the necessary steps to register your business and get access to key USDA programs.

Business History

Are you starting a new farm or ranch, or are you already in business? If you are already in business:

• What products do you produce?
• What is the size of your operation?
• What agricultural production and financial management training or experience do you, your family members, or your business partners have?
• How long have you been in business?

Mission, Vision, and Goals

This is your business. Defining your mission, vision and goals is crucial to the success of your business. These questions will help provide a basis for developing other aspects of your business plan.

• What values are important to you and the operation as a whole?
• What short- and long-term goals do you have for your operation?
• How do you plan to start, expand, or change your operation?
• What plans do you have to make your operation efficient or more profitable ?
• What type of farm or ranch model (conventional, sustainable, organic, or alternative agricultural practices) do you plan to use?

Organization and Management

Starting your own business is no small feat. You will need to determine how your business will be structured and organized, and who will manage (or help manage) your business. You will need to be able to convey this to others who are involved as well.

• What is the legal structure of your business? Will it be a sole proprietorship, partnership, corporation, trust, limited liability company, or other type of entity?
• What help will you need in operating and managing your farm or ranch?
• What other resources, such as a mentor or community-based organization , do you plan to use?

Marketing is a valuable tool for businesses. It can help your businesses increase brand awareness, engagement and sales. It is important to narrow down your target audience and think about what you are providing that others cannot.

• What are you going to produce ?
• Who is your target consumer ?
• Is there demand for what you are planning to produce?
• What is the cost of production?
• How much will you sell it for and when do you expect to see profit ?
• How will you get your product to consumers ? What are the transportation costs and requirements?
• How will you market your products?
• Do you know the relevant federal, state, and local food safety regulations? What licensing do you need for your operation?

Today there are many types of land, tools, and resources to choose from. You will need to think about what you currently have and what you will need to obtain to achieve your goals.

• What resources do you have or will you need for your business?
• Do you already have access to farmland ? If not, do you plan to lease, rent, or purchase land?
• What equipment do you need?
• Is the equipment and real estate that you own or rent adequate to conduct your operation? If not, how do you plan to address those needs?
• Will you be implementing any conservation practices to sustain your operation?
• What types of workers will you need to operate the farm?
• What additional resources do you need?

Now that you have an idea of what you are going to provide and what you will need to run your operation you will need to consider the finances of your operation.

• How will you finance the business?
• What are your current assets (property or investments you own) and liabilities (debts, loans, or payments you owe)?
• Will the income you generate be sufficient to pay your operating expenses, living expenses, and loan payments?
• What other sources of income are available to supplement your business income?
• What business expenses will you incur?
• What family living expenses do you pay?
• What are some potential risks or challenges you foresee for your operation? How will you manage those risks?
• How will you measure the success of your business?

Farm Business Plan Worksheets

The Farm Business Plan Balance Sheet can help gather information for the financial and operational aspects of your plan.

Form FSA-2037 is a template that gathers information on your assets and liabilities like farm equipment, vehicles and existing loans.

• FSA-2037 - Farm Business Plan - Balance Sheet
• FSA-2037 Instructions

Planning for Conservation and Risk Management

Another key tool is a conservation plan, which determines how you want to improve the health of your land. A conservation plan can help you lay out your plan to address resource needs, costs and schedules.

USDA’s Natural Resources Conservation Service (NRCS) staff are available at your local USDA Service Center to help you develop a conservation plan for your land based on your goals. NRCS staff can also help you explore conservation programs and initiatives, such as the Environmental Quality Incentives Program (EQIP) .

Conservation in Agriculture

Crop insurance, whole farm revenue protection and other resources can help you prepare for unforeseen challenges like natural disasters.

Disaster Recovery

Special Considerations

Special considerations for businesses.

There are different types of farm businesses each with their own unique considerations. Determine what applies to your operation.

• Organic Farming  has unique considerations. Learn about organic agriculture , organic certification , and the  Organic Certification Cost Share Program  to see if an organic business is an option for you. NRCS also has resources for organic producers and offers assistance to develop a conservation plan.
• Urban Farming  has special opportunities and restrictions. Learn how USDA can help farmers in urban spaces .
• Value-Added Products . The Agricultural Marketing Resource Center (AgMRC) is a national virtual resource center for value-added agricultural groups.
• Cooperative.  If you are interested in starting a cooperative, USDA’s Rural Development Agency (RD) has helpful resources to help you begin . State-based  Cooperative Development Centers , partially funded by RD, provide technical assistance and education on starting a cooperative.

Special Considerations for Individuals

Historically Underserved Farmers and Ranchers: We offer help for the unique concerns of producers who meet the USDA definition of "historically underserved,"  which includes farmers who are:

• socially disadvantaged
• limited resource
• military veterans

Women: Learn about specific incentives, priorities, and set asides for  women in agriculture within USDA programs.

Heirs' Property Landowners: If you inherited land without a clear title or documented legal ownership, learn how USDA can help Heirs’ Property Landowners gain access to a variety of programs and services

Business Planning

Creating a good business plan takes time and effort. The following are some key resources for planning your business.

• Farm Answers from the University of Minnesota features a library of how-to resources and guidance, a directory of beginning farmer training programs, and other sources of information in agriculture. The library includes business planning guides such as a Guide to Developing a Business Plan for Farms and Rural Businesses and an Example Business Plan .
• The Small Business Administration (SBA) offers information about starting, managing, and transitioning a business.

SCORE is a nonprofit organization with a network of volunteers who have experience in running and managing businesses. The Score Mentorship Program partners with USDA to provide:

• Free, local support and resources, including business planning help, financial guidance, growth strategies.
• Mentorship through one-on-one business coaching -- in-person, online, and by phone.
• Training from subject matter experts with agribusiness experience.
• Online resources and step-by-step outlines for business strategies.
• Learn more about the program through the Score FAQ .

Training Opportunities

Attend field days, workshops, courses, or formal education programs to build necessary skills to ensure you can successfully produce your selected farm products and/or services. Many local and regional agricultural organizations, including USDA and Cooperative Extension, offer training to beginning farmers.

• Cooperative Extension  offices address common issues faced by agricultural producers, and conduct workshops and educational events for the agricultural community.
• extension.org  is an online community for the Cooperative Extension program where you can find publications and ask experts for advice.

Now that you have a basic plan for your farm operation, prepare for your visit to a USDA service center.

2. Visit Your USDA Service Center

How to Start a Farm with USDA

Get an  overview of the beginning farmer's journey  or jump to a specific page below.

Find Your Local Service Center

USDA Service Centers are locations where you can connect with Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees for your business needs. Enter your state and county below to find your local service center and agency offices. If this locator does not work in your browser, please visit offices.usda.gov.

Learn more about our Urban Service Centers . Visit the Risk Management Agency website to find a regional or compliance office  or to find an insurance agent near you.

Agricultural Business Plan Template

Written by Dave Lavinsky

Agricultural Business Plan

You’ve come to the right place to create your Agricultural business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Agricultural companies.

Below is a template to help you create each section of your Agricultural business plan.

Executive Summary

Business overview.

Schrute’s Roots is a startup agricultural business that produces crops for Scranton, Pennsylvania and the surrounding area. Schrute’s Roots will specifically grow root vegetables, including potatoes, onions, and beets. The company’s mission statement is to work hard to grow these vegetables organically and without any chemicals. We will sell our produce at local farmer’s markets as well as to local restaurants and other establishments that would like to use or sell our produce.

Schrute’s Roots is owned and led by Dwight Schrute. Dwight has been a farm operations manager for the past twenty years, bringing a plethora of knowledge and skills that will prove to be invaluable to all aspects of the business. After working as a farm operations manager, Dwight desired to run his own agricultural farm business that grows organic produce and benefits the local community. He will utilize his prior knowledge and experience to manage crop production, operations, and other aspects of the business.

Product Offering

Schrute’s Roots grows a variety of root vegetables for Scranton, Pennsylvania and the local community. All produce will be organically grown. We alternate our crops, so the exact crops that are grown will be dependent on the season and current crop cycle. Some crops that we plan to grow include the following:

Customer Focus

Schrute’s Roots will primarily serve the residents and businesses of Scranton, Pennsylvania and the surrounding areas. Any individual or establishment that is interested in purchasing our crops is welcome to partner with us. We will sell our crops to individuals at local farmer’s markets and directly to wholesalers, grocery stores, and restaurants.

Management Team

Schrute’s Roots’ most valuable asset is the expertise and experience of its founder, Dwight Schrute. Dwight has been a farm operations manager for the past twenty years, bringing a plethora of knowledge and skills that will prove to be invaluable to all aspects of the business. After working as a farm operations manager, Dwight desired to run his own agricultural business that grows organic produce and benefits the local community. He will utilize his prior knowledge and experience to manage crop production, operations, and other aspects of the business.

Success Factors

Schrute’s Roots will be able to achieve success by offering the following competitive advantages:

• Management: Schrute’s Roots’ management team has years of experience in agricultural operations, which will prove invaluable to all aspects of the business.
• Relationships: Having lived in the community for twenty years, Dwight Schrute knows all of the local leaders, media, and other influencers. As such, it will be relatively easy for Schrute’s Roots to build brand awareness and an initial customer base.
• Quality products at affordable pricing: Schrute’s Roots will provide quality products at affordable pricing, as it has high-quality equipment and uses the latest techniques.

Financial Highlights

Schrute’s Roots is currently seeking $750,000 to start the company. The funding will be dedicated towards securing the land and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs and marketing costs. Specifically, these funds will be used as follows:

• Land: $200,000
• Equipment: $200,000
• Three Months of Overhead Expenses (payroll, utilities): $150,000
• Marketing Costs: $100,000
• Working Capital: $100,000

The following graph below outlines the pro forma financial projections for Schrute’s Roots.

Company Overview

Who is schrute’s roots.

Schrute’s Roots is a startup agricultural business that produces crops for Scranton, Pennsylvania and the surrounding area. Schrute’s Roots will specifically grow root vegetables, including potatoes, onions, and beets. The company’s mission is to grow vegetables organically and without any chemicals. We will sell our produce at local farmer’s markets as well as to local restaurants and other establishments that would like to use or sell our produce.

  Schrute’s Roots is owned and led by Dwight Schrute. Dwight has been a farm operations manager for the past twenty years, bringing a plethora of knowledge and skills that will prove to be invaluable to all aspects of the business. After working as a farm operations manager, Dwight desired to run his own agricultural business that grows organic produce and benefits the local community. He will utilize his prior knowledge and experience to manage crop production, operations, and other aspects of the business.

Schrute’s Roots’ History

Dwight Schrute incorporated Schrute’s Roots as an S-corporation on May 1st, 2023. The operations aspects of the business will be run from Dwight’s home, while the agricultural aspects will be run from the land purchased for crop production.

Since incorporation, the company has achieved the following milestones:

• Found land to grow the crops and wrote a letter of intent to purchase it
• Developed the company’s name, logo, and website
• Determined agricultural equipment and inventory requirements
• Began recruiting key employees

Schrute’s Roots’ Services

Industry analysis.

The agricultural industry is vital to all communities. The crops and products grown by local farmers and crop production companies are essential to the health of local communities. They provide jobs to the locals and result in locally grown food that the nearby residents can purchase. Larger agriculture businesses do not offer these benefits to smaller communities. Because of this, there has been a greater demand and emphasis on the sustainability of local agricultural companies that can directly benefit the local community.

Furthermore, market research shows that local communities are demanding that crop production and other agricultural companies grow their products organically. Organic foods are much healthier for individuals to eat because they provide more nutrition and aren’t laced with chemicals. Improved technology and research into organic methods are making this form of crop production more profitable and sustainable.

Therefore, with the increasing demand for local organic farms, we are confident that Schrute’s Roots will succeed in the local market and benefit the residents of the Scranton area.

Customer Analysis

Demographic profile of target market.

Schrute’s Roots will serve the industries and community residents of Scranton, Pennsylvania and its surrounding areas. We will sell our produce at farmer’s markets to individuals and directly to establishments that wish to partner with us.

The demographics of Scranton, Pennsylvania are as follows:

Customer Segmentation

Schrute’s target audience segments include:

• Individuals
• Restaurants
• Grocery Stores

Competitive Analysis

Direct and indirect competitors.

Schrute’s Roots will face competition from other agriculture businesses. A description of each competitor company is below.

AgraFarm is one of the largest raw food manufacturers in the U.S., owning a 15,000-acre farm for agriculture. It has well-established connections with big FMCG companies and has been thriving in the agricultural industry for 12 years. It also has automated equipment and machines, which helps in improving its operations and reducing costs. AgraFarm is also known for delivering large orders at the right time without delay.

BDA Farms was established in 1998. BDA Farms is a very well-known company that provides good quality organic produce to companies. It also has a very good brand value, and its product packaging is second to none. BDA Farms is located in Scranton, Pennsylvania, and it has a very effective distribution and supply chain network.

BeetFarms was initially a beets producer company and then branched out to other vegetables. BeetFarms is now one of the ten largest vegetable producers in the state. The Company’s packaging and processing units are located in Scranton, Pennsylvania. It has recently acquired other local vegetable producers, expanding its operations as well as limiting the variety of farms producing vegetables for the community.

Competitive Advantage

Schrute’s Roots will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Schrute’s Roots will offer the unique value proposition to its clientele:

• Production of high-quality organic produce
• Affordable pricing
• Providing excellent customer service and customer experiences

Promotions Strategy

The promotions strategy for Schrute’s Roots is as follows:

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content in terms of various forms and technologies of commercial cultivation and post customer reviews that will increase audience awareness and loyalty.

Website/SEO

Schrute’s Roots will develop a professional website that showcases pictures of the farm and the products we will grow. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Industry Events

By attending regional farming conferences, association meetings, and symposia, Schrute’s Roots will network with agricultural industry leaders and seek referrals to potential customers.

Direct Mail

The company will use a direct mail campaign to promote its brand and draw customers, as well. The campaign will blanket specific neighborhoods with simple, effective mail advertisements that highlight the credentials and credibility of Schrute’s Roots as a high-quality crop production agriculture business.

Schrute’s Roots’ pricing will be competitive. Pricing will be about 50% lower than retail prices to allow wholesalers and retailers to earn their margins.

Operations Plan

Operation Functions: The following will be the operations plan for Schrute’s Roots.

• Dwight Schrute will be the Owner and President of the company. He will oversee all staff and manage client relations. He will help with the produce cultivation until he has hired a full staff of farmhands. Dwight has spent the past year recruiting the following staff:
• Meredith Grant – will oversee all administrative aspects of running the farm. This will include bookkeeping, tax payments, and payroll of the staff.
• Kevin Baird – Head Farmhand who will oversee the farming staff and day to day operations.
• Oscar Smith– Assistant Farmhand who will assist Kevin.

Milestones:

Schrute’s Roots will have the following milestones completed in the next six months.

• 07/202X Finalize land purchase
• 08/202X Design and build out Schrute’s Roots
• 09/202X Hire and train initial staff
• 10/202X Kickoff of promotional campaign
• 11/202X Launch Schrute’s Roots
• 12/202X Reach break-even

Financial Plan

Key revenue & costs.

Schrute’s Roots’ revenues will come from the sales of root vegetables to its customers and local food establishments.

The major cost drivers for Schrute’s Roots will be labor expenses, land purchase, equipment purchases and maintenance, and marketing plan expenses.

Funding Requirements and Use of Funds

• Three months of overhead expenses (payroll, utilities): $150,000
• Marketing costs: $100,000
• Working capital: $100,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Number of customers per month:
• Annual equipment maintenance costs: $20,000

Financial Projections

Income statement, balance sheet, cash flow statement, agricultural business plan faqs, what is an agricultural business plan.

An agricultural business plan is a plan to start and/or grow your agricultural business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can easily complete your Agricultural business plan using our Agricultural Business Plan Template here .

What are the Main Types of Agricultural Businesses?

There are a number of different kinds of agricultural businesses , some examples include: Animal feed manufacturing, Agrichemical and seed manufacturing, Agricultural engineering, Biofuel manufacturing, and Crop production.

How Do You Get Funding for Your Agricultural Business Plan?

Agricultural businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.

What are the Steps To Start an Agricultural Business?

Starting an agricultural business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop An Agricultural Business Plan - The first step in starting a business is to create a detailed agricultural business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast. 

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your agricultural business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your agricultural business is in compliance with local laws.

3. Register Your Agricultural Business - Once you have chosen a legal structure, the next step is to register your agricultural business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.

4. Identify Financing Options - It’s likely that you’ll need some capital to start your agricultural business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.

7. Acquire Necessary Agricultural Equipment & Supplies - In order to start your agricultural business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your agricultural business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Farm Business Planning

Farm Business Planning is key to beginning farmer success.

It helps beginning farmers :

• Plan for the economic sustainability of a new farm enterprise.
• Obtain funding to purchase land, equipment and other resources from lending institutions, investors and/or grant making agencies.
• Articulate what their farm will look like.

On this page, we compiled free farm business planning resources to help you understand what a formal business plan is, and how to start planning your farm business. Sections include:

• Developing a Farm Business Plan
• Enterprise Budgeting

Enterprise budget resources are included on the farm business planning page because such tools are usually essential in helping you to develop your business plan.

Planning your farm business involves more than is outlined on this page alone. You’ll probably also be interested in funding (loans/grants) , farm incorporation , and risk management . Our  starting a farm page is worth visiting first. Also, you might find the following article helpful, because it touches on many farm business planning topics: Farm Products, What to Charge: Marketing, Price, Calculating Costs, Strategy and Much More .

1. Developing a Farm Business Plan

A  business plan  is a decision making tool that takes the form of a formal document. It states your business goals, why you think you can achieve them, and lays out your plan for doing so. Farm business planning is also a process, not an end product. A business plan is a work in progress, which farm business owners or operators will want to revisit regularly. 

Planning and Funding Your Farm Business  from the Cornell University Small Farms Project has lots of important and useful farm business planning resources.

Rural Businesses  is a web and print publication from the Minnesota institute for Sustainable Agriculture (MISA).

Building a Business Plan for Your Farm: Important First Steps  is a 20 page farm business planning publication that discusses the initial steps to help you move toward writing a formal business plan.

The Center for Agroecology has a Small Farm Business Planning publication that goes over many of the basics in a step by step format.

Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses is a farm business planning publication available from SARE.

Do I need a Business Plan for my Farm? is a web resource from the New England Small Farm Institute. It’s a great place to get started.

AgPlan  from the University of Minnesota helps rural business owners develop a business plan for free, while also offering sample business plans for ideas, and a way to print or download your plan.

Developing a Farm Business Plan includes several helpful resources from the USDA National Agricultural Library’s Rural Information Center.

Organic Farm Business Planning Page  from North Carolina State University features a number of publications and links related to financial planing for organic farmers.

Agricultural Business Planning Templates and Resources   is an ATTRA publication most relevant to smaller-scale or alternative agricultural entrepreneurs.

Beginning Farmer and Rancher Resources offers comprehensive resources on Bookkeeping and Other Basics ; Cash Flow Budgeting and Managing Debt ; Small Farm and Ranch Income Taxes , and more.

Purdue University’s Center for Food and Agricultural Business  has educational resources to explore, such as the New Ventures in Food and Agriculture in Indiana , which offers business planning assistance.

Purdue University Cooperative Extension offers strategic farm business planning tools for commercial farm producers.

Penn State University College of Agricultural Sciences has many Business Planning tools and information.  Penn State Cooperative Extension has a Developing a Business Plan page. Penn State also has a Farm Business Plan Template that allows you to plug in your information and create a basic business plan.

The U.S. Small Business Administration  works with local partners to counsel, mentor and train small businesses. It is worth getting to know their programs and connect with your local office.

The Martindale Center Reference Desk has an extensive  compilation of links to calculators, applets, spreadsheets, courses, manuals, handbooks, simulations, animations, videos and more. Martindale’s Agriculture Center can be of great use to farmers making business plans.

2. Enterprise Budgets

Enterprise budgets project costs and returns for a particular farm production practice. You can use enterprise budgets to make smart business management decisions, and to help you develop a viable business plan.

Enterprise Budgeting Tools of all sorts from the Agricultural Marketing Resource Center, including organic crop budgeting tools, many vegetable budgeting tools, the crop conversion tool for side-by-side crop comparisons, specialty crop and livestock budgets, hydroponics budgets, wind calculators, composting calculators, manure calculators, distillers grain budgets, biomass calculators and specialty foods calculators.

Introduction to Farm Planning Budgets for New and Beginning Farmers (Virginia Tech)

Importance and Use of Enterprise Budgets in Agriculture   (University of Nevada)

Enterprise Budgeting (Kerr Center)

Organic Specific Enterprise Budgets

• Enterprise Budgets and Production Costs for Organic Production (ATTRA)
• Organic Crop Production Enterprise Budgets and Information   (Iowa State)
• Organic Enterprise Budget (Kansas Rural Center)

More Enterprise Budget Pages and Information

• Enterprise Budgets List (Virginia Cooperative Extension)
• Dairy Sheep Enterprise Budget (Center for Integrated Ag Systems, UW-Madison)
• Crop Budgets (University of Maryland)
• Farm Management Enterprise Budgets (Ohio State)
• Alabama Enterprise Budget Summaries (Alabama A&M and Auburn) 
• Start developing your business plan with the resources at   https://www.beginningfarmers.org/farm-business-planning/
• You can find more gr eat farming resources at   https://www.beginningfarmers.org/additional-farming-resources/

Farm Business Plan Template

Written by Dave Lavinsky

Over the past 20+ years, we have helped over 3,500 farmers create business plans to start and grow their farm businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a farm business plan template step-by-step so you can create your plan today.

Download our Ultimate Farm Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your farm business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a farm business or grow your existing farm business you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your farm business in order to improve your chances of success. Your farm business plan is a living document that should be updated annually as your company grows and changes. It can be used to create a vegetable farm business plan, or a dairy farm, produce farm, fruit farm, agriculture farm and more.

Source of Funding for Farm Businesses

With regards to funding, the main sources of funding for a farm business are personal savings, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable. But they will want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

The second most common form of funding for a farm business is angel investors. Angel investors are wealthy individuals who will write you a check. They will either take equity in return for their funding, or, like a bank, they will give you a loan.

Finish Your Business Plan Today!

Your business plan should include 10 sections as follows:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of farm business you are operating and the status; for example, are you a startup, do you have a farm business that you would like to grow, or are you operating a chain of farm businesses.

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the farm business industry. Discuss the type of farm business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.

Company Analysis

In your company analysis, you will detail the type of farm business you are operating.

For example, you might operate one of the following types among others:

• Vegetable Farm : this type of farm grows a wide variety of vegetables (but not grains or soybeans) and melons in open fields and in greenhouses.
• Dairy Farm : this type of farm primarily raises cattle for milk. Typically, this type of farm does not process the milk into cheeses or butter, etc.
• Fruit Farm : this type of farm primarily grows fruits.
• Hay and Crop Farm : More than half of these types of farms grow hay, while a small number grow sugar beets. A variety of other crops, such as hops and herbs, are included in the industry. Some operators also gather agave, spices, tea and maple sap.
• Industrial Hemp Farm : this type of farm grows and harvests cannabis plants with a tetrahydrocannabinol (THC) content of less than 0.3% by weight.
• Plant & Flower Farm : this type of farm grows nursery plants, such as trees and shrubs; flowering plants, such as foliage plants, cut flowers, flower seeds and ornamentals; and short rotation woody trees, such as Christmas trees and cottonwoods.
• Vertical Farming : This type of farm involves growing crops in vertically stacked layers, often using controlled environment agriculture (CEA) technologies. This method dramatically reduces the amount of land space needed for farming and can increase crop yields.

In addition to explaining the type of farm business you operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include sales goals you’ve reached, acquisition of additional acreage, etc.
• Your legal structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the farm business.

While this may seem unnecessary, it serves multiple purposes.

First, researching the farm business industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your strategy particularly if your research identifies market trends. For example, if there was a trend towards decaffeinated farm business consumption, it would be helpful to ensure your plan calls for plenty of decaffeinated options.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your farm business plan:

• How big is the farm business (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your farm business. You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your farm business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: food manufacturers, grocery wholesalers, retail grocers, restaurants, individual consumers, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of farm business you operate. Clearly food manufacturers would want different pricing and product options, and would respond to different marketing promotions than retail grocers.

Psychographic profiles explain the wants and needs of your target customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other farm businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes processed foods, imported goods, and growing produce themselves. You need to mention such competition to show you understand the true nature of the market.

With regards to direct competition, you want to detail the other farm businesses with which you compete. Most likely, your direct competitors will be farm businesses located very close to your location.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What products do they offer?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide superior products?
• Will you provide products that your competitors don’t offer?
• Will you make it easier or faster for customers to acquire your products?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a farm business plan, your marketing plan should include the following:

Product : in the product section you should reiterate the type of farm business that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to wholesale crops, will you also offer subscriptions to individuals?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the products you offer and their prices.

Place : Place refers to the location of your farm. Document your location and mention how the location will impact your success. For example, is your farm centrally located near gourmet restaurants and specialty grocers, etc. Discuss how your location might provide a steady stream of customers. Also, if you operate or plan to operate farm stands, detail the locations where the stands will be placed.

Promotions : the final part of your farm business marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Making your farm stand extra appealing to attract passing customers
• Distributing produce samples from the farm stand or at farmers markets 
• Advertising in local papers and magazines
• Reaching out to local bloggers and websites 
• Local radio advertising
• Banner ads at local venues

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your farm business such as serving customers, delivering produce, harvesting, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to serve your 1,000th customer, or when you hope to reach $X in sales. It could also be when you expect to hire your Xth employee or acquire more arable land.

Management Team

To demonstrate your farm business’s ability to succeed as a business, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in farming. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in farming and/or successfully running small businesses.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you serve 100 customers per week or 200? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities. For instance, if you spend $100,000 on building out your farm, that will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $100.000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. For example, let’s say a company approached you with a massive $100,000 supplier contract, that would cost you $50,000 to fulfill. Well, in most cases, you would have to pay that $50,000 now for seed, equipment, employee salaries, etc. But let’s say the company didn’t pay you for 180 days. During that 180 day period, you could run out of money.

In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a farm business:

• Location build-out including barn construction, land preparation, etc.
• Cost of equipment like tractors and attachments, silos, barns, etc.
• Cost of nutrients and maintaining machinery
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Your new farm’s business plan must include a detailed financial plan based on reasonable assumptions of your costs and revenues. To determine if the results you show in this plan will be attractive to investors, look at industry standard financial metrics to see how you measure up against the farming industry, or your sector of the industry, on average. These are some basic measures and ratios to study.

Value of Production

The value of production is equal to your farm’s cash receipts plus the changes in value of product inventory and accounts receivable, less your livestock purchases. This is a measure of the value of the commodities you have produced in the period.

Net Farm Income

The NFI or net farm income, represents the value of production less direct and capital costs in the time period. This is a dollar figure, and not a ratio relating the income to the investment made, so it cannot be used to compare the farm against other farms.

Gross Margin

This represents the NFI less depreciation. The gross margin shows how much money is available in the year to cover the unallocated fixed costs, and dividends to owners and unpaid operators.

Return on Farm Assets

This is a ratio that can be used to compare the farm with others. This is calculated as NFI plus interest expense less unpaid operator labor, all divided by the total assets of the farm.

Asset Turnover Ratio

This ratio is equal to the value or production over the total farm assets. Combined with the operating profit margin ratio, this shows the efficiency of the farm in generating revenues.

Operating Profit Margin Ratio

This ratio is similar to Return on Farm Assets, but divides the same numerator (NFI plus interest expense less unpaid operator labor) by the value of production figure. This shows the percentage of each revenue dollar that becomes profit. If it is low, a higher turnover can compensate, and if it is high, a lower turnover ratio is required.

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your store design blueprint or location lease.

Farm Business Plan Summary

Putting together a business plan for your farm business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. It can be used for a small farm business plan template or any other type of farm. You will really understand the farm business, your competition and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful farm business.

Download Our Farm Business Plan PDF

You can download our farm business plan PDF here . This is a small farm business plan example pdf you can use in PDF format.  

Farm Business Plan FAQs

What is the easiest way to complete my farm business plan.

Growthink's Ultimate Farm Business Plan Template allows you to quickly and easily complete your Farm Business Plan.

Where Can I Download a Free Farm Business Plan Example PDF?

You can download our farm business plan PDF template here . This is an example business plan template you can use in PDF format.

Don’t you wish there was a faster, easier way to finish your Farm business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.

Other Helpful Business Plan Articles & Templates

Details of a Small Farm Business Plan

• Swarthmore College

• Ohio Wesleyan University
• Brandeis University
• Northeastern University
• Urban Farms
• Planting Guides
• Indoor Gardening

Writing a farm business plan can be a tool for you to plan your farming business. It can also be a requirement of securing grants and loans for your farm business. The process of writing a farm business plan may seem overwhelming and intimidating at first, but if you break it down into its component steps, it becomes much more manageable.

What Is a Business Plan?

A business plan is a roadmap for your small farm . It is both process and product. During the writing of a farm business plan, you'll develop an overall vision and mission for your business. You will think about your short- and long-term goals. You'll define the steps needed to achieve those goals. You'll set the direction for your business to develop over the next five years.

If you're already an established business, your new business plan will show where you're going next. A good business plan should be:

Mission Statement

Your farm’s mission statement is your overarching purpose for your business:

• Why does your farm exist?
• What purpose does your farm serve?
• Where is your farm headed?

This is beyond “make money.” This mission statement is based on your values and your core identity as a small farm.

The goals in your business plan are the specific, measurable “things” you will achieve with your small farm. Short-term goals are defined as those that you will complete within one year. Long-term goals are those that take longer than one year to complete.

SMART Goals are:

• Rewarding, and have a

Background Information

In this section of your business plan, take inventory of what you have right now:

• Where are you located?
• How many acres of land are you farming?
• When did you begin farming?
• How are you currently operating?
• What general practices do you use for such things as conservation, tillage, environmental impact, and marketing?

Farm Strategy

This is where your business plan gets to looking forward. You are going to formulate your farm strategy from now into the next five years or so.

• Gather information and research markets. Make sure that your farm plan fits into the general market in terms of supply and demand. Investigate and analyze industry trends, identify competitors, and define buyers.
• SWOT Analysis. This is an analytical tool that can be used in making decisions. SWOT stands for: strengths, weaknesses, opportunities, and threats. As a business, analyze your internal strengths and weaknesses. Then look externally at what opportunities and threats exist - competitors, new markets, government regulations, economic conditions, and so forth.
• Create alternative strategies. Looking at the information you've gleaned and the analysis you just did, think through options for your farm strategy. Don't rely on price alone; economies of scale are challenging on the small farm level.
• Don't jump to one conclusion immediately. Really spend some time fleshing out the specifics of some of the strategies and looking at their advantages and disadvantages. Try to find options that combine your internal strengths with opportunities in the external environment.
• Look at all your strategies, then reread your mission statement. The ideal farm plan will fit your mission best.
• Write an implementation plan. This is where you write a plan that will make your new strategy happen.

Marketing Strategy and Plan

In the next part of your farm business plan, you develop and outline a marketing strategy for your products and services. This can build on the research you did in the previous step. For each product, include ​the price, placement, and promotion ideas. Consider how you will convey real and perceived value to your customers.

Management Summary

This part of your business plan details your farm business’ structure. Everyone who is involved in the management of the business should be listed here. External resources are listed here as well.

Financial Analysis

In this section, you will need to detail the financial aspect of your farming operation. List your current finances in detail, including all income and operating expenses. Referring to your new strategy, you will forecast what is needed for future growth and to meet the goals you have outlined in terms of capital. Include what your future operating expenses will be.

Pulling It All Together

Writing a farm business plan is a big project. Don’t let that put you off. Your plan can be as simple as it needs to be for right now. Begin with your mission statement and goals. Do your homework by analyzing markets and researching competitors and trends. Have fun brainstorming alternative strategies and let them marinate a while. Take it one step at a time.

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• Tips for Converting Small Farms to Organic Production
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• How to Grow More in Your Garden With Less Work
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• How to Create a Better Microclimate in Your Garden
• How 'Gleaning' Can Help Prevent Food Loss

12: Business Plans

What is a business plan.

A business plan is a document that helps you to organize and succinctly summarize the vision you have for your business. The plan contains the operational and financial objectives of a business, the detailed plans and budgets showing how the objectives are to be realized.

A good business plan will contain the following:

• Your business vision, mission statement, key values, and goals
• Description of the product(s) you intend to produce
• Strengths, Weaknesses, Opportunities and Threats the business may experience are described
• Production plans
• Marketing plans
• Estimated start-up costs
• Information on your legal structure and management team
• Current financial statements or projected financial statements.
• Resume or brief explanation of your background and relevant experience
• Less than 10 total pages so that people actually read it

Helpful Publications for Writing a Business Plan

General Business Resource Publications:

• Starting an Ag-Business? A Pre-Planning Guide http://publications.dyson.cornell.edu/outreach/extensionpdf/2004/Cornell_AEM_eb0408.pdf
• Business Transfer Guide: Junior Generation http://publications.dyson.cornell.edu/outreach/extensionpdf/2016/Cornell-Dyson-eb1605.pdf
• Producing a Business Plan for Value-Added Agriculture http://publications.dyson.cornell.edu/outreach/extensionpdf/2007/Cornell_AEM_eb0708.pdf
• Business Planning for the Agriculture Sector: A Guide to Business Plan Development for Start-up to Mid-size Operations http://publications.dyson.cornell.edu/outreach/extensionpdf/2010/Cornell_ pdf
• Building a Sustainable Business (Sustainable Agricultural Research Education (SARE)Publications) sare.org/publications/business.htm 280 pages of education and practical exercises to guide you through the financial, management, and interpersonal skills needed to start a successful farm business. Order hard copy for $17 or download PDF online for free.

Cornell Cooperative Extension Publications for Specific Commodities:

• Landscape Business Planning Guide http://publications.dyson.cornell.edu/outreach/extensionpdf/2003/Cornell_AEM_eb0313.pdf
• Writing a Business Plan: A Guide for Small Premium Wineries http://publications.dyson.cornell.edu/outreach/extensionpdf/2002/Cornell_AEM_eb0206.pdf
• Writing a Business Plan: An Example for a Small Premium Winery https://ageconsearch.umn.edu/bitstream/122203/2/Cornell_AEM_eb0207.pdf

Getting Help Writing a Business Plan

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Agribusiness Planning: Providing Direction for Agricultural Firms

Introduction

Future outcomes are a function of today's decisions. Although there is a high degree of randomness and uncertainty associated with the future, you can increase the probability of a successful outcome by planning ahead. This is true in nearly every aspect of our lives, both personal and professional. For those who operate their own businesses, planning becomes increasingly important because the personal and professional aspects become more difficult to untangle. In agricultural businesses, planning may be even more vital because of the inherent uncertainty associated with agricultural production. Some important sources of uncertainty include production risk, price risk, financial (or interest rate) risk, and changes in government programs.

This publication discusses the importance of business planning for agricultural firms—from input suppliers to producers to processors—and describes the steps required to prepare a thorough business plan. The general process of business planning is the same for each type of firm. However, each may have differing individual aspects that affect its plan's contents. Regardless, we present a recommended format that should be useful for all types of agricultural firms as they develop written business plans. We use examples from the wide variety of agribusinesses to provide a broad context to the general theme of business planning.

About the Business Plan

One of the most important documents for any business is their business plan. It is common practice for consultants, lenders, potential business partners, and other business-associated individuals to request a business plan to make a more informed decision concerning their relationship with a business. However, business plans have many more direct benefits for the business owner. The planning process forces owners to systematically consider all facets of the business. In so doing, they become more knowledgeable of the business, the industry, and the market environment in which their business operates. The process also helps to define business goals and to assess the impact that uncertainty may have on future business outcomes. Perhaps most importantly, the written plan provides a well-defined direction for the business. Therefore, it can be used to keep all employees moving toward the common goals established within it.

Completing a business plan can be a time-consuming activity, but well worth the effort. Because businesses operate in an ever-changing environment, the plan should be revisited periodically to be sure that the business is headed in the proper direction or to formally alter the firm's course if circumstances dictate that this is necessary. Again, the systematic review of the business plan forces the owner, and potentially others, to look at the business as a whole and make better-informed decisions.

We provide an example format for you to use as a guide in developing your plan. Notice that there are several topics that should be addressed, corresponding to the four functional areas of management: marketing, production, finance, and human resources. By developing a section for each of these topics, the plan will be easy to follow as you revisit it or as others review it. You should take some liberty as you develop your plan; feel free to customize it in a way that will fit your specific circumstances.

SWOT Analysis

Performing a SWOT analysis , which stands for strengths, weaknesses, opportunities, and threats, lays the foundation for the business plan. Four separate SWOT analyses should be performed, each related to one of the four functional areas of management: marketing, production/operations, finances, and human resources.

When assessing strengths and weaknesses, the focus should be internal. Opportunities and threats, on the other hand, should reflect external factors. For example, proximity to a major market, such as a large city, may provide an opportunity to market processed dairy products directly to a restaurant. Threats may take the form of new competitors or changes in agricultural production or environmental policy.

 Performing SWOT analyses is relatively easy. Simply divide a piece of paper into four quarters, label the quarters appropriately, and begin to write your thoughts down.

Example Marketing SWOT Analysis for Carl's Custom Crop Scouting

• Only specialized scouting operation in the county
• 3,700 acres under contract
• No full-time sales person

Opportunities

• Expand operations to include planting and harvesting
• Partner with firm that only plants and harvests crops.
• Genetically modified corn kills insects. Scouting for those pests no longer important.

Because this is the foundation on which the planning process is based, be sure to take a broad perspective. In addition to incorporating the views of at least the owners and managers of the operation, it also might be a good idea to allow all employees, or at least a subset, to provide their perspectives. Some firms may also benefit from allowing professional advisors (such as veterinarians, bankers, nutritionists, etc.) to provide input. Although the top management should develop the plan, you should tap many sources of information. Finally, the raw results of the SWOT analyses might best be presented in an appendix, rather than in each of the four sections related to the functional areas. In the individual sections, a summarized version will suffice.

Example Business Plan Format

The format presented here represents one way to structure the business plan.

Sections of Business Plan

Marketing management, production/operations management, human resources management, financial management.

As noted, it covers the four managerial functional areas. We present the example structure and provide some ideas for what you will want to include in each section. Creating a thorough document the first time through is important. This will make follow-up revisions easier to implement.

The introductory section gives a broad overview and background of the business. Several subsections (outlined below) should be included to provide a thorough overview. However, if there's something that you feel isn't applicable to your business, feel free to omit it from your plan.

The first page should give the name of the document, the firm's name, and the names of all those involved in developing the plan. Dating the plan so that you can remember when it was developed or updated is also wise.

Executive Summary

This section, while appearing at the front of the business plan, is actually the last piece developed. Here you should present the most important information, which may include the firm's goals and objectives and associated target dates. Basically, the executive summary provides a concise overview of the business plan.

Table of Contents

The table of contents should provide the titles of all section headings in the plan and the page numbers on which the sections begin.

Vision and Mission Statements

These relatively brief statements tell the reader why the business is in operation and where the management team, or owner(s), plans to be in the future. The vision statement should tell the reader what business the firm is in, or plans to enter, and what the most important business goals are. That is, it should tell where the firm is going.

We have provided a few example vision statements for you to use as a guide when developing yours:

Example Vision Statements

Agchoice farm credit.

AgChoice Farm Credit will be the first choice for financial services that help customers succeed.

To build the world's first truly global securities market. ... A worldwide market of markets built on a worldwide network of networks ... linking pools of liquidity and connecting investors from all over the world ... assuring the best possible price for securities at the lowest possible cost.

Northwest Airlines

To build together the first choice airline and global alliance network with the best people each committed to exceeding our customers' expectations every day

Whenever dairy farmers have a need they should think first of DeLaval. We aim to always be there, always be available, always work on their behalf.

Note that some are from very different industries. Regardless, they present a common theme of what their respective companies want their firms to be.

The mission statement provides a succinct overview of the firm's operation, including its collective values, its unique circumstances or industry position, what product(s) it sells, and why it is in business. As the business evolves, the mission statement can be adapted to reflect the changing face of the firm.

The mission statement can provide more detailed information than the vision statement. We have provided some example mission statements that allow you to see how other firms— although maybe very different in nature—have defined their missions.

Example Mission Statements

Agway cooperative.

AGWAY is a farmer-owned business dedicated to improving the profitability of its members. We achieve profitability for our members by being the most effective partner on every farm we serve, by adding value to what farmers produce, and by using our capabilities to win non-farm customers.

Land O' Lakes

We are a market- and customer-driven cooperative committed to optimizing the value of our members' dairy, crop, and livestock production.

To enable people and businesses throughout the world to realize their full potential.

To help practically anyone trade practically anything on earth.

Some are more specific than others. At a minimum, the mission statement should tell the reader why you are in business.

Business Organization

Briefly describe how the business is legally organized (for example, proprietorship, partnership, or corporation). Include the names and titles of the firm's managers (or board of directors). This section should be quite short.

Overview of Current Business

In general, the business plan is concerned with the firm's future. Here, however, you should review the firm's past and fully describe its present position. Although a business start-up may not have much to reveal, documenting the present situation is important. In doing so, it will be easier to document the firm's history as you revise the plan.

An overview of the firm's past helps to set the context of how the firm has evolved into its current form. This may be particularly useful if the plan is to be used to secure financing because the past reveals something about how the firm has been managed over time. A structured chronology can serve as an outline for this subsection.

Example Firm Chronology

“Hanks' Harvesting" formed as partnership between Jerry and Ed Hanks.

Harvested 4,300 acres of corn for grain and chopped 2,200 acres of corn silage.

Purchased a new combine and a used chopper.

Harvested 8,700 acres of corn for grain and 5,300 acres of corn silage.

January 2002

Contracted for 10,500 corn grain acres and 7,800 corn silage acres for fall 2002.

Began to investigate custom planting services as a possible expansion of current operations.

The narrative in this section should also provide an overview of how the business has been financed. Furthermore, discuss how profits, equity, and other important financial measures have changed over time.

Next, describe the present situation of the firm. You should provide information related to business location (include pictures if you like), current sales, assets, inventories, geographic market area, number of employees, and any other information you feel is appropriate in describing your current business. Upon reading this section, one should have a snapshot picture of your firm's current status.

This and the three sections to follow provide the meat of the plan. These give the reader a thorough understanding of the firm's present and future. In the marketing management section, you should address several key factors, each in its own subsection.

Marketing SWOT Analysis

Provide a brief overview of the main results of the Marketing Management SWOT analysis. Let the reader know what the most important results were.

Products and/or Services Produced

Here, describe your product(s) or service(s) specifically. If you are in the custom heifer raising business, for example, your statement may be something similar to “We raise heifers for dairy producers." If you are operating a dairy farm, your statement may be much more detailed because it is recommended that you include both the products you produce and the products you sell, listed separately. For example, you may produce corn silage, but may not sell it. Remember also that you sell bull calves and cull cows. These may not be your major enterprise, but should be listed as products sold.

Remember that differentiating your product may be an important aspect of your marketing strategy. While this is difficult to do with a commodity, it's not impossible. For example, maybe you feed for high-butterfat percentage to increase the price received for your milk. It's also possible that you operate an organic turkey farm in an attempt to extract higher market prices. There are also those who market kosher meats and dairy products. These types of efforts should be included here as part of your marketing efforts.

Industry Overview and Position of Firm

Describe your industry and how you fit into it. This may not be too difficult to write if you operate under contract production because this is specified in the contract. It may also be relatively simple for anyone producing a commodity and selling it by the typical means (such as selling corn to a grain elevator or hogs to a pork processor). A custom business operator may have a more difficult time defining the industry and describing how the firm fits. However, this section is important for at least two reasons. First, it forces the planner to analyze the industry and determine the firm's relative position in terms of competitive advantages. Second, it provides important evaluative information for “outsiders" to better understand the business and its relationship with the industry.

In describing the industry, include as much information as you feel is necessary to define the firm and the market. Consider including the following: volume sold (in production units -- this may be, for example, hundredweights if describing the dairy industry, head if describing beef, or acres scouted if describing a custom crop scouting operation), total annual sales in dollars, trends in industry sales, competitors, new marketing opportunities, prevailing prices, and how prices are determined (for example, cash market, contract price, cost-plus). Also, describe the customer. Who is purchasing your product? What type of person is likely to buy your product? Again, those selling an undifferentiated commodity may have little to write. Those selling custom services or, even more importantly, those engaged in marketing agricultural products directly to the consumer may need to more thoroughly describe the customer base. This will help you better define your target market.

Managerial Expertise

Here, take stock of the total managerial expertise used by the firm. What marketing-related special knowledge do the managers possess? Is there one manager who has particular expertise in marketing? Thinking beyond the organization is wise; those in production agriculture have other sources of knowledge that may exist outside of the firm. For example, consultants may be available to provide information related to the current economic situation and outlook. Also, the Extension system and the USDA provide a great deal of information and data on agricultural prices and marketing.

Marketing Strategy

This is where you lay out your plan and future expectations, which are founded on all of the preceding information in this section. Here, you should describe any marketing opportunities you face and how you plan to take advantage of those. What advertising or promotional programs will you undertake? How will you distribute your product? How will you determine if your marketing plan is successful? For this, you should have clearly defined targets. For example, “We will market at least 2.5 million pounds of milk each year." You may also want to set targets for number of customers, market share, or any other measure(s) that you might use to determine whether your firm has been successful in marketing.

Finally, be sure to employ any appropriate risk-management tactics. In marketing, you will want to manage risks associated with input and output prices. Can you contract for some inputs to lock-in a particular price? If processing on the farm, have you contracted with a retailer or wholesaler to be sure that someone will take your product? In production agriculture, the farm owner or manager should understand and analyze futures and options markets as tools to manage price volatility. You should also understand any relevant government programs such as Loan Deficiency Payments (LDPs) that affect your price.

(We differentiate “production" and “operations" based on whether the firm's product is a good or a service. However, in many cases, we use “production" to denote either case.)

Through the production of goods and services the firm generates profits. Therefore, assessing the production/ operations process and making plans for the future is vitally important. This may be particularly important in cases where a farm is planning to expand or where a change in business enterprises is to occur.

Production SWOT Analysis

Provide a summary of the SWOT analysis for production/operations. This may be the most important area to gather input from employees, who are likely the ones most closely associated with daily production. Therefore, their insights could provide a valuable additional perspective.

Overview of Productive Assets

Outline what productive assets are necessary to make your product or provide your service. The following deserve particular attention:

• Other Facilities (particularly if on-farm processing is involved)
• Equipment and Machinery
• Materials and Supplies

Focus on what the firm currently owns, the quality of those assets, and how others will be obtained, if needed. Only discuss the resources needed. Save any discussion of financing these assets for the Financial Management section.

Here again, note the special expertise held by management in the area of production/operations. For example, is the herdsman on a dairy farm trained in dairy science? Does the crops manager have a background in agronomy, soil science, or other related field? How many years of experience in this type of position does this person have?

Production/Operations Performance

Describe your current production practices. How much do you produce? When do you produce it? You may want to develop a visual approach to help tell this story. A time line could help to describe when products are made or services are sold. The more complex the business is, the more useful a visual might be.

Regulatory Considerations

Government regulations affect production in many industries. This is particularly the case in production agriculture. If producing agricultural products, be sure that you are complying with all relevant regulations. These include, but may not be limited to:

• Manure management
• Soil conservation
• Worker Safety
• Inspections of the product and of the production facilities

You can gain information on relevant policies and regulations from business consultants, Penn State Extension, agricultural cooperatives, and government agency Web sites.

Production/Operations Strategy

Now that you have laid out your current production practices and defined some firm and industry trends as they relate to some important benchmark measures, it is time to describe your production- or operations-related plans. As you do this, be sure to set specific production goals, outline potential changes in enterprises or production practices, and describe how you plan to locate and purchase inputs. The following list of questions may be useful to you as you develop this section. Again, not all are relevant for all types of operations. Also, you may think of others that should be addressed.

• How long will your current productive assets be of use? When do leases on land and equipment expire? How soon can you expect to replace important machinery and equipment?
• Where can you find other inputs, such as feed, in the future—particularly if you are expanding your operation?
• Should you consider hiring a custom operator to perform a portion of the production tasks?
• Are there new production practices or machinery you should consider adopting?
• How many units of product do you want to sell over your planning period? Provide specific targets and a time line, if appropriate.
• Do you need to develop a nutrient management plan or update an existing one? Are there other environmental plans that should be developed?
• If expanding, how will new construction or other changes affect output? How will these changes affect your resources? Will you be able to operate in a timely manner without affecting the quality of your product(s)?
• Are there new enterprises that should be explored?

One of the most important—yet most often overlooked—inputs is labor. The competency of your human resources may dictate how successfully your business will perform. Use this section to outline your current human resource (HR) policies, how these may change over the planning period, and what you or other managers may need to do to improve HR management.

Human Resources SWOT Analysis

Provide the reader with the summarized results of the human resource management SWOT analysis. This is another point at which the insights of the employees may be particularly useful. Their perception of your HR policies could be substantially different from yours.

Organizational Chart and Related Information

Begin by providing a current organizational chart. When doing so, you should follow very distinct guidelines. However, our example chart (Figure 1) should provide enough guidance to help you if you've not yet developed one. If your organization is particularly large, you may lump several individual positions into one box, as long as the box describes those positions. In Figure 1, for example, the three parlor operators might be represented by only one box if their job descriptions are the same.

The organizational chart allows the employees to see their position in the firm. Also, the chart should show that each person has only one immediate supervisor. We cannot stress this point enough. Defining the managerial structure so that employees directly answer to only one person is very important. Often the partners who own the farm tend to supervise employees together. This results in a situation in which the employee may get conflicting directions. If the employee has only one direct supervisor, this situation can be avoided.

Overview of Current Policies

Whether formalized or not, your firm has HR policies. While we encourage you to formalize those if they are not already, you should complete this section with the most accurate information you have at your disposal. Think about the following individual points as you consider what you would like to include in this section. Also, remember to include information regarding all employees of the business, including the management team.

• Compensation and Benefits (Incorporation of this information may dictate that a portion of the plan be labeled as confidential. Thus, only certain members of the ownership or management team would have rights to view this type of information. you are trying to hide information.)—How much do you pay your employees? At what intervals are they paid (for example, weekly or monthly)? What sort of benefits package is offered? Does the package differ by type of employee? Do you have an incentive plan for employees? Are owner/ operators paid a salary or do they capture retained earnings?
• Job Descriptions and Recruiting — Does each position have a written job description? Are these used to assess the suitability of potential employees? How do you recruit new workers/managers? Provide written copies of job announcements and descriptions in an appendix.
• Training and Standard Operating Procedures —What training is provided for new employees? What training is provided when employees assume new responsibilities? Are common task sequences documented with written standard operating procedures (SOPs)?
• Performance Evaluation and Performance Feedback —Is there a formal mechanism for evaluating workers' performances? If so, how frequently is performance assessed? How does the employee receive the manager's assessment? Are salaries or wages based at least partially on these evaluations?

Penn State Extension provides materials to help develop job descriptions, SOPs, and other important HR documents. Business consultants with expertise in HR management should also be used in many instances to help the business owner develop the best HR policies possible for that particular business.

Human Resource Strategy

Once you have outlined your production and marketing plans, you must evaluate the ramifications of those plans for the firm's human resources. Will the plan require any shift in HR policy? If so, how? For example, an expanding custom heifer grower may need to hire a full-time nutritionist to be sure that the heifers are receiving a properly balanced ration as they develop. The best way to reflect these changes may be to provide one or more additional organizational charts showing how the organization is expected to change over time. In the text, be specific as to what changes are to be made and when.

Also, be sure to describe any changes you plan to make in your HR management. If you don't have formal job descriptions, standard operating procedures, or evaluations, for example, you should consider putting those in writing. Also indicate if the plan will require additional training of existing and new employees. Finally, if expanding, describe where you might find potential employees.

This section is the most crucial from a potential lender's perspective. Here, you should tie together the details in the rest of the plan in terms of how they affect the firm's financial performance. Ultimately, operating a business is about making money. Therefore, this section needs to allow the reader to assess where the firm is and where it intends to go over the planning horizon. Although you should provide current and projected future (“pro forma") financial statements with the plan, they might be best presented in an appendix. This section should be mostly a verbal explanation of the business's finances, with perhaps a few tables to highlight important information.

Because this section is so important, especially if financing is being pursued, we highly recommend that you work with a business consultant, accountant, or other financial advisor to develop it.

Financial SWOT Analysis

Perform a SWOT analysis of the firm's financial position. Unlike some other areas, your frontline workers may not have as much to provide in this analysis. However, depending on the firm's “culture," (the accepted values and norms under which it operates. Some firms may be quite “laid back," allowing employees a good bit of decision-making authority. Others might be more “straightlaced" following a well-established set of rules, whether written or unwritten) you may still want to invite their input.

Review of Current Financial Situation

Here you should highlight the important points of your financial statements (income statement, balance sheet, and statement of cash flows). Focus on the positive aspects, while not ignoring the negative. You do not want to provide a potential lender with an impression that you are trying to hide information. It might help if you work with a financial advisor to develop this narrative.

Provide a table of current outstanding debt. Include the terms of the debt, the lender(s), the principle amount(s), your payment amount(s), how frequently you make payments, and how many payments remain. Furthermore, a table of financial ratios would be useful in providing a snapshot view of the firm. You will want to provide measures of profitability, financial efficiency, liquidity, and solvency. Although your financial advisor may have some specific advice, we provide a few commonly used measures, which are defined in the glossary:

Commonly Used Financial Measures

Profitability.

• Rate of return on assets
• Rate of return on equity
• Profit margin

Financial Efficiency

• Asset turnover ratio
• Operating expense ratio
• Current ratio
• Working capital to value of production ratio
• Leverage ratio
• Debt to asset ratio

Provide other sources of managerial decision-making input. For many farm owners, this is the most difficult facet to monitor. Using a business consultant, a CPA, or some other financial advisor may increase farm profits as you allow some of these individuals to help analyze financial data and make recommendations for you to review.

Financial Strategy

At this point, you need to set forth your plan for financing the firm's operations over the planning period. Where will you get money when you need to purchase a new truck or replace your barn, for example? Present the highlights of the pro forma financial statements as discussed earlier. Also, you should relate your financial plan to your production, marketing, and human resources plans. A time line relating events planned in the other sections to financing may help to clarify this section's message for the reader.

In your discussion, be sure to let the reader know how you will assess financial performance. As in other sections, be specific. Will you require that net income grow at 8 percent per year, for example? Set goals for the measures you have used previously to describe the health of the business. Therefore, you should aim for specific values for your selected measures of profitability, financial efficiency, solvency, and liquidity. Also, do not forget that an information management system should be in place so that the financial data you gather is accurate. (An information management system (IMS) is any system that you can use to track important information regarding financial performance, in this case. Actually, you should have a system of information management that provides high-quality information for each of the four facets of management. This might include a production record-keeping system (DHIA for dairy farms), an accounting system, an inventory list, employee time sheets, and so forth.)

You should be realistic with your plans, yet push yourself. Stated differently, you should plan to succeed, not just survive. If your business is to be viable over the long term, then you should generate returns to grow the business, grow equity, improve your credit-worthiness, and otherwise improve the odds of operating this business well into the future. If the plan covers a major shift in the business's operations, such as a large expansion, then special care is needed to discuss how cost overruns might be handled, when production will begin in a new facility, when debt repayment will commence, and so forth. Although the planning process should reduce the amount of uncertainty associated with such a change, it can never eliminate uncertainty. Therefore, it should be noted that insurance may be used to protect the firm against financial losses that may be associated with operating a business. Be sure to define your insurance needs in this section of the business plan.

Uncertainty should also be accounted for in your financial forecasts. Let the reader know what assumptions you have made when developing the proforma statements. Also, some sensitivity analyses would be useful to show how your statements would change if output or input prices were different from your projections. If appropriate, set forth some contingency plans to be enacted if certain undesired outcomes are realized. For example, if milk production suffers from a hot, dry summer, you should have a contingency plan in place to help cash flow the business until production increases. For example, such a plan might include a revolving line of credit with the local bank.

The body of your business plan should have a final section in which you again tell the reader the highlights of the plan. Highlight the most important features of your plan. Restate your most important goals and briefly mention how you will achieve them. Here again, a time line might help to state what your goals are and when your firm expects to reach them. Remember, you have already provided many details, so keep this section relatively brief, referring the reader to earlier material where necessary.

In this section, draw focus on what your plan means for future profitability, efficiency, liquidity, and solvency. That is, all of your plans will likely affect the farm's financial status. Because this is a business plan, and businesses continue to operate only when profitable, this should be the major thrust. However, remind the reader of what may happen if your assumptions, particularly those related to input and output prices and quantities produced, are not realized. Refer to your contingency plans and sensitivity analyses.

If the business is a family-run operation, as many farms and other small agricultural businesses are, then you may want to include some family goals in your plan. Although you should try to separate family issues from business issues to the extent possible, completely divorcing the two is not always possible. Highlight where business success coincides with success in meeting the family's goals.

Finally, a concluding paragraph should draw the plan together and reinforce for the reader that your firm is committed to working collectively toward the plan's goals. Leave no doubt in the reader's mind that, barring detrimental outside influences, the goals of the plan will be reached.

Throughout this publication, we have pointed out some things that you may want to include in appendices. For example, one appendix might contain your financial statements, both actual and proforma, to which you refer in the Financial Management section. You may also want to include the formal job descriptions you have prepared. Use appendices as you feel appropriate. If you would like to include something that may not be relevant for the body of the manuscript to further describe your operation, then include it as an appendix. To differentiate them, give each new appendix a unique name such as, “Financial Statements" or “SWOT Analysis Results."

One of the most important things you can do to ensure success is to plan for the future. The planning process may take many hours to complete, especially if it is to provide a thorough representation of the firm. However, it will be a valuable asset as it forces a review of the firm and the industry, unites the collective labor force of the firm to work toward a set of common goals, and allows outsiders to gain a detailed understanding of the firm's past, present, and future.

Business planning is not applicable only to large firms. Smaller agricultural businesses, which are often family owned, stand to benefit at least as much from planning as do larger firms. In agriculture, especially agricultural production, the small compete directly with the large. Business planning will help firms of all sizes to better understand their relative positions in the agricultural industry. It will also help the owner to set goals and devise strategies for reaching those goals.

Asset Turnover Ratio

The percentage of total assets earned as gross income. A higher number is generally associated with higher profits. Mathematically, this equals gross income divided by average total productive assets.

Balance Sheet

A financial statement that shows total assets, total liabilities, and owners' equity at a specific point in time. The liabilities and owners' equity represent claims on the firm's assets.

Business Planning

The process of analyzing the firm's strengths, weaknesses, opportunities, and threats, using that information to develop organizational goals, and crafting strategies to reach those goals.

Competitive Advantages

Refers to particular strengths of the firm relative to those of other firms. Some examples are being the first firm in an area to provide custom heifer raising, having a manager with strong direct-marketing skills, or having superior land for growing crops.

Contingency Plans

These are strategies for dealing with potential outcomes that differ from those assumed in the initial planning process. These are most frequently associated with unfavorable outcomes.

Contract Production

Refers to any situation in which the farmer grows crops or livestock for a specific firm under terms negotiated in a contract.

The system of offices located around individual states that provides information and education to farm managers and other individuals. In Pennsylvania, this is Penn State Extension.

Current Ratio

Measures the ability of the firm to pay its current liabilities with its current assets. A ratio greater than one indicates that the firm is liquid and able to cover its current liabilities. Mathematically, this is equal to current assets divided by current liabilities. Current assets include cash and other assets that will be converted to cash or used up within one year. Current liabilities are those that are payable within one year.

Custom Business

Any firm offering to perform services for a farm that would replace those already provided by the farm's labor. Some examples include crop scouting services, custom planting and harvesting, or custom heifer growing.

Debt to Asset Ratio

Indicates the percentage of total assets owned by creditors. For example, a debt to asset ratio of 0.5 means creditors own 50 percent of the farm's assets. Mathematically, this is total debt divided by total assets.

Income Statement

Provides a review of revenues and expenses over a given period of time, often a year. This may also be referred to as a profit and loss statement, earnings statement, or an operating statement.

Leverage Ratio

This represents total farm debt as a percentage of equity. If this ratio is greater than one, for example, then the business is financed by debt more than by equity. Mathematically, this is total debt divided by equity.

Mission Statement

Provides a summary of why the business is in operation. This may include the firm's common values, an overview of products or services, target markets, or other information to provide a clear picture of the firm's purpose.

Represents the difference between gross income and total expenses. Mathematically, this equals gross income minus total expenses. A positive number means that the business is making enough to cover expenses and either reinvest in the company, pay debt more quickly, or increase owner incomes.

Operating Expense Ratio

Represents the percentage of gross income used in operating expenses (those expenses on inputs used in the current period). Mathematically, subtract interest expenses from operating expenses and divide the result by gross income.

Organizational Chart

A graphical representation of the formal chain of command for a firm. It shows who the supervisors are and over whom these have authority.

This indicates that the financial statement is a projection of the future. These should be based on the best possible estimates at the time they are put together.

Profit Margin

This shows the percentage of gross income resulting in profits for the firm. Mathematically, find the value of net income plus interest expense minus the value of operator and unpaid operator labor and divide that value by gross income. Interest expense is added back to net income because it represents a return to the debt-financed assets. Removing the value of operator and unpaid operator labor shows that returns must be enough to cover this value.

Rate of Return on Assets

This shows the return to all assets employed in the business as a percentage of the total assets employed. Mathematically, it is found by dividing the numerator of net income plus interest expense minus the value of operator and unpaid operator labor by the denominator of average total farm assets. Interest expense is added back to net income because it represents a return to the debt-financed assets. Removing the value of operator and unpaid operator labor shows that returns must be enough to cover this value.

Rate of Return on Equity

This shows the returns to equity assets employed in the business as a percentage of the equity assets. Mathematically, it is found by dividing the numerator of net income minus the value of operator and unpaid operator labor by the denominator of average total equity assets. Removing the value of operator and unpaid operator labor shows that returns must be enough to cover this value.

Revolving Line of Credit

A type of credit account in which the borrower has a given credit limit which can be borrowed at any time. A credit card or standing account with an equipment dealer are examples of revolving credit lines.

Risk Management

Refers to any attempt to avoid the possibility of unfavorable outcomes under uncertainty. Insurance and buying on futures and options markets to lock in input or output prices are good examples of tools used in risk management.

Sensitivity Analyses

Refers to using alternative assumptions to determine what the outcome of a financial analysis will be if different outcomes are realized. For example, if developing a proforma income statement, using a range of assumptions associated with output prices helps to show how projected net income will change if prices differ from the base assumption.

Standard Operating Procedures (SOPs)

These are written sequences of steps required to perform a specific task. Milking a cow, for example, requires many steps. A written SOP allows the milker to perform this task in the same way every time the cow is milked.

Statement of Cash Flows

This shows cash income and cash expenses over a specified period of time, often a year. These receipts and payments are typically broken into three categories associated with operations, investments, and financing.

A systematic review of the firm's strengths, weaknesses, opportunities, and threats. This is used to draw focus on what the firm does well and what it may be able to do to take advantage of emerging market opportunities.

Vision Statement

Provides a summary of the firm's most important goals. Firms differ with respect to how specific they state these goals in their business plans. We recommend being as specific as you can comfortably be.

Working Capital to Value of Production Ratio

This represents working capital as a percentage of gross income. Working capital is equal to current assets minus current liabilities. Current assets include cash and other assets that will be converted to cash or used up within one year. Current liabilities are those that are payable within one year.

Additional Resources

See the Penn State Farm Management Web Site for other resources that may be useful as you develop your agribusiness plan.

Prepared by Jeffrey Hyde, assistant professor of agricultural economics, and Sarah Cornelisse, extension associate.

The authors would like to thank Todd D. Davis, extension economist at Clemson University, and Richard Stup, senior extension associate with Penn State Dairy Alliance, for their helpful reviews of an earlier draft of this publication.

• Value-added agriculture
• Agricultural entrepreneurship
• Value-added dairy entrepreneurship
• Value-added dairy foods marketing
• Online marketing and sales
• Social media
• Direct marketing
• Farm and ag business management
• Business planning

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Example Business Plan

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AgriBusiness planning

In order to develop a complete agribusiness plan, it is necessary to recognize all the potential risks. The uncertainties are not limited to production, but to all facets of a business. A comprehensive manual on how to write an agriBusiness Plan was developed by  Extension Agricultural Economist of Texas A&M University System . The manual gives a complete overview of the importance of agribusiness planning and how each issue should be addressed. Each topic includes a publication for reference, necessary worksheets for completing that lesson and a case study application. A farmer interested in doing an AgriBusiness Plan is advised to read and understand the manual, and then follow each step in the manual to write down his own business plan.  Having a written AgriBusiness Plan has many potential uses, but overall it would help you to understand better your risks, have a plan for each one of them, and react accordingly.

The following components of an AgriBusiness Plan include:

1. Executive Summary

The purpose of the executive summary is to combine all the components of the business plan into its principal points in one summary document. It must cover the information in the report in enough detail such that the reader can quickly formulate a picture of the operation. The executive summary is written after all the parts of the business plan have been completed. Follow this link to know more about the steps to consider when writing the business plan.

2. Business Organization

The business plan begins with a summary of the pertinent information regarding the operation. This includes names and contact information of all involved in making decisions, managing risk for the operation, and/or providing counsel. It provides a combined list of all the necessary information to contact the owners, managers, and others that have an impact on the operation in one central location.

3. Business History

If you are new to farming, you might not have a Business History, which can be omitted. However, if you have farmed, as it is the case for most Small Acreage Farmers in South Texas, then you will benefit from writing it. In this component, you should briefly describe how the operation came to be and how you came to be its owner and/or manager. This would include when and how was the operation started, the location of the operation, the source of the land, equipment and other resources, and was it inherited or purchased or is it rented. How was and is the operation financed? What management changes have occurred over its history? What were the defining moments or events that caused you to control the operation?

4. Mission Statement

Every operation has a reason for taking on the risks associated with agricultural production. The purpose of the mission statement is to precisely and emphatically state why your operation exists. It should focus each person involved in the operation each day. Anyone working within the operation should, upon reading the mission statement, know how his or her daily tasks, once completed, have helped to fulfill the operations mission. The mission statement should answer three key questions:

• What are the opportunities or needs that we exist to address? (The purpose of the organization)
• What are we doing to address these needs? (The business of the organization)
• What principles or beliefs guide our work? (The values of the organization).

5. Resource Inventory

Agricultural producers use resources such as land, labor, machinery, breeding stock, management and financial capital to produce commodities for sale. An accurate inventory of these resources is important for the evaluation of the current health of the operation and planning as well as a preliminary method for evaluating new enterprises. The use of an up-to-date resource inventory can help to:

• Provide a current overview of the operation
• Complete a balance sheet
• Provide a summary of collateral that can be used for a loan
• Identify the status and condition of your assets and liabilities
• Evaluate options for growth and diversification

6. SWOT Analysis

A SWOT analysis is a term used to describe a tool that is effective in identifying your Strengths and Weaknesses, and for examining the Opportunities and Threats you face. While it is a basic, straightforward model, it has been a popular business practice for many years because it helps provide direction and serves as a basis for the development of business plans. It accomplishes this by examining the strengths (what an operation does well) and weaknesses (what an operation does not do well) in addition to opportunities (potentially favorable conditions for an operation) and threats (potentially unfavorable conditions for an operation). Once completed, the SWOT analysis can help determine if the information indicates something that will assist the operation in achieving its objectives (a strength or opportunity), or if it indicates an obstacle that must be overcome or minimized to achieve desired results (weakness or threat).

7. Legal and Liability Issues

Contemplating the prospects of legal action against your farming or ranching operation can be unnerving. The assorted unknown variables can make the planning process frustrating, while the threat of enormous adverse judgments generates an emotional response. Planning for the loss or withdrawal of a key member of your management team can also be unpleasant. The business planning process will help identify risks and assign resources to manage these risks. A large number of potential legal and liability issues will be identified with a thorough SWOT analysis. Similarly, a resource inventory will help identify the individuals and tools necessary to manage these risks. It will be impossible to list all potential liability risks as well as to completely eliminate all of the legal and liability risk from an activity as inherently risky and uncertain as agriculture. The completed business plan will address specific action plans for dealing with identified risks, as well as outline contingencies for the unforeseen risks.

8. Setting Goals

One of the most important aspects of business planning is the setting of goals. Properly defined goals can assist the operation’s management team in determining whether the operation is moving forward. Goals can be either short term or long term, however, each short term goal should correspond to a long term goal, and each of these should move the operation towards fulfilling its mission statement. Goals should be incorporated into each of the financial, production and marketing components. One common theme found in most business planning publications regarding goals is the concept of SMART goals. This concept suggests that goals must be Specific ,  Measurable , Attainable , Rewarding and there should be a Time-frame specified for reaching each goal.

9. Production Plan

The production plan conveys the type and quantity of commodities to be produced. The production plan pairs information from the resource inventory and financial records to serve as a realistic estimate of current activities and their anticipated financial results. A thorough production plan should detail all enterprises on an operation (crop, livestock, and other) so that scheduling of labor and financial resources can be easily examined. The production plan should provide a basis for projecting future operational activities and alternative enterprises. While changes will occur, the production plan serves to document historical performance and project the future direction of the business. Crop production plans should include the estimated acreage and yield for each crop. Estimated production levels can then be combined with anticipated prices to generate some of the figures needed for the financial component. The livestock production plan must clearly identify all related production information, including the size of the herd, cull rates, weaning rates, weaning weights, rates of gain, purchase price, sales prices, etc. In addition, details regarding the replacement herd and breeding herd should be described.

10. Financial Plan

The financial plan component of the business plan serves as the heart of the overall plan and has three main objectives. The first is to identify where the operation is financially (Financial Position). The second objective is to determine how the operation performed during the previous year (Financial Performance). Finally, the third objective is to provide an analysis of where the operation will be in the future (Financial Projections). These three objectives are discussed further in this link .

11. Marketing Plan

It is essential for an agricultural producer to have a written marketing plan. Developing a good marketing plan will help you identify and quantify costs, set price goals, determine potential price outlook, examine production and price risk, and develop a strategy for marketing your crop. While producers have traditionally done a good job of producing, they have often neglected marketing. In the past, farm loan programs and deficiency payments allowed producers to neglect or ignore the marketing side of their businesses. Now, with the possible elimination of farm programs and increased volatility in the markets, producers will have the right and the obligation to determine their own financial security. In this more uncertain and risky future, failing to plan may be the same as planning to fail.

12. Example AgriBusiness Plan

When you start writing you Agribusiness Plan, follow the example provided in the manual to guide your work.

• Agriculture

Livestock Farming

Aquaculture

Poultry Farming

Agricultural business plan

An agricultural business is an enterprise that engages in producing, processing, and marketing agricultural products. Agricultural businesses can be small, family-owned operations or large, multi-national corporations. Farmers may sell their products directly to consumers or through intermediaries such as wholesalers or retailers. There are many different types of agricultural businesses, including livestock farms, dairy farms, crop farms, and horticultural businesses.

Each type of agricultural business has its unique challenges and opportunities. Livestock farms raise and care for animals used for meat, milk, eggs, or other products. Dairy farms produce milk and other dairy products. Crop farms grow fruits, vegetables, grains, and other crops. Horticultural businesses grow plants for sale as ornamentals or use in landscaping.

Agricultural businesses must carefully plan their operations to be successful. They must consider factors such as the type of product they will produce, the market for their product, the cost of inputs (land, labor, capital), and the price they will receive. A well-executed business plan can help an agricultural business to thrive and become profitable.

In case you missed it: Carrot Farming Business Plan: How to Grow from Seed to Harvest

There are many reasons to start an agricultural business. Agricultural businesses can be very profitable, provide a valuable service to the community, and offer an excellent lifestyle for the owners and employees. An agricultural business can be profitable because of a strong demand for food and other agricultural products. In addition, the world population is growing, and more people are moving into cities with less access to fresh food.

This creates a large market for agricultural businesses that can provide safe, healthy, and affordable food. Starting an agricultural business can also provide a valuable service to the community. Agricultural businesses can help meet the needs of local communities by providing fresh produce, meat, dairy, and other products. They can also create jobs and support the local economy.

Finally, owning an agricultural business can offer an excellent lifestyle for the owners and employees. Agricultural businesses are often located in beautiful rural areas, where the pace of life is slower and more relaxed. The work can be challenging and rewarding, and a sense of pride comes from producing food for others to enjoy.

An agricultural business can be a very profitable venture. There are many benefits to starting and owning a farming business. Some of the benefits include:

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• Agricultural businesses provide a much-needed service to society. They produce food and other necessary items that we need to survive. Without agriculture, the world would be a very different place.
• Agricultural businesses are typically very stable. They are not as prone to the economy’s ups and downs as other businesses. This stability can provide security for families and employees alike.
• Agricultural businesses offer an excellent opportunity to be your boss. You can be in control of your destiny and make all of the decisions regarding your business. This can be a very empowering feeling.
• Agricultural businesses often have a positive impact on their local communities. They provide jobs and economic stability to rural areas that might otherwise struggle financially. Additionally, they usually give back to the community through charitable donations and other forms of giving.
• Agricultural businesses offer a unique lifestyle that can be very rewarding. An agricultural business may be the perfect fit if you love working outdoors and being around animals and crops. However, this type of business is only for some people, so make sure it is something you are genuinely interested in before committing.

If you’re thinking of starting an agricultural business, there are a few things you need to know. First, you need to understand the business you want to create. What kind of products or services will you offer? What is your target market? Who are your competitors? Once you understand the business you want to start, you must develop a business plan.

This plan will help you map out the steps, process you need for getting your business up and running, and it will also help you secure funding from investors or lenders. Next, you need to choose a location for your agricultural business. For example, if you’re starting a small farm, you’ll need to find land suitable for farming. Once you’ve found a location, you’ll need to get the necessary permits and licenses from the government.

Once you have your location and all the required licenses and permits, you can start buying equipment and hiring staff. For example, starting a small farm requires tractors, planting equipment, irrigation systems, etc. You’ll also need employees to help with the farm’s day-to-day operations.

As your agricultural business grows, you’ll need to focus on marketing and sales. You’ll need to find ways to reach your target market and convince them to buy your products or services. You may also want to consider expanding your operations by opening additional locations or offering new products.

Several agricultural businesses can be pretty profitable. One option is to start a small farm and sell products directly to consumers at farmer’s markets or through a Community Supported Agriculture (CSA) program. Another option is to raise livestock for meat, eggs, or dairy products.

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Other possibilities include starting an organic gardening business, operating a nursery selling plants and trees, or running a landscape design business specializing in creating gardens and outdoor spaces for homes and businesses. There are also opportunities for value-added agriculture businesses such as making and selling jams, jellies, or other food products made from fruits and vegetables grown on the farm.

There are a few key things to start an agricultural business. First, you need to choose the correct location. You want to pick a spot with good soil and a lot of sunlight. You also want to make sure there is enough water for your crops. Next, you need to choose what crops you want to grow. Then, it would be best to research which crops are in demand and which will fetch a good price.

You also want to consider your chosen location’s climate so you can pick crops that will do well there. Finally, you need to develop a business plan. This includes figuring out your costs, how much you need to sell your crop, and marketing your business. Once you have all this figured out, you can start planting and growing your business!

When choosing the most profitable crops to grow for your agricultural business, there are several factors to consider:

• The market demand for the crop. What crops are in high demand and will fetch a good price?
• The growing conditions required for the crop. Some crops are very sensitive to climate and soil type, so choosing ones that can be successfully grown in your area is important.
• The input costs associated with growing the crop.

Make sure to factor in things like seed, fertilizer, labor, and equipment costs. Some of the most profitable agricultural crops to grow to include:

• Corn/Maize : Corn is a staple crop used in various products, from food to biofuels. It is relatively easy to grow and has high market demand.
• Soybeans : Soybeans are another widely used crop that has a variety of uses, including animal feed, biodiesel, and human food. They are relatively easy to grow and have a high market demand.
• Wheat : It is a versatile grain from bread to pasta to beer brewing. It’s relatively easy to grow and has strong market demand.
• Rice/Paddy : Rice is a dietary staple for billions of people around the world. It’s easy to grow and has high market demand.
• Cotton : Cotton is a high-dollar cash crop to consider.

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There are a few factors to consider when choosing the best state for your agricultural business. The climate, soil type, and availability of water are important considerations. You will also want to consider the market for your products, transportation infrastructure, and the overall business environment.

The best states for agricultural businesses vary depending on the type of business. For example, California is well-suited for businesses that produce fruits and vegetables, while Nebraska is better suited for livestock production. Here is a more detailed look at some of the best states for different types of agricultural businesses:

• Fruits and Vegetables : California, Florida, Hawaii, Texas
• Livestock : Nebraska, Iowa, Kansas, South Dakota
• Grain : North Dakota, South Dakota, Minnesota, Illinois
• Dairy : Wisconsin, New York, Pennsylvania

If you’re considering starting a farming business, you’ll need to create a business plan. This will help you secure funding, find the right location, and hire employees. Here’s a step-by-step guide to writing a business plan for an agricultural business:

• Define your business. What type of agricultural business do you want to start? What products or services will you offer? Who is your target market?
• Write your executive summary. This is a brief overview of your business plan. Include your mission statement, company description, and goals.
• Do your market research. First, conduct a feasibility study to see if there’s a demand for your products or services in your target market. Then, research your competition and pricing options.
• Develop your marketing strategy. How will you reach your target market? What marketing channels will you use? What are your sales goals?
• Create a financial plan. Estimate your start-up costs and projected revenue for the first few years of operation. Create a budget and cash flow statement. Find sources of financing, such as loans or investors.
• Plan for management and operations. Describe how you’ll organize and run your business on a day-to-day basis. Include information on staffing, facilities, and logistics.

When starting an agricultural business, you must keep a few key things in mind to succeed. Firstly you need to have a well-thought-out business plan. This plan should include your goals and objectives for the business, as well as how you intend to achieve them. In addition to a strong business plan, you must have the financial backing necessary to get your business off the ground.

This means having access to capital through savings, loans, or investors. Another important aspect of starting a successful agricultural business is understanding the market well. You need to know your target customers and what they are looking for. Additionally, you should have a solid marketing strategy to reach these customers.

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Finally, it is also crucial that you have a strong team in place to help you run the day-to-day operations of your business. This team should be composed of individuals with expertise in various areas such as marketing, finance, and agriculture. By working together, you can increase your chances of success exponentially.

Many different agricultural businesses can be profitable, but it is vital to have a clear plan before getting started. This article has provided tips on developing a profitable agricultural business plan, including researching, knowing your costs, and having a clear marketing strategy. Following these tips gives you the best chance of success in starting your own agricultural business.

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Guide to raising chester white pigs: discover breed facts to..., mastering the elegance: the ultimate guide to weeping cherry tree..., ultimate guide to planting garlic in grow bags: growing strategies..., how to fix spider plant leaf-related problems: natural and organic..., 10 reasons why your tulsi plant is shedding leaves: home..., optimizing growth and yield: the advantages of palm bunch ash..., from soil to harvest: various ways in which farmers can..., how to fix snake plant leaf-related issues: natural and organic..., transform your garden into a fragrant oasis with raat ki..., how to create a poultry egg farm business plan for..., grow lemon cucumbers like a pro: insider techniques for bountiful..., ultimate guide to caring for your pink princess philodendron: tips..., areca nut profit per acre: calculating yield and cost of..., how kaveri chicken is becoming a more profitable breed in..., transform your barn: 9 steps to convert a horse stall..., rice production in myanmar; paddy farming in myanmar, banana farming information guide, growing oats information for beginners, contract goat farming in india: how to earn an extra income from this long-term investment, chilli cultivation information guide, how to start and succeed with microgreens business plan.

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Agriculture Farm Business Plan Example

JUL.25, 2013

Agriculture business plan for starting your own business

Farming and agriculture business is not as easy as it seems. An even difficult step is to plan how to write a business plan for agriculture. Whether it is a Christmas tree farm business plan or an organic fertilizer business plan , you need to put real effort into planning each and every aspect of your agriculture business plan . To become successful, you should know the ways to operate your enterprise efficiently. You should know your revenue and cash position. You also need to forecast your crop rotations.

We have here provided a detailed business plan so that you can avoid any inconvenience in making a plan for yourself. No matter if you want to make a fish farm business plan or fountain pepper farm business plan , hydroponics farm business plan , or even an aquaponics farm business plan , this sample business plan agriculture template will help you.

A well-formed business plan of agriculture will help your agriculture business plan grow and generate the revenue that you dream of. It will help in managing your business in hard times and will also improve the chances of getting loans from the government for your business. So, if are thinking of creating a business for a bank loan , check out this template.

Executive Summary

2.1 the business.

The Old Maple Way will be a registered farm in New York, US. The business will aim to provide fresh fruits and vegetables to its customers. Along with it, we provide high-quality dairy products. Instead of competing with other farms in town, we will mainly focus on the quality and pricing of our products.

In any business plan agriculture project, the aims and goals should be clear. Instead of looking for an online business plan expert , you can write your business plan exact like agriculture business plan examples available online.

2.2 Management of Agriculture

The Old Maple Way Farm will be managed by James Celery. He will look into all the operations going on the farm. For his assistance, three managers will work with him. These managers will be trained for a month before starting their jobs. As per this agriculture business plan pdf, James will hire some highly experienced farmers who will look after the growth and management of fruits and vegetables. James will ensure the quality of production himself.

2.3 Customers of Agriculture

Customers are the backbone of every business. If you know the right audience for your agriculture business , you will be able to achieve your target. You will get the idea of how to run your agriculture business plan if you understand your customers. The main customers for the agriculture business will be the following:

• Export to Foreign Markets
• Domestic Hotels and Restaurants
• Domestic Food Companies

2.4 Business Target

The main goal of Old Maple Way Farm is to produce high-quality products for the people. We do not compromise on the hygiene and our team takes care of it.  The most important thing matter to us is our customers’ satisfaction.

Here are our targets:

• Our primary target is to become the most loved farm by people within the next 3 years of our launch.
• Our secondary target is to increase the net profit every month.

Company Summary

3.1 company owner.

The owner of the Old Maple Way will be James Celery. James had a dream of starting his own agriculture business plan since he was a teenager. He wanted to produce high-quality products that do not contain harmful chemicals.

3.2 Why the farm is being started?

When James was asked why he is interested in starting a farm, he said he wanted to produce chemical-free and organic products for the people. He says that nowadays, it is difficult to find something that is purely organic and chemical-free.

Companies and farms are using harmful chemicals to increase their production. Due to it, they have ignored the quality and only focus on the quantity of production. To produce pure products, he planned to start a farm of his own. He further added that he wants to produce products that are affordable and easy to buy.

3.3 How the Farm will be started?

In a business plan for agriculture, you should mention the steps to start a farm. When you know how to make a business plan for agriculture, your agriculture business  will be successful. The agriculture export business plan includes all the necessary steps needed to start an agriculture business. To start a farm, you need the right techniques and ideas. Before starting a farm, you need to consider these essential steps:

Know your Niche

The first and most important step before starting the agriculture business  is to identify your niche. Without deciding the niche, you cannot start a healthy business.

Research Market

Once you have decided on your niche, you need to do market research. For instance, you have planned to grow a specific fruit, so to make the business successful, you should know who will buy your product. Making research on the market will let you know about your competitors and how will you sell your product.

If you are interested in particular fruit, vegetable or product, first learn more about the local market.

Find the Right Land

Once you have decided what product you are going to plant, you need to take the next step, i.e, deciding the land.

If you are starting at a low budget, you can take land on lease. But if you have sufficient investment to start, you can buy your land. If you start the farm on your land, you will have complete control of your farm. But at the same time, there will be more risk factors of financial loss.

In the sample of an agricultural business plan, you will find more detailed steps on how to start an agriculture business  depending upon the type of farm you want to start.

In agriculture service business plan, you should mention all the services and products that your farm will produce. In the business plan agriculture pdf and business plan for agriculture available online. You will find the services that farms offer. Our products include the following:

We will produce fruits that are chemical-free and pure. We believe in producing organic products. Unlike other farms, we do not use any chemical that increases the quantity.

We will produce 100% organic vegetables. Our main focus is on quality and our customer satisfaction.

Cereals & Grains

We will also produce export-quality cereals and grains.

Dairy Products

We will also be offering two dairy products (milk and butter) to further supplement our sales.

20 Highly Profitable Agricultural Farm Business Ideas

If you are an entrepreneur willing to start an agriculture farm business, the following 20 agriculture farm business ideas can come in handy for your business venture.

Growing Mushrooms

Mushroom is a very popular Unlike various other crops, mushrooms can grow in less than a month. It is ready to be harvested in just about 21 days. This is the reason mushrooms have a high profit margin. Often new entrepreneurs are restless to harvest and sell their crops. So, if you too are one such impatient entrepreneur then mushrooms won’t make your wait too long to be ready. You can sell them in 3 weeks time from d date of cultivation.

• Mushroom farming comprises of 6 stages- first you need to compost; next spawn; case; pin and finally crop it.
• The soil of your farming land must be suitable for growing mushrooms. If this suits your soil then this is the best crop to grow. Some soils only support specific mushroom cultivation. The environment also plays a significant factor.
• You can aim to sell the produce in the local markets and also trade them. There are various countries that use mushrooms in their everyday meals. If your land in near such countries, where mushrooms are a favorite among the masses, then this is the best crop to cultivate in your farming land. Also, the convenience of export can take your mushroom business to far off markets as well.

Potato Farming

This is a very common vegetable. Yet, you should consider this as potato cultivation is greatly rewarding in many ways. Potato is consumed in meals almost daily by people both at home as well as in canteens. It is yummy, simple and very nutritious. The demand for potato is so high that even if there are other near-by farming areas growing potatoes, you still can produce it and benefit largely.

• There are a large variety of potatoes, so check the soil and the market, in order to decide which potato you should cultivate in your land. You can opt for the sweet potatoes or Irish potato farming. They are quite popular across the globe. Furthermore, they can be sold as vegetables directly and can also be sold in the processed form.
• You can choose bulk potato farming and process them if you have the capital and equipment. Potato chips and French fries are savory snacks loved by all. You can never go wrong with potato business as it ensures a high profit margin.
• You can also choose to sell potato seeds. This is an excellent money-spinning business idea. Get in touch with local, national and international potato cultivators to sell potato seed tubes and make a flourishing agriculture business out of it.

Spice Production

With the widespread knowledge about the health benefits hidden in various spices, household cooking as well as commercial restaurants have started using spices in their food in daily basis around the world. Furthermore, the boost in flavor and the pleasant aroma that come from adding spices to cuisines has made spices a favorite ingredient in the kitchen. The high demand and being a very costly product, spices are a great option for agriculture farm business plan. Spice cultivation can churn a lot of money making farming a flourishing business opportunity.

• There are a large variety of spices available such as cardamom, black pepper, nutmeg, cumin, etc. You have a lot of agriculture farming options when it comes to spices.
• You can choose to start farming the spice as per the popularity in your locality.
• Spices can be used in food either whole, sun dried, powdered, paste or even in liquid form. You can sell the whole spice. You can also extract the oils from the spices and sell it in bottles.
• You can plan to grow either a single type of spice or multiple ones depending on your soil. There are different spices that grow in different seasons. You can also opt to grow a spice rarely cultivated in your state and reap huge profits.

Cashew nut agriculture production

Cashew nuts a type of dry fruit that is widely popular across the globe. It is consumed mostly as a savory snack with salt and other spices. You can sell them raw, as well as in processed form. Cashew nut processing entails 4 simple stages. It starts with cleaning the nuts, they roasting them, followed by drying and finally removing the peel.

• Cashew nuts are highly nutritious, boosts energy and fiber in the body. Hence, demand for cashew nuts is quite high globally. You can earn huge capital by producing cashew nuts in your farm land.
• Processed cashew nut sale can get you high profits if you can ally with wholesalers near your land and draw in a fixed cashew nut supply. Wholesalers will sell you the raw cashew nuts at a low cost. You can process the cashew and make profit.
• The medicinal value of cashew nuts has made cashew nut farming a highly lucrative business.

Poultry farming

Chicken is the particular poultry bird raised to the highest number. Gone are the days when households had a few chickens in their backyard to serve their need for eggs and meet. Currently, poultry farming is a huge money-making business that has made its mark internationally. Poultry farming being a lucrative venture has led to the birds being injected with harmful chemicals and are reared in large number without proper hygiene. This has resulted in the rise in demand for good quality poultry farms. This can be your opportunity to grab. Strategize to start an excellently well-maintained poultry farm business to give the masses the best quality eggs and meat.

• Eggs and meat being a high source of protein have notched a vital place in the dietary charts for good health. This has made people from all walks of life add eggs to their breakfast and consume a portion of meat regularly. Hence, a magnificent rise in the sales of poultry farms.
• Another way of making gains through poultry farming is selling frozen chicken. You would needs some additional tools and storage facilities incorporated in your farm for this sort of business. Get in touch with the local eateries, fast-food joints, restaurants and hotels to deliver them- frozen chicken. This can be a profitable venture when you have some good contacts established.

Bee-Keeping and Honey-Making Business:

Producing honey by keeping bees in the garden was a personal choice earlier. People passionate about making honey who had a little space in their backyard kept bees. But now, it has turned out to become a huge farming industry that a large number of entrepreneurs take interest in pursuing as an agriculture endeavor. With the heightened honey consumption worldwide, the sales margin has also increased drastically. This has drawn more entrepreneurs in bee farming. The reason for such rise in the demand for honey is because people are switching to honey intake instead of sugar. Honey has been proved very healthy, helps in losing weight and is also used in beauty products. If you desire to start agriculture farm business plan, then this is one of the best choices. Bee-keeping does not require a large farming land nor do you need to invest huge capital. All you require is- some knowledge and training on the basics of keeping bees for agriculture business. There are training schools and experts who teach how to start a honey producing business and also how bees should be monitored. Furnished with such skillful training you can conveniently start farming and run a bee-keeping and honey making business. If you produce honey in your farming area, you can have several prospective clients to sell, such as –

• Sell it to high net-worth person,
• There are hard-working people, fitness conscious people who prefer honey to sugar
• You can buy low-priced top quality honey from dealers, bottle it up and sell it in the market, both in the local as well as global arena.

Herb and Flower Plantation

The best part about herbs and flower plantation is that they can be grown in small quantities. You do not need any skills or expertise to grow them. They can be grown indoors as well as outdoors. Moreover, both hers and flower plants have multiple usages. You can even do a profitable business with dry herbs and flowers. Both are easy to grow, high in demand and lucrative ventures. Furthermore, you can grow both herbs and flowers in the same farming land.  Yes, you will need some appropriate apparatus for good quality plantation results. Adequate water supply, proper sunshine, manure and right method must be followed too. Herbs have a wide range of usages-

• They are a central ingredient in flavoring food
• Used for making beautiful fragrances
• Is majorly bought by the Pharma company
• Are also used in healing centers to help people relax and loose there stress

Flowers too have multiple usages-

• There are edible flowers used in cakes and various cuisines
• They are used in beauty products, to make lipsticks, nail-polish, hair color and so on
• Several fragrances and extracted from flowers, rose, lavender, orchid being popular blooms. In fact, dry flowers are majorly bought by the fragrance company.
• Extensively used for decorating venues
• Flower bouquets, for weddings as well as gifting item is always in trend

Aloe Vera Plantation

Aloe Vera is basically a tropical plant but the good thing about this plant is that, it can be cultivated in dry farming lands as well. Aloe Vera is a profitable agriculture business idea because its medicinal value makes it a highly saleable agriculture product. It can be consumed as well as applied externally. It has lots of vitamins and minerals that are good for heart, immune system, digestion, skin ailments and many more.

Aloe Vera crop is most suitable if your farming land is in a dry area where the climate is mostly warm and humid. This plant doesn’t require much rainfall and doesn’t grow is cold regions. Light sandy type of soil is absolutely befitting for the plantation of aloe Vera agriculture crops.

Aloe Vera plants are best suited for selling globally to the-

• Herbal industry
• Pharma companies

Bamboo Plantation

Bamboos mostly grow in the hilly areas. This is why we most often see bamboo farming in the mountains. The immense uses of bamboos plants have made it a successful agriculture business plan choice for several entrepreneurs. There is no way you can fail with bamboo farming plan as there are always buyers inclined to purchase the raw product and process it to use in various form.

Some of the uses of bamboo plants may be listed as follows-

• Bamboos are strong and flexible. Thus, a very useful construction product. Be it to build roofs, floors, fences etc.
• They are utilized to build various interior decoration items
• Furniture made from bamboo plants are a modern trend
• Best writing papers are made from bamboo fiber
• Various types of musical instruments are also made using bamboos
• Tender Bamboo tips are used in cooking
• Several infectious diseases can be cured through the medicine made from bamboo plants
• In Asia, the chopsticks being used, are mostly made of bamboo

The huge number of uses makes bamboo plantation a very rewarding business.

Coffee & Tea Plantation

Tea and coffee are two drinks that are very popular globally. So, with coffee and tea plantation you can extend your agriculture business plan and earn huge benefits through export. Coffee and tea plantation requires a suitable soil and good amount of rainfall. The rains and dry season must be well defined so that there can be a growing season and a maturing season. You can plan to directly sell the tea leafs and coffee beans or choose to sell the processed product. With the basic plantation and harvesting techniques learnt, and equipped with the processing tools, machinery and staff, you can make flourishing business out of tea and coffee farming. Get in touch with the tea manufacturing industries, restaurants and cafeterias where there is a constant demand for tea leaves and coffee beans.

Cocoa Farming

Take your love for chocolates a step further! Plan on beginning a cocoa agriculture business. It can prove to be a flourishing enterprise. Chocolate is a favorite not only among kids but among all age groups. Relished across the globe, cocoa farming can be hugely profitable agriculture prospect. You can earn huge capital income by exporting the produced cocoa from your farming area. Cocoa is grown mostly in humid tropical region. Its beans are extracted for cocoa solids and cocoa butter. So, in order to begin farming cocoa trees in your land, you first must ensure you have an agriculture land in a humid area, or plan to buy some area. Once you have the suitable soil you can begin with your cocoa plantation business.

• To satisfy chocolate lovers delight, cocoa is added in all sorts of foods, beverages and even fragrances.
• Dark chocolates, chocolate ice-cream, cakes, muffin, cookies, various sweets, deserts, etc., are found everywhere.
• Spas & beauty parlors too use cocoa in their beauty therapies as it’s very good for skin.
• Chocolate consumption is a very delicious and easy way to counter bouts of stress & depression.

So, you have a farming soil and climate suitable for growing cocoa; prepare yourself to turn your passion into a agriculture business venture. Cocoa crops can land for hundreds of years. So follow the proper methods of farming and you can be very rich soon.

Lettuce Plantation

Lettuce has become a very popular farming vegetable for its fresh flavor. Restaurants add it to their salads, burgers, sides, etc. as consumers enjoy the crunchy fresh texture of this leafy vegetable.Additionally, the health benefits in lettuce have also made it a favorite among those fit and active person who are always on the look-out to incorporate healthy greens to their daily meal. Lettuce can be grown in several types of farming soils. Mostly, it is suitable to grow in soils rich in organic matter. The best soils for lettuce are those that can contain good quality of water and also have well made drainage system. As far as the temperature goes, lettuce grows well in fairly cool weather, about 15 degree Celsius. If your agriculture farm business plan space is in a slightly warmer land, you can grow lettuce crops by building a shade. You can go for a soil test before beginning to work on the farming area.

Lettuce crops cannot be stored for a longer period. So, keep connected with nearest markets and eateries. After harvesting the lettuce, you must sell them fresh. Lettuce farming is a rewarding business idea for start-ups.

Fruit Plantation

Various types of fruits are consumed around the globe. You may opt to begin farming any type of fruit that suits the land and climate of your particular region. When the soil is befitting only then you will get a productive yield out of which you can gain revenue.

Peaches, exotic fruits, papaya, berries, mangoes, apples, jackfruit, oranges etc., are some fruit types. You can grow any of these fruits or any other for your agriculture business endeavor depending on your soil suitability.  Most fruits are used for making juices, added to cuisines, incorporated in meals as fruit salads, and beauty treatments. Since fruits can be consumed raw you may plan to market and export them immediately after you harvest the produce. You may build processing equipments to make fruit juices and pack them to sell them anywhere in the world.

Fruits contain various healthy & healing ingredients. Hence, maximum nutritionists & doctors suggest children, adults and the elderly; to consume fruits regularly. The fruit agriculture business is an opportunity you must definitely try out.

Palm Tree Cultivation

This is the crop that gives the most quantity of oil. Due to it high yielding capacity palm tree farming is considered a money-spinning business idea. If you intend to earn on a monthly basis through agriculture business then palm tree cultivation is the best choice for your start-up venture.

Deep, moist and well-drained soils are best suited for farming palm trees. This particular crop requires a humid tropical climate. Throughout the year an even amount of rainfall is essential. When every aspect is satisfactory for palm tree farming then you should start off with it at the earliest.

Palm tree plantation and selling of the palm oils, can aid you to cut down the sale of other oils , in turn enhancing the sale of your business. Those oils that are imported are costly for the local market, thus your palm oil will sell more. It is a win-win situation for both you as well as your buyers. Thus, your business will flourish.

Cotton & Wool Production

Textile firms need wool and cotton at all times. They need it constantly for manufacturing various types of cloths. Therefore, it’s a lucrative business idea for any entrepreneur.

Cotton flower and sheep give cotton and wool respectively. So for cotton crop cultivation you need a suitable land. There may be some basic agriculture methods to be followed, certain tools and apparatus required. Of course you have to invest at the onset but after harvest you can make high business gains from your sales. You can also opt to rear sheep and get wool from them.

An advantageous factor of cotton flower and wool is that you can export them easily. There is not much critical process attached to attain the cotton from flowers and the wool is just shaved off the sheep. Furthermore, unlike fruits and vegetable, cotton and wool can be stored for as longer time span and exported to far-off countries as they do not get damaged. Thus you can plan to earn good capital by national and global export of your cotton and wool.

Rubber Production

Rubber, a stretchy materiel, is in huge demand in the market. This crop plantation can prove to be very rewarding. The innumerable items made from rubber makes it a very suitable farming product as it is sale-able in the worldwide market. For instance- Tires, Bags, etc are made from rubber.

Rubber plants cannot grow in extremely windy and freezing temperature. It needs 5-7 hrs of sunlight per day and adequate rainfall. Porous farming soil which is somewhat acidic having well-drainage is best suited for rubber plantation.

Rubber trees when taken proper care can survive for generations. So, this is a good agriculture business investment indeed.

Cattle Ranch

A very common and popular livestock raising business that includes animals such as cows, calves, ox, donkeys, bulls, etc., are known as a cattle ranch. You can choose to breed a single type of animal or several ones depending on the capital and land you have. It is best to start off with a single type of animal and slowly progress to rearing more types in your farming area. Actually, each type of animal needs to be well taken care of, with the proper food and hygiene maintained in your farming space.

Cattles are reared for multiple purposes, milk, manure, skin, as well as meat. Having a cattle ranch can instantly place you in the international business market if the quality of milk, meat and manure supplied by you if of good quality. With high sales and recognition in the global market you can easily gain huge profits and grow your agriculture business.

Shrimp Business

If you plan to own a land near the coastal region, or rent a riverside area, you can earn cash through shrimp farming. Earlier shrimp was farmed in a smaller quantity, but the rapid growth of consumption worldwide has turned it into a large scale global industry.

Shrimp is high in protein and contains anti-oxidants. A favorite among a large group of people, this is marketed in bulk in several countries. Japan, US, Thailand and China are some countries where shrimp farming is done is large quantity. You can definitely give shrimp farming a shot as success is guaranteed.

Saffron Cultivation

This costly spice is actually very easy to grow in any type of farming area. The reason for saffron being so pricey is the extensive toil that goes into harvesting the crop. Only a few strands of saffron are acquired from a flower.

Saffron is mostly used in cooking, creating beautiful fragrances and in cosmetic products. If you have a fertile agriculture soil suitable for saffron cultivation and reside in a sub-tropical warm region then saffron is the spice you must opt to cultivate in your farming area.

You can market it across the whole world. This expensive spice can churn huge money.

Rosemary Cultivation

Rosemary shrub can be cultivated across the world. It is best suited for region with cool temperatures. It can also handle frost. You can harvest rosemary 2 times per year. It depends on whether you want to harvest it for the leaves or the oil.

Rosemary is most famous for its oils. It has high commercial value for its medicinal and herbal properties.  This is a lucrative business idea and if you reside in a cold region then get a soil test done and you can start off your rosemary cultivation.

Marketing Analysis of agriculture

To make your agriculture business  successful, you need to keep an eye on the market trends as well. If you run a complete analysis of the market, you will get an idea about many things. Understanding the trends and variables will help you in making decisions for your business. The goal of this market research is to understand and get a general idea of the overall market around your farm and how you can adjust to that ecosystem. The marketing plan for agriculture business includes market trends and market segmentation.

5.1 Market Trends

The agriculture industry is a kind of industry that never goes into loss. It continues to evolve with time. Over the past five years, the agricultural industry has grown at an incredible rate. People are now more attracted to buy organic products that are chemical-free and hygienic.

5.2 Marketing Segmentation

In agricultural business ideas and agricultural business proposal, the market segmentation is clearly defined. Besides knowing how to start an agricultural business, you need to make a complete analysis of market segmentation for it.

The most important part of a farm business plan is to have an idea of the expected marketing segmentation. In agriculture start up, you should know about the market segmentation. Here is the market segmentation that will be facing our farm:

5.2.1 Foreign Markets

The products that we manufacture will be exported. It will generate the largest part of our revenue.

5.2.2 Domestic Hotels and Restaurants

We will offer our products to restaurants and hotels. Along with fruits and vegetables, we will provide dairy products such as milk and butter to the restaurants in town.

5.2.3 Domestic Food Companies

We will also sell our products to food companies in the domestic markets.

5.3 Business Target

In a community sustained agriculture business plan, the following are our business target

• Building a trustworthy relationship among customers
• Providing high-quality products to customers
• Making an excellent customer care service for our loyal customers
• Recovering the initial investment within two years of launch
• Increase the revenue every year by at least 20%.

5.4 Product Pricing

The prices of the products that Old Maple Way provide are comparable to other farms. We will try to provide better products and customer care to our clients. We will satisfy our customers by providing exceptional services to make as much profit as possible.

Marketing Strategy

When you are starting an agricultural business, you should also know the marketing strategy. No business can grow and become successful without a marketing strategy. No matter how many excellent services you offer, if you do not have customers, it is all in vain. The more people know about your farm and its products, the more they reach out to you.

Nowadays, the best way of marketing is social media marketing. Social platforms are strong, and they are accessible to everyone. A good thing about social media marketing is its low cost. You can reach out to millions of people with online marketing. All the business ideas in agriculture explain the importance of social media marketing and how you can use them to reach out to people.

Along with that, you need a competitive analysis to make a strategy that will make your agriculture business plan successful. You also need some agro processing business ideas as well as a perfect understanding of what is an agricultural business.

6.1 Competitive Analysis

• People are not satisfied with the products manufactured by other farms because of the chemicals they use to increase their quantity.
• The products that other farms sell are expensive and everyone cannot afford them.

6.2 Our Strategy

• We will use social media platforms to advertise our products.
• We will make our online presence so that we can reach out to more and more people.
• We will use the advertisements channels in the area to reach out to the people.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan

To make your business best agricultural business, you need to make sure that the staff should work as a team. In the agriculture business model, you will find out that the environment of the farm depends on the number and type of staff which should be determined in the initial stages.

7.1 Company Staff

James Celery will be the owner and CEO of the Old Maple Way farm business. The following people will be hired to run the farm:

• 1 Operations Manager
• 2 Deputy Managers
• 8 Farm Workers
• 2 Packaging Helpers
• 1 Accountant

7.2 Average Salary of Employees

Financial plan.

Proper planning and execution of the finance help you to maintain a stable budget for the upcoming entire year. To execute farming ideas for profit, you need to manage the finances wisely. In agricultural business plans, all the finances are mentioned.

• Money to buy a land or take it on lease
• The cost of buying and maintaining animals
• The salary of employees
• The cost of buying fruits and vegetables seeds

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5  Projected Balance Sheet

8.6 business ratios.

• How do I make an agricultural business plan? When you look out to sample business plan agriculture farm, you will see the steps to write a business plan. Business plan for agriculture company may not necessarily be long but it should be written in an easily understandable way.
• What is an agriculture farm business plan? It is the farming production, creating a plan for marketing and management of crops and livestock in a profitable way is an agriculture farm business plan. It includes everything such as a detailed business plan for agriculture and an agriculture equipment business plan.
• Which agriculture is most profitable? One of the most profitable agriculture is an agricultural farm. You can start this business by investing a small amount of money. According to the demand of the local public, you can produce the items and sell them.
• Is agriculture farming profitable? Agriculture farming is profitable as it offers a stable revenue. It is one of the fastest-growing agricultural businesses all over the world.

Download example agriculture farming business plan pdf

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Agri Farming Business Plan – A Beginners Guide

Table of contents, purpose of a agri farming business plan, innovations in agriculture business, crop production of agri farming business plan, agriculture business categories, establish an agriculture business, the step-by-step approach in drafting an agri-business plan, urban agriculture, herb growing, vegetable farming, floriculture, frozen chicken production , botanical pesticide production, fruit growing, organic gardening, field crop farming, fertilizer distribution business , organic farm greenhouse, mushroom farming business, making a business plan for your agriculture business, common mistakes in the drafting of business plans, important facts for running the agriculture business, benefits of having a business plan.

Introduction: Hello friends we are back with information of agri farming business plan. Agricultural business is also known as agribusiness, is the farming, management, production, and marketing of agricultural commodities, such as livestock and crops. The agricultural business field contains resource management, farming, conservation, ranching, and sales. The Agribusiness plan is a road map for a business. It describes the main functions of business operations, finance, management, and marketing. It must support the mission statement, objectives and goals set by the owners.

A step by step guide to Agri farming business plan

A good business plan will help farm or food production businesses succeed. Before you start a business plan, take a look at some sample business plans for farms, food production facilities, and other agriculture-related businesses. Business plans have more direct benefits for the business owner. The business process also helps to define business goals and to assess the impact that uncertainty may have on future business outcomes. Perhaps most importantly, the written plan gives a well-defined direction for the business. So, it can be used to keep all employees moving toward the common goals established within it.

Completing the Agribusiness plan can be a time-consuming activity, but well worth the effort. Agribusinesses operate in an ever-changing environment, the plan must be revisited periodically to be sure that the business is headed in a good direction. Again, the systematic review of the agribusiness plan forces the owner, and potentially others, to look at the business as a whole and make better-informed decisions. In this article we can also cover the below sections;

• Agribusiness plan purposes
• Drafting an agri-business plan
• Different agriculture business plans
• Mistakes in the drafting of business plans
• Common errors while making a business plan
• Steps for running the agriculture business
• Advantages of agribusiness plan

A business plan has mainly two purposes;

• To help the business management team create decisions to meet the specified objectives and goals; and
• To help sell the feasibility of the business to bankers and other potential investors when requesting required capital.

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The business plan must be tailored to the preferences and concerns of those who will use it (either the management team or lenders). The content of an agribusiness plan depends on factors such as the type of business and the way they plan will be used.

The medicinal plants, such as Aloe Vera and also Neem are targeted by the medical and pharmaceutical industries for mass production

The plants want high inputs at the initial stage but have a promising sustainable revenue generation capability and growth rate.

The important requirement or decision is the place. There are many options obtainable, such as backyard, renting an open space, large balconies or even the terraces.

Once the place and varieties of produce are decided, whether it is the seasonal vegetables or the medicinal plants the next step is to take the help of an expert to make a financial plan for the whole Agri farm business plan .

The production plan conveys the type and quantity of commodities to be formed, projected for 3 years into the future. The production plan must be easy for the reader to follow. Crop production plans must include the estimated acreage for each crop each year (crop rotation) and an estimated yield for each crop.

Estimated production levels can then be combined with estimated prices to generate some of the figures required for the financial component. Livestock operations will contain more variables, such as the size of the herd, cull rates, weaning rates, weaning weights, rates of gain, purchase prices, and sales prices, etc. The production plan must be defined for a minimum of 3 years. Although changes will occur, these projections show where the business plan is going and whether it can reach its goals and objectives.

Agriculture Business can be divided into three categories and they are as follows;

• Productive Resources such as feed, seed, fertilizer, equipment, energy, machinery, etc.
• Agricultural Commodities like raw and processed commodities of food and fiber.
• Facilitative Services such as credit, insurance, marketing, storage, processing, transportation, packing, etc.  

The best way to start a farm business plan or activity is to conduct market research on obtainable resources and technology.

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Farming is a technically intense procedure and requires the help of qualified and experienced professionals. The important thing in the business is the quality and trust of the business partners and individual customers. The hybrid seeds obtainable in the market and the knowledge of fertilizers and other inputs are essential. The most important step is to decide what to grow and where to grow along with the amount of the produce. The agriculture farm business plan itself has several divisions and varieties.

Secure the identified land proof of ownership or lease agreement and obtain a farm map of the farm that includes farm boundaries or watering points.

Identify potential markets and the requirements for entrance into the market. Identify resources obtainable for utilization to develop potential commodities.

Take into consideration your ability, knowledge, and access to support before deciding on the commodity to be business plan.

Calculate viability and economic feasibility on potential commodity and probable opportunities for value-adding. Source information on the different forms of agribusinesses.

Decide on what agribusiness form will be the best for the situation. If the agribusiness form needs to be registered to proceed with the process.

Different agricultural business ideas

Urban agriculture refers to agricultural practices in urban areas and their surrounding regions and is a centralized operation involving horticulture, animal husbandry, aquaculture, and other practices for farming food or other agricultural products. You don’t want a huge space to get into the agriculture business. If you have a city or suburban home, you can still plant some crops in small or vertical containers to obtain the most out of your space.

Herbs such as basil, parsley, and mint can make for great agriculture products. So you can grow it at home or farm and sell it.

You can also plant a variety of different vegetable plants and harvest them to sell or make them into different products.

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It wants a retail space and a connection with the flower growers. It is one of the profitable retail agriculture business ideas that can be done online by providing customers with doorstep delivery of flowers.

The demand for this product is growing globally and one can start this business by living in a metro or a suburban city.

It is essential and mandatory for organic farming. As the demand for this product is high, it is considered as one of the profitable agriculture business ideas .

Growing fruit plants is harder than most folks first think. Fruits want continuous care from spring to fall. Or you could grow and harvest different types of fruit to sell or make into other fruit-based products.

You could specialize in organic gardening practices so you can market your products to health and eco-conscious consumers.

Soybeans, cloves and other types of crops want a fair amount of field space to grow. But if you have the land, you can harvest different crops to sell to food producers.

One can start this fertilizer business with moderate capital investment. And it is mostly controlled by the government.

The increased demand for organically grown farm products has led to the growth of this organic agricultural business. As there are many health risks in the foods grown with fertilizers, people are growing organic food.  

If you have space and the ability to care for cows or dairy animals, you could start dairy farms where you produce milk, cheese, and similar products.

Poultry farming is the ‘raising different types of domestic birds commercially for meat, eggs and feather production’. Poultry farming in India is a profitable business.

Fish farming is a growing sector of the agriculture industry. The procedure requires raising fish in large tanks or enclosures. This farming business can be done at any time of the year. It wants modern techniques and moderate capital investment.

By doing this mushroom business you can make good profits in just a few weeks. It wants a low start-up capital investment. Mushroom cultivation can give additional income to farmers who wish to take up this activity especially in their lean season. The greatest benefit of this venture is the fact that mushrooms can convert nutritionally valueless substances like wheat or paddy straw into nutritious delicacies.

The financial plan will contain all the initial and running costs along with the revenue generation calculations.

The correct calculation of the growth curve and breakeven point is necessary for futuristic sustainable growth and positive aggressive expansion. Then, develop a marketing strategy.

There are a lot of options that want to be explored, such as grocery delivery giants, large retail stores and various restaurants around the region.

Nowadays, the trend is also considering hiring a self-business team and trucks for selling the make in urban societies to avail the correct value for the produce.

The owner of the Agri farm business plan can create its startup and sell its products in the open market to create sustainable income and reduce dependability.

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Most prospective entrepreneurs focus mostly on the infrastructure that is required and ignore the cash flow which is critical to the daily operations of the business. Cash flow assists in managing financial resources, i.e. debtors and creditors’ control.

A vague business plan

Prospective entrepreneurs or writers of business plans assume that the reader, funding institution, and investor know what the business venture is all about. So, it is important to provide as much detail as possible and elaborate wherever necessary to clarify the needs of the business.

Unrealistic assumptions

Almost all writers of business plans assume that the business will succeed, they make unrealistic assumptions. It is advisable to benchmark against existing or similar agribusinesses in the industry for acceptable standards. The goals of the business should be realistic and achievable. Rather start small and then expand.

Many business plans ignore the risks or do not create provisions for the risks. The business plan must include all risks and provide information on how some of those risks can be mitigated.

• The agriculture farm business plan and implementation mainly involve a huge amount of risks and vulnerabilities, such as failure of crops drop in quality and non-seasonal rains along with the different pests and crop-destroying insects.
• The owner should calculate all the available risks and take all the appropriate and necessary measures to protect the business and crop in all circumstances.
• The rise of IT and digitalization has led to the growth of home delivery start-up enterprises and the e-commerce sector.
• The owner should research upon and consider of investing heavily on technology to ensure sustainable growth by implication of house delivery system, and online selling platform, etc
• The evolution from agriculture to agribusiness has brought with it numerous advantages. These contain reduced drudgery for laborers; the release of workers for nonagricultural endeavors; a better quality of food; a greater variety of products; improved nutrition; and increased mobility of people.
• Helping you to clarify vision and deciding whether or not to forge ahead with the idea.
• Determining if your product and service have a sufficient market to support it and whether or not it will be profitable.
• Providing an estimate of start-up costs and how much you’ll need to invest or finance.
• Convincing investors and lenders to fund business.
• Defining corporate objectives and programs to achieve those types of objectives.

That’s all future farmers about agri farming business plan, ideas. You may be interested in Organic Agriculture Information .

Sir we are having a agricultural land near Pune Maharashtra I have also decided to come back to farming business that to DAIRY FARMING but don’t know how to start some says for dairy farming man power is must agreed but how to get good and skill person to start the dairy business if get a good team ready to start the DAIRY Farm need some guide line

it feels as if i am already in farming industry business. i have always been in construction business forever and the industry is so very much saturated and i cannot breathe anymore. it was then i sat down and wondered in which other business can i indulge in. through my researches and speculations, agriculture (animals) is the one although i have not yet decided which one. i do not know anything about farming but all i know is i must have a business plan. please walk me step-by-step and hand-in-hand

Sir iam also looking to start Agro based Integrated farming. Would you like to join hands.

I want join in your farming technology information and newsletter.

Hi, Subscribe to our free newsletter service.

I am very much interested in farming, animal feed distribution sector.i will appreciate your step by step guide and more relevant advice and support.

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Intesa Sanpaolo: €120 billion plan by 2026 for SMEs, service sector, agri-food, tourism

March 26, 2024 13:56 ET | Source: Intesa Sanpaolo Intesa Sanpaolo

MILAN, Italy, March 26, 2024 (GLOBE NEWSWIRE) -- Intesa Sanpaolo has launched a new programme: 'Your Future is Our Business' (‘Il tuo future è la nostra impresa’). The programme makes available €120 billion by 2026, "to support the projects of SMEs and smaller companies, the vital system of Italian entrepreneurship and supply chains at the local level."

In its new programme 'Your Future is Our Business', the banking group focuses on three main directions: transition 5.0 and energy; growth in foreign markets; digital development and cybersecurity.

Stefano Barrese, Head of the Banca dei Territori Division of Intesa Sanpaolo, presenting the programme in Milan, summarised its goal: "to promote new investments for Italian competitiveness by accelerating the dynamics of good performance of the production system and ensuring the immediate activation of sustainable and long-term strategies." The Group has planned a series of interventions aimed at supporting the achievement of the objectives set out in the National Recovery and Resilience Plan (NRRP), for which a total of over €410 billion has been allocated, as announced by the CEO of Intesa Sanpaolo, Carlo Messina.

Anna Roscio, Executive Director of Corporate Sales & Marketing at Intesa Sanpaolo, explained the logic of the new plan for the growth and future of the entrepreneurial system and the resources put in place: "With its new programme 'Your Future is Our Business', the Bank intends to accelerate the transformation processes necessary for industrial renewal, energy transition and digital transformation of companies, facilitating their access to the new measures of the NRRP."

"Thanks to the renewed synergy with SACE and other institutional entities, the possibilities for investment and the advantages for companies will be amplified by Intesa Sanpaolo's measures," emphasised Roscio. Also present at the presentation of 'Your Future is Our Business' were the companies. Guests at the event, in addition to Valerio Perinelli, Chief Business Officer of SACE, and Intesa Sanpaolo's Chief Economist Gregorio De Felice, who illustrated the economic scenario, were entrepreneurs Luca Businaro, CEO of Novation Tech, Massimo Perotti, President and CEO of Sanlorenzo, and the CEO of Donnafugata, Josè Rallo. The CEO of Donnafugata emphasised how the key pillars of Intesa Sanpaolo's programme – namely transition 5.0 and energy, growth in foreign markets, digital development and cybersecurity – are fundamental for the competitiveness and entrepreneurial culture of the wine sector.

For more information: Press Office LaPresse - [email protected]

A video accompanying this announcement is available at:  https://www.globenewswire.com/NewsRoom/AttachmentNg/b3bf477e-9600-4ef1-b7af-0f33ac8023f0

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