components of farm business plan

• Visit the University of Nebraska–Lincoln
• Apply to the University of Nebraska–Lincoln
• Give to the University of Nebraska–Lincoln

Search Form

Six key components of a farm or ranch business plan, cornhusker economics december 19, 2018 six key components of a farm or ranch business plan.

By Jay Parsons

PDF | Markets

Developing a good farm or ranch business plan can have many benefits. In an earlier Cornhusker Economics article, I outlined six good reasons to develop a business plan (Parsons 2015). It helps to get your business organized and moving in the right direction. It lets your lender know you have a plan to succeed, which opens up your access to capital. It also helps you organize your thoughts, clarifying the goals and objectives you wish to achieve. In summary, putting together a written business plan increases the likelihood of your business achieving success (Scarborough 2011).

This is a great time of year to get started on putting together a written business plan for your farm or ranch operation. However, getting started on it can seem like a daunting task. While there is business planning software out there, much of it isn’t well suited for putting together a complete farm or ranch business plan and starting with a blank sheet of paper can be intimidating. So, my goal with this article is to get you started by providing six key components to include in your farm or ranch business plan. Make these six components your headings and start filling in the details as described below. Before long, you will find yourself with a good business plan taking shape and a document you can share with your lender as well as use on a day-to-day basis to help guide your farm or ranch in the direction you want it to go.

1. Introduction

A good introduction contains several key subcomponents of information that summarizes what your business is all about. Even though you may finish writing it last, you should start your document with an executive summary paragraph or two that captures the essence of your business. Provide brief information on the key products or services producing revenue, the qualifications of the people involved in the operation, the land resources and any competitive edge built up over the years. Follow this summary with a mission statement for your operation that captures why you are in the farming or ranching business. The introduction section should also provide an overview of the history of the operation and three to five goals you wish to accomplish in the next five years.

2. Land Resource Management.

Farmers and ranchers rely on the land to make a living. This section should describe the land resources involved in the operation, including maps if you have them available. If livestock and perennial pastures are involved in the operation, a grazing management plan would fit into this section. Farmers may want to describe their cropping rotations on various properties and why they use them. Land monitoring practices and plans for mitigating soil erosion or noxious weeds are among the many important elements that can be added to this section over time. Having pages of this section readily available to print out and show potential landlords or new employees is a great resource for those communications.

3. Equipment and Animal Management

Equipment resources and animal resources are the tools that turn land resources into profits. This section should provide an inventory of equipment resources along with a general overview of maintenance plans and replacement decisions. For livestock operations, an inventory of animals would be included here. Details regarding genetics, breeding plans, nutrition plans, animal handling protocol, and animal health plans including vaccination schedules should be added. Like the land resource management section, this is a section where having pages ready to print out and share with employees is a great communication resource. It can also make it easy to share information with your veterinarian or nutritionist to get his or her feedback on the management plans you have in place for your livestock.

4. Marketing Plan

A good marketing plan can take some time to build but starting one is easy. It starts with identifying the products or services you intend to sell to generate revenue and the goals you wish to accomplish with your marketing plan. You then need to complete the marketing plan by answering several key questions. When will you be selling the products and/or services? To whom will you be selling? Where will these transactions be taking place? How will you get these products and/or services to the customer? What are the tools available to help you get what you want out of these sales transactions and how do you intend to use those tools? Marketing plans don’t have to be complicated to be effective, but there are a lot of things to consider that can be added to this section over time. If you are not marketing a commodity, it is important to identify what sets your products or services apart from your competitors and to clearly identify the size of the market you intend to be selling into. Your banker will want to know that your sales forecasts are realistic and so should you.

5. Human Resources

Personnel management can sometimes be overlooked on a small farm or ranch operation. However, if you want to attract and keep good employees (including relatives) you need to have a plan in place to do it. This section should describe the people involved in ownership as well as the people managing the operation on a day-to-day basis, including their roles and responsibilities. What other personnel are involved in the business and who is responsible for managing them? How do new people get trained within the business? Having a plan in place describing how they will grow in knowledge and ability and who will help them do it is a great motivator for any employee or family member involved in the farm or ranch.  This can include a brief overview of succession plans, too, if you have those available.

6. Financial

The financial section of your business plan includes balance sheets, income statements, projected cash flows, loan schedules, depreciation schedules, and descriptions of contingency or financial risk management plans. Obviously, this section is important. It depends upon having good financial records and discipline in pulling them together into meaningful information on a regular basis. Whereas other sections of your business plan may not need to be updated more than every few years, this section needs updating on a regular basis. This section will be the section your lender will be most interested in seeing, but that doesn’t diminish the importance of the other five sections preceding it.

Business planning is an ongoing process. Business plans need regular updating after they are developed and are never really done. If you don’t have a business plan, now is the time to start one. Use these basic sections to help define your farm or ranch business. Populate each of them with some information now and then build in more detail as you go focusing on a few sections at a time. Enlist the help of others. Business plans are best done as a team as it helps get the best ideas into written form, speeds up the process of getting them done, and helps create buy-ins from everyone to follow through with the plan once it is developed. Getting a business plan down in writing gets you moving in the right direction toward reaping the full benefits of running a successful farm or ranch business.

References:

Parsons, J. 2015. “Why Develop a Business Plan?” University of Nebraska-Lincoln, Cornhusker Economics , February 18, 2015.

Scarborough, N. M. 2011. Essentials of Entrepreneurship and Small Business Management. 6 th Edition. Boston: Prentice Hall.

Jay Parsons Associate Professor Department of Agricultural Economics University of Nebraska-Lincoln 402-472-1911 [email protected]

More Articles

An official website of the United States government Here’s how you know

• Translated Resources |
• Service Centers |
• Local Dashboard

Farmers.gov is not optimized for this browser. Please use the latest versions of Chrome, Edge, or Safari for the best experience. Dismiss

Find your state/county's agriculture data and USDA resources on your farmers.gov Local Dashboard !

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.

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.

• How to Start a Small Farm Business
• How to Start a Small Farm
• Small Farm Grants and Financial Assistance
• How to Start a Hobby Farm
• Starting Your Small Farm from Scratch
• How to Keep Farm Records
• How to Sell Farm Products to Food Distributors
• Should You Raise Turkeys?
• How to Start an Egg Business
• How to Raise Goat Breeding Stock
• How to Raise Dairy Goats for Milk
• Seed Suppliers and Seed Catalogs for Small Farming
• How to Buy Land for a Homestead or Small Farm
• How to Buy Goats for Your Small Farm
• What Is a Hobby Farm?
• How to Feed and Tend Goats on Small Farms

• Farm Operating Loans
• Farm Equipment Loans
• Financing By State
• Calculators
• Become a Partner

How to Write a Farming Business Plan: Template and Guide

americanfarmfi

May 22, 2023

Starting and running a successful farming business requires careful planning and strategic decision-making. One essential tool that every farmer should have is a well-crafted farming business plan. A comprehensive business plan serves as a roadmap for your agricultural venture, guiding you through the various stages of development and ensuring that you stay focused on your goals. We will provide you with a step-by-step guide on how to write an effective farming business plan and start you off with a template. 

Overview of a Farming Business Plan

Before diving into the specifics, let’s take a moment to understand what a farming & agriculture business plan entails. Essentially, a farm business plan is a written document that outlines your farming objectives, strategies, and financial forecasts. It serves as a blueprint for your farm’s operations, helping you make informed decisions and communicate your vision to potential investors, lenders, or partners.

The Purpose of a Farming Business Plan

The farming business plan is going to define and communicate your farm’s mission and goals. It helps provide a clear direction for your operations, resources, and ensures that everyone involved in the business is on the same page. Additionally, a well-crafted business plan is often required when seeking financing or partnerships. Lenders and investors use it to evaluate the viability and profitability of your farming venture.  

Key Elements of a Farming Business Plan

Let’s explore the elements that make up the Farming Business Plan. 

Executive Summary

The executive summary is a brief overview of your entire plan. It should summarize your farm’s mission, goals, target market, and competitive advantage. While it appears at the beginning of your plan, it is often written last to ensure that it accurately reflects the content of the document.

Market Analysis

A thorough market analysis is crucial for understanding your target market, identifying potential customers, and evaluating your competition. This section should provide detailed information about market trends, customer demographics, and demand for your products or services. Conducting market research and gathering data from reliable sources will strengthen the credibility of your analysis.

Products and Services

In this section, describe the specific products or services your new farm will offer. Provide details about their features, benefits, and how they meet the needs of your target market. Discuss any unique selling points or competitive advantages that set your offerings apart from others in the industry.

Marketing and Sales

Outline the strategies for promoting and selling farm products. Explain how you plan to promote your farm and reach your target market. Include information about your pricing strategy, distribution channels, and any partnerships or collaborations that may enhance your marketing efforts. Developing a comprehensive marketing plan will help you attract customers and generate sales. 

Describe the operational processes and workflows involved in running the farm, including land preparation, planting, harvesting, livestock care, and post-harvest handling. Highlight the management structure, key personnel, and their roles and responsibilities.

Financial Plan

The financial plans are a critical component of your farming business plan as it demonstrates the financial viability and sustainability of your farm. It should include projected income statements, cash flow statements, and balance sheets for the next three to five years. Additionally, outline your funding requirements and any existing or potential sources of financing. 

American Farm Financing offers many financing options to fit your needs: operating loans, cash rent loans, farm mortgages, refinances, and equipment loans. See all AFF loan options .

Setting Financial Goals

Forecasting expenses is critical when starting a farming operation. List out the main buckets of expenses (inputs, machinery, labor, land, interest, and consulting services). Where possible, get pricing quotes to formalize your expenses as much as possible for what you would like to grow.

After you’ve forecasted expenses, you can set a goal for how much profit, or margin, you intend to make. Use futures sales prices to project what you can sell your crop for. The difference between your sales price and your expenses will become your profit. Ensure that this income matches your expectations and can cover any personal expenses you hope the money will be used for.

While a one-year operating plan is critical to get started, remember that farming is a long-term pursuit. Depending on how many upfront expenses you need to make, it may take multiple farming seasons to turn a significant profit. 

Conducting Market Research

Before you can develop a solid business plan for a farm, it is essential to conduct detailed market research. Conduct an analysis of the target market, including its size, growth potential, and trends. Identify the target customers, their needs, preferences, and buying behavior. This assessment will allow you to be an expert on the market and differentiate you from the rest of the competition. 

Writing a Farming Business Plan

Now that we have covered the key elements of a farming business plan, let’s dive into the process of writing one.

Creating a Timeline for Implementation

This timeline can be as specific to your needs as possible. You want to make sure that every necessary box is checked before launching your farming operation. This is a suggested timeline for implementing your plan, but coordinate as you see fit and adapt to things that may pop up:

Preparation: 1-6 Months 

• Complete all sections of the farming business plan, including market analysis, financial projections, and operational strategies.
• Seek funding options, such as loans, grants, or investors, and secure the necessary financing for your farming venture.
• Identify suitable land for your farm and negotiate the purchase or lease agreement.
• Conduct necessary soil testing and prepare the land for farming activities.
• Source and purchase farming equipment, machinery, and inputs (seeds, fertilizers, livestock, etc.) required for your chosen agricultural activities.
• Hire key personnel, such as farm managers, laborers, and administrative staff, as per your business plan’s organizational structure.
• Establish relationships with suppliers and vendors to ensure a steady supply of inputs.

Operations: 6-12 Months

• Initiate planting or livestock management based on the farming plan.
• Implement appropriate cultivation techniques, crop rotation, or livestock management practices.
• Monitor and adjust farming operations to optimize production.
• Develop marketing strategies to promote farm products to target customers.
• Implement sales channels, such as direct sales, farmers’ markets, online platforms, or partnerships with retailers or small restaurants.

Below is a helpful template from fsa.usda.gov to get you started. Download your farming business plan template here.

Ready to find financing that works for you? Begin your application below.

Recent Posts

Top Tips for Preparing a Winning Loan Application for Your Farm November 13, 2023

American Farm Financing is attending Tech Hub Live: July 24-26th.  July 21, 2023

Equipment Needed to Start a Farm July 3, 2023

Subscribe To Our Newsletter

Stay up to date with the latest blog posts, offerings, and AFF news.

• Loan Products
• Learning Center
• Privacy Policy
• Terms & Conditions

© 2023 American Farm Financing

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.

Brought to you by

Create a professional business plan

Using ai and step-by-step instructions.

Secure funding

Validate ideas

Build a strategy

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.

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.

Table of Contents

Related Articles

10 Min. Read

How to Write an eCommerce Business Plan + Template

7 Min. Read

How to Write a Cleaning Service Business Plan + Free Sample Plan PDF

6 Min. Read

How to Write a Fast Food Restaurant Business Plan + Free Template

12 Min. Read

How to Write a Food Truck Business Plan (2024 + Template)

The LivePlan Newsletter

Become a smarter, more strategic entrepreneur.

Your first monthly newsetter will be delivered soon..

Unsubscribe anytime. Privacy policy .

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software

• Search Please fill out this field.
• Manage Your Subscription
• Newsletters
• Farm Management

11 Steps to a Whole-Farm Plan

A broad-based operating plan helps your family stay on course.

It's no insurance against setbacks, but having a whole-farm plan in place can help your family stay on course when difficulties unfold.

"It's often tough to communicate as a family because you tend to focus so much on the day-to-day business operations of producing a commodity," says David Marrison, Ohio State University agriculture-natural resources Extension educator.

"Having a whole-farm business plan in place helps you stay true to your vision and the mission of the operation," he says. "It helps you stay on course and not get lost in the weeds of not having a plan, especially when you're facing big stressors like crop failures or tractor engines going down."

A whole-farm plan encompasses the breadth and width of your farm family's business. "You might say it gives a perspective of the operation from a distance of 30,000 feet, as opposed to a view from 10 feet away," says Marrison.

A whole-farm plan addresses a broad spectrum of components, such as family values and goals, a business analysis and business goals, a business plan, retirement plan, transition plan, estate plan, and investment plan.

"The parts of the whole-farm plan are like spokes in a wheel. All need to work together in harmony for the long-term success of the operation, and all play a role in keeping it operating into the future," he says.

The writing of a broad-based plan begins, of course, with the holding of family business meetings. Before the actual writing of the plan begins, the topics of the meetings might facilitate a process of taking stock of the family, individual assets and goals, and resources and goals of the business.

Marrison suggests taking the following 11 steps to write a whole-farm plan.

1. Take stock of the family.

Look at the history of your family and its farm, and identify family values and family goals.

"It is valuable for the business to begin the planning process by reflecting on family and farm history," he says. "Valuable lessons can be learned by all the generations involved by examining past successes and disappointments. The underlying values and goals of the family unit should also be determined. While these values and goals often remain unspoken, they have a large impact on how family members treat each other and employees, and how they make business decisions."

2. Assess individuals' goals, strengths, and also weaknesses.

"Each member of the farm business should conduct a self-assessment of his or her communication, financial, production, marketing, and management skills," says Marrison. "This is particularly important when bringing generations back to the farm."

This process helps your family determine the areas of responsibility to be allocated to each person. A lack of skill or experience in certain areas could suggest outsourcing some jobs. Or, it could suggest a need for additional education or training.

"You should always be looking at ways to help family members and employees improve their skills and strengths," says Marrison.

3. Analyze the business and set business goals.

A business analysis takes stock of available land, labor, capital, management resources, profitability, business structure, operating procedures, and employee management.

"After taking a snapshot of where the farm business is currently, the family business team should develop key goals for the future," says Marrison. "It is important that each individual share his or her individual goals and skill-set assessments with the other members of the business during this process. Members can then work together to determine the responsibilities of each team member and to develop goals."

4. Write a mission statement.

"A mission statement is a short statement describing the fundamental reason for the business to exist," he says. "It identifies the underlying values that are going to push your family and the business forward."

5. Write a business plan.

The previous steps comprise an internal analysis that can be used to develop plans encompassing the diverse areas of your farm's operation.

"A business plan helps your family develop a plan of action for production and operation practices," says Marrison. "It also helps develop plans for the financial, marketing, personnel, and risk-management sectors of the business."

This analysis could also examine the strengths, weaknesses, opportunities, and threats in each of these areas.

6. Plan for retirement.

This plan identifies retirees' needs and the role the farm plays in meeting these. "Retirement plans should be established early for all members of the business," says Marrison. "The profitability of your farm should be such that a family member can retire and not adversely affect the financial position of the business."

7. Plan a transition strategy.

This describes how your farm will be transferred to the next generation. It encompasses both the transfer of assets and the transfer of managerial control. It describes how the retiring generation will transfer their knowledge to the younger generation, and how and when managerial responsibilities will be transferred.

8. Make an estate plan.

"Farm estate planning determines how your farm's assets will be distributed upon the death of the principal operators," he says.

9. Outline an investment plan.

Investments vary widely by family and farm, typically comprising land, machinery, and livestock. Others have off-farm investments also. Determine how these investments affect future needs.

10. Set goals in all areas.

"Setting goals establishes a plan of action for each area of business activity," says Marrison. "Set measurable goals that are short, mid, and long term. At monthly family meetings, you can look back at the goals you set in each major area of planning. Reviewing goals keeps them in focus, even though you might not be able to act on them until a future date."

11. Plan for the unexpected.

In each planning area, work into the plan a what-if scenario. "Look at what unexpected things could happen," he says. "Having conversations about those what-if circumstances no one wants to think about could help you stay on target and not get stressed when bad things happen."

In sum, says Marrison, "By implementing a whole-farm approach to business planning, your farm family can be ready to face the future with confidence."

David Marrison | 440/576-9008 [email protected]

Related Articles

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 Farm 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 for a Farm

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.

Finish Your Farm Business Plan in 1 Day!

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

With Growthink’s Ultimate Farm Business Plan Template you can finish your plan in just 8 hours or less!

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 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

LIKE WHAT YOU’VE READ? WHY NOT SHARE

Cultivating Success with a Comprehensive Farm Business Plan

Farm business planning involves outlining the goals, strategies, and financial projections for an agricultural operation. It serves as a roadmap that guides farmers in making informed decisions, managing resources effectively, and adapting to changing market conditions. A well-crafted farm business plan provides a clear direction for the farm’s future, enabling farmers to identify potential risks, capitalize on opportunities, and secure financing from lenders or investors.

Importance of a Farm Business Plan

Executive summary, description of the farm, market analysis, products and services, marketing and sales strategy, operational plan, financial projections, risk management, 1. define your goals and objectives, 2. conduct market research, 3. assess resources and infrastructure, 4. develop marketing strategies, 5. outline operational processes, 6. create financial projections, 7. evaluate and refine the plan, benefits of a well-developed farm business plan, uncertain market conditions, climate and environmental factors, access to capital and funding, examples of successful farm business plans, why is a farm business plan necessary, how long does it take to create a farm business plan, can i use a template for my farm business plan, what should be included in the financial projections, how often should a farm business plan be updated, how do i start a farm business plan and find a farm business plan sample.

Having a farm business plan is crucial for several reasons. Firstly, it helps farmers clarify their vision and set realistic goals for their agricultural enterprise. By clearly defining their objectives, farmers can focus their efforts on areas that contribute to their long-term success. Secondly, a farm business plan facilitates effective communication and collaboration with stakeholders such as partners, employees, and financial institutions . It ensures that everyone involved understands the farm’s mission, strategies, and financial expectations.

Furthermore, a business plan for farms enables farmers to identify potential risks and develop strategies to mitigate them. By conducting a thorough market analysis, farmers can anticipate market trends, assess consumer demands, and identify potential competitors. This information allows them to tailor their products and marketing strategies to meet the needs of their target audience effectively. Additionally, a farm business plan helps farmers plan their operational processes, including production schedules, supply chain management, and quality control, ensuring efficiency and productivity.

Key Components of a Comprehensive Farm Business Plan

Break down the essential sections that make up a comprehensive farm business plan. Provide an overview of each component and explain their significance in convincing investors.

The executive summary is a concise overview of the entire farm business plan. It provides a snapshot of the farm’s mission, goals, strategies, and financial projections. This section should be compelling enough to capture the reader’s attention and generate interest in the rest of the plan.

In this section, you will provide detailed information about your farm, including its location, size, infrastructure, and history. Describe the type of farming you engage in (crop cultivation, livestock production, organic farming, etc.) and highlight any unique selling points or competitive advantages your farm possesses.

Conducting a thorough market analysis is crucial to understanding the demand and competition in your target market. Identify your target customers, analyze their preferences and purchasing power, and evaluate the market trends that may affect your farm’s operations.

Detail the range of products and services your farm offers. Include information about the specific crops or livestock you produce, their quality, and any value-added products or services you provide, such as organic certification or agritourism activities.

Outline your marketing and sales strategies for promoting and selling your farm products. Identify the channels you will use to reach your target customers, such as direct sales, farmers’ markets, online platforms, or partnerships with local restaurants or grocery stores.

In this section, explain how you will manage the day-to-day operations of your farm. Outline the production processes, equipment and machinery required, labor needs, and any other relevant operational considerations.

Develop comprehensive financial projections for your farm business. Include information on the initial investment required, projected revenue and expenses, cash flow statements, and profitability forecasts. This section will help you assess the financial viability of your farm and attract potential investors or lenders.

Identify the potential risks and challenges your farm may face, such as weather-related events, disease outbreaks, or market fluctuations. Describe the strategies and contingency plans you will put in place to mitigate these risks and ensure the continuity of your farm’s operations.

Steps to Create a Farm Business Plan

Creating a farm business plan may seem overwhelming, but breaking it down into manageable steps can simplify the process. Follow these steps to develop a comprehensive and effective farm business plan:

Start by clarifying your long-term goals and objectives for your farm. What do you want to achieve in terms of profitability, sustainability, and growth? Having a clear vision will guide your decision-making throughout the planning process.

Thoroughly research your target market to identify consumer demands, market trends, and potential competitors. This information will help you tailor your products and marketing strategies to meet the needs of your customers effectively.

Evaluate the resources and infrastructure available on your farm. Consider factors such as land availability, water sources, equipment, storage facilities, and labor availability. Assessing these resources will help you determine the scale and type of farming practices you can undertake.

Based on your market research, develop a comprehensive marketing strategy that outlines how you will promote and sell your farm products. Consider different marketing channels, such as online platforms, farmers’ markets, community-supported agriculture (CSA) programs, or direct sales to local businesses.

Describe the day-to-day operational processes required to run your farm. Include details about cultivation techniques, livestock management practices, quality control measures, and supply chain management. Consider any necessary certifications or licenses required for your specific farming practices.

Develop realistic financial projections for your farm business. Calculate the initial investment required, projected revenue streams, and anticipated expenses. Consider factors such as production costs, marketing expenses, equipment maintenance, and labor costs. Regularly monitor and update these projections to track your farm’s financial performance.

Review and refine your farm business plan regularly. Seek feedback from trusted advisors, industry experts, or experienced farmers. Continuously monitor market trends and make adjustments to your strategies and projections accordingly.

A well-developed farm business plan offers several benefits:

Guidance and Direction : A farm business plan provides a roadmap for your farm’s operations, helping you make informed decisions and stay focused on your goals.

Effective Communication : It facilitates communication and collaboration with stakeholders, including partners, employees, lenders, and investors, ensuring everyone is aligned with the farm’s vision and objectives.

Risk Mitigation : By identifying potential risks and developing contingency plans, a farm business plan helps you proactively manage risks and navigate unforeseen challenges.

Opportunity Identification : A thorough market analysis and competitive assessment enable you to identify emerging trends and opportunities in your target market, allowing you to adapt and seize new business prospects.

Financial Planning and Investment : A well-crafted financial projection helps you understand the financial feasibility of your farm business, attract potential investors or lenders, and secure the necessary funding for your operations.

Operational Efficiency : By outlining your operational processes, a farm business plan enables you to streamline your operations, improve productivity, and optimize resource allocation.

Long-Term Sustainability : A farm business plan encourages sustainable farming practices, ensuring the long-term viability of your agricultural enterprise while minimizing environmental impact.

Challenges in Farm Business Planning

While developing a farm business plan, farmers may encounter several challenges. It’s important to be aware of these challenges and develop strategies to overcome them:

Agricultural markets can be volatile, with unpredictable price fluctuations and changing consumer preferences. Farmers must stay updated on market trends, consumer demands, and potential disruptions to make informed decisions and adjust their strategies accordingly.

Farmers are highly dependent on weather conditions and environmental factors, such as rainfall, temperature, and soil quality. Climate change and extreme weather events can significantly impact crop yields, livestock health, and overall farm productivity. It’s important to incorporate climate resilience strategies into your farm business plan.

Securing adequate financing for farm operations can be challenging, especially for small-scale or new farmers. Limited access to capital and funding sources may restrict the implementation of growth strategies or necessary investments in equipment, infrastructure, or technology. Exploring alternative funding options, such as grants, loans, or partnerships, can help overcome this challenge.

Looking at examples of successful farm business plans can provide valuable insights and inspiration for your own planning process. Take the time to study the approaches and strategies adopted by established farmers in your industry or region. Understand their marketing tactics, operational processes, and financial management techniques, and adapt them to suit your own farm’s unique circumstances and goals.

Ready to Create a Solid Farm Business Plan? Get Started Today!

Creating a well-crafted farm business plan is crucial for the success and sustainability of your agricultural venture. Whether you’re a small-scale farmer, a family-run farm, or an aspiring agribusiness entrepreneur, our team at Easy Capraise is here to help. We specialize in assisting businesses like yours in finding investors and securing the capital raising you need to bring your farm business to new heights.

Don’t miss out on the opportunity to maximize your farm’s potential. Contact us today and let our experts guide you through the process of creating a comprehensive farm business plan that will attract investors and set you on the path to success.

A farm business plan provides a roadmap for your farm’s operations, helping you set goals, make informed decisions, secure funding, and adapt to market conditions.

The time required to create a farm business plan depends on various factors, such as the farm’s complexity and your familiarity with the planning process. It can range from several weeks to a few months.

Using a template as a starting point can be helpful, but ensure that you customize it to reflect your specific farm’s goals, strategies, and financial projections.

Financial projections should include initial investment requirements, projected revenue streams, anticipated expenses, and cash flow statements. It’s crucial to regularly monitor and update these projections to track your farm’s financial performance.

A farm business plan should be regularly reviewed and updated, at least annually or whenever significant changes occur in your farm’s operations, market conditions, or financial situation.

Here’s a guide on how to start a farm business and where to find a sample farm business plan: Identify your farm’s purpose and goals: Determine the type of farming you want to engage in and the specific goals you wish to achieve. This could include crop farming, livestock production, organic farming, or specialized farming practices. Conduct thorough market research: Understand the demand and market potential for your chosen farming niche. Identify your target market, competitors, pricing trends, and any regulatory requirements specific to your area. Determine your farm’s resources: Assess the resources you have available, such as land, capital, equipment, and labor. Determine if you need to acquire additional resources or secure financing for your farm business. Develop a farm business plan: Create a comprehensive business plan that outlines your farm’s mission, vision, and strategies. Include sections on market analysis, production methods, operational plans, marketing and sales strategies, financial projections, and risk management. Seek out sample farm business plans: There are various resources where you can find sample farm business plans to use as templates or references. Consider the following options: a. Online resources: Many agricultural organizations, government agencies, and agricultural universities provide sample farm business plans on their websites. Search for “sample farm business plan” and explore the available resources. b. Local agricultural extension offices: Visit your local agricultural extension office or cooperative extension service. They often have resources, workshops, and sample farm business plans tailored to your specific region.

Seek professional advice: If you need guidance in developing your farm business plan or need assistance customizing a sample plan, consider reaching out to Easycapraise.com.

Developing a comprehensive farm business plan is a vital step toward the success and sustainability of your agricultural venture. By outlining your goals, conducting thorough market research, assessing resources, and creating financial projections, you can create a roadmap that guides your farm’s operations and positions you for long-term success. Remember to regularly review and update your plan to adapt to changing market conditions and seize new opportunities. With a well-developed farm business plan in hand, you can navigate the challenges of the agricultural industry and achieve your desired outcomes.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Post Comment

Related Articles

Hire a Business Planner Consultant for Success

Partnering with Top Startup Consulting Firms in 2024

Crafting a Winning Consulting Business Plan in 2024

Good to have you here! If you have any queries, please leave your message. Our team will reach out soon:)

Subscribe to Easy Capraise newsletter: Stay up to date with the latest capital raising trends from Easy Capraise!

[quform id=”6″ name=”sub222″]

Farm Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Farm Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Farm Business Plan

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

We have helped over 5,000 entrepreneurs and business owners create business plans and many have used them to start or grow their farms.

Below are links to each section of a small farm business plan template. It can be used to create a vegetable farm business plan, fruit farm business plan, agriculture farm business plans or many other types of rural businesses.

Sample Business Plan For Farms & Agricultural Businesses

• Executive Summary – The Executive Summary is the most important part of your business plan. It is a brief description of your farm, its products and services, potential market opportunity, and competitive advantage.
• Company Overview – Also called the Company Analysis, here, you will provide a detailed description of your agriculture business history, its products and other services, and business structure.
• Industry Analysis – In the Industry Analysis, you will provide an in-depth analysis of the industry in which your farm operates including industry trends, market size and growth, and government regulations.
• Customer Analysis – In the Customer Analysis, you will identify your target market and provide insights into their purchasing habits. You will also create customer segments and discuss your marketing strategy for reaching them.
• Competitive Analysis – In the Competitive Analysis, you will identify your direct competition and provide insights into their strengths and weaknesses. You will also discuss your competitive advantage and how you plan to stay ahead of the competition.
• Marketing Plan – The Marketing Plan includes a discussion of your marketing strategy and tactics along with your pricing strategy. You will also provide a budget for your marketing activities including attending farmers’ markets or advertising a farm stand.
• Operations Plan – In the Operations Plan, you will discuss your farm’s day-to-day operations. You will also provide your business goals that you plan to achieve and a budget for your operating expenses.
• Management Team – In this section, you will provide a brief overview of the farm owners and farm management team, their experience in the agricultural industry, and the organizational chart.
• Financial Plan – In this section, you will provide three-year financial statements for your farm. This will include your income statements, projected balance sheets, and cash flow statements.

Next Section: Executive Summary >

Farm Business Plan FAQs

What is a farm business plan.

A farm business plan is a plan to start and/or grow your farm business. Among other things, a good agriculture farm business plan outlines your business concept, identifies your target audience , presents your marketing plan and details your financial projections.

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

What Are the Main Types of Farms?

There are many types of farms. Some have commercial farms that produce crops and agricultural products for sale. Others have cooperative farms owned by people who pool their resources together and share profits among themselves. There are also vegetable farms, dairy, micro, organic, poultry, subsistence, or urban farms.

What Are the Main Sources of Revenues and Expenses for a Farm?

The primary source of revenue for a farm is the sale of its farmed goods such as rice, corn, milk, beef, chicken, depending on the kind of farm a business is.

Some key expenses for a farm are labor expenses, production costs like irrigation, fertilizer, water, and machinery maintenance.

How Do You Get Funding for Your Agriculture Business?

Farm business plans often receive funding from bank loans. Financing is also typically available from grants offered by local and state governments. Personal savings, credit card financing and angel investors are other funding options. This is true for starting any agricultural business.

What are the Steps To Start a Farm Business?

Starting a farming 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.

• Develop An Agricultural Business Plan - The first step in starting a business is to create a detailed agriculture 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.  It should also include your business goals and mission statement. You can quickly complete your farm business plan using our Farm Business Plan Template here .
• Choose Your Legal Structure - It's important to select an appropriate legal entity for your farm 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 farm business is in compliance with local laws.
• Register Your Agriculture Business - Once you have chosen a legal structure, the next step is to register your farm 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. 
• Identify Financing Options - It’s likely that you’ll need some capital to start your farm business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 
• Choose a Business 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. 
• 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. 
• Acquire Necessary Farm 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. 
• Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your farm 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. 

Learn more about how to start a successful farm business and agribusiness planning:

• How to Start a Farm Business

Where Can I Get a Farm Business Plan PDF?

You can download our free farm business plan template PDF here . This is a good farm business plan template you can use in PDF format.

• Search Extension
• All of Oklahoma State University

Developing a Farm Business Plan

The introduction video covers important components that should be included in a business plan. The Strategic Planning video discusses in more detail the process of a strategic planning that should be part of a business plan including vision statements, mission statements, goals and objectives. Finally, the AgPlan video introduces a tool that can be used in business planning, AgPlan.

Presentations

Business plan components.

Follow along with the Business Plan Components PowerPoint presentation.

Strategic Planning

Follow along with the Strategic Planning for Farm Business PowerPoint presentation.

Follow along with Using the Online Ag Business Planning Tool "AgPlan"  PowerPoint presentation. Learn more about the AgPlan Software Tool .

The Game Plan: Farm Business Planning

Other Resources

Osu publications.

• Developing a Business Plan for Value-Added Agricultural Products
• Farm Family Decision Making
• Goal Setting for Farm and Ranch Families

FSA Publications

• Guide to FSA Farm Loans

Other Publications

• Farm and Ranch Strategic Planning (Visioning and Goal Setting)
• How to Write a Business Plan
• SBA Tool to Write a Business Plan
• REI Oklahoma

Essential Components of a Successful Sample Farm Business Plan

A deep understanding of the complex aspects of farming combined with a well-thought-out plan is essential for any successful farm business. Therefore, if you’re venturing into the agricultural sector, having an excellent sample farm business plan can significantly increase your chances of achieving success.

A farm business plan outlines all the processes, strategies, and resources required to create and maintain a thriving farm. Essentially, it paints a picture of the farm’s general operational and financial aspects that guide your farming operations to profitability and growth.

When developing a farm business plan, there are crucial components that must be seriously considered. These components are indispensable and form the backbone of a robust farm business plan.

1. Executive Summary: The executive summary is like a trailer to a movie; it provides a brief overview of your farm business. It should be concise yet packed with key information such as the description of your farm, its location, products, and services, the target market, and how the business intends to attain its goals. An effective executive summary in a sample farm business plan is capable of influencing potential investors, partners, or stakeholders.

2. Farm Description: This element details the actual farm – it’s size, location, type of farming, and the facilities present. A good sample farm business plan would describe whether it’s a livestock farm, crop farm, or a combination, the products produced, and the farming methods utilized such as organic or conventional farming.

3. Market Analysis: Successful farming is hugely reliant on demand and supply. Thus, an in-depth market analysis is crucial. It’s essential to understand the needs of your target customers, their buying habits, the market trends in your chosen farming sector, and identify your direct and indirect competitors.

4. Marketing and Sales Strategy: How do you intend to attract your target audience, and what tactics would you employ to sell your farm products? A sample farm business plan must detail a comprehensive marketing and sales strategy. This includes your value proposition, marketing goals, pricing method, advertising techniques, sales channels, and customer retention strategies.

5. Operation Plan: The operation plan elaborates on how the farm will function daily. This consists of labor requirements, equipment, supplies, and the inventory management system. It also determines the farm’s production cycle, outlining each step from planting or rearing to harvesting or selling.

6. Financial Projection: As with any business, money matters a lot in farming. A complete sample farm business plan should present a reasonable financial projection. Your plan must detail your farm’s current financial state, the projected income and expenses, cash flow statement, balance sheet, and a break-even analysis.

7. Risk Management: Farming has its fair share of risks such as bad weather, pests, diseases, and market volatility. Therefore, your sample farm business plan should include a risk management plan. This includes strategies on how to mitigate various risks and threats and how you plan to manage any crisis situation.

8. Succession Plan: Farm ownership and management can span generations, hence the need for a succession plan. This plan outlines how the transfer of ownership or management will occur in case of the owner’s death, retirement, or disability.

9. Appendices: Finally, this section contains all supporting documents such as farm certification, land ownership documents, agreements, contracts, and any other relevant reference materials.

In conclusion, developing a comprehensive sample farm business plan is crucial to the success and continuity of your farm business. It provides a strategic roadmap to success and serves as an essential tool for attracting potential investors. The time, thought, effort, and resources invested in creating a detailed farm business plan will undoubtedly pay dividends in the future in terms of farm operations, profitability, and business sustainability.

• Agriculture Farming
• Livestock Farming

Project Reports

• Hydroponics
• Best Fertilizers
• Vertical Farming
• Sheep Farming
• Goat Farming
• Poultry Farming
• Fish Farming
• Pig Farming
• Dairy Farming
• Rabbit Farming
• Success Stories of Farmers
• Boost Fruit Yield
• District Wise Crop Production
• Schemes & Subsidies
• Agriculture Colleges
• Farm Insurance
• Disease Control And Management

Agriculture

Aquaculture

Horticulture

Agri Business

How to Create a Farming Business Plan: Step-by-Step Guide for Agriculture Business Plan

Table of contents, what is a farming business plan, understanding the importance of a farming business plan, key elements of an agriculture business plan, steps in crafting your agriculture business blueprint, conducting market research for your farming business plan, defining your farming business goals and objectives, choosing the right farming enterprise for your business plan, analyzing the financial aspects of your farming business plan, developing a production plan for your farming business, marketing and sales strategy for your farming business, managing risks and challenges in your farming business plan, organizational structure and management team in your farming business plan, environmental considerations in your farming business plan, legal and regulatory requirements for starting a farming business, financial projections and analysis in your farming business plan, monitoring and evaluation of your farming business plan.

Agriculture, a cornerstone of global economies, sustains communities by providing food, resources, and employment. It’s a sector employing over 80% of the world’s workforce, playing a pivotal role in national economic prosperity. For entrepreneurs, agriculture offers myriad opportunities, from starting a farm to accessing government loans and subsidies.

This article explores these avenues. This guide offers a step-by-step approach to a comprehensive agriculture business plan. This guide will provide you with the essential components of planning, from market analysis to financial strategies, ensuring your farming business is well-rooted for growth and sustainability.

How to Create a Farming Business Plan

A farming business plan is a document that outlines the vision, goals, and strategies of a farming enterprise. It serves as a roadmap/ blueprint for starting, managing, and growing a successful farming business. A farming business plan also helps to attract investors, lenders, partners, and customers to support the farming venture. In India, the significance of agriculture is profound.

Over 60-70% of the population depends on it, with nearly 52% of the workforce engaged in this sector. Contributing about 18.3% to India’s GDP in 2022-23, the sector saw a GDP rise to 6934.75 INR billion in Q4 of 2022 from 4297.55 INR billion in Q3. Expected to grow by 3.5% in 2022-2023, the Indian agriculture industry is a robust field for investment and growth.

In case you missed it: Pepino Melon Farming: Exploring Business Plan to Grow and Market

• Clarify the vision and mission of the farming business.
• Identify the target market and customer segments.
• Assess the strengths, weaknesses, opportunities, threats of the farming business.
• Define the short-term and long-term goals and objectives of the farming business.
• Choose the most suitable farming enterprise based on market demand, resources, and skills.
• Analyze the financial feasibility and profitability of the farming business.
• Develop a production plan that outlines the inputs, outputs, and processes of the farming operation.
• Create a marketing and sales strategy that describes how to promote, price, distribute, and sell the farm products or services.
• Manage the risks and challenges that may affect the farming business.
• Organize the structure and management team of the farming business.
• Determine the equipment, infrastructure, and resources required for the farming business.
• Consider the environmental impacts and benefits of the farming business.
• Comply with the legal, regulatory requirements for starting a farming business.
• Project the financial performance and outcomes of the farming business.
• Monitor, evaluate the progress and results of the farming business plan.
• Purpose and Objectives : Define the mission statement, outlining the business’s goals, brand, and core values, and identify potential collaborations.
• Business Details : Describe your business comprehensively, including location, size, operational history, current status, and sector involvement. Address marketing and sustainability aspects.
• Market Analysis : Conduct thorough industry research to understand supply and demand, market trends, competitors, and customer needs.
• SWOT Analysis : Assess internal strengths and weaknesses and external opportunities and threats, including market conditions, competitors, and regulations.
• Business Strategy : Develop a marketing plan aligned with your mission and objectives, considering product/service offerings, pricing, location, promotion, and customer benefits.
• Finances : Evaluate current financial status and future projections, determining the necessity of business loans and investment requirements.
• Management Summary : Conclude with a highlight of achievements and financial projections to attract potential investors, showcasing the business’s investment potential.
• Decide Your Niche : Begin by choosing the specific type of agriculture business that resonates with your vision.
• Land Acquisition : Secure your farming land and finalize any lease agreements.
• Market Research : Dive deep into market analysis to understand the needs your business will fulfill.
• Economic Assessment : Calculate the financial feasibility, commodity trading prospects, and roles for future opportunities.
• Resource Identification : Determine the resources required for production post-planning.
• Business Registration : Officially register your agriculture business.
• Credit Strategy : Develop a plan to establish and secure credit, a cornerstone for launching your agribusiness.

In case you missed it: Turkey Farming Business Plan: Cost and Profit Analysis

To create a comprehensive and effective farming business plan, it is essential to conduct market research. Market research process involves gathering and analyzing information about current and potential customers, competitors, suppliers, trends, and opportunities in the farming industry. Market research helps to:

• Understand the needs, preferences, behaviors, and expectations of the customers.
• Identify the size, growth, segmentation, and profitability of the market
• Evaluate the strengths, weaknesses, opportunities, threats of the competitors
• Establish the unique selling proposition (USP) and competitive advantage of the farming business
• Determine the best pricing, promotion, distribution, and sales channels for the farm products or services
• Assess the demand and supply gaps in the market
• Identify the niche markets and customer segments that the farming business can serve.

One of the key steps in creating a farming business plan is to define the goals and objectives of the farming business. Goals are the broad and long-term outcomes that the farming business aims to achieve. Objectives are the specific and measurable sthat will help to accomplish the goals. Goals and objectives of business should be SMART: Specific, Measurable, Achievable, Relevant, Time-bound. Some examples of goals and objectives for a farming business are:

• Goal : To become a leading organic vegetable producer in the region
• Objective : To increase the production of organic vegetables by 20% annually for the next five years
• Goal : To diversify the income sources of the farming business
• Objective : To add value-added products, such as jams, sauces, pickles, etc., to the product portfolio by next year
• Goal : To improve customer satisfaction and loyalty
• Objective : To implement a customer feedback system and offer discounts and incentives for repeat customers by next month

Before you start your farming business, you need to decide what type of farming enterprise you want to pursue. There are many factors to consider, such as your land, climate, market, skills, interests, and goals. It would be best if you also did some research on the profitability and sustainability of different farming enterprises in your area. 

In case you missed it: Beekeeping in Saudi Arabia: Business Plan, Set Up Cost, Profit, Permission, Laws, and Rules

Some examples of farming enterprises are crop, livestock, dairy, poultry, aquaculture, apiculture, horticulture, floriculture, agroforestry, and agri-tourism. Each of these enterprises has its advantages and disadvantages, opportunities and challenges, and requirements and regulations. You should choose a farming enterprise that matches your resources, capabilities, and aspirations.

One of the most important aspects of your farming business plan is the financial analysis. This is where you estimate your income and expenses, your cash flow and balance sheet, and your break-even point and profitability. You should also include a sensitivity analysis to assess how your financial performance would change under different scenarios, such as changes in prices, costs, yields, or demand.

To conduct a financial analysis, you need to gather accurate and reliable data on your current situation and your projected operations. You can use various tools and methods to help you with this task, such as budgeting, accounting, record-keeping, benchmarking, and financial ratios. You can seek professional advice from an accountant or a financial consultant if needed.

Another key aspect of your farming business plan is the production plan. This is where you describe how you will produce your products or services, what inputs and resources you will need, what activities and processes you will follow, and what standards and quality measures you will adhere to. You should also include a risk management plan to identify and mitigate the potential risks that could affect your production, such as pests, diseases, weather, market fluctuations, or equipment failures. 

To develop a production plan, you need to have a clear understanding of your farming enterprise, your target market, your competitors, and your industry best practices. You should also consult with experts and stakeholders in your field, such as extension agents, researchers, suppliers, customers, or peers.

A farming business plan should include a marketing and sales strategy detailing how to promote and sell products/ services to the target market. This strategy should include a market analysis to assess customer needs, trends, and behavior. It should also identify competitors’ strengths and weaknesses and identify a competitive advantage. 

A clear value proposition should be included, and various marketing tools and channels, such as branding, packaging, labeling, advertising, social media, websites, brochures, trade shows, farmers’ markets, or direct sales, should be used to communicate effectively with customers.

Farming faces numerous risks from both external and internal sources, including climate change, natural disasters, market volatility, policy changes, and consumer preferences. Internal challenges include labor shortages, skill gaps, health issues, and succession planning. To manage these risks effectively, a contingency plan should be developed, outlining possible scenarios and actions to prevent or cope with them.

Fund should be established to cover expenses in case of unforeseen events. Regular performance monitoring and adjustments are essential for maintaining a successful farming business.

The organizational structure and management team of a farming business plan should outline the structure and management of the business, including the roles, responsibilities, qualifications, experience, and compensation. It should also detail the legal structure and ownership of the business, such as sole proprietorship, partnership, corporation, or cooperative.

In case you missed it: Growing Your Profits: Crafting a Comprehensive Cassava Farming Business Plan That Guarantees Success

The plan should also detail the governance and decision-making processes, such as board meetings, annual reports, or audits. The equipment, infrastructure, and resources required for the farming business should be detailed, including the type, quantity, quality, and cost of each item, as well as their sources, availability, and maintenance. Examples of equipment include tractors, plows, harvesters, milking machines, barns, silos, fences, irrigation systems, land, water, seeds, fertilizers, and feed.

The farming business plan should consider the environmental impacts and opportunities it has on the natural environment. It should outline compliance with environmental laws and regulations, such as waste management and water quality, and how to reduce environmental footprint through sustainable practices and renewable energy. It should also highlight the benefits of environmental services and incentives, such as carbon credits, ecosystem payments, and organic certification, to the business.

The legal, regulatory requirements for starting a farming business are the rules and obligations that you need to follow and fulfill to operate your business legally and ethically. You should include information on the licenses, permits, registrations, certifications, or memberships that you need to obtain or maintain for your business, such as land titles, tax registrations, business registrations, or trade associations. 

You should also include information on the laws and regulations that you need to comply with for your business, such as labor laws, health, and safety laws, animal welfare laws, or food safety laws. You should also include information on the contracts and agreements that you need to sign or negotiate for your business, such as land leases, supply contracts, or insurance policies.

The financial projections and analysis in your farming business plan are the estimates and evaluations of your business’s financial performance and viability. You should include information on the income statement, balance sheet, cash flow statement, break-even analysis, profitability analysis, and sensitivity analysis of your business for at least three to five years. 

You should also include information on the assumptions and sources that you used to prepare these projections and analyses. You should also include information on the funding needs and sources of your business, such as equity, debt, grants, or subsidies. You should also include information on your business’s financial goals and indicators, such as return on investment, debt-to-equity ratio, or net profit margin.

The monitoring and evaluation of your farming business plan are the processes and tools that you use to track and assess the progress and results of your business. You should include information on the objectives and indicators that you use to measure the performance and impact of your business, such as sales volume, customer satisfaction, or environmental benefits.

In case you missed it: Buzzing Towards Success: Creating a Comprehensive Beekeeping Business Plan

You should also include information on the methods and frequency that you use to collect and analyze data on these indicators, such as surveys, records, or reports. You should also include information on the feedback and learning mechanisms that you use to improve your business based on these data, such as reviews, audits, or adjustments.

Creating a farming business plan is a strategic step toward agricultural success. It involves thorough market analysis, clear goal setting, and meticulous financial planning. This guide serves as a roadmap, helping aspiring and established farmers navigate the complexities of the agricultural sector, ensuring sustainable growth and profitability.

Common Challenges in Strawberry Farming: A Beginners Guide

Maximizing yield in ridge gourd farming: best practices and tips .

• Sustainable Agriculture with CRFs (Controlled Release Fertilizers): A Game-changer for Crop Productivity

Organic Farming vs. Natural Farming (ZBNF): Key Principles and Differences

Strawberry nursery establishment and management, modi vision for indian agriculture, government support and policies for zbnf in india, deworming schedule for sheep: a beginners guide.

• Ultimate Guide to Beans Farming in Kenya: From Planting to Profits

Ultimate Guide to Natural Vegetable Farming

Natural farming for sustainable livestock management, dairy farm technology in india: the future of dairy husbandry, comprehensive guide to organic farming in villages, modern sheep farming technology: the future of sheep husbandry, goat farming technology: the future of goat husbandry.

• How to Build a Low-budget Goat Shed: Cheap Ideas and Tips

Goat Farming Training Programs in India: A Beginner’s Guide

Types of pesticides used in agriculture: a beginner’s guide, economical aquaculture: a guide to low-budget fish farming, 15 common planting errors that can doom your fruit trees.

• How to Make Houseplants Bushy: Effective Tips and Ideas
• Innovative Strategies for Boosting Coconut Pollination and Yield
• Pollination Strategies for Maximum Pumpkin Yield
• The Complete Guide to Chicken Fattening: Strategies for Maximum Growth
• Natural Solutions for Tulip Problems: 100% Effective Remedies for Leaf and Bulb-Related Issues
• Revolutionizing Citrus Preservation: Towards a Healthier, Greener Future
• Natural Solutions for Peony Leaf and Flower Problems: 100% Effective Remedies
• Maximizing Profits with Avocado Contract Farming in India: A Comprehensive Guide
• Natural Solutions for Hydrangea Problems: 100% Effective Remedies for Leaf and Flowers
• The Ultimate Guide to Choosing the Perfect Foliage Friend: Bringing Life Indoors
• From Sunlight to Sustainability: 15 Ways to Use Solar Technology in Agriculture
• The Ultimate Guide to Dong Tao Chicken: Exploring from History to Raising
• The Eco-Friendly Makeover: How to Convert Your Unused Swimming Pool into a Fish Pond
• Mastering the Art of Delaware Chicken Farming: Essentials for Healthy Backyard Flocks
• 20 Best Homemade Fertilizers for Money Plant: DIY Recipes and Application Methods
• How to Craft a Comprehensive Free-Range Chicken Farming Business Plan

LEAVE A REPLY Cancel reply

Save my name and email in this browser for the next time I comment.

Sustainable Agriculture with CRFs (Controlled Release Fertilizers): A Game-changer for...

Ultimate guide to beans farming in kenya: from planting to..., how to build a low-budget goat shed: cheap ideas and..., borewell drilling cost, pump price, and pipe cost, polyhouse subsidy, cost, profit, project report, tractor subsidy, bank loan, eligibility, schemes, process, malabar neem project report details guide, cold storage project report, cost and subsidy, mushroom farming project report, cost and profit analysis.

• Livestock Sales
• Machinery and Shop
• Prairie Futures and Cash Prices
• Markets at a glance
• Digital Editions
• Classifieds
• Subscriptions

Newsletter Signup

Your Reading List

Summer series: a practical guide to writing your farm business plan, summer series: it pays to listen better, welcome to our summer series, summer series: advice for young farmers, farmers are losing the perception battle on food prices, [best advice] this eight-point plan can help put you on the right path.

Published: May 1, 2024

Features , Guide Business

Farm business planning is always a popular topic of discussion among advisors and management gurus. But statistics still show a slow uptake by farmers. Those using a written business plan, however, are reaping the benefits. Follow the eight steps below to get started. – April Stewart, Associate Editor.

ADVERTISEMENT

The dark market of farmland rentals

Somehow, how farmland rental rates get set remains one of the mysteries of the universe despite being so hotly debated…

If you’re an avid Country Guide reader, you know that farm business planning continues to be a popular topic of discussion among advisors and management gurus.

Since the “Healthy Minds, Healthy Farms” study was released by Farm Management Canada last May, we have talked to farmers across the country who are regularly using a written business plan and reaping the benefits.

This winter we shared the stories of how a farm business plan drives Hannah Konschuh ’s daily activities, how putting a plan on paper for the first time was a game changer for the O’Rourkes and how focusing on specific components of the plan provides the Cronins stability during uncertain times.

Statistically speaking, these farmers represent the minority. It turns out 74 per cent of Canadian farmers do not have a written plan.

But now that you know more about this management practice and how it contributes to financial success and improved mental health, maybe you’re giving more thought to starting your own plan. Or perhaps you are newly in the driver’s seat of a family operation and looking to adopt new management practices.

Regardless of your current situation, the big question remains: How do you get started?

Set strategic goals

For Kim Gerencser, senior manager with MNP’s farm management consulting team, the first step is to establish clear, tangible goals.

When guiding clients through the business planning process, he initially asks what their goals are. More often than not, his question is met with blank stares.

“Getting started with a business plan is probably the hardest step of the entire process because managers need to decide what they really want to achieve,” says Gerencser, who also serves as chair of the Canadian Association of Farm Advisors (CAFA).

Setting a goal to be as profitable as possible, for example, is not specific enough. “What do you want your farm business to look like in five, 10 and 20 years? Is the 20-year goal to successfully pass it on to the next generation?” Gerencser asks.

To break down this task, he suggests starting with short-term goals and evaluating what equipment or infrastructure needs attention within the next five years.

“It can be really challenging to define your goals but without this very clear first step, the planning process is doomed to fail before it even starts,” he says.

Assess the business

The next step is conducting an internal audit, or honest evaluation of the current state of the business. This means assessing the financial position but also where your farm is at in terms of management and production capabilities and human resource capacity.

In addition, Gerencser adds that family support and the physical and mental health of key owners and managers should be evaluated.

“What are your strengths? What are your limitations? Where is the business positioned to excel? Where is it positioned to struggle?” he asks. “We need to get a clear snapshot of where we’re at on day one so we know what we’re working with.”

Heather Watson , executive director of Farm Management Canada, encourages the use of the Online Farm Business Self-Assessment Tool . She advises that multiple members of the management team can complete the assessment and compare their results before continuing to help support the planning process.

The analysis completed at this stage can then be used to assess the previously established goals. If the goals are not realistic given the resources available, the first step of the process can be revisited. “It doesn’t mean that you have to change your goal but perhaps you can lengthen the time frame and add a new short-term goal that involves strengthening your resources,” explains Gerencser.

Plan your implementation

Once the evaluation is complete and attainable goals are confirmed, it’s time to determine what tactics need to be implemented.

Gerencser says it’s a phase in the planning process where a lot of people hit a roadblock. It can be overwhelming to identify what changes need to be made within your business, which means inertia can set in.

If this is the case for you, he stresses the importance of reaching out for help. He recommends seeking advice from your accountant, lawyer or banker first — an advisor who has seen many business plans but also knows your business.

“Asking for help is incredibly important but don’t just make one phone call and stop at that,” he suggests. “Make several calls to gather several different opinions so you can make the most informed decision possible.”

If your goal is to expand your business by 15 per cent in the next 10 years but cash flow has been identified as a challenge, for example, an advisor like Gerencser could help. Initially, he could analyze cash inflow and outflow but his findings may lead to the involvement of other advisors.

“If gross margin is insufficient, I could point that out but I’m not an agrologist so I likely can’t help you fix it,” he explains. “If the operating expenses are too high, I can help identify some strategies to help you rectify that but if overhead is too high, we may need to involve your banker.”

Write it down

As strategies and tactics are developed, it is key to record them in a written document. Many advisors, provincial ministries and organizations like Futurpreneur have their own business plan templates, but it is important to note that not all sections may be applicable to your farm.

Gerencser suggests part of the honest evaluation may be identifying what parts of a business plan are critical and which are less applicable to your situation.

Watson agrees that business plans can take many forms of complexity and the best planning resources are relative to the format and function the users are looking for. Above all, she notes that a solid plan includes both strategic and operational elements.

“Some people forget the strategic piece and maybe assume a business plan is the same thing as a budget,” she says. “The budget is part of it, but having a vision, goals and priority activities to meet those goals is key to creating the operational element.”

Gerencser knows the planning process seems daunting. It’s not the type of project you can tackle in an afternoon and it does require significant effort, especially when creating a plan for the first time.

Even so, he has no doubt that having a written plan is worth it. Says Gerencser, “The immediate and future benefits of going through this long and sometimes difficult process can be immeasurable.”

What’s in a plan?

A written business plan is a key tool that sets your farm business up for success. While the necessary components vary from business to business, here are eight sections that most farm business plan templates include:

1. Executive summary A concise summary of the key points of the business venture and the purpose of the plan.

2. Business and ownership profile A description and summary of the company’s past achievements and plans for growth. This section includes the ownership structure and the qualifications and experience of each owner.

3. The strategic plan Present the vision of what you want the business to look like in the future and a mission of what the business is doing now to be viable and sustainable. This section includes an analysis of internal and external strengths, weaknesses, opportunities and threats (SWOT), outlines key performance indicators and lists short-term and long-term goals.

4. The marketing plan Describe the industry you operate in, what products you market, who your target customers are, the quantities you plan to sell and the distribution channels you plan to use. If applicable, this section can include steps for attracting and retaining customers as well as strategies for pricing and promoting your products.

5. The production plan Provide an outline of your operation. Describe the resources, production processes and key inputs required for production as well as a basic cost structure. This section is sometimes called the operating plan.

6. The human resources plan Present the organizational structure including key employees and their education or experience. This section includes strategies for recruiting, hiring, training and disciplining employees. Detail salary and compensation information, a labour policy and a succession plan, if applicable. Name the external advisors who play a role in the management of your business.

7. The financial plan This section details the business model for earning revenue. For existing businesses, include financial statements from the past five years and a monthly cash-flow forecast for the upcoming year. For new ventures, include projected financial statements for the first three years of operations and a monthly cash-flow forecast for the upcoming year. The financial statement should include an income statement, balance sheet, cash-flow summary, financing schedule and key ratio analysis.

8. Risk management and contingency plans Present an assessment of potential risk events or incidents and describe the current processes for identifying, measuring and managing risk and detail management response strategies.

Sources : Alberta Ministry of Agriculture and Forestry; Farm Credit Canada; Ontario Ministry of Agriculture, Food and Rural Affairs.

– This article was originally published in the  April 2021 issue of Country Guide .

Related Coverage

Features , Farm Management Canada

Summer series: do you have the tools to be a better farm leader.

Skills training that can make you a better farmer

Features , business plan

Preparing a business plan for your farm.

Guide Business , Farm Management Canada

Realizing the good idea.

Five moves to make in 2022

Farm advisors a growing trend

Stories from our other publications

The Western Producer

Wealth of chickpeas will affect export market

Smarter bug farming proves possible

Agriculture dodges temporary foreign worker clamp down

Canadian Cattlemen

Pine Ranch named Sask’s Outstanding Young Farmers

A message from April Stewart, Country Guide's Associate Editor

Gfm network news.

U.S. grains: Corn hits near four-year low on farmer selling, bumper crop forecasts

U.S. livestock: Cattle futures firm on corn weakness, expected holiday demand

Agcanadatv: in case you missed it: your national ag news recap for aug. 23, 2024, latest market news, introducing the new agcanada app..

Everything you love about Country Guide and more, including up-to-date weather information, breaking news alerts and a customizable newsfeed in one seamless experience.

Download the AGCanada app

Farm Planning: Definition, Importance, Objectives, Steps & Types

Farm planning is like making a roadmap for a farm to reach its goals . Farm Planning involves deciding what to produce, how, and when to produce it. This includes figuring out financial matters , like how much to borrow and when to borrow, as well as marketing decisions, such as where and when to buy and sell.

Farm planning is crucial for a farm to survive and thrive in a competitive and always-changing environment. It’s an ongoing process that has been around as long as farming itself, but in the past, it used to be more informal. 

Nowadays, with farming becoming more complex, it’s important to have a scientific plan that is organized, written down, and based on the best available information. This helps farmers make the most out of their resources and adapt to changes in technology, the economy, and prices.

Table of Contents

Definition of Farm Planning:

Farm planning is the act of organizing and running a farm business in a way that continuously maximizes the amount of money the business makes from its operations.

Importance of Farm Planning:

1. Based on the specific agricultural conditions, select several farm activities.

2. Consider the future and choose an appropriate plan of action.

3. Choose the right enterprise combinations to optimize resource use.

4. Scheduling different tasks and activities to ensure efficient operation free from rivalry.

5. Steer clear of resource usage wastes.

6. Offer direction and adaptability to guarantee improved utilization and expansion of the farming enterprise.

7. Assign resources to the production of the necessary goods for retail and domestic use.

Thus, farm planning might be seen as a teaching tool to improve the farm’s organizational structure and raise the farming family’s income.

Objectives of Farm Planning:

1. maximizing net incomes: .

The primary objective of farm planning is to strategically manage resources, production methods, and marketing strategies to maximize the net incomes derived from farming operations. This involves making informed decisions on what to produce, how to produce, and when to engage in production activities to optimize profitability.

2. Enhancing Resource Utilization: 

Farm planning aims to improve the efficient use of resources , including land, water, labor, and capital. By optimizing resource allocation and management, farmers can enhance productivity and overall efficiency in their agricultural operations.

3. Securing Incomes: 

Beyond immediate profitability, farm planning addresses the need for stable and secure incomes. This involves implementing measures to mitigate financial risks, stabilize revenue streams, and create a consistent and reliable source of income for farmers .

4. Risk Mitigation: 

Farm planning includes strategies to minimize risks associated with various factors, such as market fluctuations, weather conditions, and external uncertainties. By identifying potential risks and developing proactive measures to address them, farmers can protect their economic interests and ensure long-term sustainability.

5. Labor Optimization: 

Efficient labor management is a key objective of farm planning. This involves streamlining processes, adopting technology, and optimizing workforce utilization to minimize labor-intensive tasks. By enhancing overall operational efficiency, farm planning contributes to increased productivity and reduced labor requirements.

6. Sustainable Agricultural Practices: 

Farm planning aims to promote sustainability by incorporating environmentally friendly and socially responsible practices. This includes adopting technologies and methods that conserve natural resources, minimize environmental impact, and contribute to the long-term viability of agricultural operations. Sustainable practices also consider the social and community aspects of farming, fostering a balanced and resilient agricultural ecosystem.

Types of Farm Planning:

Farm planning, a crucial aspect of agricultural management, is commonly categorized into two distinct sub-groups: the simple farm plan and the complete farm plan . Each category serves specific purposes and addresses varying scopes of changes within the farming organization.

1. Simple Farm Plan: 

The simple farm plan is characterized by its focus on minor changes or planning for specific enterprises within the overall farming framework. This approach is particularly suited for situations where adjustments are needed on a smaller scale or for the implementation of strategies specific to a particular aspect of the farm. Whether it involves tweaking existing practices or introducing modifications to a specific enterprise, the simple farm plan offers a targeted and streamlined approach to address localized challenges or improvements.

2. Complete Farm Planning: 

In contrast, the complete farm plan entails a more extensive and comprehensive approach, envisioning greater changes across the entire farming organization. This strategic planning is adopted when the need arises to evaluate and modify various aspects of the farm as a whole. It goes beyond addressing specific enterprises, aiming to enhance the overall efficiency, productivity, and sustainability of the entire farm operation. Complete farm planning is a proactive strategy that considers the farm’s holistic needs, covering production methods, resource management, financial strategies, and overall organizational structure.

The choice between a simple and a complete farm plan depends on the nature and scope of changes required within the farming enterprise. While the simple farm plan is suitable for localized adjustments, the complete farm plan offers a more holistic and integrated approach, ensuring that the entire farm organization is strategically aligned with evolving goals and challenges.

Both approaches play pivotal roles in steering the course of agricultural operations, providing farmers with flexible tools to adapt to changing circumstances and enhance the overall effectiveness of their farming endeavors.

Characteristics of a good farm plan:

The following are the characteristics of a good farm plan:

1. The efficient use of all farm resources should be the goal of the plans.

2. Plans should be adaptive, meaning they should be able to change as the environment does.

3. Farm planning must be clear and uncomplicated.

4. Farm plans should provide a balanced production program comprising food crops, commercial crops, and fodder crops, taking into account the resources at hand.

5. Improving soil fertility should be the goal of the farm plan’s production program.

6. agricultural planning ought to make it easier to market agricultural products effectively.

7. It ought to consider modern technologies.

8. Farm plans should consider the objectives, the farmers’ background, education, and experience, as well as how they feel about taking on risks.

9. Too risky ventures should not be included in farm planning.

10. Farm plans ought to cover credit borrowing, use, and repayment.

Limitations of Farm Planning:

1. Farm planning is regarded as an expensive and time-consuming activity. 

2. Robust farm plans must be grounded in factual documentation, including providing information on the availability and requirements of resources. 

3. The required farm records are sadly not being kept by the farmers, even though the records include sufficient information for the planning process. 

4. The necessary form does not contain relevant information about farms, especially concerning the climate, water supplies, markets, etc. 

5. There are also insufficient data sources for planning and diagnosis. Consequently, there is ineffective formulation and implementation of agricultural planning. 

6. Therefore, the foundation of scientific planning should be farm standards that are obtained from local research stations and productive farms. 

Tools of Farm Planning:

1. Production function models,  2. Farm budgeting techniques,  3. Linear programming,  4. Operational research techniques,  5. Integer programming,  6. Dynamic programming, 7. Non-linear programming.

Steps of Farm Planning and Budgeting:

A good farm plan should be realistic, reasonable, and flexible in general. For the farm plan to be effective, the following actions need to be taken, taking into account the specific farm and its resources.

1. Statement of objective.

2. Diagnosis of the existing organization

3. Assessment of resource endowments on the farm.

4. Identification of enterprises to be included.

5. Preparation of enterprise budgets.

6. Identification of risks, and

7. Preparation of a plan.

1. Statement of objective:

The farmer’s goal may be to maximize profits or minimize expenses. The farmer’s goal when choosing businesses and how to combine them is to maximize revenues. On the other side, he strives for cost minimization while selecting resources and their combinations.

2. Diagnosis of the existing organization:

Planning consists of two crucial elements: diagnosis and prescription. The planner must meticulously assess the current organization of the farm business, pinpointing any weaknesses, defects, or loopholes in the existing plan. Once these issues are identified, corrective measures can be implemented in subsequent planning efforts. Farm plans primarily focus on prescribing remedies to address the shortcomings of the current plan.

3. Assessment of resource endowments on the farm:

Here there is a need to spell out the land holding area, type of land i.e. wet land or dryland, crops grown, type of soils available, topography, texture, fertility status, drainage, soil and water development, soil and water conservation methods, etc.

The extent of family labor available with the farmer viz., women, men, and children along with their age, household work, and farm work done by them should be indicated. Permanent labour if any engaged by the farmer, type of work done, and amount of remuneration paid should be indicated. Labor supply, in the village and demand for labor for different crops in different seasons should be assessed. The supply position concerning livestock should be assessed correctly.

c) Capital:

The working capital required for raising crops should be indicated. Owned funds available and the amount of funds borrowed, from different sources, interest paid, etc., need to be specified. Specification of repayment dates, terms and conditions, etc., is also required. Fixed capital relates to information on farm buildings, farm equipment, farm machinery, etc.

d) Organization: 

The farmer’s knowledge of farming, his expertise, his experience in farming, and his confidence in adapting new potential technology should be assessed. Based on this information relevant farm plan should be devised. If the farmer is risk-averse, farm plans, which provide stable income under risk, should be generated.

e) Irrigation sources: 

Availability of different sources of irrigation, area covered under different sources, period of availability of irrigation, quantity of irrigation water available, crop demands for irrigation water, accessibility of land to the irrigation sources such as canal and tank, etc., should also be indicated. In addition to this cost of irrigation needs to be mentioned.

4. Identification of enterprises to be included: 

A list of enterprises not only grown by the farmer but also enterprises grown in that area and crop rotations are identified. Estimate the input-output coefficients in terms of acre hectare or head of livestock for all the enterprises, which we propose to include. Information on input and output prices should be collected to work out the costs and returns.

5. Preparation of enterprise budgets:

Estimate the income, cost, and profitability of each enterprise to be included in the plan. The preparation of enterprise budgets facilitates the comparison of the profitability of different enterprises.

6. Identification of risks: 

List out all types of risks viz., production risk, weather risk, technological risk, institutional risk, marketing risk, etc., faced by the farmers. Particularly the incidence of pests, rodents, and diseases, frequency of drought occurrence over time, cyclones, floods, and the havoc caused to farm plans. Marketing risks comprising of risk emanating from price fluctuations and failure of markets to arrest the malpractices of middlemen should be indicated.

7. Preparation of a plan: 

The first step is identifying the scarcest resources and selecting the enterprise that yields maximum returns per unit of the scarcest resource. This process is repeated till all the scarce resources are put to the best use which results in the optimum combination of the enterprises.

Agriculture Finance: Meaning, Importance, Types, Source & Scope

Agriculture Entrepreneurship: 4 Types, Importance & Examples

Classification Of Agricultural Credit: Meaning, Needs & Classification

Explain The Concept Of Consumer Surplus With Diagrams

Leave a Comment Cancel reply

Save my name, email, and website in this browser for the next time I comment.

Kintyre wind farm proposal enters planning

Scottish ministers now set to consider the nine-turbine plan just east of Tayinloan

• 12:30, 22 AUG 2024

Sign up to The Climate Agenda - the one-stop shop for green businesses and those fighting climate change

We have more newsletters

A Section 36 application for a nine-turbine wind farm proposal has been submitted to Scottish ministers by RES.

The project, which lies approximately 2km east of Tayinloan on Killean Estate, is predicted to deliver £35m in business rates during its 50-year operational period, as well as around £5.9m of inward investment to the local area during construction.

In addition, the 59.4MW project would provide a tailored community benefit package for the local area worth approximately £14.8m over the operational life cycle of the project. This package could include RES’ unique Local Electricity Discount Scheme, which offers an annual discount to the electricity bills of those properties closest to the wind farm.

Danny McLean, development project manager for RES, said: “We have worked hard over the last year to develop a project which we believe fits sensitively within the landscape and which minimises or mitigates any potential impacts.

“The design has been shaped by extensive site survey work as well as consultation with the local community – and we are grateful to everyone who took the time to attend our public exhibitions and share their views with us.”

If consented, Killean Wind Farm would generate enough carbon-free electricity for around 51,000 homes once operational, offsetting approximately 47,000 tonnes of carbon emissions based on the grid-mix of fossil fuel, nuclear and renewable generation.

It should also achieve full carbon payback within two years.

Don't miss the latest headlines with our twice-daily newsletter - sign up here for free .

• Scottish Government
• Most Recent