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How to Start a Farm: Plan Your Operation

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

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

On This Page

Why you need a farm business plan.

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

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

How USDA Can Help

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

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

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

Build a Farm Business Plan

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

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

Business History

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

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

Mission, Vision, and Goals

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

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

Organization and Management

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

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

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

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

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

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

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

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

Farm Business Plan Worksheets

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

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

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

Planning for Conservation and Risk Management

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

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

Conservation in Agriculture

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

Disaster Recovery

Special Considerations

Special considerations for businesses.

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

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

Special Considerations for Individuals

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

• socially disadvantaged
• limited resource
• military veterans

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

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

Business Planning

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

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

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

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

Training Opportunities

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

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

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

2. Visit Your USDA Service Center

How to Start a Farm with USDA

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

Find Your Local Service Center

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

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

Farm Business Planning

Farm Business Planning is key to beginning farmer success.

It helps beginning farmers :

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

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

• Developing a Farm Business Plan
• Enterprise Budgeting

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

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

1. Developing a Farm Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2. Enterprise Budgets

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

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

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

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

Enterprise Budgeting (Kerr Center)

Organic Specific Enterprise Budgets

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

More Enterprise Budget Pages and Information

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

Details of a Small Farm Business Plan

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

What Is a Business Plan?

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

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

Mission Statement

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

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

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

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

SMART Goals are:

• Rewarding, and have a

Background Information

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

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

Farm Strategy

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

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

Marketing Strategy and Plan

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

Management Summary

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

Financial Analysis

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

Pulling It All Together

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

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Farming Business Plan

Free Business Plan Template

Download our Free Business Plan Template now and pave the way to success. Let’s turn your vision into an actionable strategy!

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How to Write a Farming Business Plan?

Writing a farming business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

Start with a brief introduction:

Market opportunity:, mention your services:, management team:.

Name all the key members of your management team with their duties, responsibilities, and qualifications.

Financial highlights:

Call to action:.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

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2. Business Overview

Depending on what details of your business are important, you’ll need different elements in your business overview . Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

About the business:

Provide all the basic information about your business in this section like:

• The name of your farming business and the type of business you are running or will run: organic farming, agricultural farming, dairy farming, commercial farming, or something else.
• Company structure of your farming business whether it is a proprietorship, LLC, partnership firm, or some other.
• Location of your farm and the reason why you selected that place.

Mission statement:

Business history:, future goals:.

This section should provide an in-depth understanding of your farming business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your farming business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market:

Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.

Some additional tips for writing the market analysis section of your business plan:

• Use a variety of sources to gather data, including industry reports, market research studies, and surveys.
• Be specific and provide detailed information wherever possible.
• Include charts and graphs to help illustrate your key points.
• Keep your target audience in mind while writing the business plan

4. Products And Services

The product and services section of an agriculture business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

List the products & services:

• List the products you will produce or sell, such as crops, fruits, flowers, livestock, or value-added products like cheese or jams.
• Describe each product: Explain the features of your products, such as their quality, variety, and uniqueness. Also, discuss how your products will be packaged and marketed.

Emphasize safety and quality:

Overall, the product and services section of a business plan should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business operations. Here are the components to include in an operations plan:

Operational process:

Technologies:.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your farming business.

6. Management Team

The management team section provides an overview of the individuals responsible for running the farming business. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Key managers:

Organizational structure:, compensation plan:, board of advisors:.

Describe your company’s key personnel and highlight why your business has the fittest team.

7. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:, financing needs:.

Remember to be realistic with your financial projections, and to provide supporting evidence for all of your estimates.

8. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

• Include a table of contents for the appendix section to make it easy for readers to find specific information.
• Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
• Provide market research data, such as statistics on the size of the agriculture industry, consumer demographics, and trends in the industry.
• Include any legal documents such as permits, licenses, and contracts.
• Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
• Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your farming business should only include relevant and important information that supports the main content of your plan.

The Quickest Way to turn a Business Idea into a Business Plan

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

This farming business plan sample will provide an idea for writing a successful farming business plan, including all the essential components of your business.

After this, if you are still confused about how to write an investment-ready agriculture business plan to impress your audience, then download our farming business plan pdf .

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Frequently asked questions, why do you need a farming business plan.

A business plan is an essential tool for anyone looking to start or run a successful farming business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your farming business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your farming business.

How to get funding for your farming business?

There are several ways to get funding for your agriculture business, but one of the most efficient and speedy funding options is self-funding. Other options for funding are!

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting many people to invest in your farming business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought options for startups.
• Venture capital – Venture capitalists will invest in your business in exchange for a percentage of shares, so this funding option is also viable.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your farming business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your farming business plan and outline your vision as you have in your mind.

What is the easiest way to write your agriculture business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any farming business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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12: Business Plans

What is a business plan.

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

A good business plan will contain the following:

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

Helpful Publications for Writing a Business Plan

General Business Resource Publications:

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

Cornell Cooperative Extension Publications for Specific Commodities:

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

Getting Help Writing a Business Plan

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Agri Farming Business Plan – A Beginners Guide

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

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

A step by step guide to Agri farming business plan

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

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

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

A business plan has mainly two purposes;

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

You may like Rabbit Farming Business Plan, Cost, Margin in Rabbit Farming .

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Different agricultural business ideas

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

A vague business plan

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

Unrealistic assumptions

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

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

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

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

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

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

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

I want join in your farming technology information and newsletter.

Hi, Subscribe to our free newsletter service.

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

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When you run a farm, you’ve got to know all about growing things, including your business. A business plan will help. This selection of farm-related sample business plans will give you a head start on writing a business plan of your own.

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Business Plan Tools for Producers

A business plan is like a road map. It helps you define your ag operation’s core objectives and build a detailed plan for how to achieve them. 

Free business plan bundle for farmers

We want to help make writing your business plan easier. The FCC business plan bundle was designed specifically for farm operations and anyone involved in Canadian agriculture.

The bundle includes:

Business plan guide with instructions and resources

Blank business plan template

Sample business plan

Why you need a business plan

There's a lot involved in writing a business plan, but it’s a worthwhile investment. It can help secure financing from a lender, attract investment or act as an internal guide, keeping your management team focused on the same goals.

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Reporting by Josephine Mason, Nick Carey, Helen Reid, Jonathan Saul, Nigel Hunt, Marwa Rashad, Scott DiSavino, Shariq Khan and Eric Onstad; Compiled by Josephine Mason and Nina Chestney; Editing by Nick Macfie and Nick Zieminski

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