making a farm business plan

Small Business Trends

How to create a farm business plan.

It’s something you nurture, revise, and expand as circumstances dictate and as your farm business matures. Feeling pressure to perfect your business plan from the outset could be paralyzing. Instead, we suggest you view this document as a foundation that can be continuously built upon.

Therefore, your farm business plan should not only anticipate these challenges but also prescribe adaptive measures to navigate through them. It’s this inherent adaptability that transforms a good farm business plan into a great one.

Writing a Farm Business Plan Template: 15+ Things Entrepreneurs Should Include

Creating a robust business plan is of paramount importance, whether you’re kickstarting a farm venture or acquiring an existing one. Our farm business plan template starts off with an executive summary.

Executive Summary

Goals and objectives, introduction, mission statement and values of your farming business plan.

This section enables you to express the core values that led you to the farming business, whether it’s an urban farming venture or a homemade product-based farm. Your mission statement should reflect these values. Sustainable practices and conservation are often key motivations that draw people to farming, so don’t be shy to share your commitment to such principles.

Industry History

Company background and history, competitor analysis, target market.

Clearly define your target market. This can include area groceries, farmers’ markets, or online customers. If you’ll be relying on online sales, ensure your website is professionally designed, keyword optimized, and easily discoverable.

Products and Services

Organization, human resources, and management plans, swot analysis, growth strategy.

A comprehensive growth strategy should outline your plans for debt reduction, savings, and business expansion. Keeping detailed farm production records is key to evaluating the effectiveness of your growth strategy.

Financial Plan

Marketing strategy, establishing a farming business entity, detailed description of farm operations, risk management strategies.

Address potential risks and challenges your farm might face, such as natural disasters, market fluctuations, or pest infestations. Discuss the strategies you plan to implement to mitigate these risks, like insurance coverage, diversification, and emergency response plans.

Sustainability and Environmental Impact

Community involvement and social responsibility, supply chain and vendor relationships, technology and innovation.

Discuss the role of technology and innovation in your farm business. This could include the use of precision agriculture, innovative irrigation systems, or the adoption of farm management software to enhance efficiency and productivity.

Training and Development Plans

Expansion and diversification, exit strategy.

Wrap up your business plan with a conclusion that reiterates your farm’s core mission and vision, and express your enthusiasm and commitment to making your farm business a success.

Frequently Asked Questions

Do I Need a Business Plan for My Farm?

One of the many advantages of constructing your business plan is the opportunity it affords to involve others. Employees, family members, even your loyal farm dog might have innovative small farm business ideas that could significantly enhance your farm’s productivity and marketability. A different perspective can often yield solutions for issues you might not have even been aware of. Therefore, encourage an open exchange of thoughts and ideas. Who knows, the next great idea could be lying right under your hay bale!

How Do I Write a Small Farm Business Plan?

Don’t sit down to write the whole thing. Chip away, one section at a time. Keep in mind that the plan doesn’t have to be the definitive last word. You can make adaptations.

How do you start a farm business plan?

How much do farm owners make a year, how much does it cost to start a small farm, what is the most profitable farming business.

Poultry farming is currently the most profitable – and common – farm business in the world. It includes chicken, turkey, quail, ducks and goose, that are being raised for meat or eggs.

• Business plans

Farm Business Plan

Used 5,069 times

Farm Business Plan gives an overview of the company, including corporation history, owner backgrounds, creations and more. Use this template to quickly develop your farm company plan.

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Farm Business Plan Template

Prepared by:

​ [Sender.FirstName] [Sender.LastName] ​

​ [Sender.Title] ​

​ [Sender.Phone] ​

​ [Sender.Email] ​

Executive Summary

​ [Sender.Company] is owned and operated by [Sender.FirstName] [Sender.LastName] .

​ [Sender.Company] produces and sells (product types, e.g., produce, pastured animals, herbs, etc.), and we also provide on-farm services including (service types, e.g., apple picking, events, produce stand, etc.).

The target audience for [Sender.Company] 's product will be local consumers and businesses whom we will target directly. To market to this audience, we plan to take advantage of public picking events, farmers' markets, and a roadside farm stand.

Future of the Farm

​ [Sender.Company] plans to turn our XX acres of farmland into a sustainable source of crops, pastured animals, and pollinators. We plan to use regenerative farming practices as much as possible and understand what management techniques work best for our acreage.

Additionally, we will have a large greenhouse and use season extension techniques to get more value out of our farmland.

To build a locally well-known brand and eventually expand our presence across the state.

To sell enough of our product to generate a positive cash flow, support the farm owners and staff, and pay back capital plus 15% interest to our investors.

To preserve and enhance our farmland so that it remains sustainable and we can continue to share the fruits of the land with others.

Follow a thorough 3-year business plan and reassess every year to ensure we remain on track.

Seek funding from our network of contacts and outside funders for start-up costs.

Execute a creative marketing plan that introduces our brand to our target market.

Company Description

Business address and contact.

​ [Sender.StreetAddress] , [Sender.City] , [Sender.State] [Sender.PostalCode] ​

​ [Sender.FirstName] [Sender.LastName] : [Sender.Phone] , [Sender.Email] ​

Principal Members

(Owner.FirstName) (Owner.LastName)

Qualifications/Experience

(number) years of experience as a farm hand at (farm name), plus an additional 5 years of experience as the farm manager

(Education)

(Operator.FirstName) (Operator.LastName)

(Experience)

Legal Structure

​ [Sender.Company] is a sole proprietorship.

Company Details

Our property is zoned for farm use, and we plan to use the land as follows:

X acres for pastured animals

X acres for produce

X acres for agritourism activities and events

Farm Assets

Greenhouse and propagation supplies

Farm stand (planned for 20XX)

Market Research

The demand for locally raised animals and grown produce is climbing at a rate of XX% per year and is expected to reach a total value of $XX billion by 20XX.

Consumer demand for free-range, pasture-raised animals is evidenced by farms like (name competitors) which have grown into valuations of (approximate company values) , respectively.

Regulations

​ [Sender.Company] is a licensed business in the State of [Sender.State] as of the year 20XX. We are in the process of applying for all of the necessary permits for constructing the farm stand, expanding the barn, and hosting on-site visitors to the farm.

Service Line

Product/service.

Services Include:

Pasture-raised animals

Produce cultivation

Public apple picking

Public hay maze

Special event packages

Marketing & Sales

Customer communications.

​ [Sender.Company] will communicate with its customers by:

Interacting with customers in-person via farmers markets, the farm stand, and through the leveraging of networking events.

Building an active social media presence on Instagram and TikTok.

Advertising agritourism activities like apple picking, hay mazes, farm trails, and other events.

Creating SEO-friendly blog posts on the company website to increase online presence.

Establishing listings with the local tourism board and activity guides.

Sales Strategy

​ [Sender.Company] 's product will be sold primarily in the (region) . The farm is located on a road with extensive car traffic, so we plan to build a farm stand on the property to capture attention and drive sales.

We also plan to build a social media presence and leverage local advertising to drive awareness of our brand. We will also attend farmers' markets within the region to meet customers face-to-face and build relationships.

Five-year plan

Year One: 20XX

Create a legal business entity

Apply for necessary licenses and permits.

Finalize farm layout.

Procure additional equipment.

Establish social media profiles.

Build a small farm stand.

Attend farmer's markets.

Year Two: 20XX

(List goals for year two)

Year Three: 20XX

Year Four: 20XX

Year Five: 20XX

​ [Recipient.FirstName] [Recipient.LastName] ​

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Useful resources

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• Sales proposals

How to Start a Farm in 2024: Detailed Steps, Costs, and Considerations

Published: January 22, 2024

If you've ever wondered how to start a farm, you're not alone. In this article, we show you an opportunity to stake your claim, embracing a life rooted in the sweat of your brow and the fertility of the land.

You are about to embark on a new farming journey, and we're here to provide substantial insights into the key pieces of starting a farming business. After all, this isn't just a hobby or passing fascination. Now, let's roll up our sleeves and get down to earth.

Step-by-Step Guide to Starting Your Farm

Learn about farming goals and why they are important for success.

Selecting the right type of farm based on your ambition and your goals

Discover how to secure land and resources vital for starting a farm.

Understand the significance of a comprehensive farm business plan and its key components.

Gain knowledge on executing your plan and tips for initiating operations effectively.

Step 1: Identifying Your Farming Business Goals

Drafting clear goals is important before venturing into any business ; farming is no exception. Goals serve as your GPS, guiding your actions and decisions from inception to operation and beyond. For instance, you may aim to start a crop farm to provide organic produce for the local market.

Alternatively, you may dream of starting an animal farm, focusing on dairy or meat production. Regardless of your chosen direction, an articulated path clears ambiguities and enhances focus.

Importance of Setting Clear Goals

Clear aims provide guidelines that shape your farming operations. Outlining SMART (Specific, Measurable, Achievable, Relevant, Time-bound) farming objectives provides a strategic pathway to making informed decisions. It is this specificity that allows one to select the most suitable type of farm, choose the appropriate land, and manage resources meticulously.

Examples of Farming Business Goals

For instance, if your goal is to start an off-the-grid permaculture farm, decision-making will pivot to eco-friendly operations. If the aim is to start an urban rooftop farm, the focus may be on optimizing limited space for maximum yield.

Step 2: Choosing the Right Type of Farm

Each type of agribusiness requires unique considerations, from the soil's quality and climate conditions to market potential. Data suggests that understanding your intended farm helps narrow your options and ensures that you invest wisely.

Different Types of Farms and Their Requirements

Each has unique money-making requirements , whether a crop farm, dairy farm , poultry farm, horticultural operation, or mixed farm. For instance, dairy farms demand significant attention to livestock health and handling, while a crop farming business needs precise knowledge of soil management and plant diseases.

How to Choose the Right Farm Based on Your Goals

In determining the right farm type, you should consider your personal interests and skillset, market demand, available resources, and farming location. Doing this aligns your venture with your core objectives, making progression smoother and more fulfilling.

Step 3: Developing a Farm Business Plan

A well-crafted farm business plan is important for securing funding from lenders or investors and serves as your farming business blueprint.

Importance of a Business Plan

A business plan outlines the specifics of your farm operations, the marketing tactics, financial projections, and resource management strategies. It allows you to anticipate possible challenges and plan for them in advance.

Key Elements of a Farm Business Plan

Essential components of the plan should include an executive summary, your farming business goals, method of operations, marketing strategies, financial forecasts, and risk management plans.

Step 4: Securing Land and Resources

Once you've defined your farming business goals and the most suitable type of agribusiness, the next step is securing land and requisite resources. According to the USDA's Farmers.gov , you'll need to consider factors like creating a plan, assessing the land, find funding, among other steps, before selecting the right farmland for your venture.

How to Find and Purchase Suitable Land

Identifying the right land entails comprehensive research to ensure it meets your farming requirements. We recommend hiring an expert to perform soil tests and environmental assessments before finalizing a purchase.

Necessary Resources for Starting a Farm

Apart from land, other resources are crucial for a farm: capital, farming equipment, seeds or animals, and labor. Having a checklist of everything you need to have a successful farming operation and calculate comprehensive startup costs is important.

Step 5: Implementing Your Plan and Starting Operations

Having a successful farm business isn't just about planning. The next phase is implementation.

Steps to Implement Your Business Plan

These steps range from acquiring the necessary permits and purchasing resources listed in the plan to hiring employees and initiating operations. It's important to revisit and adjust the plan regularly as circumstances change.

Tips for Starting Operations Smoothly

Successful operation commencement hinges on planning. Develop an operation checklist, delegate responsibilities to your team, and ensure all necessary regulations are adhered to for a smooth start. A great emphasis should always be put on quality assurance.

Incorporating these steps provides a roadmap for avoiding common pitfalls and moving toward a successful venture when starting a farm. As always, make sure you conduct market research before starting your venture.

The table below shows the issuing agency for permits based on the business activity you plan on pursuing (source: sba.gov )

Next, gain a clear understanding of the costs associated with starting a farm.

Understanding the Costs of Starting a Farm

Get a clear picture of the initial and ongoing operational costs of the farming business

Learn strategies to manage these costs effectively

Initial Investment Costs

You can start a small farm for as little as $600 to over $10,000 because it depends on various decisions and factors like the type of equipment and whether you're hiring people to help. Before dipping your toes into the farming industry, it's crucial to comprehend the initial investment costs. The foundational pillars involve expenses related to land acquisition, purchasing necessary farming equipment, and introducing the desired crops or livestock to your property.

You can also see if you qualify for loan programs if you're a beginner farmer.

The land cost can vary dramatically based on the location, fertility, and size. Typically, more fertile land boasting a good location tags a steeper price. Important to note – the calculation must also include the cost of relevant insurance coverage (liability, property and crop insurance etc.).

Farming equipment follows next. Tractors, planters, plows, and irrigation systems have substantial price tags. Acquiring livestock requires immediate financial attention if you're planning on animal farming.

Less apparent costs include seed, buildings, and site improvements like fencing or driveways. Now the question becomes, how do you manage these initial costs?

One common approach is to start small and scale over time. At first, consider leasing the land or buying used equipment. Government grants and loans to support farmers can also help ease the financial burden.

Remember, it's not about cutting corners but smart investing and growing steadily.

Ongoing Operational Costs

Even after overcoming the hurdle of initial costs, farms have ongoing operational expenses that need frequent attention. These costs mostly include maintenance of your equipment, seeds for new crops, animal feed, irrigation, and labor costs.

It might surprise you, but labor, including salaries, benefits, and insurance for your employees, often represents one of the highest ongoing costs you'll face. Regular maintenance to keep your machinery in optimal condition and replacing worn-out parts are necessary.

Alongside, insurance can become a hefty annual expense. You will need to include it as a necessary expenditure that safeguards you against major losses.

As we get into the rhythm of regular farm operation, let's dive into strategies for a cost-effective farming business. Streamlined operational practices are the name of the game here.

Precision farming – using technology and data to optimize yields and efficiency – is one way to get more for your money. Properly maintaining your equipment can reduce the frequency and cost of breakdowns. Choosing the right crop or livestock based on markets and your particular farm's strengths could also lead to better profitability.

Effective cost management in farming isn't about cost-cutting; it's about value-maximizing, ensuring every dollar spent returns the best yield or benefit possible. As with most business ventures, this might involve a steep learning curve and plenty of trial-and-error, but with persistence and careful planning, a sustainable and financially stable farm is well within reach.

To help you get started, here is a list of items to consider when starting a farm.

Equipment, Machinery & Tools :

General farming tools and equipment

Primary farm housing structures

Fencing materials

Storage facilities

Harvesting equipment

Fuel for machinery

Greenhouse structure

Irrigation system

Cooling equipment

Packaging material if you're selling on farmers markets

Crop Preparation :

Soil and Fertilizers

Crop protection materials

Pest control supplies

Raising Livestock (if applicable)

Cost per animal type ( cows , chickens , horses) multiplied by the number of animals

Preventative care costs

Additional :

Marketing budget (if applicable)

Utilities (water, electricity)

Transportation (for products)

Labor (if not self-operated)

Training and Education for yourself or your staff

Legal and regulatory compliance fees

Emergency fund

Overcoming Challenges in Starting a Farming Business

Anticipate and prepare for financial obstacles common among new farmers.

Understand and navigate the maze of regulatory requirements.

Tackle environmental and climate-related risks with sustainable, resilient farming strategies.

Dealing with Financial Challenges

Many aspiring farmers often encounter a series of financial obstacles before they can even plant their first seed. It's important to familiarize yourself with these challenges and employ strategic financial management resources. A little extra research can turn up additional financial assistance just when you need it.

Common financial hurdles for new farmers

Capital investment is a critical component of starting a farm, including the procurement of land, essential farming equipment, and seeds. Additional costs include labor, packaging, transportation, marketing, and, potentially, organic certification fees. These costs can be daunting, especially for those without deep pockets or a rich agricultural heritage.

Resources and strategies for financial management

However, confronting these financial challenges requires a strategic approach. Creating a detailed, realistic financial plan is indispensable. Be sure to understand your break-even point and buffer any unexpected expenses. Crowdfunding and agricultural grants can also supplement initial capital needs.

Navigating Regulatory Requirements

Starting a farm business isn't just about tilling the land and harvesting crops. It is also about compliance with farming regulations protecting the farmer and consumer. It can feel overwhelming, but understanding these requirements can help prevent hefty penalties and maintain a farm's success.

Overview of farming business regulations

From business licenses, zoning, and water rights to safety inspections, various governmental bodies regulate different aspects of farming. These regulations can vary by geography, crop type, and farming practices. Checking with local, state, and national bodies for applicable regulations is important.

Tips for compliance and avoiding penalties

Ensuring compliance with these regulations requires comprehensive record-keeping, regular audits, and proactively keeping updated on law changes. When in doubt, get legal help to guide you through the maze of regulations.

Managing Environmental and Climate Risks

Climate change presents unique challenges to a farming business. A sustainable and resilient approach is essential for prolonged success.

Impact of climate change on farming business

Climate change can affect farming by altering rainfall patterns, inducing higher temperatures, and increasing the frequency of extreme weather events. All these factors create uncertain conditions for crop growth and livestock health, fundamentally affecting farming viability.

Strategies for sustainable and resilient farming

Successful adaptation to climate change necessitates strategic planning. Diversify your crops , use water-saving techniques, and employ climate-smart agricultural practices. Use data to understand potential climate risks, anticipate changes, and make informed decisions. Resilience is built one day at a time; it is a marathon, not a sprint. Being adaptable is key in navigating this challenge.

Overcoming challenges in starting a farm requires diligence and adaptability. But with careful planning and proactive management, you'll conquer these hurdles and ensure a thriving farm operation.

Essential Resources for New Farmers

Navigate red tape with government and nonprofit programs

Forge valuable connections within farming communities and local markets

Harness the power of the digital world with online tools specifically catered to farmers

Government and Nonprofit Programs for Beginning Farmers

Long-standing government support and fresh initiatives from nonprofit organizations provide a tailwind for those starting a farming journey. These entities offer many resources, including loans, grants, and educational programs. Brand new farmers, in particular, are incentivized towards benefits that can ease their entry into the industry.

Overview of Available Programs

A wide spectrum of programs is available, from seed funding to extensive land conservation efforts. Several departments under the U.S. Department of Agriculture (USDA), such as the Farm Service Agency and Conservation Service, offer schemes targeting budding farmers. Simultaneously, nonprofit organizations like the National Young Farmers Coalition provide the necessary advocacy and direct assistance. A thorough exploration of both can yield lucrative opportunities for new farmers.

How to Apply and Make the Most of These Resources

Applying for these programs typically involves an online application process, documentation, and patience. Detailed guidelines provided by the issuing authority ensure a smooth process. Most importantly, don’t view these resources merely as financial aid. Instead, consider them an invaluable opportunity to learn more about the industry, network with veterans, and potentially shape local farming policies.

Farming Communities and Networks

Even with modern technology, farming remains a community-centric practice. Networking within these communities can be a game-changer for those new to the field, providing rich insights from generations of farming.

Importance of Community Supported Agriculture

Farming isn't just about tilling soil and growing crops. It involves intricate knowledge about local ecosystems, market demand, and financial management. All of which can be readily provided by a robust farming community. These communities can potentially speed up your learning, mitigate common beginner's mistakes, and even offer emotional support during tough times.

How to Connect with Other Farmers and Learn from Their Experiences

Consider attending local farming exhibitions and workshops or joining farming cooperatives to meet experienced farmers. Even during family gatherings, farmers markets offer a convenient place to meet several farmers in the same area. Social media platforms also offer virtual farming communities where you can easily connect with and learn from farmers worldwide.

Online Resources and Tools

The digital revolution hasn't bypassed farming. Several online resources and applications are available to help farmers stay updated, forecast weather conditions, manage their farms, and interact with a global community.

Useful Websites, Apps, and Tools for New Farmers

Online services such as Ranchr offer a much-needed cattle management service for farmers. Using these resources optimally can keep you at the forefront of industry advancements, helping streamline farm management and supporting critical financial decision-making.

How These Resources Help in Starting and Managing a Farm

These digital tools offer multifaceted benefits. Beyond the logistics of farming, they enhance your understanding of market trends, equip you with skills to analyze data for better decision-making, and connect you with an extensive network of farmers. Coupling these digital resources with insights from local farming communities can provide an optimal blend of traditional knowledge and modern efficiency. But remember, nothing beats connecting with your fellow farmer face to face. Don't hesitate to pick up the phone.

Planting the Seeds for Your Future

Venturing into farming this year could signify a step towards sustainability and entrepreneurship. It involves careful planning, budgeting, and navigating the potential challenges of crop failure, pests, and changing market conditions.

The value of this endeavor lies in improving food security, growing a sustainable business, fostering a deeper connection with nature, and offering value to your community.

Now, armed with this roadmap, your journey begins. Consider your starting capital, scout locations, select your crops, and engage with local farming communities for mentorship.

We hope these steps and strategies have illustrated and given you inspiration on how to start a farm.

Remember, the earth beneath us is teeming with possibilities - it's time to dig in and cultivate your own!

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How to Start a Farm: Your Complete Guide to Success

Candice Landau

25 min. read

Updated July 2, 2024

Free Download:  Sample Farming Business Plan Templates

Your day begins before the sun has even risen. You don your clothes and rain boots and set out into the crisp morning to feed the chickens and the cattle. It’s a clear morning and you feel good being outside, feeling frost crunch beneath your feet, watching the yard cat stretch and yawn lazily.

Already you’ve got a slew of tasks running through your head. Call the accountant about what to write off this year as a business expense. Check in with the neighbors about using that extra acre of land at the bottom of your property. Make sure to order a few more bags of chicken scratch. Fix the fence. Talk to the farm down the street about how they’re using their hilly, forested land to plan for a future logging operation.

It’s a lot, but it’s exciting that in between all the chores, there are so many opportunities for the future.

In this guide, I’m going to walk you through how to start a farm, as well as give you the resources to help you get started with a farming business today.

To supplement this guide, I interviewed two experienced farm hands: Gregory Heilers , previously an assistant farm manager, and Dr. Cindy Jones , the owner of Colorado Aromatics, a small herb farm in Colorado.

• The state of small farm business in the U.S.A.:

In the U.S., small farms are considered the backbone of the agricultural industry, with 97 percent of all U.S. farms being family-owned .

In order to be considered a small farm, the USDA Economic Research Service states that you need to gross less than $350,000 per year.

There are almost two million small farms in the U.S., a data set that includes retirement farms, off-farm occupation farms, and farm-occupation farms. You can learn more about the small farm classification system from the USDA’s website, but so long as you’re within the $0-$350,000 bracket, you can guarantee your operation will be classified as a small farm business.

• Why are you starting a small farm business?

Gregory Heilers has helped on two startup farms: his father’s 200-acre grass-fed beef and goat farm, which also includes an orchard, a berry patch, and a vegetable garden, with areas set aside for future logging; and on a seven-acre organically grown market garden in upstate New York.

Gregory believes that if you want to be successful, you should think about why you want to start your own farm before anything else. He says, ask yourself, “Is it for profit? A hobby? An altruistic contribution to society and/or animal welfare? Environmental stewardship?”

This is because your motivation for starting a farming business is the thing that will directly impact your strategy.

For Stacie and Larry Overman, starting Lavender Kisses Farm in Tennessee was a mixture of business opportunity and passion. At first, they only planned to plant lavender up their driveway, but as the couple learned more about lavender’s medicinal uses, they ultimately decided to invest in 64 acres of farmland and start a lavender farm.

The Overmans use their crops to make and sell dozens of lavender products, and aim to use some of their proceeds to support causes and organizations they care about.

The Overmans incorporated information about their farm’s mission, operating model and financial projections into a business plan that they could show to mentors with university agricultural programs, as well as banks, to demonstrate proof of concept. 

You will need to be able to answer questions about your motivation for starting a farming business, and questions like them as honestly as possible, so that you know what direction to go in. You may find that what you’re really hoping to start is a hobby farm that you can run as a side-business. If this is the case, beware that the tax implications for hobby farms are quite different that for business farms.

If you want to know whether or not you have what it takes to be a farmer, give this quiz a try . It was created by Taylor Reid, the founder of Beginning Farmers.

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Where to start if you’ve never farmed before:

If you didn’t grow up on a farm and haven’t worked on one, you may be wondering how on earth you’re going to make your dream a reality. This is a very real concern. The reality may prompt you to consider another line of work because farming is hard, and farming as a business is doubly so!

Get some real-world experience

For many modern-day farmers, especially those running large commercial farms in the Midwest, skills have been passed from generation to generation.

This isn’t the same for small startup farms. These farmers have had to acquire their skills in order to learn how to start farming, and they’ve either done so by apprenticing with other farmers, going to farm school, or doing some intense self-directed study (see the resources section at the end of this article).

According to Gregory Heilers, it’s essential to get that hands-on training. “While some claim you can learn how to be a farmer through YouTube videos or books (and those can be excellent tools), it’s very important to get some hands-on training. If you haven’t grown up around farms, you’ll want to buddy up to someone who knows what they are doing.”

Agricultural jobs are among the most dangerous in the world , so it’s no surprise that Gregory makes such a strong recommendation to learn from people who can teach you what you need to know, and share stories from their past, to bring the sometimes surprising dangers of working on a farm to life.

Aside from the dangers, there is a lot to learn about how to start a farm and how to start farming, not the least of which is how to balance the books and come out ahead! Of course, as with any profession, be careful who you choose as your mentor as there are both competent and incompetent farmers. Use the list of resources at the end of this article to help you find ways to get experience before you start your own venture.

If you are willing to put in the time, and learn the necessary farming and business skills to become the profitable small business farmer you know you could be, there’s good news. It’s doable!

Learn to farm as you go

Dr. Cindy Jones is a trained biochemist and herbalist. About eight years ago, she and her husband decided to start a small herb farm in their home state of Colorado.

Although Cindy had never farmed before, she had been an active gardener, growing the herbs she needed for her skin care product business , in her own large garden.

Starting a small herb farm seemed like a natural next step, even without any of the farming experience. “We came into farming with no background other than gardening and learned that farming is much different. We have learned a lot just from doing, networking, and talking to other farmers. We do a farmers market each Saturday during the summer so have met other farmers that way,” Cindy says.

There are of course other ways to fast track your learning, and Cindy is no stranger to setting aside reading time in order to better her business. “Recently, there have been a few books published that have been helpful, both ‘ Woman Powered Farm ‘ by Audrey Levatino and ‘ The Organic Medicinal Herb Farmer ‘ by Jeff Carpenter and Melanie Carpenter.”

Of course, not everything—including learning how to start a farm—can be learned from a book. Building good relationships and networking also go a long way to helping you pick up relevant skills, especially in the early days.

“Much of what I have learned has been from fellow lavender growers who are quick to share what works and doesn’t work for them. The United States Lavender Growers Association was founded specifically to help growers. I am one of the founding members of this group and we have many opportunities for sharing and learning through USLGA. Each year we extend our growing area slightly and each year we learn more about what we are doing. Someday we’ll get it right!” With a thriving business that relies on the farm’s produce, there’s no doubt Cindy’s already done just that.

Decide whether you’re starting a business or a hobby farm

If DIYing your farm learning experience is something you’re more interested in, hobby farming could be a better fit for you, and there’s nothing wrong with that. Hobby farming gives you the opportunity to experiment on a micro scale first.

For example, before you plant an acre worth of vegetables, plant a much smaller patch, and take the time to address and learn from problems as they arise. After a while, you’ll have developed the skills you need in order to expand. The University of Vermont Extension has a whole lot more to say about hobby farming versus running a farm as a business. If you’re interested in the topic, read their hobby farming business fact sheet .

• Step 1: Identify your niche

Even if you know exactly what type of farm you want to start, diving head first into just doing it is never a good idea.

Say you start the passion fruit farm you’ve been dreaming of for years in your home state in Florida. What if, as you’re getting ready to harvest your first batch, you then find out that all the demand for passion fruit is centered in Southern California, and not in Miami like you thought? Even if you do somehow manage to find affordable transport to get your goods to California, what if you then learn that locally-grown passion fruit is all the rage?

Within just one yield, you’re out of business and all because you didn’t know where your target market was located, or what their values were. If you’d taken the time to do your market research, you would have learned there was no demand for passion fruit in Florida. You would then have been able to choose to grow another product that was in demand, or start your farm somewhere else. Either way, you would have saved yourself a lot of trouble.

Don’t skip the market research phase

Learning to do market research is that step you really can’t skip, because while it certainly helps if you know what you want to grow, you’re still going to need to know who is going to buy your products, where you’re going to sell them, and how you’re going to do this, all while taking competitors into consideration.

Even if you know nothing about formal market research practices, you can do your own research by getting out to learn more about your customers, distribution channels, and about how to start a farm.

If you are already interested in a particular product, learn more about your local market. Check out farmers’ markets, meet other local producers, speak to customers as you shop. Better yet, survey farmers’ markets to see if any crops or products are under-represented.

Additionally, consult your local extension. Extension services provide localized resources for most aspects of gardening and small farming. For example, Oregon State University Extension has a “Small Farms” portal where you can find out more about crops, grains, soil, livestock, and much more.

The best part of these portals is their local bent. If you’re based in Oregon and want to know more about growing blackberries, you couldn’t find a better resource. Many University extensions also publish reports specific to different farm products. They may include estimates for production costs and returns, like this Crop Budgets page on the University of Maryland Extension Portal . As part of the research process, it is also highly recommended that you turn to your local state department of agriculture. Not only will they be able to provide you with the latest information on farming in your state, but they will also be able to help you figure out what licenses you need to register for, and give you local information on food safety, pesticides, market access and much more.

If you still have trouble choosing an enterprise, here’s a guide on how to pick a high-value crop , including detailed advice on how to evaluate your resources and personal considerations. If you’re willing to spend a bit of money, the Profitable Plants Digest has some niche-specific guides.

Keep an eye on emerging market trends as well. States that have legalized cannabis and hemp production have shown promise for small farmers in recent years, for example.

If you’d still like to know more about formal market research processes , you can read this complete guide.

• Step 2: Find the right farm land

Once you’ve figured out what you’re going to farm, you’re going to need to decide whether to buy land or lease it.

If you buy land, you’ll have complete control over its use, but you will also assume financial risk for the success of your enterprise. This is one of the major reasons leasing land is a popular option for many new farmers. It minimizes financial risk and requires reduced capital at the outset.

If you can’t find anyone to lease your land, there are still a few options open to you, including incubator farming , rooftop farming , and SPIN farming .

Buying your own land

Buying a farm, or farmland, isn’t for everyone learning how to start a farm, but if you feel like it’s the best option for you, there are some handy ways to figure out where to start your search. Ann Larkin Hanse, writing for Mother Earth News, suggests you narrow your search area by considering only those areas that have off-farm employment options (or markets for your farm products and necessary farm support services).

“It’s helpful to get an old-fashioned paper road map and draw two circles: one with the off-farm job in the center and a radius as long as the distance you are willing to commute, the other with your customer base in the middle and a radius as long as the distance you’re willing to travel to market,” says Ann. “Where the circles overlap is where you should look for land.”

Things to consider when looking for land

Before you find the right people to help you buy land, it’s worth familiarizing yourself with the things you’ll need to consider as you browse. At the very least this will include:

Your proximity to markets: Consider where you’re going to sell your products, or how you’re going to reach sales channels. If they’re hundreds of miles away, you’re going to struggle much more getting to market. Often it’s easiest to start local and go from there. You will likely already have completed your market research by now and should have a pretty good idea of where your market is located. Use the above diagram to help you determine the “right” area to start your land search.

Access to water: It’s important to make sure you have a steady supply of water, so be sure to ask plenty of questions and consider all of your options. How will you provide water for the plants, animals, and processing needs of your business?

If the land you are purchasing has a well, it is always good to obtain information about the well, such as type, depth, output, and age. You may also want a water quality report.

If the property is connected to a municipal water supply, knowing the price of the service can also help you determine the feasibility of a particular enterprise. If you have to pay per gallon or cubic foot, you might reconsider trout farming and try a camel dairy instead.

Soil quality: As with water, high-quality soil is a must for most farmers. Ask the current owner for soil test results. Soil tests are often available through the local extension service and sellers should expect to provide test results.

Soil testing can be an important predictor of production capacity and expenses. Accurate predictions of fertilizer needs for specific crops can be made based on the test results, which breaks down to an actual dollar value when growing. For livestock, different soil can even impact growth and health, sometimes requiring supplementation.

Facilities and Infrastructure: Depending on the type of farm you want, you may also need different outbuildings. A produce stand or farm shop might require an up-front investment. What about your livestock? Does the land include shelters for the animals you plan to raise? What about processing facilities? Different crops and animal products will require different processing and storage facilities.

Make sure to also think about things that aren’t directly related to the property. What sort of transportation and roads are available to and from the area you’re farming? While you’ll want a balance of easy access and proximity to your sales markets, keep in mind that busy roads can have an impact on livestock, soil, and water quality.

Neighbors: These can be a great resource, or a great hindrance, depending. Do they produce farm goods? What are their production practices? Are they compatible with yours? If you plan on starting an organic vegetable farm, but your neighbors spray their Christmas tree plantation with harsh pesticides and herbicides several times a year, it could dramatically impact your success.

Operating a successful farming operation will happen a lot more easily if you have a good relationship with your neighbors. Farm manager Greg Heilers says, “Meet your neighbors. Offer to help your neighbors. Be a good neighbor. Farming used to be so much more about community. It is so much easier to be successful as a farmer if you have even the slightest bit of support from your community.

“For example, if you’re a beef cattle farmer, when a calf or cow or bull breaks loose and enters a neighbor’s field, do you want them to a.) keep your animal and never come asking to see if you had an animal get loose, b.) sell it off immediately and keep the truth from you, c.) come knocking and ask if you have any cattle or d.) recognize your cattle instantly and drive ’em back to your place for you?”

In this same vein, make sure that any property you are looking at has good fences. Installing your own will likely cost a lot, and if you think you can do without good fences, remember that it may well impact the relationship you have with your neighbors. They say “good fences make good neighbors,” so find a place that has them and you won’t risk upsetting the neighbors if your cattle or goats escape onto their luscious looking bean patch.

You may even be able to cultivate a relationship with your neighbors that goes beyond just agreeing to perimeter fencing. In a best-case scenario, you might find that your farms’ outputs (especially those that are not your primary value-added product, such as manure), can be valuable inputs on your neighbor’s farm, or vice-versa.

• Step 3: Getting your farm financed

If—like most small farmers—you haven’t inherited a farm, finding the money to learn how to start a farm, and to turn your dream into a reality is going to be a core part of your go-to-market strategy.

Research your funding options

Cornell University’s guide to planning and funding your farm business is a good place to begin. It will walk you through different financing options, including self-financing options . What it won’t do is recommend you take out a credit card loan. In fact, this guide specifically suggests this is the one thing you don’t do, as you’ll be best served to invest any profits straight back into the farm, and if you don’t pay the loan back fast enough, your interest rate will spiral out of control.

Bplans also offers a comprehensive guide to funding a new business to help you think through your options.

That said, make sure to be realistic when you initially apply for funding. If you can avoid buying expensive equipment at the start, do it. Cindy Jones, the owner of Colorado Aromatics, and a small herb farm in Colorado says, “Starting a small farm is a lot of physical work and there is little equipment available to help growers on a small scale so much of the work is by hand […] We finally invested in a small tractor this year to help with tilling, ditching, and post hole digging, so some of our early plantings of perennials such as lavender are not spaced properly for a tractor.”

Once your business takes off, you can buy the things that will make life easier. And even if you don’t have a lot of cash on hand at this later date, a bank will be more likely to give you a loan if they can see you are running a profitable operation.

• Write a farm business plan

For anyone seeking a loan, writing a business plan is going to be essential. This isn’t any different for an aspiring farm owner. Even if you’re not seeking  a loan, a business plan is a useful tool to help you figure out which of your ideas are feasible, and to remind you of your goals. You can find out more about writing a business plan on our Business Planning Guide page. If validating your business ideas interests you more than funding at this stage, you might prefer to opt for a Lean Plan —or a shorter, more nimble planning process.

Look at sample farm and agriculture business plans

Not quite sure how to format your farming business plan? Take a look through our library of free farm-specific sample business plans , including a fruit farm business plan, a botanical perennials business plan, a feed and farm supply plan, a hydroponics business plan, and more!

Obviously, before you sit down to write your business plan, you’ll need to determine your cost of production . You’ll also need to know how much your rent/lease will cost you.

• Step 4: Market and sell your agricultural products

There are many different ways to market your farm products. While farmers’ markets are probably the most obvious example that comes to mind, there are a number of other channels you can use to market and sell your products.

If you have enough traffic nearby, you might find that a produce stand or farm shop right on your own property is a good option.

Another trending model is to sell your products through a CSA (which simply stands for “Community Support Agriculture”), in which patrons purchase a “share” of the season’s yield for a set price in exchange for regular deliveries of the products as they are ready. This model is especially popular because you receive payment at the beginning of the season, which can help reverse the notorious cash-flow issues faced by most farm businesses.

You could even find a local growers’ cooperative that allows you to team up with other producers to sell your products under a united brand.

Finally, even though the age of the supermarket has made retail sales of farm goods more difficult, there are still plenty of small, local health and natural food stores with whom you could partner, with the advantage of their often fiercely loyal customer bases.

Start by putting together a marketing plan. If you’re creating a business plan you’ll work on your marketing plan as part of that process.

• Learning resources for farm businesses:

Use the resources below to find out where you can learn more about how to start a farm, farming, and where you can gain some hands-on experience.

ATTRA : Attra has a great database of internships and apprenticeships for aspiring farmers. Usually, room and board are offered in addition to a small stipend. The best part of the site is the ability to search by state. That said, there are so many internships and apprenticeship programs around the U.S.A., that if you’re looking for something more niche, you can check out this list of websites that offer a variety of working opportunities.

Helpx.net : On this site, you can find a variety of small farms, rural B&Bs, and so on, where you can work in exchange for room and board (no cash stipend) and learn the ropes of your intended trade through informal and formal internships/apprenticeships. This is a global site.

WWOOF : WWOOF is a pay-per-country list directory of organic farms around the world. Again, room and board are included, but usually no cash stipend. Work through WWOOF is usually considered an informal or semi-formal internship.

The Cornell Small Farms Program : If you’re looking for enterprise-specific books, fact sheets, and articles on farming, this is a great place to start, especially if your starting point is bulking up on as much knowledge as possible.

The 20 Best College Farms : If you’re interested in finding a college where you can get hands-on experience and a modern farming education, Best College Reviews has a list of places you might want to start looking. These top 20 colleges were selected based on a number of criteria, including farm size, integration with the main campus, sustainability, courses taught at the farm, students using the farm, and integration with the community.

Other resources

Publishing houses: While Amazon does stock a handful of good books on starting a farm business, you’ll find that your particular niche might not be included. If this is the case, there are other options, including going straight to publishing house websites. The Northeast Beginning Farmers Project recommends browsing Acres U.S.A. , Chelsea Green Publishing , and Storey Publishing .

Farming magazines: There are also a number of farming magazines you can subscribe to. This is a good way to stay on top of the latest farming buzz, as well as to find out more about farming techniques and hacks, equipment, and best practices. Some popular magazines include Growing for Market , Acres U.S.A (they put on a great conference each year as well), Graze , the Stockman Grass Farmer , and the Packer . This is by no means a comprehensive list, so make sure to do your own research as well, perhaps in relation to your particular niche.

Online communities: There are also a number of great online communities that can help you get started, or where you can simply ask questions and get answers, directly from people in-the-know, or who like you are dabbling. Permies is now the largest permaculture site on the internet, and a great resource for all manner of interests, from homesteading through raising animals.

Although based in the U.K., the Farming Forum has a lot of really great conversations around topics like weather, livestock and foraging, machinery and much more. The slightly messier U.S. equivalent of this site is Agriculture.com’s community forum .

Farm Chat is another good forum for anyone interested in commercial farming.

Free Farm and Food Production Sample Business Plans : The 14 sample business plans in this section should give you an excellent sense of how to write your own small farm business plan.

• Next steps for starting a small farm business

In the wise words of Gregory Heilers, “There is always something else to do. You’ll run yourself ragged trying to get it all done. Prioritize, organize, and build efficient systems.”

A great place to start is writing a business plan. To simplify the process and ensure you include everything needed to start a farm, check out our free business plan example and template .

Candice Landau is a marketing consultant with a background in web design and copywriting. She specializes in content strategy, copywriting, website design, and digital marketing for a wide-range of clients including digital marketing agencies and nonprofits.

Table of Contents

• Where to start if you’ve never farmed before:

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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.

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Farm Business Plans

Written by Dave Lavinsky

Cultivate your agricultural ambitions with our comprehensive collection of farm sector business plan examples. Perfect for farmers, agripreneurs, and agronomists, this resource provides information, from small-scale organic operations to expansive agribusiness ventures. Navigate the complexities of the agricultural industry with these detailed plans, designed to help you grow a thriving, resilient, and profitable farming enterprise.

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Details of a Small Farm Business Plan

• Swarthmore College

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

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

What Is a Business Plan?

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

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

Mission Statement

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

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

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

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

SMART Goals are:

• Rewarding, and have a

Background Information

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

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

Farm Strategy

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

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

Marketing Strategy and Plan

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

Management Summary

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

Financial Analysis

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

Pulling It All Together

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

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Sample Farm Business Plan

Writing a business plan is a crucial step in starting a farm. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring farm business owners, having access to a sample farm business plan can be especially helpful in providing direction and gaining insight into how to draft their own farm business plan.

Download our Ultimate Farm Business Plan Template

Having a thorough business plan in place is critical for any successful farm venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A farm business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The farm business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your farm as Growthink’s Ultimate Farm Business Plan Template , but it can help you write a farm business plan of your own.

Farm Business Plan Example – GreenAcres Harmony

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

At GreenAcres Harmony, we are embarking on an ambitious journey to revolutionize the way Bostonians experience farm products. Based in the heart of Boston, our mission is to provide the community with fresh, sustainably grown produce that not only nourishes the body but also supports the environment. By harnessing innovative farming techniques and a commitment to sustainability, we aim to establish a strong connection with our customers, offering them a taste of what truly fresh, quality produce can be. Our farm is not just a place of business; it’s a beacon for environmental stewardship and a testament to the power of community engagement in fostering a healthier, greener future.

Our journey to date has been marked by significant accomplishments and a clear set of success factors that underscore our potential for growth. Our dedication to sustainable farming practices has not only set us apart in the industry but has also fostered a deep sense of trust and loyalty among our customers. Our strategic location in Boston provides us with direct access to a vibrant and growing market of health-conscious consumers. Furthermore, our team’s expertise in both agriculture and business management has been instrumental in navigating the complexities of the market and positioning GreenAcres Harmony as a leader in the sustainable agriculture space. These factors, combined with our commitment to quality and sustainability, lay a solid foundation for our future success.

The agricultural industry, particularly the segment focusing on sustainable and locally grown produce, is experiencing a significant surge in demand. This trend is driven by an increasing awareness of environmental issues and a growing commitment among consumers to support practices that are beneficial to the planet. In Boston, this shift is particularly evident, with more individuals seeking out farm-to-table experiences and prioritizing the freshness and sustainability of their food. This evolving market landscape presents an opportune moment for GreenAcres Harmony, as our core values and business model align perfectly with the current consumer trends. Our focus on sustainability, coupled with the high quality of our produce, positions us to capture a substantial share of this growing market.

Our target customers are health-conscious individuals and families residing in Boston who prioritize quality, freshness, and sustainability in their food choices. These consumers are typically well-informed about the benefits of locally grown produce and are willing to invest in products that support their health and environmental values. Additionally, we cater to local businesses, such as restaurants and cafes, looking to enhance their menus with fresh, high-quality ingredients. Understanding the preferences and values of our target customers enables us to tailor our offerings and marketing strategies to meet their specific needs, fostering a loyal customer base committed to supporting local, sustainable agriculture.

Top Competitors: – Local Organic Farms: Offering a similar range of fresh, organic produce. – Big Agriculture: Competing on price and scale but lacking in local and sustainable practices.

Competitive Advantages: Our competitive edge lies in our unwavering commitment to sustainability and the quality of our produce. Unlike big agricultural companies, we focus on local, sustainable farming practices that resonate with our target market. Additionally, our direct engagement with the community through farm-to-table events and partnerships with local businesses sets us apart, creating a unique brand experience that cannot be replicated by our competitors.

Our marketing strategy emphasizes the exceptional quality, sustainability, and community focus of our products and services. By leveraging a robust online presence, including social media and a user-friendly website, we aim to connect with our customers on a deeper level, sharing our story and the benefits of sustainable farming. Our promotional efforts extend beyond the digital realm, with community engagement initiatives, participation in local farmers’ markets, and partnerships with local restaurants and cafes playing a crucial role in building our brand and expanding our reach. These efforts are complemented by public relations campaigns and sponsorships of community events, all designed to enhance our visibility and reputation in the market. Through a combination of online marketing, community engagement, and strategic partnerships, we aim to position GreenAcres Harmony as the go-to source for fresh, locally grown produce in Boston.

Our operations are centered around ensuring the highest quality and sustainability of our farm products. Key operational processes include sustainable farming practices, efficient supply chain management, and effective quality control measures. Milestones to be accomplished involve expanding our product range, increasing our market reach through partnerships, and achieving specific sustainability certifications that further validate our commitment to environmental stewardship. These operational strategies and milestones are designed to optimize our farm’s productivity and impact, ensuring that we not only meet but exceed our customers’ expectations.

Our management team comprises seasoned professionals with extensive experience in agriculture, business management, and sustainability. This diverse skill set ensures a holistic approach to running GreenAcres Harmony, from the day-to-day farm operations to strategic business planning and sustainability initiatives. Our team’s passion for sustainable agriculture and commitment to our community’s well-being are the driving forces behind our farm’s mission, guiding us towards achieving our goal of becoming a leader in sustainable farming in Boston.

Welcome to GreenAcres Harmony, a novel agricultural endeavor situated in the heart of Boston, MA. As a newly established farm, we pride ourselves on being a local source of high-quality produce and farm products. Recognizing the scarcity of premium local farms in our area, we have stepped up to fill this vital gap, aiming to serve the residents of Boston with the freshest and finest agricultural goods.

At GreenAcres Harmony, our offerings are diverse and cater to a wide range of dietary and culinary needs. Our product line includes a variety of fresh produce, ensuring that our customers have access to vegetables and fruits that are not only local but also surpass conventional quality standards. In addition to produce, we provide an assortment of dairy products, eggs, and meat products, all sourced from our farm where ethical and sustainable farming practices are paramount. Our apiary also allows us to supply honey, a natural sweetener and a kitchen staple for many of our customers. Our commitment to quality and freshness sets us apart and ensures that every item we sell is of the highest standard.

Located in the bustling city of Boston, MA, GreenAcres Harmony is strategically positioned to serve the local community efficiently. Our presence in Boston enables us to maintain close relationships with our customers, ensuring that we remain attuned to their needs and preferences. This proximity to our customer base is not just a logistical advantage but also fosters a sense of community and mutual support, which is central to our ethos.

Our confidence in the success of GreenAcres Harmony is grounded in several key factors. Firstly, our founder brings invaluable experience from previously running a successful farm, equipping us with the knowledge and skills necessary for our venture. Moreover, we stand out from our competitors by offering fresher and superior quality produce, dairy, eggs, meat, and honey. This commitment to excellence is what we believe will endear us to our customers and ensure our longevity in the market.

Since our inception on January 4, 2024, as a S Corporation, we have achieved several milestones that underscore our potential for success. Notably, we have developed a distinctive logo and company name that reflect our brand’s ethos and values. Additionally, we have secured an ideal location that not only facilitates our farming operations but also enhances our accessibility to customers. These accomplishments, while early in our journey, are indicative of our strategic approach and our dedication to establishing GreenAcres Harmony as a cornerstone of the Boston community.

The Farm industry in the United States is a significant sector of the economy, with a market size of over $400 billion. This industry includes a wide range of activities such as crop production, livestock farming, and agricultural services. The market size of the Farm industry is expected to continue growing steadily in the coming years, driven by increasing demand for food products, technological advancements in agriculture, and government support for the sector.

One of the key trends in the Farm industry is the growing popularity of organic and sustainable farming practices. Consumers are becoming more conscious of where their food comes from and are increasingly seeking out products that are produced in an environmentally friendly and socially responsible manner. This trend bodes well for GreenAcres Harmony, as a new Farm serving customers in Boston, MA, that focuses on sustainable farming methods and offers organic produce to its customers.

Another trend in the Farm industry is the increasing focus on local food production and distribution. Consumers are showing a preference for locally grown and sourced products, as they are perceived to be fresher, healthier, and better for the environment. GreenAcres Harmony, being located in Boston, MA, is well-positioned to take advantage of this trend by providing locally grown produce to its customers and establishing strong relationships with local restaurants, markets, and consumers.

Below is a description of our target customers and their core needs.

Target Customers

GreenAcres Harmony will target local residents in Boston, MA, who are increasingly seeking fresh, locally-sourced produce for their daily nutrition needs. This customer segment values sustainability and is willing to pay a premium for food that is grown in an environmentally friendly manner. By offering a range of organic fruits, vegetables, and other farm products, GreenAcres Harmony will cater to this growing demand among health-conscious consumers.

The farm will also attract families looking for fresh, high-quality ingredients to prepare their meals. Parents concerned with the nutritional value of their children’s diet will find GreenAcres Harmony’s offerings particularly appealing. The farm will tailor its product range to include kid-friendly options, making it easier for families to incorporate healthy eating habits into their routines.

In addition to serving individual consumers, GreenAcres Harmony will target local restaurants and small grocery stores seeking to differentiate themselves by offering locally-sourced, organic produce. Establishing partnerships with these businesses will not only expand the farm’s market reach but also strengthen the local food ecosystem in Boston, MA. This strategy will enable GreenAcres Harmony to become a key player in the community’s sustainable food movement.

Customer Needs

GreenAcres Harmony caters to the growing demand for high-quality fresh produce among Boston residents. Customers can expect a range of farm-fresh vegetables and fruits, harvested at the peak of their ripeness, ensuring maximum flavor and nutritional value. This emphasis on quality meets the desires of health-conscious consumers looking for nutritious food options.

In addition to fresh produce, GreenAcres Harmony provides a variety of dairy products, eggs, meat products, and honey, satisfying a broad spectrum of dietary preferences and needs. Customers appreciate the convenience of accessing a wide array of farm-to-table essentials under one roof. This variety ensures that households can enjoy fresh, wholesome meals, contributing to a healthier lifestyle.

Furthermore, GreenAcres Harmony understands the importance of ethical and sustainable farming practices in today’s environmentally aware society. Customers can trust that the products they purchase are produced with respect for the environment and animal welfare. This commitment not only fulfills the need for responsible consumption but also aligns with the values of many Boston residents, making GreenAcres Harmony a preferred choice for discerning shoppers.

GreenAcres Harmony’s competitors include the following companies:

Wilson Farm is known for its wide range of produce, including fresh fruits, vegetables, meats, and bakery items. They operate on a large scale and their products are available at competitive price points, making them accessible to a broad customer base. Wilson Farm is located in Lexington, MA, and serves the Greater Boston area, attracting customers looking for high-quality, locally-sourced food products. One of their key strengths is their reputation for quality and freshness, as well as their ability to offer a wide variety of products year-round. However, their size and focus on a broad market can sometimes lead to a less personalized shopping experience for customers seeking niche or artisanal products.

Meadow Mist Farm specializes in grass-fed meats, free-range eggs, and a selection of dairy products, including artisanal cheeses. They are based in Lexington, MA, and cater to customers prioritizing ethically raised and organic products. Their products are priced at a premium, reflecting the quality and sustainable farming practices used. Meadow Mist Farm serves a niche market of health-conscious consumers and those interested in supporting local, sustainable agriculture. Their key strength is their commitment to environmental stewardship and animal welfare, which resonates well with their target customer segment. However, their focus on a specific range of products and higher price points may limit their appeal to a broader audience.

Pakeen Farm, located in Canton, MA, offers a unique blend of products and services, including a pick-your-own operation for fruits like apples and pumpkins, a Christmas tree farm, and a farm stand selling a variety of local produce and goods. They serve customers in the Greater Boston area looking for family-friendly agricultural experiences as well as high-quality, locally-grown produce. Pakeen Farm’s pricing is competitive, especially for activities and experiences, which attracts a diverse customer base. Their strength lies in their ability to provide a multifaceted farm experience that combines retail with agri-tourism. However, their seasonal operations and dependence on weather conditions can be seen as a weakness, as it may affect their revenue and customer flow outside of peak seasons.

Competitive Advantages

At GreenAcres Harmony, we take pride in offering fresher and better quality fresh produce, dairy products, eggs, meat products, and honey compared to our competitors. Our commitment to sustainability and eco-friendly farming practices not only ensures the health and safety of our customers but also contributes to the preservation of our planet. We utilize organic farming techniques that enhance the nutritional value and taste of our products, making them superior in every aspect. Our close proximity to Boston allows us to deliver our products fresh, ensuring that our customers enjoy the full flavor and benefits of our offerings. This direct farm-to-table approach minimizes the time between harvest and consumption, which is a key factor in maintaining the freshness and quality of our products.

In addition to our premium product offerings, our innovative business model incorporates a customer-centric approach that sets us apart. We engage with our customers through community-supported agriculture (CSA) programs, farm tours, and educational workshops that foster a deeper understanding and appreciation for sustainable farming practices. By doing so, we not only build a strong, loyal customer base but also create a sense of community around our brand. Our dedication to transparency and ethical farming practices resonates with consumers who are increasingly conscious of the environmental and social impact of their purchasing decisions. Furthermore, our use of technology and data analytics allows us to optimize our operations and tailor our offerings to meet the specific needs and preferences of our customers, providing us with a significant competitive advantage in the Boston market.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

At the heart of GreenAcres Harmony’s offerings is a wide range of fresh produce, encompassing everything from leafy greens to succulent fruits and crisp vegetables. This diverse selection caters to the needs of health-conscious consumers seeking nutrient-rich options. Prices for their fresh produce generally range from $2 to $4 per pound, reflecting both the quality and freshness that the farm prides itself on.

In addition to fresh produce, GreenAcres Harmony provides a variety of dairy products. Their range includes fresh milk, cheese, and yogurt, all produced from cows and goats raised in a natural and healthy environment. The prices for their dairy products are competitive, with milk selling for around $4 per half gallon, cheese priced at $6-$10 per pound depending on the variety, and yogurt at $5 per quart. These products are not only a testament to the farm’s commitment to quality but also to their dedication to sustainable farming practices.

Eggs are another staple at GreenAcres Harmony, offering consumers the choice of purchasing eggs sourced from chickens that roam freely in pastures. This free-range approach ensures that the eggs are not only fresher but also richer in nutrients compared to those from caged birds. The average price for a dozen eggs is set at $5, which is a reflection of their quality and the ethical farming practices employed by GreenAcres Harmony.

For those interested in meat products, GreenAcres Harmony offers a selection of beef, pork, and poultry. All their livestock are raised in a stress-free environment, allowing them to grow at a natural pace without the use of growth hormones or antibiotics. This results in meat that is not only healthier but also more flavorful. The prices for their meat products vary, with beef priced at around $10 per pound, pork at $8 per pound, and poultry at $6 per pound. These prices are indicative of the farm’s commitment to providing high-quality, sustainable, and ethically raised meat to the community.

Finally, GreenAcres Harmony produces honey, a sweet addition to their product lineup. Their honey comes from bees that pollinate the very crops and flowers on the farm, ensuring a product that is pure and of high quality. A 12-ounce jar of honey is priced at approximately $8, offering a natural sweetener option that supports local agriculture and promotes the health of the local ecosystem.

Overall, GreenAcres Harmony’s range of products and services is designed to meet the growing demand for locally sourced, sustainable, and ethical food choices. Their pricing strategy reflects their commitment to quality, sustainability, and the support of local agriculture, making them a valued addition to the Boston community.

Promotions Plan

GreenAcres Harmony embarks on an ambitious journey to captivate the hearts and palates of Bostonians with its array of fresh, sustainably grown farm products. Recognizing the vast potential and the competitive nature of the market, the farm employs a multifaceted promotional strategy designed to create a strong brand presence, foster community engagement, and drive sales. At the core of these efforts lies a robust online marketing strategy, complemented by a variety of other innovative promotional tactics.

Online marketing emerges as a pivotal component of GreenAcres Harmony’s promotional arsenal. The farm will leverage the power of social media platforms like Instagram, Facebook, and Twitter to connect with potential customers, share the farm’s story, and showcase its products through visually appealing content and engaging stories. Email marketing campaigns will serve as a direct channel to communicate with subscribers, offering them exclusive insights, promotions, and updates on the farm’s offerings. Furthermore, a user-friendly website will act as the digital storefront for GreenAcres Harmony, featuring an online shop where customers can conveniently purchase products, learn about sustainable farming practices, and stay informed about upcoming events and workshops.

Yet, online marketing is just the beginning. GreenAcres Harmony will also invest in community engagement initiatives to build meaningful relationships with local residents and businesses. Hosting farm-to-table events, workshops, and tours on-site will invite the community to experience the farm’s operations firsthand, fostering a deeper connection with the brand. Partnerships with local restaurants and cafes to supply fresh produce will not only expand the farm’s reach but also underscore its commitment to supporting local economies and sustainability.

To further amplify its visibility, GreenAcres Harmony will participate in local farmers’ markets and food festivals. These events offer invaluable opportunities to engage directly with customers, receive immediate feedback, and increase brand recognition through face-to-face interactions. Offering product samples and showcasing the quality and freshness of its produce will help GreenAcres Harmony stand out in a crowded marketplace.

Additionally, public relations efforts will play a crucial role in boosting the farm’s profile. Crafting press releases and working with local media outlets to feature stories about GreenAcres Harmony’s initiatives, achievements, and contributions to the community will enhance its reputation and credibility among consumers. Sponsoring local community events and initiatives will further demonstrate the farm’s commitment to giving back and supporting the well-being of its community.

In conclusion, GreenAcres Harmony’s promotional strategy is a comprehensive blend of online marketing, community engagement, participation in local events, and public relations efforts. By effectively implementing these tactics, GreenAcres Harmony expects to attract a loyal customer base, increase its market share, and contribute positively to the sustainability and health of the Boston community.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of GreenAcres Harmony, there are several key day-to-day operational processes that we will perform.

• Monitoring and Adjusting Crop Health: We continuously monitor the health of our crops, using both traditional methods and modern technology. This includes checking for pests, diseases, and ensuring optimal soil conditions. Any issues are addressed immediately to prevent crop loss.
• Harvesting and Post-Harvest Handling: Daily assessments determine which crops are ready for harvest. We then follow strict post-harvest handling protocols to ensure the produce remains fresh and high-quality until it reaches the customer.
• Order Fulfillment and Delivery: We process customer orders promptly, organizing and packing produce for delivery. Our delivery system is optimized for efficiency, ensuring customers in Boston, MA, receive their orders in a timely manner.
• Customer Service and Feedback: We maintain open lines of communication with our customers for inquiries and feedback. This helps us improve our services and resolve any issues swiftly.
• Inventory Management: We manage our inventory closely, tracking produce availability and supply levels to meet customer demand without overproducing. This process includes forecasting demand based on historical data and current trends.
• Quality Control: Every batch of produce undergoes quality control checks to ensure it meets our high standards. This includes visual inspections and, if necessary, taste tests.
• Financial Management: Daily financial transactions are recorded and analyzed. This includes tracking income from sales and managing expenses such as labor, seeds, and equipment maintenance.
• Equipment and Infrastructure Maintenance: Regular maintenance checks and repairs of our farming equipment and infrastructure ensure that operations run smoothly and efficiently without unexpected disruptions.
• Marketing and Promotions: We engage in daily marketing activities to promote our farm and its products. This includes social media updates, email newsletters, and participation in local food markets.
• Compliance and Sustainability Practices: We ensure all farming practices comply with local regulations and strive for sustainability. This involves water conservation, using organic farming methods, and reducing waste.

GreenAcres Harmony expects to complete the following milestones in the coming months in order to ensure its success:

• Secure the Farm Location: Finalize the acquisition or lease of agricultural land within a reasonable distance from Boston, MA, ensuring that the land is fertile and suitable for the types of crops and livestock GreenAcres Harmony intends to produce.
• Obtain Necessary Permits and Licenses: Navigate through local, state, and federal regulations to acquire all necessary permits and licenses required for farming operations, including but not limited to environmental, health, and business operating permits.
• Build and Prepare Farm Infrastructure: Develop the necessary farm infrastructure, including irrigation systems, greenhouses, livestock enclosures, and storage facilities, ensuring that all structures are built to meet or exceed industry standards for sustainability and efficiency.
• Launch Our Farm: Officially start farming operations by planting the first crops and/or acquiring the first batch of livestock. This launch includes initiating marketing efforts to build brand awareness within the target market of Boston, MA.
• Establish Distribution Channels: Forge relationships with local markets, restaurants, and food distributors in the Boston area, as well as setting up an online sales platform, to ensure that GreenAcres Harmony has multiple avenues for selling its products directly to consumers and through B2B sales.
• Implement Sustainable Practices: Fully integrate sustainable and eco-friendly farming practices into daily operations, such as composting, organic farming, water conservation techniques, and renewable energy use, to not only mitigate environmental impact but also to appeal to eco-conscious consumers.
• Reach $15,000/Month in Revenue: Achieve the financial milestone of generating at least $15,000 in monthly sales from the sale of produce and livestock. This goal is critical for demonstrating the farm’s viability and supporting further growth and investment.
• Develop a Loyal Customer Base: Through quality products, excellent customer service, and community engagement, build a loyal customer base that not only regularly purchases GreenAcres Harmony products but also advocates for the brand within their networks.
• Evaluate and Expand Product Lines: Based on customer feedback and market demand, periodically evaluate the farm’s product offerings and consider expanding into new crops, livestock, or value-added products such as jams, cheeses, or meats to diversify income sources and meet market needs. Completing these milestones will position GreenAcres Harmony for long-term success by ensuring operational efficiency, regulatory compliance, market presence, and financial stability.

GreenAcres Harmony management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Chloe King, President

Chloe King, President, brings a wealth of experience to GreenAcres Harmony, backed by a proven track record of success in the agricultural sector. Having successfully managed a farm previously, Chloe possesses a deep understanding of the operational, financial, and strategic facets of running a sustainable agricultural business. Her leadership skills, combined with her hands-on experience in farm management, position her perfectly to steer GreenAcres Harmony toward achieving its mission of sustainable farming and community engagement. Chloe’s ability to navigate the challenges of agricultural business, from crop production to market strategies, makes her an invaluable asset to the team and a key player in ensuring the long-term success of GreenAcres Harmony.

To reach our growth goals, GreenAcres Harmony requires significant financial investment. This funding will be allocated towards expanding our farming operations, enhancing our marketing efforts, and further developing our sustainability initiatives. Our financial plan outlines the need for capital investment to support these areas, ensuring that we can continue to provide our customers with high-quality, sustainable produce while also expanding our reach and impact within the community.

Financial Statements

Balance sheet.

[insert balance sheet]

Income Statement

[insert income statement]

Cash Flow Statement

[insert cash flow statement]

Farm Business Plan Example PDF

Download our Farm Business Plan PDF here. This is a free farm business plan example to help you get started on your own farm plan.  

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

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

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

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

How to Start a Farm: Beginning Farmers and Ranchers

New to farming? Want to learn how to start a farm? USDA offers dedicated help to beginning farmers and ranchers. USDA considers anyone who has operated a farm or ranch for less than ten years to be a beginning farmer or rancher.

USDA can help you get started or grow your operation through a variety of programs and services, from farm loans to crop insurance, and conservation programs to disaster assistance.

On This Page

How to start a farm operation.

Plan Your Farm Operation

1. Start here! Think about your operation from the ground up and start planning for your business.

Plan your farm

Visit Your Service Center

2. Get in touch with your local Service Center to find programs to support your operation.

Visit A Service Center

Fund Your Farm Operation

3. USDA has spent decades helping new producers find land and money for their businesses.

Fund your farm

Build Your Business

4. Lean on USDA to help you build your operation with sound business and financial knowledge.

Build your Business

Sell Your Farm Products

5. Explore everything about producing, marketing and actually selling your final product.

Sell your products

Maintain Your Farm

6. Take care of your farm operation, and it will take care of you. USDA can help.

Maintain your farm

USDA Support for Beginning Farmers

From farm loans to crop insurance, and conservation programs to disaster assistance, USDA is here to support you and your operation.

Underlined Header Farmer Coordinators

Beginning Farmer and Rancher Coordinators are USDA team members in each state that can help you understand the USDA process and find the right assistance as you are starting out. 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.

View Beginning Farmer and Rancher Coordinators

Underlined Header Service Centers

Your local USDA Service Center has staff who can meet with you one-on-one to help you identify USDA programs that meet the needs of your operation, including farm loans and conservation assistance. Service center staff can guide you through the process of preparing and submitting required paperwork, with no need to hire a paid preparer. 

If you need information in a language other than English, we offer free translation services .

Find Your Local USDA Service Center

Underlined Header Self-Service Options

After you've registered your farm and set up an individual customer record with your local USDA Service Center, you can sign up for a secure farmers.gov account to access a number of self-service features. For example, you can:

• View loan information, history, and payments.
• Get help requesting financial assistance.
• View, upload, download and e-sign conservation documents.
• Request conservation assistance.
• View, print and export detailed farm records and farm/tract maps.

Learn More About Farmers.gov Accounts

Tools for Farmers

Learn about conservation issues and build a list of concerns to discuss with a local USDA conservation specialist.

Learn about USDA disaster assistance programs that might be right for you by completing five simple steps.

Learn about the farm loans that might be right for you, check your eligibility, and get instructional help with the application forms.

Get Involved

In addition to our farm programs, there are many leadership opportunities for beginning farmers to contribute their voices and experience. Through USDA, you can take advantage of several key opportunities like committee elections, research and promotion programs, and federal advisory committees. 

Connect With Your Agricultural Community

Additional Resources

• Farmers.gov Blog: Beginning Farmers
• Fact Sheet for Beginning Farmers
• Have a Question? AskUSDA
• Get Started! A Guide to USDA Resources for Historically Underserved Farmers and Ranchers
• USDA Small and Mid-sized Farmer Resources
• USDA CARES Partner Portal – Resources for underserved farmers, ranchers, and landowners and partners who work with them

Beginning Farmers Blog Posts

Inflation reduction act in action: a beginning farmer’s journey with conservation, ask the expert: beginning farmer and rancher q&a with lindsey abentroth, fridays on the farm: from veteran to beginning farmer, farmers.gov dashboard pilot: a gateway into farmer-focused data and information, usda’s support for beginning farmers and ranchers, ask the expert: new to farming because of the pandemic q&a with anne stephens, ask the expert: veterans transitioning to production agriculture q&a with chris groskreutz, ask the expert: beginning farmer and rancher q&a with sarah campbell, new farmers.gov feature enables usda customers to manage farm loans online, 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.

• Sample Business Plans
• Retail, Consumers & E-commerce

Farming Business Plan

Agriculture is the one industry that consistently does well, irrespective matter the economic conditions of the world. So, for a stable income and career farming business is a great option.

Are you looking to start writing a business plan for your farming business? Creating a business plan is essential to starting, growing, and securing funding for your business. We have prepared a farming business plan template for you to help in start writing yours.

Free Business Plan Template

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

• Fill in the blanks – Outline
• Financial Tables

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: Start your executive summary by introducing your idea behind starting a farming business and explaining what it does. Give a brief overview of the idea that how will your farming business will be different.
• Market opportunity: Describe the target market in brief, and explain the demographics, geographic location, and psychographic attributes of your customer. Explain how your agriculture business meets its needs. Clearly describe the market that your business will serve.
• Mention your services: Describe in detail the products and crops your agriculture farm produces. Also, incorporate all the details about the tools and equipment you will use keeping quality in mind.
• Management team: Name all the key members of your management team with their duties, responsibilities, and qualifications.
• Financial highlights: Provide a summary of your financial projections for the company’s initial years of operation. Include any capital or investment requirements, startup costs, projected revenues, and profits.
• Call to action: After giving a brief about your business plan, end your summary with a call to action, for example; inviting potential investors or readers to the next meeting if they are interested in your business.

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:

• 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: Add a mission statement that sums up your farming business’s objectives and core principles. This statement needs to be memorable, clear, and brief.
• Business history: Include an outline of the farming business history and how it came to be in its current position. If you can, add some personality and intriguing details, especially if you got any achievements or recognitions till now for your incredible services.
• Future goals: It’s crucial to convey your aspirations and your vision. Include the vision of where you see your agriculture in the near future.

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: Identify your target market and define your ideal customer. Know more about your customers and which products they prefer: meat, crops, vegetables, or some other products.
• Market size and growth potential: Provide an overview of the agriculture industry. It will include market size, trends, growth potential, and regulatory considerations.
• Competitive analysis: Identify and analyze all other agricultural farms nearby, including direct and indirect competitors. Evaluate their strengths and weaknesses, and explain how your farm can offer qualitative products.
• Market trends: Analyze current and emerging trends in your industry, such as changes in technology, fertilizers, or customer preference. Explain how your farming business will cope with all the trends.
• Regulatory environment: Describe any regulations or licensing requirements that affect the agricultural farm, such as safety codes, or hiring any agricultural engineer or food safety employee.

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 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: In all descriptions of services and products, emphasize the importance of safety and quality. Explain how your farming business will ensure that all services and products are delivered with the highest standards of safety and efficacy.

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: Explain the steps taken to produce your crops or raise your livestock. This can involve planting, fertilizing, watering, harvesting, looking after animals, and other activities.
• Technologies: Make a list of the tools and equipment you’ll need to run your farm, including tractors, harvesters, greenhouses, barns, and processing machinery. Describe your plans for purchasing and maintaining your farming business.

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: Describe the key members of your management team, their roles, and their responsibilities. It should include the owners, senior management, and any other farm manager, soil and plant scientist, agricultural salesperson, or someone else.
• Organizational structure: Describe the organizational structure of the management team, including reporting lines and how decisions will be made.
• Compensation plan: Describe your compensation plan for the management team and staff, including salaries, bonuses, and other benefits.
• Board of advisors: If you have a board of advisors for your business, then mention them along with their roles and experience.

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: Create a projected profit & loss statement that describes the expected revenue, cost of products sold, and operational costs. Your farm’s anticipated net profit or loss should be computed and included.
• Cash flow statement: Estimate your cash inflows and outflows for the first few years of operation. It should include cash receipts from clients, payments to vendors, loan payments, and any other cash inflows and outflows.
• Balance sheet: Prepare a projected balance sheet, which shows the business’s assets, liabilities, and equity.
• Break-even point: Determine the point at which your farming business will break even, or generate enough revenue to cover its operating costs. This will help you understand how much revenue you need to generate to make a profit.
• Financing needs: Estimate how much financing you will need to start and operate your farming business. It should include both short-term and long-term financing needs, such as loans or investment capital.

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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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.

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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]

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20 Tips You Should Consider When Creating Your AG Business Plan

by FCSC | May 28, 2024 | FCSC Blog , Industry Insights

Embarking on an agricultural venture, whether it’s running a beef ranch out East or managing a large produce business, is both thrilling and daunting at the same time. Creating an effective, sustainable, and profitable business plan from which to run your entire company appears overwhelming at first glance. However, our Farm Credit of Southern Colorado team is here to help you create a solid business plan or recreate one you already have in place to improve upon. We fully understand the myriad considerations of starting or enhancing your agricultural enterprise. From navigating legal structures to defining your goals and objectives, establishing governance strategies, and making crucial decisions, we’ve got you covered every step of the way.

Let us make the development of this critical document easier for you! We’ve put together a guide that walks you through all the intricacies of organizing a new plan and ensures your journey toward viability is smooth sailing.

How to Create a Helpful Business Plan for Your Farm

A well-crafted business plan is one of the most important foundational pieces of planning for success in the agricultural realm. Whether you’re drafting your very first business plan or revamping an existing one, it’s essential to cover all your bases to be well-prepared for all situations. Here are some key points to consider covering within your plan:

1. Operational Plan: Map out your vision, your mission, and the strategies you will use to achieve your goals. A clear roadmap will guide your actions and keep you focused on your goals.

3. Set Goals and Budgets: Creating a business growth strategy can be more manageable when you start from where you would like your business. Goals give you focus, create budgets, and help you understand if your plan is reasonable. They can also validate whether you’re on the right growth path.

4. Licenses and Certifications: While every farming operation’s certification and license will differ depending on the type of product they produce, it’s crucial to complete your research and ensure you are fully certified and licensed where you need to be. Ensure there is a yearly check-in for reestablishments of all documentation as well.

5. Company History: Record all the pivotal moments in your business from its origins to the present day to organize milestones, accomplishments, and the work of influential figures into a cohesive narrative. It is helpful to record your farm’s progress and story.

6. Inventory: Markup a consistent monthly or quarterly game plan to check in and count your farming inventory. Make sure to include physical count, spot checking, cycle counting, and new product ordering, amongst any other item nuances you may have in your operation.

7. Establish Sales and Distribution Channels: Identify the most suitable sales and distribution channels for your agricultural products to calculate your potential net profit. Explore options such as direct business-to-consumer, partnerships and networks with distributors, and growth paths to get into larger markets and supply chains.

8. Financing Opportunities: Find ways to obtain financing, grants, or loans to further your growth and expansion. Identify potential sources of income and create a comprehensive budget to support your business goals, including forward acquisitions and other growth options.

9. Emergency Protocols: A guide that includes roles, responsibilities, relevant contact information, and resources available in the case of emergency. This plan should consist of assessing damage, protecting property, minimizing damage or business disruptions, and determining the appropriate actions after the incident.

10. File Records: Keep proper records of finances, transactions, inventories, and other vital information to track progress and make informed decisions. Accurate recordkeeping is critical for compliance, financial analysis, and strategic planning.

11. Risk Management: Identify potential risks and develop strategies to mitigate them, protecting your business from unexpected challenges. Engaging and managing risks will help protect your assets and business continuity.

13. Mental Health: Prioritize self-care and well-being to ensure resilience and sustainability. Farm work can be demanding, and maintaining mental and emotional well-being is essential to long-term success.

14. Field Transition Plan: Define follow-up procedures and plans to ensure a smooth transition of ownership and operations. Succession planning is essential to preserve the legacy of your business and ensure its continuity across generations.

15. Environmental Stewardship: Create a map to implement sustainable farming practices, conserve natural resources, and promote biodiversity. A solid hold on your business’ sustainable operations is crucial to appeal to the current customer market in this greener age.

16. Environmental Preparedness: Due to weather and environmental factors like droughts, freezing temperatures, hail, pests, and diseases, you must be prepared to plan and react to each. Adapting to climate change and reducing environmental risks requires careful planning and adaptation that fits your personal business needs.

17. Knowledge Expansion: Ensure you have a game plan encouraging you and your employees to expand their knowledge bases and improve their expertise constantly. Focusing on further education is the steppingstone to sustainability and diversification within your organization.

18. Growth Strategy: Conduct a detailed outline that lists your actions to expand operations, increase revenue, and boost market reach. You’ll want to evaluate the financial, market, and industry positions to establish clear objectives to help your business develop over time.

19. Labor and Workload: Farming can be physically demanding and labor intensive, requiring long hours, especially during critical periods such as planting or harvesting. Managing and coordinating workers’ energy can be difficult, especially in large operations.

20. Marketing: Create a comprehensive marketing strategy to promote your product or service, reach your target audience, and generate sales. Effective marketing strategies will help you build brand awareness, attract customers, and generate revenue. Utilize social media platforms to target your audience directly.

With Farm Credit of Southern Colorado by your side, you’ll be equipped with the knowledge, resources, and support you need to thrive in the competitive agricultural landscape. Our team is here to help not only with the ag financial and ag insurance side of things but also with your farm’s business planning and operational logistics. We take pride in also being an educational resource for our customer-owners, so never hesitate to ask for assistance ! Let’s embark on this journey together and pave the way for your local agricultural venture’s success.

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New and Beginning Farmer Series: Writing a Farm Business Plan

Marcus Coleman

A farm business plan can fulfill several purposes for a farm owner, including:

• Serve as an internal organizing tool used to communicate farm plans to individuals outside of the farm business.
• Serve as an internal planning tool to assist in ongoing problem-solving related to farm challenges and opportunities.
• Assist in making annual or seasonal marketing, operations, production and financial decisions.

There is no right or wrong format to use in writing a farm business plan. The primary objective is to effectively communicate what the farm business is about and the goals and strategy for business success. The plan must also convey the long-term feasibility of the farm business, supported with the vision of the farm owner as well as research related to the farm business and market environment that the farm owner seeks to participate in.

In writing a farm business plan, these steps can assist in constructing the plan:

Step 1: Write out the farm mission statement. The mission statement defines the farm business in the context of its primary business function, its products and how it seeks to produce them, its customers, and what unmet customer need it seeks to fill.

Step 2: Write out the farm vision statement. The vision statement states what the farm owner aspires the farm business to be in the future.

Step 3: Write out the farm values. Values explain how the farm business is going to conduct itself in the context of what and who it values.

Step 4: Provide an overview of the farm business. The overview will assist in assessing the farm business and provide a synopsis of what the farm business seeks to do and how it plans to achieve its goals. This overview should consist of the following:

• The purpose of the farm business.
• How the farm business can be managed into a successful operation.
• The key farm business activities.
• The important business and marketing opportunities as well as potential challenges to farm business success.
• The funding that is required to start or expand the farm business. The farm owner should also prepare a budget that provides further detail.

Step 5: Write out the farm goals and include an action plan for each. Including goals and action plans in the farm business plan is necessary as they allow the farm owner to (a) clarify ideas, (b) focus efforts, (c) have a plan to use those time and resources productively, and (d) increase the chances of achieving those goals. Including goals also allows others to understand how the farm business plans to achieve success. There is no right or wrong number of goals to include, but the goals that are included must be attainable within the scope of the farm business.

Every goal must have an action plan that explains (a) who is responsible for the goal, (b) the tasks necessary to complete the goal and (c) when the goal should be completed. The farm owner should also develop a more detailed, step-by-step action plan for their farm goals for personal use. A simple format to highlight farm goals and associated action plans in the farm business plan is show in Tables 1-3.

Table 1. Short-Term Goals (1-3 years)

Table 2. Intermediate Goals (4-6 years)

Table 3. Long-Term Goals (7 or more years)

Step 6: Provide an overview of the target customers and planned marketing strategy. The marketing planning process identifies the farm business’s target customers and the unmet customer need the farm business seeks to serve. The market planning process is summed into three questions:

• Who is the target customer and why should the customer buy from the farm?
• What are the farm business’s primary products?
• What is the plan to promote the farm business to customers?

When defining who the target customer is, the farm owner must consider the following questions:

• What types of customers are expected to buy the farm’s products?
• When and how often might customers buy the products?
• What benefits will the farm products offer customers?
• Where will customers buy the products?

When developing a market strategy, the farm owner must also consider the following questions:

• Why do people want/need the farm’s products?
• What is the plan to attract customers and keep them coming back?
• What are some marketing challenges that could be faced?

Table 4 highlights a format that can be used to present the marketing plan in the farm business plan.

Table 4. Marketing Plan

For more information:

DiGiacomo, Gigi, Robert King and Dale Nordquist. 2003. Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses. College Park, MD: Sustainable Agriculture Research and Education (SARE).

Hunger, J. David and Wheelen, Thomas L. 2007. Essentials of Strategic Management. 4th Edition. Prentice Hall. Upper Saddle River, New Jersey.

Author Information:

Marcus A. Coleman is the program director of the Grow Louisiana Beginning Farmer Training Program, Louisiana State University, LSU AgCenter.

Contact person for more details on this publication: [email protected].

Acknowledgement:

This publication was developed as a part of the Grow Louisiana Beginning Farmer Training Program and supported by a U.S. Department of Agriculture National Institute of Food and Agriculture grant (Award # 2018-70017-28597).

Visit our website: www.LSUAgCenter.com

Luke Laborde, Interim LSU Vice President for Agriculture

Louisiana State University Agricultural Center

Louisiana Agricultural Experiment Station

Louisiana Cooperative Extension Service

LSU College of Agriculture

Pub. 3800 (online) 04/22 rev.

The LSU AgCenter and LSU provide equal opportunities in programs and employment.

Have a question or comment about the information on this page?

Email marcus coleman, innovate . educate . improve lives.

The LSU AgCenter and the LSU College of Agriculture

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How to Write a Business Plan for Farming and Raising Livestock

Last Updated: May 4, 2023 Approved

This article was co-authored by Karin Lindquist . Karin Lindquist earned a BSc in Agriculture as an Animal Science major from the University of Alberta, Canada. She has over 20 years of experience working with cattle and crops. She's worked for a mixed-practice veterinarian, as a sales representative in a farm supply store, and as a research assistant doing rangeland, soil, and crop research. She currently works as a forage and beef agriculture extension specialist, advising farmers on a variety of issues relating to their cattle and the forages they grow and harvest. wikiHow marks an article as reader-approved once it receives enough positive feedback. This article received 17 testimonials and 93% of readers who voted found it helpful, earning it our reader-approved status. This article has been viewed 384,051 times.

A business plan is essential to have in place before you seek to start up a farm business, no matter what else you've done by way of preparation. In today's world, animal agriculture is more complex and more variable than it was 100 years ago. There are changing markets, high costs, low profit margins, different ways to raise cattle, and niche markets. The type of business plan you make is up to you, but the following step-by-step process of making a proper business plan will help you in the long run.

• You should be mainly brainstorming about your goals and objectives. [1] X Research source It's much more effective to run any business when you have a goal in mind to reach rather than having vague ideas of "wanting to do something with animals". That's simply not enough, and is certainly not going to get you anywhere fast!
• As you consider your goals, remember that strategy is not the same as marketing. The strategy for your business is how you plan to deliver value to your customers (your "value proposition"), how you intend to you convince potential customers to obtain that value from you by communicating your distinctiveness as a producer (or, what makes you different from other farms or ranches), and why you can deliver that value better than other producers (your performance anatomy). Your marketing plan should explain how you intend to communicate your strategy to your existing and potential customers. [2] X Research source

• Such an analysis is very simple and flexible to use, since you can use it to analyze your personal self, your business, or the industry you are wishing to start a career in.
• Internal forces that you have control over such as what breeds you choose, whether you want to run an intensive or extensive operation, how you feed your animals, etc.
• External forces that you have no control over such as the weather, the topography and soil-type of the land you are farming/ranching on, local, national and international industry issues, market prices, product demand and consumer preferences.
• Also analyze your farm, the land your farm sits on and your family. Ask similar questions as mentioned above, only with your family you will need to ask about times you should have to spend with them, what will happen if you put your farming operation before your family, what you can do to encourage and teach your kids to be involved in your operation, etc.
• The more research about what you're getting into that you do at this stage, the more aware you will be of what to expect when surprises do come. When you finally get started on your business plan, you'll be far more aware of the pitfalls, challenges , needs and requirements it takes to be involved and compete in the kind of livestock/farming operation you want to have.

• Where am I at now? Include a SWOT analysis (see earlier step), for these areas: customers, operations, human resources, and finance . If you don't have a business, a SWOT analysis as mentioned in the previous step is totally fine.
• Personal goals include things like working fewer hours, furthering your education in areas like different commodity markets or accounting and production programs, etc.
• Business goals are focused mainly on the farm unit as a business entity; examples include maximum debt load to carry, possibly owning or controlling x number acres, etc.
• How do I get there? This is the most important part of your business plan, because this is the area where you put on paper how you want to get the things you want for a better you, family and business. Brainstorming is great tool to use in this section, as you can always have a Plan B, C, D, etc., in addition to your Plan A.
• How do I know I have arrived? If you visualize your business plan as a journey, it is not difficult to understand that you will need to measure your progress along the way and determine if you are moving towards your goals, spinning your wheels or rolling backwards. This is done by defining, collecting and reviewing metrics, measurements and Key Performance Indicators on a regular basis in order to validate your plan and decisions, direct your future activities, justify any modifications to the plan and intervene when things are not happening according to the plan. All your goals should be measurable. Metrics and measurements will give you the answer to this important question.

• Vision Statement: A statement of what you or your farm will look like in the next 5 to 10 years.
• Mission: This determines or defines the purpose the organization attempts to perform in society. This statement should concisely explain what the company does, for whom and why.
• Values: These are general standards or guidelines that are important to your farm and farm family.
• Situational Analysis: This is the process of identifying and understanding how your business is positioned within the environment you operate, both internal and external. Step 3 is what this part of the strategic plan is all about.
• Goals: What are the major achievements you would like to accomplish in the next 3 to 5 years?
• Objectives: How do you plan on achieving your goals?
• Critical Success Factors: Areas of performance critical to long-term successes of an organization, and its development, growth and achievement. For each CSF you should define one or more Key Performance Indicators (KPIs), which are metrics you will use to determine if you are achieving your CSFs. CSFs are expressed as general statements of goals ("Maintain customer satisfaction.") while KPIs are more specific ("Decrease in number of product packaging complaints.")
• In a nutshell, you don't have to go through the headache of answering all of the questions posted above. Instead, use the three simple questions above in Step 4 as a means to answer all 8 of these standard business-plan questions.
• Production resources are also important to mention: Land base, Equipment base, and Buildings and Structures.
• Marketing Plan: Where and how will you sell your commodities? Remember, selling is just getting rid of what you have. When you market, you have to plan to sell commodities at a good price.
• Financial Plan: This includes budget analysis, revenues and expenses, debt, unpaid labour, opportunity costs, benchmark analysis of yourself from other operations, statements of cash flow , depreciation of machinery, animals, buildings, etc., wages, family living costs, etc.
• Human Resources plan: Most farms rely on one worker (i.e., the owner) to run the operation. But, nonetheless, human resource plans should highlight hiring issues facing the business and how to address them. It should further describe the kind of people that are required to operate the business (general responsibilities, title, skills, availability and any training programs needed.)
• Plan: Establish the objectives for whatever it is you intend to do, the processes necessary achieve those objectives and the metrics and measurements required to control the processes and prove that the objectives are being achieved.
• Do: Execute the plan and collect metrics and measurements along the way as defined in the previous phase.
• Check: Review the results, metrics and measurements and determine if any improvements can and should be made to the plan.
• Act: Implement the improvements so the next time the process is executed the results will be better.
• Succession Planning . This can be the hardest part of a business plan, as one has to plan what should happen if the main operator is injured or worse, dies. Succession planning includes developing a continuity plan for your business and determining the process of transitioning a business to new owners. This transition may be an outside sale (equipment and land auction sale), or an inheritance sale (passing the business down to the next generation). [7] X Research source

• Proprietorship : This is the simplest form of business organization. It primarily involves one person running the whole she-bang. Debts and negligent acts committed by employees are the responsibility of the proprietor. But, all the legal complications and expenses and negotiations for agreements are not required, nor is a business name required.
• General Partnership : This means two or three people running an operation. With more than one person running a farm, this means that the business must have a registered name, and each partner is responsible for all debts, obligations and liabilities of the operation. This partnership automatically dissolves with a death, bankruptcy, or insolvency.
• Limited Partnership : This is basically one person is responsible for everything in the firm, whereas the other is only there to supply capital, nothing more or less. A limited partner has no active part in the goings-on of an operation, but he may inspect the books of the firm and advise management.
• Co-ownership : This is where two or more persons own property jointly.
• Joint Venture : This is commonly used in farming, where there is a joint partnership between parties, and is created in order to conduct a specific or limited commercial venture without creating a partnership. This is commonly a temporary arrangement between two parties.
• Corporations : These are legal entities where shareholders own the corporation through the ownership of shares. It is a separate legal entity, distinct from its shareholders. The individual shareholder's liability is limited to that person's investments in the corporation, unless the shareholder has personally guaranteed the obligations of the corporation. A corporation can provide very flexible framework in terms of succession to the next generation. The owner may also give employees shares in the growth and profit of the operation without giving up management rights of a partner.
• Trust: This is a relationship where legal ownership of the property is separated from beneficial ownership of the property.

Community Q&A

• Ask for help when writing a business plan. Get a professional business analyst or someone similar with lots of experience analyzing and writing up such plans so they can help you if and when you are stuck on a particular section. Thanks Helpful 33 Not Helpful 5
• A business plan is good to have when signing on for a loan at the bank. They will be more interested in the financial portion of your business plan, because they need to see how it will affect them in terms of what they can get out of it in terms of money. Thanks Helpful 30 Not Helpful 9
• Put everything in writing. Nothing's worse than not writing something down and suddenly forgetting it. Also, have a separate file folder for thus business plan so you know where it is and where you can access it in the future. If you have it on the computer, save it on a hard drive or a data stick so if your computer crashes on you and you can't get your work back up, you have it saved on a separate disk. Thanks Helpful 29 Not Helpful 10

• Don't go in over your head and attempt to write out a business plan in one sitting. It may take a week or more before you get it all done, so take your time. Indeed, many established businesses started by spending six months or more preparing business plans; rushing will simply harm your business in the long run. Thanks Helpful 11 Not Helpful 2
• Don't think that you won't have to look at your business plan ever again for the rest of the time you are running your operation. You should always try to analyze what yourself and your business at least once a year to know where you are struggling and where you are doing great. Thanks Helpful 1 Not Helpful 2

Things You'll Need

• Computer text program or paper/notepad and pens
• Printer if you want hard copies of computer documents
• Research tools such as the internet, local library, libraries of agricultural bodies, etc.
• Phone numbers of people in the industry that you're interested in so that you can ask any important questions
• Books or websites on making business plans (but don't over-complicate things)
• Books on information about certain livestock interested in raising
• Newspapers and magazines of industry news and events in your area or the area you are interested in pursuing your farming career

You Might Also Like

• ↑ https://grasshopper.com/academy/developing-a-business-plan/brainstorming-tips/
• ↑ https://www.forbes.com/sites/michaelskok/2013/06/14/4-steps-to-building-a-compelling-value-proposition/
• ↑ https://www.business.qld.gov.au/starting-business/planning/market-customer-research/swot-analysis/conducting
• ↑ https://www.agriculture.com/farm-management/business-planning/do-a-swot-analysis-on-your-farm
• ↑ https://keydifferences.com/difference-between-strategic-planning-and-operational-planning.html
• ↑ https://fitsmallbusiness.com/business-succession-planning/

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Table of Contents

Farm stand plans: what you need to get started, 1. farm stand blueprints, 2. making a farm stand business plan, 3. farm stand licensing, 4. farm stand tools and technology, beyond the farm stand plans: managing your farm stand, need help with farm stand plans 4 key blueprints, tips, and tools.

Starting a farm stand can be exciting and rewarding, but without the right plans and resources, it can also feel overwhelming.

You have everything you need to start your new business . You have a passion for providing fresh, locally-grown produce to your community. You have the land, the crops, and the drive … but you don’t know where to begin when it comes to designing and setting up a farm stand.

This post covers everything you need to make a farm stand plan to support your growing produce or organic food business. We’ll provide blueprints, business plan templates, essential tools, and more. 

Before diving into the specific farm stand plans you need to start, let’s cover some baseline information. First off: is a farm stand a good idea in the current market? The short answer is yes. Farm stands are growing in popularity this year. Let’s take a look at why:

• Growing interest in local, sustainable food: Consumers are increasingly concerned about food miles and environmental impact. Farm stands offer ultra-local produce with minimal packaging, appealing to these shoppers.
• Desire for authentic experiences: Farm stands provide a refreshing, personal touch in an era of online shopping and big-box stores. Customers can meet the farmers, learn about growing practices, and feel a direct connection to their food source.
• Support for small businesses: The "shop local" movement has gained significant momentum, especially post-pandemic.
• Health and wellness focus: With rising awareness about the importance of fresh, whole foods in maintaining health, farm stands offer easy access to nutritious, just-harvested produce. These offerings align with trends towards clean eating and plant-based diets.
• Agritourism boom: Farm stands can be a gateway to broader agritourism experiences. They can attract visitors looking for day trips, educational opportunities for children, or unique local experiences. You can explore additional revenue streams through farm tours, workshops, or pick-your-own events.

Related Read: Best POS System for Farmers Markets: 5 Top Options

With this information in mind, you know that opening a farm stand can be profitable! Now, you just need the right plans in place. What types of plans do you need to prepare for success with your farm stand? 

• Blueprints for your physical stand: Your farm stand's design is crucial for both functionality and appeal. Consider weather protection, adequate display space, and storage areas for any inventory or equipment.
• An executive summary outlining your vision and goals
• Detailed market analysis of your local area and target customers
• Financial projections, including startup costs, expected revenue, and break-even analysis
• Marketing and sales strategies to attract and retain customers
• An operational plan detailing day-to-day management and seasonal considerations
• Information about permits and licenses: Legal compliance is non-negotiable. Research and obtain the right business licenses, health department and zoning permits, and sales tax documentation. 
• Tools and technology: The right equipment can make your operations smoother and more professional. Consider investing in a point of sale system , reliable scales, refrigeration units, and technical tools like social media and accounting software.

Let’s explore these farm stand plans in more depth and detail, giving you everything you need to kick off your new business. 

One of the most critical parts of your farm stand business is the stand itself. If you want to build a farm stand that will stand the test of time (and weather), you need the right blueprints. Some benefits of using the right farm stand blueprints include:

• Accurate resource planning: Ever started a DIY project only to find yourself making countless trips to the hardware store? A blueprint helps you avoid that headache. It provides a clear, detailed plan of what you're building, accurate material estimates, and a timeline for your construction process. 
• Structural integrity and compliance: Your farm stand must be safe and legal. A professional blueprint ensures your stand is structurally sound, can withstand outdoor conditions, and meets any applicable building codes or regulations, if relevant. 
• Customization: A good blueprint isn't just a one-size-fits-all solution. It offers customization options to fit your specific needs and location.

Related Read: Produce Stand Point of Sale Solutions

Some resources for farm stand blueprints and building plans include:

• UrbanFarmStands.Org
• Kroma Acres

These blueprints can give you an excellent jumping-off point for constructing the farm stand of your dreams. 

Creating your business plan is the next step in getting your farm stand off the ground. Your business plan is more than just a formality; it’s your roadmap. A solid business plan will keep your team aligned and your processes on track, setting you up for long-term success. 

Let’s take a closer look at the crucial elements of a farm stand business plan. 

First up is the executive summary. Think of this as your elevator pitch. Provide an overview of your business, focusing on what sets you apart from other produce sellers and farm stands in your area. Maybe you're focusing on heirloom varieties or partnering with local artisans. Whatever it is, make it shine here. Don't forget to touch on your main goals and give a quick nod to your target market and financial expectations. 

Next, dive into your market analysis. This is where you get to know your customers inside and out. Who are they? What do they want? Understanding your target demographic is key to tailoring your offerings. Take a good look at your competition too . What are they doing well? Where are they falling short? This is your chance to spot gaps in the market that you can fill. 

Now, let's talk products and services. What farm products will you be offering? Maybe you plan to specialize in heirloom tomatoes or offer a wide variety of seasonal produce. Don't just list your products — explain your sourcing strategy. Are you growing everything yourself, or partnering with other local farmers? 

Your marketing and sales strategy is where you'll outline how you plan to get the word out and keep customers coming back. Will you be leveraging social media to showcase your fresh picks? Partnering with local restaurants? Hosting tasting events? Get creative here. 

Last but certainly not least is your financial plan. Break down your startup costs from building materials to your first batch of inventory. Project your revenue and cash flow for the first few years. Be realistic, but don't be afraid to show your growth potential. If you need funding, clearly outline how much you need and how you plan to use it. Including financial statements like projected income statements and balance sheets will show that you've really done your homework.

Remember, your business plan isn't set in stone. It's a living document that should grow and change with your business. But by putting in the effort to create a comprehensive plan from the start, you're setting yourself up for success. 

Another type of plan you’ll need to make for your farm stand business is your licensing and permit plan. What licenses and permits do you need to explore when setting up your business? Let’s take a look. 

• Business license: This is your basic permission to operate a business in your area. You will likely get this license from your local city or county government. The requirements for your business license will vary depending on your location and the scale of your operation.
• Zoning permit: Your zoning permit ensures your farm stand complies with local land use regulations. If you plan to set up your farm stand on your property, take an extra close look at this requirement. You’ll need to check with your local zoning office for specific requirements.
• Health department permit: Any business selling food products to the public needs to look into a health department permit. The application process typically requires an inspection of your facilities and may require food safety training for you and your staff. 
• Agriculture permit: If you’re growing the produce you sell, you may need to explore an agriculture permit. Requirements vary by state and the types of crops you're growing, but they often involve registering with your state's Department of Agriculture.
• Sales tax permit: To operate legally , every business needs a sales tax permit. This permit allows you to collect and remit sales tax on applicable items. Before applying for this license, be sure to understand which items are taxable in your area.
• Weights and Measures Certification: Selling items by weight? You may need this certification! This ensures your scales are accurate for selling produce by weight and usually involves an inspection by a local weights and measures official.
• Employer Identification Number (EIN): Your EIN is a federal tax ID for your business. This is required if you plan to hire employees and can be obtained for free from the IRS website.

Related Read: How To Open a Retail Store: 7-Step Checklist

Remember, this list is a general guide. Specific requirements can vary widely depending on your location, the size of your operation, and the products you sell. It's always a good idea to check with your local small business development center or agricultural extension office for guidance tailored to your area.

Last but not least, if you want your farm stand to succeed, you need a plan for your tools and technology. When you have the right tools, you can run your business more efficiently and effectively. Let’s explore some of the essential tech every farm stand needs!

Point of Sale (POS) System

A robust POS system is the backbone of your farm stand operations. The right POS solution can help you in these ways:

• Streamlines transactions: Makes checkout quick and easy for both you and your customers.
• Manages inventory: Keeps track of what's in stock in real time .
• Tracks sales data: Provides valuable insights into what's selling and when.
• Improves accuracy: Reduces human error in pricing and calculations.

When choosing a POS system, look for one that's user-friendly and reliable. You'll want features like inventory management, sales reporting, and customer data tracking. IT Retail offers a solution specifically built for grocery stores and farm stands, which could be a great fit for your needs.

Inventory Management Software

Keeping track of your produce and products is essential for a smooth-running farm stand. Here's how inventory management software can help:

• Stock monitoring: Keeps tabs on what you have in stock at all times.
• Automated reorder alerts: Alerts you when it's time to restock popular items.
• Data-driven decisions: Helps you make informed choices about purchasing and pricing.
• Waste reduction: Assists in managing perishable inventory to minimize spoilage.

Look for inventory management software that’s built into your POS system. IT Retail, for example, has built-in inventory management features that help simplify your tech setup.

Customer Relationship Management (CRM) System

Building strong relationships with your customers is key to long-term success. A CRM system can help you:

• Track customer interactions: Keep a record of customer preferences and purchase history.
• Develop targeted marketing: Create personalized campaigns based on customer data.
• Implement loyalty programs : Reward your regular customers and encourage repeat business.
• Improve customer service: Access customer information quickly to provide better service.

A good CRM system will help you collect and analyze customer data, allowing you to tailor your offerings and marketing efforts. Again, IT Retail offers built-in CRM and customer loyalty programs, which could provide an all-in-one solution for your farm stand.

As we've explored throughout this post, setting up your farm stand is a multi-step process, but one that is filled with potential. By implementing the tips and tools we've discussed, you're well on your way to establishing a thriving farm stand business. However, it's crucial to remember that getting the right farm stand plans is just the beginning.

To build a profitable farm stand, you need to equip yourself with the right tools and technology. The most important of these tools is your point of sale solution. 

Not just any POS system will do for farm stands and markets. You need a solution tailored to your unique needs that understands the nuances of selling fresh produce, managing seasonal inventory, and connecting with your local community.

This is where IT Retail shines. Built specifically for businesses like yours, IT Retail offers a comprehensive POS solution that goes beyond simple transactions. From inventory management that keeps track of your ever-changing stock to reporting features that help you make data-driven decisions, IT Retail is designed to help your farm stand thrive.

Don't let outdated or ill-fitted technology hold your farm stand back. Schedule a demo of IT Retail today and see firsthand how our solution can help your farm stand get off the ground. 

Get the Best Value for Your Budget. Build Your Personalized POS System.

Explore how much you can save with our top rated all-in-one POS solutions.

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Farming Business Basics

A collection of tools, guides and information related to the business of agriculture. These resources are designed to help producers establish and sustain a profitable farm business

Get Started! A Guide to USDA Resources for Historically Underserved Farmers and Ranchers Get Started! A Guide to USDA Resources for Historically Underserved Farmers and Ranchers is a multi-agency publication that provides information on assistance and targeted opportunities available to minority, women, veteran, beginning and limited resource producers.

How to Start a Farm: Beginning Farmers and Ranchers New to farming? Want to learn how to start a farm? USDA offers additional assistance to beginning farmers and ranchers. USDA considers anyone who has operated a farm or ranch for less than ten years to be a beginning farmer or rancher. USDA can help you get started or grow your operation through a variety of programs and services, from farm loans to crop insurance and conservation programs to disaster assistance.

Farm Service Agency (FSA) Webinars Upcoming and past FSA webinars, covering topics like land, capital, market access, tax education, heirs’ property and more.

How to Start a Farm Checklist Use the New Farmers Checklist to understand the steps you might need to take before setting up your operation.

Beginning Farmers and Ranchers Outreach Coordinators USDA team members can help you understand the USDA’s process and find the appropriate assistance for your operation.

Small Farm Funding Guide Find links to full-text guides on how to start a small farm business and develop business and marketing plans. Learn more about funding programs for beginning and experienced farmers, technical assistance contacts, disaster assistance and organizations with available resources.

Planning Your Farming Business Key resources for planning, setting up and financing your business and preparing for your visit to a USDA Service Center.

Small and Mid-Sized Farmer Resources This page provides small and mid-sized producers valuable resources and program information about access to capital, land management and conservation practices, managing risk, finding local markets and other educational resources.

Outreach and Small Business Assistance The Office of Small and Disadvantaged Business Utilization (OSDBU) offers vendor outreach sessions, hosts rural small business outreach events, helps foster small business connections, offers training for agency Contracting Officers and Program Managers, presents on small business contracting opportunities and provides one-on-one guidance to farmers and ranchers.

Solutions for Small-Scale Farms Fact Sheets Introductory fact sheets that provide an overview of NRCS’s technical services, conservation practices and management concepts. Topics include abandoned well plugging, fencing, forest farming and runoff management.

Conservation Technical Assistance and Resources Conservation technical assistance is the help NRCS and its partners provide to land users related to natural resource management. This page provides links to documents to assist with a variety of ecological and engineering issues such as rangeland health assessments, guidance for estimating soil moisture and more.

Collection of Conservation Assistance Resources Useful resources on conservation at USDA, including:

• Conservation Concerns Tool to explore conservation issues impacting productivity
• Conservation at Work Video series on the benefits of different conservation practices
• Step-by-step process for accessing USDA Conservation Assistance

Key Programs Catalog To discover USDA conservation programs that may be right for you, visit the Key Programs Catalog.

NRCS Registry of Technical Service Providers Technical service providers (TSPs) offer planning, design and implementation services to agricultural producers such as farmers, ranchers and private forest landowners, on behalf of the Natural Resources Conservation Service (NRCS). This registry allows agricultural producers and private forest landowners to find a certified TSP in their area.

Disaster Recovery USDA is here to help you prepare for and recover from the impacts of natural disasters and market volatility. USDA provides a suite of disaster assistance programs to help offset losses as well as crop insurance and other coverage options to help manage risk and provide a safety net.

Crop and Livestock Insurance Helpful resources to make crop and livestock insurance information readily available, including:

• Calculating premiums
• Locating agents
• Downloading files on demand
• Policy and reinsurance agreement information
• Insurance cycle details from the application process to the claims process

Noninsured Crop Disaster Assistance Program (NAP) Learn more about NAP, a program that provides financial assistance to producers of noninsurable crops when low yields, loss of inventory, or prevented planting occur due to natural disasters.

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Page last updated: July 5, 2023