business plan for farmers

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

Farm Business Planning

Farm Business Planning is key to beginning farmer success.

It helps beginning farmers :

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

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

• Developing a Farm Business Plan
• Enterprise Budgeting

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

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

1. Developing a Farm Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2. Enterprise Budgets

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

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

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

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

Enterprise Budgeting (Kerr Center)

Organic Specific Enterprise Budgets

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

More Enterprise Budget Pages and Information

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

• 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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How to create a farm business plan.

Crafting a comprehensive farm business plan is a crucial step towards transforming your agricultural visions into tangible realities. This plan serves as a blueprint, enabling you to formally articulate your thoughts, ideas, and aspirations. Engaging in this process can lead to profound insights, illuminating the path to a thriving agricultural enterprise.

Even though the term ‘farm business plan’ might evoke a sense of formal rigidity, it’s important to remember that this document is, in fact, a living, evolving entity. Just like a seedling that sprouts, grows, and changes with the seasons, your business plan is not meant to be static.

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.

To get you started, we offer a detailed farm business plan template. This invaluable resource can be tailored and expanded to suit your unique agricultural venture, whether you’re cultivating a sprawling wheat field or nurturing a boutique organic herb garden.

The most effective business plans are those that exhibit flexibility and resilience, characteristics that are at the heart of any successful farm business. Agriculture, by its very nature, is a domain subject to the whims of Mother Nature. From unpredictable weather patterns to seasonal variations, farmers of all kinds grapple with an array of external factors.

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

A farm business plan, like any strategic document, should be comprehensive, encompassing all aspects of your operation, be it agricultural (crops) or product-based. Utilize these 15 key sections to shape your farm business plan template.

Do bear in mind that while these sections are integral, they are by no means exhaustive. Your farm business plan may necessitate additional topics based on your specific farming operations.

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

The executive summary provides an essential overview of your farm business. It helps to streamline communication and understanding between various stakeholders, such as internal team members, potential lenders, business partners, and customers. When drafting your executive summary, consider the following key components:

• Business Profile : Provide a snapshot of your farm business, describing its nature and scope. Are you into crop cultivation, livestock rearing, or any specialized farming practices?
• Products : Clearly outline what product or products your farm will produce. These could range from dairy products to specific crops or even services like agrotourism.
• Production Methodology : Describe how you plan to achieve your production goals. This could involve discussing your farming techniques, usage of technology, or unique methodologies.
• Target Audience : Identify the individuals or groups who will be interested in your farm products or services. These might be local consumers, restaurants, farmers’ markets, or even online customers.
• Key Strategies : Highlight the strategies you plan to implement to run and grow your business. This could cover marketing techniques, sustainability practices, or partnerships.
• Mission and Vision : Briefly outline the mission and vision of your farm business. This helps to convey your long-term objectives and core values.

Remember, your executive summary is essentially the first impression of your business plan. Making it comprehensive, clear, and compelling will help attract interest and support from stakeholders.

Goals and Objectives

A well-crafted business plan should encapsulate both personal and economic goals and objectives. Many successful farm business plans also address environmental stewardship and community outreach. You may want to include goals around preserving farm resources for future generations, ensuring that both the operational and stewardship aspects remain within the family.

Introduction

Your introduction should provide information about the business owners, including their backgrounds and levels of industry experience.

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

Understanding your place within the wider agricultural landscape is key. Be sure to research farms that have historically dominated your region, whether they specialize in vineyards, urban farming, or livestock rearing. Use this research to make educated projections about the future.

Company Background and History

Share the history of your farm if it has been a long-standing family venture or the journey leading up to your purchase if it wasn’t. If your farm business is a startup, focus on the business experience and backgrounds of the involved parties.

Competitor Analysis

Understanding your competition is crucial. In the agricultural sector, farmers often share resources, such as a high-tech corn planter, or cooperate in marketing endeavors. Factor in such synergies when analyzing competitors.

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

Describe each product or service offered by your farm, highlighting those features most appealing to your target market.

Organization, Human Resources, and Management Plans

These interconnected elements cover your farm’s day-to-day operations, employee roles and responsibilities (including their job descriptions ), and overarching management plans.

SWOT Analysis

Conduct a SWOT analysis to identify your farm’s strengths, weaknesses, opportunities, and threats. This will help you strategize on how to leverage your strengths, mitigate your weaknesses, exploit opportunities, and neutralize threats.

Your vision is the roadmap for your farm’s future. It should express not just your financial aspirations but also your plans for the farm operation in the long run.

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

Your financial plan should include elements like balance sheets, income statements, projected cash flows, loan repayment schedules, and depreciation factors.

Marketing Strategy

A robust marketing strategy is essential for your farm’s success. Look into brochures, advertisements, and joining co-op groups. Resources from institutions like the University of Minnesota and Cornell University offer comprehensive insights into effective marketing strategies for farm businesses.

Establishing a Farming Business Entity

Discuss the legal structure of your farm business. Will it be a sole proprietorship, a partnership, an LLC, or a corporation? Outline the pros and cons of each and why the chosen structure is the best fit for your farm business.

Detailed Description of Farm Operations

Include a section that provides an in-depth look at your day-to-day farm operations. This can cover everything from crop rotation plans, livestock breeding programs, to the use of technology and machinery in your farming activities.

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

Highlight your farm’s approach to sustainability and its impact on the environment. Discuss practices like organic farming, conservation techniques, and renewable energy usage, which demonstrate your commitment to environmental stewardship.

Community Involvement and Social Responsibility

Describe how your farm business plans to engage with and contribute to the local community. This could include hosting educational farm tours, participating in farmers’ markets, or supporting local food programs.

Supply Chain and Vendor Relationships

Detail your farm’s supply chain and vendor relationships. Explain how you plan to source inputs like seeds, feed, or equipment, and any partnerships with local suppliers or distributors.

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

Explain how you intend to train and develop your staff. Include plans for ongoing education, skill development, and potentially, leadership training for future farm managers.

Expansion and Diversification

Outline your long-term plans for expansion and diversification. This could involve adding new crops, branching into agrotourism, or exploring value-added products like farm-produced jams or cheeses.

Exit Strategy

Consider including an exit strategy for your farming business. This could be a plan for succession, selling the business, or transitioning to a different type of agricultural operation.

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

Include a FAQ section at the end of your business plan to address common questions potential investors or partners may have about your farm business. This can include queries about your business model, funding needs, or market potential.

Provide an addendum for additional documents that support your business plan. This can include resumes of key team members, detailed financial projections, market research data, or letters of support from future customers or partners.

Do I Need a Business Plan for My Farm?

Even if you’re knee-deep in the dirt, tending to your crops or livestock, every farming enterprise has the core elements of a business at its heart. These include aspects such as operations, marketing, human resources, and finances. When you embark on developing a farm business plan, it might astonish you to see where the journey takes you. You could end up discovering facets of your farm business that you hadn’t previously considered.

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!

More than just a document outlining your farm’s structure, your farm business plan should serve as a valuable decision-making tool. With it, you can confidently navigate the varied terrain of farm management, from daily operations to larger strategic initiatives. When you’ve got a meticulously crafted, robust farm business plan, it doesn’t just narrate your farm’s story, but also provides you with a roadmap to future growth and success.

Beyond this, a top-notch farm business plan can also be a lever that helps you access critical financing. Lenders and investors are more likely to support your venture when they see a well-structured, thoughtful business plan that articulates your vision, illustrates your understanding of the market, and demonstrates your commitment to fiscal responsibility.

So, where to begin? Let’s dive into our fundamental guide to crafting a farm business plan using our adaptable template. This resource has been designed to help you capture every aspect of your agricultural venture, laying a strong foundation for a bountiful future.

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?

Start with one piece of the business plan. One of the hardest sections of a business plan to write is the Mission Statement . If you get bogged down there, continue and come back to it later.

How much do farm owners make a year?

As you can imagine, the net income varies greatly by type of farm business.

The bottom line after expenses may not be high. Farmers need to consider net worth as assets grow and the farm property increases in value.

How much does it cost to start a small farm?

Getting set up to raise 100 beef cattle costs lots more than getting set up to raise 100 rabbits.

Things like property acquisition, soil preparation, equipment and machinery and the key costs. Other costs may be irrigation systems, packaging and trucking.

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.

It’s also one of the most expensive businesses to start, requiring significant capital investment. The industry is very labor-intensive and labor costs are high.

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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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Details of a Small Farm Business Plan

• Swarthmore College

• Ohio Wesleyan University
• Brandeis University
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• Indoor Gardening

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

What Is a Business Plan?

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

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

Mission Statement

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

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

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

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

SMART Goals are:

• Rewarding, and have a

Background Information

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

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

Farm Strategy

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

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

Marketing Strategy and Plan

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

Management Summary

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

Financial Analysis

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

Pulling It All Together

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

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

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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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.

One central entry point for you to access information and help from USDA.

AskUSDA.gov | [email protected] | 1-833-ONE-USDA

Page last updated: July 5, 2023

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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Agriculture Business Plan Template

Written by Dave Lavinsky

Agriculture Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and farm owners create business plans to start and grow their agricultural companies.

If you’re unfamiliar with creating an agriculture or farm business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a good business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an agriculture business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Agriculture Business Plan?

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

Why You Need a Business Plan for an Agriculture Business

If you’re looking to start an agricultural business or grow your existing agricultural company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your farm to improve your chances of success. Your agricultural business plan is a living document that should be updated annually as your company grows and changes.  

Sources of Funding for Agricultural Businesses

With regard to funding, the main sources of funding for an agricultural business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review a comprehensive business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for agricultural companies.

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How to write a business plan for an agricultural business.

If you want to start an agricultural business or expand your current one, you need a business plan. A good farm business plan should include 10 sections as follows:

Executive Summary

Company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan. The goal of your executive summary is to quickly engage the reader. Explain to them the kind of farm business you are running and the status. For example, are you a startup, do you have an agricultural business that you would like to grow, or do you have a farming operation that you would like to sell? Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the agricultural industry.
• Discuss the type of farm you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

In your company overview, you will detail the type of agricultural production you are operating.

For example, you might specialize in one of the following types of agricultural businesses:

• Animal feed manufacturing : the production and sale of food formulas for farm animals.
• Agrichemical and seed manufacturing : the production and sale of agrichemicals (e.g., fertilizers, pesticides, and fungicides) and seeds to farmers that support the growth of their crops.
• Agricultural engineering : development, testing, and implementation of new agriculture tools and machinery to improve the process for farmers.
• Biofuel manufacturing : the production of energy from biomass.
• Crop production : the process of growing and harvesting a variety of crops such as fruits, vegetables, and grains.

In addition, the company overview needs to provide information about the business history.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include reaching X number of harvests per year, the number of customers served, or reaching $X amount in revenue.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

In your industry or market analysis, you need to provide an overview of the agricultural industry. While this may seem unnecessary, it serves multiple purposes.

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

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies industry trends.

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

The following questions should be answered in this section:

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

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of agricultural business you operate. Clearly, schools would respond to different marketing promotions than corporations, for example.

Try to break out your target market into segments in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

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

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

Direct competitors are other farms and agricultural producers.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of farmers, wholesalers, and distributors.

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

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

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

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

• Will you make it easier for your customers to engage with you?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

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

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

Product : In the product section, you should reiterate the type of agricultural company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you produce fruit, soy, or vegetable products?

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

Place : Place refers to the site of your agricultural company. Document where your company is situated and mention how the site will impact your success. For example, is your agricultural business located on a small or large farm near your customer base? And, will you operate one or multiple locations? Discuss how your site might be the ideal location for your customers.

Promotions : The final part is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Attend farmers markets
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

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

Everyday short-term processes include all of the tasks involved in running your farm business, including scheduling employees, tracking inventory, accepting orders and payments, and meeting with customers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to reach your Xth harvest, or when you hope to generate $X in revenue. It could also be when you expect to expand your farm business to a new region.

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

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

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an agriculture business, or owning their own farm.

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

Income Statement

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

In developing your income statement, you need to devise assumptions. For example, how many pounds of each crop do you plan to yield each season? And what is your sales strategy to grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your farm business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

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

• Cost of farm equipment and supplies
• Operating expenses
• Payroll or salaries paid to staff
• Business insurance
• Other start-up costs (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your farm’s location lease or a list of agricultural equipment and machinery used on your farm.  

Free Business Plan Template for a Farm or Agriculture Business

You can download our farm business plan PDF template here.  

Agriculture Business Plan Summary

Putting together a business plan for your agriculture business will improve your company’s chances of success. The process of developing your plan will help you better understand your target market, your competition, and your customers. You will also gain a marketing plan to better attract and serve customers, an operations plan to focus your efforts, and financial projections that give you goals to strive for and keep your company focused.

Growthink’s Ultimate Business Plan Template allows you to quickly and easily write your business plan.  

Additional Resources for Starting an Agriculture Business

• How To Start a Farm
• Sample Farm Business Plan
• Starting a New Agricultural Business
• Small and Mid-Sized Farmer Resources
• Starting a Sustainable Agriculture Business
• Beginning Farmers and Ranchers Loans
• Business Resources for Those Starting to Farm or for an Existing Farm

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

OR, Let Us Develop Your Plan For You

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

Click here to see how Growthink’s business plan professional services can help you create a winning business.  

Other Helpful Business Plan Articles & Templates

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: Build Your Business

Lean on USDA and others to equip yourself with the business knowledge to build your operation. After your USDA Service Center visit, establish your operation by registering your business and obtaining licenses, permits, and a tax ID number. You should also consider educational opportunities, business management components, and insurance. 

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

On This Page

Grow your business knowledge.

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

• Cooperative Extension  offices address common issues faced by agricultural producers, and conduct workshops and educational events for the agricultural community.
• extension.org is an online community for the Cooperative Extension program where you can find publications and ask experts for advice.
• SCORE offers free mentoring, workshops, and online resources for entrepreneurs, small business owners, farmers, ranchers, and agribusiness.

Determine the Legal Structure of Your Business

A business structure refers to how a business is legally organized and can affect how a business is regulated, taxed , and more. Deciding the best structure for your business is one of the most important decisions you will make.

Decide which form of business ownership is best for you:

• sole proprietorship,
• partnership,
• Limited Liability Company (LLC),
• corporation,
• S corporation,
• cooperative.

The structure of farm business you choose may affect eligibility for certain USDA programs and will determine how and where you will need to register your business and which taxes you must pay.

The Sustainable Agriculture Research and Education (SARE) program provides guidance to help farmers decide which legal structure is best for your farm operation as well as detailed information about the characteristics and requirements of each legal structure. Review SARE's Farmers' Guide to Business Structures to learn more about business structures for farm operations.

Register Your Farm Business

Once you determine your business structure, you will need to obtain the necessary federal and state tax identification numbers to register your business . Registering your business and becoming familiar with your federal and state tax responsibilities will help you file your taxes accurately, make payments on time, and avoid potential penalties.

USDA has financial information and resources related to USDA program payments, asset protection, and the important relationships between federal and state income taxes and USDA farm programs.

Federal Tax ID Number (EIN)

As a beginning farmer you will need a federal tax ID number , also known as an Employer Identification Number (EIN). An EIN is used to identify a business entity, hire employees, apply for business licenses, permits, and more. The EIN is necessary for reporting to the IRS. You may apply for an EIN online .

The IRS provides an Agricultural Tax Center with numerous useful documents, including the Farmer’s Tax Guide that explains how the federal tax laws apply to farming.

State Tax ID Number

Tax requirements vary by state. Visit the SBA website to learn about your state’s laws regarding taxes and for specific steps on how to get a state tax ID number.

Obtain Business Licenses and Permits

Obtain the federal, state, and local licenses and permits required for your business. Licenses, permits, and other types of registrations vary by state and locality. Licenses and permits needed may also vary depending on the farm business activity and how those activities are regulated at a federal or state level. Review SBA’s Apply for licenses and permits page for more information. It’s also a good idea to contact your State Department of Agriculture to ask which licenses and permits may apply to you.

Purchase the Insurance You Need

Agriculture is an inherently risky business. Some risks are everyday business risks; some risks are brought on by natural disasters. Producers need to regularly manage for financial, marketing, production, human resource, and legal risks.

There are many types of insurance to consider for your business, your employees, and the crops and livestock you may be producing. The following examples are some types of insurance to consider, but not all operations might need these. For example, if there are no employees in your business, you won’t need workers’ compensation insurance. Additionally, the laws requiring insurance vary by state so you will need to check your state website for any additional insurance you might need.

Liability insurance protects against claims resulting from injuries and damage to other people or property. Liability insurance policies cover any legal costs and payouts from the insured producer if they are found legally responsible.

Property insurance provides financial reimbursement to the landowner or renter of a structure and its contents in case of damage, theft or if someone else is injured on the property.

Crop insurance provides financial protection against losses due to adverse events including drought, excess moisture, damaging freezes, hail, wind, disease, and price fluctuations.

Workers' Compensation and Unemployment and Disability Insurance is required by the federal government for every business that has employees.

Health insurance can be purchased for yourself, family members, or as part of a benefits package for your employees. HealthCare.gov and USA.gov make available tools to help you understand what you need to know about new insurance options and other health care changes to help you find health-care related resources.

Life insurance can help protect your farm and help keep it in the family by providing money to pay for various farm expenses, from livestock to crops to new facilities.

USDA Crop Insurance

USDA’s Risk Management Agency (RMA) offers crop insurance to help you manage risk across your operation. Crop insurance helps mitigate production and revenue risks and supports a healthy rural economy. There are many types of insurance products available for a wide variety of production practices, including organic and sustainable agriculture. Beginning farmers and ranchers are also eligible for certain benefits designed to help as you start your operation.

Use RMA’s Agent Locator to find a crop insurance agent near you. Crop insurance may be required to receive loans.

Insurance is required when applying for a loan with FSA. Additional insurance and coverage period may differ depending on the type of loan.

Understand Employer Responsibilities

If you plan to hire employees for your farm operation, you will need to understand employer responsibilities and learn the legal steps you will need to take to hire employees. Then, you should establish a farm work plan to hire and schedule farm labor.

The US Department of Labor administers laws that protect several types of farm workers, including:

• Fair Labor Standards Act
• Migrant and Seasonal Agricultural Worker Protection Act

There may also be relevant state-based laws. For more information, visit your State Department of Agriculture .

H-2A Visa Program

The H-2A provisions of the Immigration and Nationality Act (INA) authorize the lawful entry into the United States of temporary, non-immigrant workers (H-2A workers) to perform agricultural labor or agricultural services of a temporary or seasonal nature. Learn about hiring agricultural workers through the H-2A Visa Program .

Occupational Health and Safety

The Occupational Safety and Health (OSH) Act is administered by the Occupational Safety and Health Administration (OSHA). Employers covered by the OSH Act must comply with the regulations and the safety and health standards promulgated by OSHA. Employers also have a general duty under the OSH Act to provide their employees with work and a workplace free from recognized, serious hazards. OSHA enforces the Act through workplace inspections and investigations. Compliance assistance and other cooperative programs are also available.

Find health and safety requirements and resources for employees on the Occupational Safety and Health Administration’s website . Be sure to also check your state-based laws.

An Agricultural Guide to Federal Labor Law

This video guides agricultural employers and advocates through compliance requirements under the applicable laws, and provides real world examples of compliant and non-compliant employment conditions and practices.

Video: Cultivating Compliance - An Agricultural Guide to Federal Labor Law

Once you have set up your business, it’s time to start producing your products and growing your business. USDA has tools to help producers grow their businesses and build new markets for their products both at home and abroad.

5. Sell your farm products

How to Start a Farm with USDA

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

Find Your Local Service Center

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

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

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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

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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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Below are examples of different farm business plans and a loan application:

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USDA FSA Sample Microloan Application

I took a 50% pay cut to leave my sales job and work on a potato farm. I have no regrets.

• Five years after working in sales, Tyler Heppell felt he had lost his purpose and quit.
• He intended to work at his family farm for a year, but he's now decided to stay for the long haul.
• Heppell, 30, said he has learned more about business by working as a farmer.

This as-told-to essay is based on a conversation with Tyler Heppell, a fifth-generation farmer from Heppell's Potato Corporation in Canada. The following has been edited for length and clarity.

As a fourth-generation farmer at a 104-year-old potato farm in British Columbia, my dad thought he had hit the lottery when he had three sons.

But alas, none of us wanted to work there.

After graduating with a business degree in 2017, I worked in sales at a Fortune 500 company. In sales, you need to have a "grinder" mentality — work hard, be consistent, and have discipline. Having played team sports all my life, I'm a competitive person, and initially thrived off the challenge.

But four years in, I gradually felt like I was losing my purpose . My days were spent cold-calling, knocking on doors, and trying to make sales week after week. I had to shave every day and went through many suits. There were a million conference calls to attend, and it was all very corporate.

One day, it hit me that I would rather work with my hands and break a sweat than sit in a room talking to a business owner. I figured I would get more joy out of having a simpler life.

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So, in 2022, I resigned. My plan was to work on my family's farm for a year while I figured out the next steps.

I ended up loving the farm right away

I got that sense of satisfaction I felt I was missing in the sales world — the sense of a good, hard day's work. It's a feeling you can't buy.

Helping out on the farm as a kid, I didn't enjoy it. It was a lot of physical labor, and the overall experience was not positive. But coming back as an adult, I was a bigger piece of the puzzle and had responsibility for leading operations and managing teams. I also enjoyed being able to work with my family.

Farming is a lifestyle . My work-life balance took a little bit of a hit at the start. But with innovation , the busy season no longer requires a six-day workweek. So, unlike   what my parents' generation experienced, now there's an opportunity for   work-life balance as a farmer.

I took a pay cut to return to the farm

I made almost 200,000 Canadian dollars in sales, or around $150,000, in one year. As a farmer, I took a 50% pay cut. It was a tough pill to swallow.

But now, I'm realizing that it was still worth it. I learned more about business on the farm than working in a Fortune 500 company.

Thanks to social media, the pay gap has also closed a bit. In 2022, I posted videos on TikTok to raise awareness about farmland that was going to be taken over by the government to be redeveloped. The posts went viral, and my account kept growing.

Now, I post on social media to encourage the next generation to return to farming

In Canada, around 1.6% of people are farmers, according to Statistics Canada . In the next 10 years, 40% of farmers will retire, a report by Royal Bank of Canada found. We'll need the younger generation to pick up the slack to continue having local produce.

I see farmers as a beacon of hope in each community. At our farm, we have something called Ugly Potato Days . On this day, we give our "ugly" potatoes to our community for free. So, although farmers go through a lot, they can help the communities that they're in with the rising cost of food and living.

A day in my life looks different now. At 7 a.m., I arrive at the farm to check orders. I usually have two or three meetings daily about operations, safety, or grants for the farmland.

Then, I check in on harvesting. I'm also in charge of all the truck drivers because the potato fields are about an hour from our farm. So, I have to ensure we have enough trucks driving back and forth.

Being a farmer is a job that pulls me in a million different directions, but I enjoy it because every day is so different and challenging.

I don't see myself returning to the corporate world unless I start a business related to agriculture . I'm 30 now and probably have another 30 years of farming left. My goal is to set up the farm to last another hundred years. Hopefully, one day, I'll have children who decide to take over.

Watch: How a sheep wagon became one man's doomsday survival plan

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The University of Chicago The Law School

Meet the class: mae farmer, ’27, mental health advocate aims to make a difference in healthcare policy.

Mae Farmer, ’27, graduated from the University of Alabama with a Bachelor of Science in accounting and a Bachelor of Arts in psychology with a minor in criminal justice. She always knew she wanted to study law and use it as a vehicle for social change, particularly in the area of mental health—a cause she cares deeply about.

Please describe your professional background and path.

For as long as I can remember, I have wanted to attend law school, so throughout my undergraduate career I sought opportunities to gain experience towards that goal. I interned for a nonprofit, a county judge and commissioner, and for the Indiana state government within the Division of Mental Health and Addiction.

What key experiences have shaped you?

My passion for mental health advocacy has led to experiences that continue to enrich my personal and professional life. I have worked with several nonprofits, created my own blog and initiative focused on raising awareness, and been recognized with several service-based distinctions at my undergraduate institution.

What motivated your decision to go to law school?

By gaining a legal education, I believe I can be a voice for individuals, businesses, and causes that I care deeply about. I think it is especially important to see more business-minded people engage in the humanities to enact greater change, so I hope to do just that.

Why did you select the University of Chicago Law School?

I chose the University of Chicago Law School based on several factors including the spectacular reputation, location, and academic offerings. Specifically, the blend of economics and law was hugely important in my decision. I know that by coming to UChicago, I will have endless opportunities and become well-equipped to achieve my goals.

What do you plan to do with your legal education?

After graduation, I hope to gain more judicial and governmental experience through a federal clerkship. I also would like to get exposure to a variety of different cases by working at a large firm early in my career. Eventually, I plan to work for healthcare policy reform.

What is the thing you are most looking forward to about being a law student?

I am most excited to learn from my classmates, professors, and others associated with UChicago. I know these next few years will push me out of my comfort zone, and I'm looking forward to gaining an abundance of knowledge by connecting with my peers from backgrounds different than my own.

What are some of your hobbies or interests?

Some of my hobbies include trying new and unique foods, photography, competing in pageants, modeling, baking, and traveling. In fact, this past summer I spent nine weeks traveling to over thirty cities across Europe. Throughout my trip, I explored the theme of advocacy as a recipient of The University of Alabama Ramsey Award Great Ideas Tour .

What is a “fun fact” about you?

People are often surprised to learn that I was adopted from China when I was eleven months old, and I have two older brothers that are ten and twenty years older than me.

Anything else you’d like to share?

I am excited to start this new chapter, and I will always be down for studying together, exploring Chicago, and making memories. I hope to find some lifelong friends at UChicago, so I look forward to meeting everyone!

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India key market for Syngenta, focus on innovation for farmers: CEO Rowe

The company's expansion plans in india focus on introducing new production practices for more sustainable, effective, and profitable farming.

Syngenta plans to launch new technologies in crop protection.

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Kimberley energy plan’s state worth

A mammoth green energy venture in the east Kimberley could generate $3.8 billion for the state and create more than 2,000 jobs over its lifetime.

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