a farm business plan

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 Plan Template

Written by Dave Lavinsky

Business Plan Outline

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

Farm Business Plan

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

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

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

Sample Business Plan For Farms & Agricultural Businesses

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

Next Section: Executive Summary >

Farm Business Plan FAQs

What is a farm business plan.

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

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

What Are the Main Types of Farms?

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

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

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

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

How Do You Get Funding for Your Agriculture Business?

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

What are the Steps To Start a Farm Business?

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

• Develop An Agricultural Business Plan - The first step in starting a business is to create a detailed agriculture business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  It should also include your business goals and mission statement. You can quickly complete your farm business plan using our Farm Business Plan Template here .
• Choose Your Legal Structure - It's important to select an appropriate legal entity for your farm business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your farm business is in compliance with local laws.
• Register Your Agriculture Business - Once you have chosen a legal structure, the next step is to register your farm business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 
• Identify Financing Options - It’s likely that you’ll need some capital to start your farm business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 
• Choose a Business Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 
• Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 
• Acquire Necessary Farm Equipment & Supplies - In order to start your agricultural business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 
• Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your farm business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

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

• How to Start a Farm Business

Where Can I Get a Farm Business Plan PDF?

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

Small Business Trends

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.

Image: Depositphotos

• 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 Write a Farming Business Plan: Template and Guide

americanfarmfi

May 22, 2023

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

Overview of a Farming Business Plan

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

The Purpose of a Farming Business Plan

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

Key Elements of a Farming Business Plan

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

Executive Summary

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

Market Analysis

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

Products and Services

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

Marketing and Sales

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

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

Financial Plan

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

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

Setting Financial Goals

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

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

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

Conducting Market Research

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

Writing a Farming Business Plan

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

Creating a Timeline for Implementation

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

Preparation: 1-6 Months 

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

Operations: 6-12 Months

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

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

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Farm Machinery Business Plans

• Farm Machinery Manufacturer Business Plan

Farming and agriculture are complicated businesses. To be successful, you need more than a green thumb and the willingness to get your hands dirty. You need to know how to operate your agricultural enterprise efficiently and not just forecast your crop rotations, but your cash position and revenue. To do that, you need a business plan.

How can a business plan help your farm or agriculture business?

A good business plan will help your farm or food production business grow. It can improve your chances of receiving government grants or loans, help you manage your business through hard times, and identify additional forms of revenue like tourism or consulting. Most lenders or investors require a business plan before they even consider funding a project. When you add in the numerous elements of running an agricultural business, and the factors like weather and government regulations that are often beyond your control, a business plan becomes an essential tool for effective management, strategic planning and communication across all the key stakeholders in your business.

Find the right agriculture business plan template for your business

If you’re not sure where to begin, check out our farms, food growers, food production facilities, and other agriculture-related sample business plans for inspiration.

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Sample Farm Business Plan

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

Download our Ultimate Farm Business Plan Template

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

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

Farm Business Plan Example – GreenAcres Harmony

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Target Customers

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

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

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

Customer Needs

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

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

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

GreenAcres Harmony’s competitors include the following companies:

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

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

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

Competitive Advantages

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

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

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

Products and Services

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

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

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

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

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

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

Promotions Plan

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

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

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

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

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

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

Our Operations Plan details:

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

Key Operational Processes

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

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

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

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

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

Chloe King, President

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

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

Financial Statements

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Income Statement

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Cash Flow Statement

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Farm Business Plan Example PDF

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

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Small Farming Business Plan

Want to transform your small land into a farming business? Indeed, a brilliant business venture to undertake. After all, all sorts of farming businesses enjoy a vast market.

Anyone can start a farming business. However, a detailed business plan is essential to drive this business to its desired potential and secure funding if required.

Need help writing a business plan for your small farm? You’re at the right place. Our small farming business plan template will help you get started.

Free Business Plan Template

Download our free small farming business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Small Farming Business Plan?

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

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

• Introduce your Business: Start your executive summary by briefly introducing your business to your readers.
• This section may include the name of your small farming business, its location, when it was founded, the type of small farming business (E.g., vegetable farming, bee farming, aquaculture, organic farming), etc.
• Market Opportunity: Summarize your market research, including market size, growth potential, and marketing trends. Highlight the opportunities in the market and how your business will fit in to fill the gap.
• Products: Highlight the small farming products you offer your clients. The USPs and differentiators you offer are always a plus.
• For instance, you may include fruits, vegetables, herbs, and spices as products and mention organic produce, exotic fruits, and local produce as some of your USPs.
• Marketing & Sales Strategies: Outline your sales and marketing strategies—what marketing platforms you use, how you plan on acquiring customers, etc.
• Financial Highlights: Briefly summarize your financial projections for the initial years of business operations. Include any capital or investment requirements, associated startup costs, projected revenues, and profit forecasts.
• Call to Action: Summarize your executive summary section with a clear CTA, for example, inviting angel investors to discuss the potential business investment.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

• Business Description: Describe your business in this section by providing all the basic information:
• Vegetable farming
• Bee farming
• Aquaculture
• Organic farming
• Describe the legal structure of your small farm, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place. Owners: List the names of your small farm’s founders or owners. Describe what shares they own and their responsibilities for efficiently managing the business.
• Mission Statement: Summarize your business’ objective, core principles, and values in your mission statement. This statement needs to be memorable, clear, and brief.
• Business History: If you’re an established small farming service provider, briefly describe your business history, like—when it was founded, how it evolved over time, etc.
• Additionally, If you have received any awards or recognition for excellent work, describe them. Future Goals: It’s crucial to convey your aspirations and vision. Mention your short-term and long-term goals; they can be specific targets for revenue, market share, or expanding your services.

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

• Target market: Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.
• For instance, farmers’ markets, specialty retailers, and local customers would be an ideal target audience for smart farming businesses.
• Market size and growth potential: Describe your market size and growth potential and whether you will target a niche or a much broader market.
• For instance, the global smart farming market is expected to reach 53 billion dollars by 2032, so it is crucial to define the segment of your target market and its growth potential. Competitive Analysis: Identify and analyze your direct and indirect competitors. Identify their strengths and weaknesses, and describe what differentiates your small farming services from them. Point out how you have a competitive edge in the market.
• Market Trends: Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.
• For instance, agrotech and automation have a booming market; explain how you plan on dealing with this potential growth opportunity.
• Regulatory Environment: List regulations and licensing requirements that may affect your small farm, such as business registration, insurance, organic certification, food safety and handling regulations, environmental regulations, state and federal regulations, etc.

Here are a few tips for writing the market analysis section of your small farming business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

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

• Describe your farm products: Describe the type of products your small farming business will offer. A vegetable farming business may include a detailed description of crops and their varieties here.
• Quality measures: This section should explain how you maintain quality standards and consistently provide the highest quality service.
• This may include quality control processes, clear service standards, regular maintenance, and training.
• Additional Services: Mention if your small farm offers any additional services. You may include services like farm tours, workshop classes, agrotourism experiences, etc.

In short, this section of your small farming plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

• Unique Selling Proposition (USP): Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.
• For example, organic and sustainable practices, fresh local produce, and exotic products could be some of the great USPs for a vegetable and fruit small farm.
• Pricing Strategy: Describe your pricing strategy—how you plan to price your farming services and stay competitive in the local market. You can mention entry offers and discounts you plan on offering to attract new customers to your farming service.
• Marketing Strategies: Discuss your marketing strategies to market your services. You may include some of these marketing strategies in your business plan—local marketing, community outreach, social media marketing, Google ads, brochures, email marketing, content marketing, and print marketing.
• Sales Strategies: Outline the strategies you’ll implement to maximize your sales. Your sales strategies may include farm stands, farmers’ markets, online platforms, partnering with retailers, local communities and businesses, offering referral programs, etc.
• Customer Retention: Describe your customer retention strategies and how you plan to execute them. For instance, introducing loyalty programs, discounts on CSA programs, personalized service, etc.

Overall, this section of your small farming business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your small farming business, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

• Staffing & Training: Mention your farming business’s staffing requirements, including the number of laborers, supervisors, and technicians needed. Include their qualifications, the training required, and the duties they will perform.
• Operational Process: Outline the processes and procedures you will use to run your small farming business. Your operational processes may include farming activities, production schedules, inventory management, managing sales, billing, and quality control practices.
• Equipment & Machinery: Include the list of equipment and machinery required for small farming, such as tractors, harvesting equipment, irrigation systems, tools and hand equipment, safety equipment, etc.
• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your small farming business’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

• Founders/CEO: Mention the founders and CEO of your small farm, and describe their roles and responsibilities in successfully running the business.
• Key managers: Introduce your management and key members of your team, and explain their roles and responsibilities.
• It should include, key executives(e.g. COO, CMO.), senior management, and other department managers (e.g. farm manager, sales manager.) involved in the small farming business operations, including their education, professional background, and any relevant experience in the farming industry. Organizational structure: Explain the organizational structure of your management team. Include the reporting line and decision-making hierarchy.
• Compensation Plan: Describe your compensation plan for the management and staff. Include their salaries, incentives, and other benefits.
• Advisors/Consultants: Mentioning advisors or consultants in your business plans adds credibility to your business idea.
• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your small farming services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

• Profit & loss statement: Describe details such as projected revenue, operational costs, and service costs in your projected profit and loss statement . Make sure to include your business’s expected net profit or loss.
• Cash flow statement: The cash flow for the first few years of your operation should be estimated and described in this section. This may include billing invoices, payment receipts, loan payments, and any other cash flow statements.
• Balance Sheet: Create a projected balance sheet documenting your small farming business’s assets, liabilities, and equity.
• Break-even point: Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.
• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.
• Financing Needs: Calculate costs associated with starting a small farming business, and estimate your financing needs and how much capital you need to raise to operate your business. Be specific about your short-term and long-term financing requirements, such as investment capital or loans.

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the small farming industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your small farming business plan should only include relevant and important information supporting your plan’s main content.

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

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

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

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our small farming business plan pdf .

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

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

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

How to get funding for your small farming business?

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

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

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

How do I write a good market analysis in a small farming business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics.
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my small farming business plan?

The level of detail of the financial projections of your small farming business may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a small farming business plan include?

The following are the key components your small farming business plan must include:

• Executive summary
• Business Overview
• Market Analysis
• Products and services
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

Can a good small farming business plan help me secure funding?

Indeed. A well-crafted small farming business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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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.

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Page last updated: July 5, 2023

Starting a Small Farm: A Complete Beginner’s Guide

Starting a small farm can be a challenging and rewarding experience. As someone who has started their own small farm, I can tell you it takes a lot of hard work and dedication.

Whether you’re looking to start a small farm for personal consumption or to sell your products at local markets, there are a few key steps you’ll need to take to get started.

The first step in starting a small farm is to identify your niche. What do you want to grow or raise? Are you interested in sustainable agriculture, organic farming, or specialty crops?

Once you’ve identified your niche, you’ll need to find suitable land to start your farm.

This can be challenging, especially if you’re on a tight budget. Still, various resources are available to help you find affordable land.

Once you’ve secured your land, you’ll need to develop a business plan and figure out how you’ll finance your farm. This may involve applying for grants or loans or finding investors interested in supporting your vision.

You’ll also need to consider marketing your products and building relationships with local consumers and businesses. With the right plan and hard work, starting a small farm can be fulfilling and profitable.

Assessing Your Goals and Resources

Defining your goals.

Before starting a small farm, it is essential to define your goals. Ask yourself what you want to achieve by starting a farm. Do you want to grow crops, raise animals, or both?

Are you looking to make a profit or just have a self-sustaining homestead? Do you want to sell your products locally or nationally?

Defining your goals will help you determine the size and scope of your farm, what resources you will need, and what steps you need to take to achieve your goals.

Assessing Your Resources

Assessing your resources is also an important step in starting a small farm. You need to determine what resources you have available to you, such as land, water, equipment, and capital.

Start by evaluating your land. Do you own land or will you need to lease or purchase it? Is the land suitable for farming, or will you need to make improvements? Consider the soil quality, drainage, and access to water.

Next, evaluate your equipment needs. Do you have the necessary tools and machinery to operate a farm? If not, what equipment will you need to purchase or lease?

Finally, assess your financial resources. Starting a small farm can be expensive, so it is important to determine how much capital you have available and how you will finance your farm.

Consider applying for grants or loans from organizations like the USDA or local banks.

Choosing a Farming Method

Conventional farming.

When it comes to conventional farming, the focus is on maximizing yield and minimizing costs. This method relies heavily on synthetic fertilizers, pesticides, and herbicides to control pests and maximize crop yields.

Conventional farmers also use genetically modified seeds engineered to resist pests and diseases.

Organic Farming

Organic farming is a method that relies on natural processes to cultivate crops and raise livestock. This method avoids the use of synthetic fertilizers, pesticides, and herbicides and instead focuses on building healthy soil through the use of compost and other organic matter.

Organic farmers also avoid using genetically modified seeds and instead rely on natural methods to control pests and diseases.

Permaculture

Permaculture is a method of farming that focuses on designing sustainable ecosystems that mimic natural systems.

This method involves using a variety of plants and animals that work together to create a self-sustaining ecosystem.

This method can be highly effective in creating a sustainable and resilient farm ecosystem. When choosing a farming method, it’s essential to consider your goals and values as a farmer.

Conventional farming may be a good choice if you’re looking to maximize yields and minimize costs, but it can negatively impact the environment and human health.

Organic farming may be a better choice if you’re looking to build healthy soil and cultivate crops in a way that is sustainable and environmentally friendly.

Permaculture may be the best choice if you’re looking to create a self-sustaining ecosystem that mimics natural systems.

Ultimately, the choice of farming method will depend on your goals, values, and resources as a farmer.

Selecting Your Farm Site

When starting a small farm, choosing the right location is crucial to success. Here are some factors to consider when selecting your farm site:

Climate and Soil

The climate and soil of your farm site will determine which crops and livestock you can raise. Research the average temperature, rainfall, and growing season length of your area.

Water Resources

Access to water is essential for any farm. Look for a site with a reliable water source, such as a well or a nearby stream.

You should also consider the quality of the water, as it can affect the health of your crops and livestock. If you plan to irrigate your crops, make sure your site has the necessary infrastructure in place.

Access to Markets and Customers

You should also research the demand for your products in your area to ensure a viable market for your farm.

By taking these factors into account, you can select a farm site that will set you up for success in the long run.

Planning Your Farm

Developing a business plan.

To start a small farm, it’s crucial to have a clear idea of what you want to achieve and how you plan to achieve it. Developing a business plan is an essential step in this process.

When developing a business plan, consider the following questions: What crops or livestock will you produce?

Who is your target market? How will you market your products? What are your start-up costs and ongoing expenses? What are your projected revenues and profits?

Creating a Farm Layout

It can help you optimize your use of space, improve efficiency, and reduce costs. When creating a farm layout, consider the following factors: What is the size and shape of your land? What is the topography and soil type?

What are the climate and weather patterns in your region? What is the water source and availability? What are the zoning and land use regulations in your area?

Choosing Crops and Livestock

Here are some tips to help you choose the right crops and livestock for your farm:

READ NEXT: The Key to Safe Towing: Understanding Trailer Tongue Weight

Financing Your Farm

Finding funding sources.

The USDA offers various programs and services to help farmers get started or grow their operations, including farm loans, crop insurance, conservation programs, and disaster assistance.

Additionally, there are private lenders, grants, and crowdfunding platforms that you can explore. When researching funding sources, it’s essential to consider the eligibility requirements, interest rates, repayment terms, and any other fees associated with the loan or grant.

Applying for Loans and Grants

Once you’ve identified potential funding sources, it’s time to start the application process. Applying for loans and grants can be a time-consuming and challenging process, but it’s essential to be thorough and accurate in your application to increase your chances of approval.

When applying for loans, you’ll need to provide financial statements, tax returns, and other documentation to demonstrate your ability to repay the loan.

You must also provide a detailed business plan outlining your farm’s goals, objectives, and financial projections.

When applying for grants, you’ll need to provide detailed information about your farm and explain how the grant will help you achieve your goals.

You may also need to provide financial statements, tax returns, and other documentation to demonstrate your eligibility for the grant.

In conclusion, finding funding sources and applying for loans and grants can be a challenging but necessary process for small farmers.

By researching your options and being thorough in your application, you can increase your chances of securing the funding you need to start or grow your farm.

Managing Your Farm

One of the most important aspects of running a successful farm is managing it effectively. This involves managing your finances, marketing your products, and managing your land and livestock. In this section, I will discuss each of these areas in more detail.

Managing Your Finances

This can be done using financial software or by hiring an accountant.

It is also important to have a solid business plan in place. This will help you stay on track and make informed decisions about your farm. Your business plan should include your goals, marketing strategy, and financial projections.

Marketing Your Products

This can include advertising, social media, and attending farmers’ markets and other local events.

You should also consider offering CSA (Community Supported Agriculture) shares. This is a great way to build a loyal customer base and secure a steady source of income.

Managing Your Land and Livestock

This involves regular maintenance and upkeep of your farm, including fertilizing, planting, and harvesting. You should also have a plan in place for managing pests and diseases.

When it comes to livestock, it is important to provide them with proper nutrition, shelter, and medical care. You should also have a breeding plan in place to ensure the sustainability of your herd or flock.

Machinery, engines, and farming have always been a passion of his since he was a young boy. Growing up on a small farm in rural America, he learned the value of hard work and dedication from an early age.

After completing his degree in Engineering, he decided to follow his dream and became a farmer in 2009.

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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

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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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New and Beginning Farmer Series: Writing a Farm Business Plan

Marcus Coleman

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

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

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

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

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

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

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

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

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

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

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

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

Table 2. Intermediate Goals (4-6 years)

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

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

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

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

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

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

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

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

Table 4. Marketing Plan

For more information:

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

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

Author Information:

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

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

Acknowledgement:

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

Visit our website: www.LSUAgCenter.com

Luke Laborde, Interim LSU Vice President for Agriculture

Louisiana State University Agricultural Center

Louisiana Agricultural Experiment Station

Louisiana Cooperative Extension Service

LSU College of Agriculture

Pub. 3800 (online) 04/22 rev.

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

Oregon Flower Farm Business Plan Example

Interval Farm Business Plan Sample

Peach Farm Business Plan Sample

USDA FSA Sample Microloan Application

How to Start a Small Farm Business

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If you want to start a small farm business, you may be wondering what step to take first. You might not even have land yet, but you are still thinking and planning for the time when you will make your move. And finding farmland is one important step in farming - one that you'll want to take after considering some other factors.

Learn About Farming

You can't go wrong starting with this step. If you're new to farming, learn everything you can about it within the time you have. But be reasonable, too. You can't know everything there is to know. Some learning will have to be on the job, and trial and error is messy, time-consuming and sometimes costly. Yet it's inevitable with farming, so embrace the process. But learn some, too. Balance.

If you can find a mentor - someone you can learn from directly, perhaps in your community now or where you hope to farm - it can be extremely helpful. If you haven't already, work on a farm. Volunteer. Gain experience before you begin.

Design and Plan Your Farm

An important part of starting your farm business is defining what it will be. Do you want to have a micro-scale vegetable farm? Do you plan to grow acres of hay for other farmers? Maybe you want to have a diversified farm - a small-scale operation that grows a variety of animals and crops. You might even be wondering how to start an ecotourism farm, where people will come to stay to see the workings of your farm and perhaps even participate in farm chores.

Write a Business Plan

You may wonder if you need a business plan . The short answer: if you want to start a business, you will need a business plan.   In the writing of the business plan, you will consider markets, supply and demand, as well as anything and everything that pertains to your farm operations, management structure, financial analysis, products, and price points. You may cycle between this step and the previous one, designing and planning because they are interconnected. But a business plan is a significant enough part of starting a business to take up an entire step. It's where you take your dreams and brainstorms and make them a reality.

Find Grants and Loans

You might not have all the capital you need to start farming on the scale that you'd like. You can start small, dip a toe in the water and see how you enjoy farming on a micro scale, using whatever you can glean from your monthly household budget to invest in the farm. But it might take a long time to get anywhere using this method, as you may not be able to invest a significant amount, enough to bring product to market. Grants and loans aimed at young and beginning farmers are out there! Help is available for established farmers, too. Programs offer subsidized equipment like high tunnels, assistance in certifying organic, and more. ​

Get Business Licenses and Permits

Your local and state law may vary when it comes to the requirements for establishing a small farm business.   But the basics are the same: you will probably need to register your business name, purchase a business license, get an employer identification number, and carry product liability insurance.

Set Up Finances

You will also need to decide on your business structure. Will this be a sole proprietorship, an LLC or something else? Contact an accountant to get information specific to your situation. Financial planning should be in your business plan. It's very important to set up a system for bookkeeping and accounting from the start of your small farm business.

“ First Steps .” U.S. Department of Agriculture.

“ Growing Opportunity: A Guide to USDA Sustainable Farming Programs .” U.S. Department of Agriculture.

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

• Title & authors

Salarda, Lady M. D. "Agri-Farm Tourism in Region IV-A: Basis for A Proposed Development Plan." International Journal of Multidisciplinary: Applied Business and Education Research , vol. 2, no. 12, 2021, pp. 1314-1325, doi: 10.11594/10.11594/ijmaber.02.12.03 .

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Agri-Farm tourism in Region IV-A is very evident because of its rich farm lands. It is an indication that it gets to produce jobs and income to its people and the community at large.  In order to develop sustainable Agri-farm tourism in Region IV-A, the study suggested variety of projects, strategies and activities to be implemented contributing to the environmental, cultural, social and economic growth of the area that is reflected through a development plan. The study was conducted to determine what are the products, services, marketing activities and linkages in Agri-farm tourism in Region IV-A, and assess its economic contributions to the region, as well as its capability to be sustainable. Likewise, the researcher come up with any recommendations that will improve the products, services, marketing activities and linkages of Agri-farm tourism in the region and will contribute to its possible sustainability based or anchored purely from the results of the study. The descriptive method of research was employed in this study. The respondents such as farm owners, Local Government Unit employees and visitors were randomly chosen and asked to answer the survey questionnaire about their perceptions on the products, services, marketing activities, linkages and the problems encountered in the selected Agri-Farm Tourism sites located in Region IV-A. Responses were analyzed using percentage, weighted mean, Analysis of Variance, Ranking, and to assess whether there is a significant difference in the responses of the three groups of respondents, use the t-test (Grouped Data).The results showed that the respondents looked for a more sustainable products, services, marketing activities and linkages. In the acceptability of the Development Plan, it was found to be highly acceptable by the respondents and can be implemented by the Agri-farm tourism owners for sustainable development. These results suggest that owners and the management should consider improving the Agri-farm tourism business with strong emphasis on the products, services, marketing activities and linkages to attain higher assessment rating from Very Good to Excellent. The Proposed Development Plan may be adopted by the Agri-Farm Tourism planners, farm owners and Local Government Unit employees should give emphasis on Agri-farm Tourism offer as to products and services, extent of marketing and linkages, and its sustainability to keep the Agri-farm tourism business.

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