organic farming business plan pdf

New Crops & Organics

Organic Farm Business Planning

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A successful business always includes a good business plan. A new agricultural enterprise needs to produce profits to be worthwhile for the farmer. In order to assess if a new crop or product, like organics, will work for your business you’ll need to “run your numbers” and flush out the details by preparing a sound plan. The process of developing a business plan allows entrepreneurs to spot risks and pitfalls in a new idea and determine the profitability of that idea. In addition, lenders and funders may require a business plan prior to financing your operation.

An agricultural enterprise budget acts as a financial decision-making matrix wherein the farmer inputs all costs and returns to determine the profitability of a crop or livestock enterprise. Although enterprise budgets are only estimates, they provide an idea of what a farmer can expect to make when producing and selling a new crop.

Business Planning Resources

• Building a Business Plan for your Farm: Important First Steps
• Asheville SCORE – free professional counseling for small businesses and enterprises

Budgets, Pricing & Profitability

(not all organic, but good information for all farmers)

• Vegetable Crop Budgets – NC State University Agricultural & Resource Economics
• Fruit Budgets – NC State University Agricultural & Resource Economics
• The New Farm OPX – Organic Price Index
• Grants Available through Southern SARE
• Western North Carolina AgOptions
• RAFI-USA – For former and current tobacco growers
• Self-Help Credit Union – creating ownership and economic opportunity to those who are underserved by conventional lenders
• Carolina Farm Credit

Reviewed 7/4/2022. Jeanine Davis, NC Alternative Crops & Organics Program, Department of Horticultural Science, NC State University.

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How to write a business plan for an organic vegetable farm?

Writing a business plan for an organic vegetable farm can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing an organic vegetable farm business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for an organic vegetable farm?

• What information is needed to create a business plan for an organic vegetable farm?
• What goes in the financial forecast for an organic vegetable farm?
• What goes in the written part of an organic vegetable farm business plan?
• What tool can I use to write my organic vegetable farm business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write an organic vegetable farm business plan in the first place.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your organic vegetable farm. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your organic vegetable farm to be in the next three to five years.

Once you have a clear destination for your organic vegetable farm, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To get visibility on future cash flows

If your small organic vegetable farm runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your organic vegetable farm's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your organic vegetable farm business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your organic vegetable farm's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Whether you are a startup or an existing business, writing a detailed organic vegetable farm business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your organic vegetable farm has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for an organic vegetable farm, let's take a look at what information is needed to create one.

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Information needed to create a business plan for an organic vegetable farm

Drafting an organic vegetable farm business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for an organic vegetable farm

As you consider writing your business plan for an organic vegetable farm, conducting market research becomes a vital step to ensure accurate and realistic financial projections.

Market research provides valuable insights into your target customer base, competitors, pricing strategies, and other key factors that can significantly impact the commercial success of your business.

Through this research, you may uncover trends that could influence your organic vegetable farm.

You may discover that organic vegetable farms are becoming more popular with consumers. This trend could result in your farm having an increased demand for organic produce. Additionally, market research may reveal that there could be a growing interest in locally grown produce. This could potentially create an opportunity for you to expand your customer base by marketing your organic vegetables as locally sourced.

Such market trends play a significant role in forecasting revenue, as they offer valuable data about potential customers' spending habits and preferences.

By incorporating these findings into your financial projections, you can present investors with more accurate information, helping them make informed decisions about investing in your organic vegetable farm.

Developing the sales and marketing plan for an organic vegetable farm

As you embark on creating your organic vegetable farm business plan, it is crucial to budget sales and marketing expenses beforehand.

A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.

This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of an organic vegetable farm

As you embark on starting or expanding your organic vegetable farm, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

A vegetable farm might incur staffing costs such as wages for employees, payroll taxes, and insurance. They might also need to cover the cost of equipment such as tractors, harvesting tools, and irrigation systems. Additionally, they may need to invest in organic fertilizers and soil amendments to maintain their organic certification.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your organic vegetable farm's financial forecast?

The objective of the financial forecast of your organic vegetable farm's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for an organic vegetable farm are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for an organic vegetable farm shows how much revenue and profit your business is expected to make in the future.

A healthy organic vegetable farm's P&L statement should show:

• Sales growing at (minimum) or above (better) inflation
• Stable (minimum) or expanding (better) profit margins
• A healthy level of net profitability

This will of course depend on the stage of your business: numbers for a startup will look different than for an established organic vegetable farm.

The forecasted balance sheet of your organic vegetable farm

The projected balance sheet of your organic vegetable farm will enable the reader of your business plan to assess the overall financial health of your business.

It shows three elements: assets, liabilities and equity:

• Assets: are productive resources owned by the business, such as equipment, cash, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors, lenders, and other entities, such as accounts payable (money owed to suppliers).
• Equity: includes the sums invested by the shareholders or business owners and the profits and losses accumulated by the business to date (which are called retained earnings). It is a proxy for the value of the owner's stake in the business.

Analysing your organic vegetable farm projected balance sheet provides an understanding of your organic vegetable farm's working capital structure, investment and financing policies.

In particular, the readers of your plan can compare the level of financial debt on the balance sheet to the equity value to measure the level of financial risk (equity doesn't need to be reimbursed, while financial debt must be repaid, making it riskier).

They can also use your balance sheet to assess your organic vegetable farm's liquidity and solvency:

• A liquidity analysis: focuses on whether or not your business has sufficient cash and short-term assets to cover its liabilities due in the next 12 months.
• A solvency analysis: takes and longer view to assess whether or not your business has the capacity to repay its debts over the medium-term.

The projected cash flow statement

A cash flow forecast for an organic vegetable farm shows how much cash the business is projected to generate or consume.

The cash flow statement is divided into 3 main areas:

• The operating cash flow shows how much cash is generated or consumed by the operations (running the business)
• The investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.)
• The financing cash flow shows how much cash is raised or distributed to investors and lenders

Looking at the cash flow forecast helps you to ensure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

It is also a best practice to include a monthly cash flow statement in the appendices of your organic vegetable farm business plan so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan - also called a sources and uses table - is an important tool when starting an organic vegetable farm.

It shows where the money needed to set up the business will come from (sources) and how it will be allocated (uses).

Having this table helps understand what costs are involved in setting up the organic vegetable farm, how the risks are distributed between the shareholders and the lenders, and what will be the starting cash position (which needs to be sufficient to sustain operations until the business breaks even).

Now that the financial forecast of an organic vegetable farm business plan is understood, let's focus on what goes into the written part of the plan.

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The written part of an organic vegetable farm business plan

The written part of an organic vegetable farm business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of an organic vegetable farm business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your organic vegetable farm's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your organic vegetable farm's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

The second section in your organic vegetable farm's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure of the business, who the owners are and how much each has invested and owns. If you are seeking financing it is important that the reader gets a clear picture of which legal entity is receiving the funds, and who controls the business.

The location part should give an overview of the premises from which the company is operating, and why that location is of particular interest (catchment area, accessibility, amenities nearby, etc.).

When describing the location of your organic vegetable farm, you could emphasize its potential to reach a wide customer base. It may be located in an area with good access to major roads and highways, making it easy for customers to make the trip to your farm. Additionally, the location could be in a region with a growing population, allowing you to take advantage of a larger customer base. Furthermore, the region could have a favorable climate for organic vegetable farming, making it a great place for your farm to thrive.

Finally, you should introduce the management team. Explain each member's role, background, and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, and how long they've been working together, as this will help potential lenders or investors understand why they should trust in their leadership.

3. The products and services section

The products and services section of your business plan should include a detailed description of the offerings that your company provides to its customers. 

For example, your organic vegetable farm could offer a variety of freshly-harvested produce like leafy greens, root vegetables, and herbs to customers; a weekly vegetable subscription box with a selection of seasonal produce; and a CSA (Community Supported Agriculture) program that allows customers to purchase a share of the farm's harvest. This would offer customers the opportunity to enjoy healthy, locally-sourced organic produce while supporting a sustainable farming practice.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When you present your market analysis in your organic vegetable farm business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your organic vegetable farm, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your organic vegetable farm aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include health-conscious families. These families care deeply about the food they feed their children and seek out organic ingredients when possible. They are likely to purchase organic vegetables in bulk and appreciate the convenience of having their favorite produce delivered to their door.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your organic vegetable farm.

5. The strategy section

When you write the strategy section of your organic vegetable farm business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.

The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.

Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.

For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.

Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.

Your organic vegetable farm may face a variety of risks. One potential risk could be a natural disaster, such as a hurricane or hail storm, which could damage your crops and reduce the amount of produce you are able to harvest. Another risk you could encounter is theft or vandalism of your property or equipment, which could lead to financial losses. In both cases, the risks could have a significant impact on the success of your farm.

6. The operations section

The operations of your organic vegetable farm must be presented in detail in your business plan.

The first thing you should cover in this section is your staffing team, the main roles, and the overall recruitment plan to support the growth expected in your business plan. You should also outline the qualifications and experience necessary to fulfil each role, and how you intend to recruit (using job boards, referrals, or headhunters).

You should then state the operating hours of your organic vegetable farm - so that the reader can check the adequacy of your staffing levels - and any plans for varying opening times during peak season. Additionally, the plan should include details on how you will handle customer queries outside of normal operating hours.

The next part of this section should focus on the key assets and IP required to operate your business. If you depend on any licenses or trademarks, physical structures (equipment or property) or lease agreements, these should all go in there.

You may have key assets such as land and equipment that could be considered intellectual property. Additionally, the farm may have special recipes or techniques for preparing organic vegetables that could be considered intellectual property. These may be closely guarded secrets that could give the farm a competitive advantage.

Finally, you should include a list of suppliers that you plan to work with and a breakdown of their services and main commercial terms (price, payment terms, contract duration, etc.). Investors are always keen to know if there is a particular reason why you have chosen to work with a specific supplier (higher-quality products or past relationships for example).

7. The presentation of the financial plan

The financial plan section is where we will present the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of what goes in your organic vegetable farm business plan, let's look at the solutions you can use to draft yours.

What tool should I use to write my organic vegetable farm's business plan?

There are two main ways of creating your organic vegetable farm business plan:

• Using specialized business planning software,
• Hiring a business plan writer.

Using an online business plan software for your organic vegetable farm's business plan

Using online business planning software is the most efficient and modern way to write an organic vegetable farm business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

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Hiring a business plan writer to write your organic vegetable farm's business plan

Outsourcing your organic vegetable farm business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the organic vegetable farm business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your organic vegetable farm's business plan using Word or Excel?

I must advise against using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write your organic vegetable farm business plan. Let me explain why.

Firstly, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is highly technical and requires a strong grasp of accounting principles and financial modelling skills. It is, therefore, unlikely that anyone will fully trust your numbers unless you have both a degree in finance and accounting and significant financial modelling experience, like us at The Business Plan Shop.

Secondly, relying on spreadsheets is inefficient. While it may have been the only option in the past, technology has advanced significantly, and software can now perform these tasks much faster and with greater accuracy. With the rise of AI, software can even help us detect mistakes in forecasts and analyze the numbers for better decision-making.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Moreover, software makes it easier to compare actuals versus forecasts and maintain up-to-date forecasts to keep visibility on future cash flows, as we discussed earlier in this guide. This task is cumbersome when using spreadsheets.

Now, let's talk about the written part of your organic vegetable farm business plan. While it may be less error-prone, using software can bring tremendous gains in productivity. Word processors, for example, lack instructions and examples for each part of your business plan. They also won't automatically update your numbers when changes occur in your forecast, and they don't handle formatting for you.

Overall, while Word or Excel may seem viable for some entrepreneurs to create a business plan, it's by far becoming an antiquated way of doing things.

• Having an up-to-date business plan is key to maintaining visibility on your future cash flows.
• A business plan has 2 parts: a financial forecast highlighting the expected growth, profitability and cash generation of the business; and a written part which provides the context needed to interpret and assess the quality of the forecast.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this guide helped you to better understand how to write the business plan for an organic vegetable farm. If you still have questions, do not hesitate to contact us.

Also on The Business Plan Shop

• How to write a 5 years business plan
• Business plan myths

Know someone who owns or wants to start an organic vegetable farm? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How to Start a Farm: Plan Your Operation

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

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

On This Page

Why you need a farm business plan.

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

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

How USDA Can Help

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

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

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

Build a Farm Business Plan

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

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

Business History

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

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

Mission, Vision, and Goals

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

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

Organization and Management

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

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

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

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

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

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

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

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

Farm Business Plan Worksheets

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

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

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

Planning for Conservation and Risk Management

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

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

Conservation in Agriculture

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

Disaster Recovery

Special Considerations

Special considerations for businesses.

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

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

Special Considerations for Individuals

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

• socially disadvantaged
• limited resource
• military veterans

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

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

Business Planning

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

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

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

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

Training Opportunities

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

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

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

2. Visit Your USDA Service Center

How to Start a Farm with USDA

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

Find Your Local Service Center

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

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

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Organic Farm Business Plan Example

NOV.11, 2016

The demand for healthy and nutritious foods is at an all-time high across the globe. The realization that most of the lifestyle-related diseases are caused by consumption of foods that are contaminated with harmful chemicals is one of the main reasons why most people are inclined to organically grown foods.

You can contribute positively to the health and wellness of millions of individuals from all across the globe by starting an organic farm. Before you do that, you need to have an organic farm business plan to guide you as you start planting the various crops.

OGS Capital, an internationally accredited company that offers business plan writing services , can write the plan and help you implement the recommendations. Over the many years that we have been in plan of a business , we have helped thousands of farmers set up organic farms across the globe. Therefore, you can be sure that you will get value for money.

Benefits of Starting an Organic Farm

Knowing the specific benefits of running an organic farm will help motivate you to venture into the industry even more. Here are three primary benefits of starting an organic farm.

• Provides healthy food products that promote wellness
• Contributes positively to environment conservation
• Helps alienate food insecurity in the world

Let us take another bold step and discuss these benefits in-depth. Note that all this information will be included in your organic farming business plan to show your understanding of this form of agriculture.

Promotes Environmental Wellness

The conventional farming techniques entail the use of chemicals such as fertilizers and other farm inputs in a bid to promote maximum growth of the crops. The main reason for doing this is to ensure that farmers get a high return on their investment. Unknown to them is that their actions have harsh repercussions on the environment.

For instance, some of the chemicals used to make artificial fertilizers infiltrate deep into the soil, and this results in soil pollution. Over time, the chemicals are pushed further down to the underground water reservoirs. Use of such water for domestic purposes can lead to cancers and other serious health issues. The team of writers and agriculture experts who offer farming business plan services in our farm will provide clear guidelines on how the organic farm will prevent such occurrences and instead promote environmental conservation.

Provide Healthy Food Products

The farm business plan is not considered complete and viable if it does not give details about the quality and health standards of the agricultural produce. Even though organically grown foods are perceived to be healthy, it is important to put in place quality control measures to ensure that consumers get nothing but the best farm products in the market.

Our team will help you come up with a way of monitoring the quality of your products. Thanks to technological advancements, there is modern equipment that you can use to check each product before transporting it to the market. By applying the recommendations, you will be able to monitor the quality of your products. Customers will also gravitate to your store resulting in high returns.

Alienate Food Insecurity

It is disheartening to note that millions of people from all across the globe sleep hungry or have limited access to quality food. Climate change, global warming, and lack of enough resources to do farming are three primary reasons for food insecurity, especially in the developing countries. The government in the affected countries need to sensitize the masses about organic farming as well as offer incentives to resolve this problem.

Establishing an organic farm will increase food availability not only locally but also an international level. For instance, you can decide to ship some of the produce to affected parts of the world. Our team will carry out intensive research on the degree of food insecurity in the world and articulate the facts in the business plan. This information will further motivate investors and banks to support your great incentive.

If you are looking for an expert writer who specializes in offering farm business plan UK services, get in touch with us today. We are a team of professional writers who have teamed up to help entrepreneurs like you to start businesses successfully by offering excellent farm buisness plan services.

One of the most important aspects that make us special is our commitment and determination. We are also keen on embracing technology as evident from the analytical tools that we use to collect and analyze data. Once you fill the contact us form and hit the “submit” button, the message will be relayed to our team and will be acted upon immediately.

Download Organic Farm Business Plan Sample in pdf

OGScapital writer specializes in business plan themes such as Christmas tree farm business plan , organic fertilizer business plan , fish farm business plan , hydroponics farm business plan , lawn care business plan , benefits of business continuity planning and etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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Free Agriculture Sample Business Plan PDF + How to Write

Elon Glucklich

6 min. read

Updated February 7, 2024

Free Download:  Agriculture Business Plan Template

As a farmer, you’re in the business of putting food on the table. Agriculture is one of the world’s oldest professions.

Today it accounts for over 5% of U.S. Gross Domestic Product, and 1 in 10 American workers are in agriculture, food, and related industries.

But starting a new agriculture business requires intensive planning and upfront preparation. If you’re looking for a free, downloadable agriculture sample business plan PDF to help you create a business plan of your own, look no further.

Keep in mind that you don’t need to find a sample business plan that exactly matches your farm. Whether you’re launching a larger agricultural business outside a bustling city or a smaller organic operation, the details will be different, but the foundation of the plan will be the same. 

Are you writing a business plan for your farm because you’re seeking a loan? Is your primary concern outlining a clear path for sales growth? Either way, you’re going to want to edit and customize it so it fits your particular farm. 

No two agriculture farming businesses are alike.

For example, your strategy will be very different if you’re a dairy operation instead of a soybean farm. So take the time to create your own financial forecasts and do enough market research for your specific type of agriculture so you have a solid plan for success. 

• What should you include in an agriculture farm business plan?

Your agriculture business plan doesn’t need to be hundreds of pages—keep it as short and focused as you can. You’ll probably want to include each of these sections: 

1. Executive summary

An overview of your agriculture business, with a brief description of your products or services, your legal structure, and a snapshot of your future plans. While it’s the first part of the plan, it’s often easier to write your executive summary last.

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2. Business summary and funding needs

Details about your farming operation, including how much capital you will need and the types of funding you’re considering. Include your business history, your current state, and your future projections. It should also cover your business location, the equipment and facilities needed, and the kinds of crops or livestock you plan to raise.

3. Products and services

Provide details on the types of crops, farming methods, and any value-added products you plan to offer, such as finished goods or even  agritourism offerings .

4. Marketing plan

Compile your market research findings, including the demand for your products or services, your target customers , and your competitors. It should also outline your marketing strategy—how you plan to attract and retain customers. 

5. Financial plan

Your revenue projections, cost estimates, and break-even analysis. Your financial plan and forecasts should demonstrate that your business has a path to profitability.

• Building on your farm business plan sample

With a free agriculture business plan template as your starting point, you can start chipping away at the unique elements of your business plan.

As the business owner, only you can speak to aspects of your agriculture operation like your mission and core values.

You’re putting in the long hours to start a thriving farm business, so aspects of your mission – like a commitment to sustainable farming practices – will be best explained in your own words. Authenticity will help you connect with a growing market of consumers who value transparency and environmental stewardship in their food sources.

As for more conventional aspects of business planning , you will want to take on things like your marketing and financial plans one at a time. Here are a few specific areas to focus on when writing your business plan.

Invest time in market research

Starting an agriculture operation requires significant startup costs. When you throw in the unique land use considerations involved, it’s crucial to conduct thorough market research before investing hundreds of thousands – or even millions – of dollars into a farm business.

Start by researching the types of farms operating in your locality and wider region, and the specific crops or livestock they specialize in. You will need to understand seasonal trends, including crop yields and livestock productivity.

Note the demographics of the local community to understand their buying habits and preference for local produce. Also, be aware of the competitive landscape and how your farm can differentiate itself from others. All of this information will inform your service, pricing, marketing, and partnership strategy.

From there, you can outline how you plan to reach your target market and promote your farm’s offerings.

Craft your agriculture go-to-market strategy

One of the things that makes an agriculture farm business plan different from some service-based business plans is that you might decide to work only with one or two businesses that purchase your goods.  

You may offer different tiers of products to different types of buyers, such as produce for an organic farmers market, and corn for another farm’s animal feed. If that’s the case, make sure you include ideas like setting aside land for organic growth and maintenance.

Discuss your advertising and promotional strategies, emphasizing channels relevant to your target market. Also, consider how partnerships with local businesses, farmers’ markets, and other industry stakeholders can enhance your visibility.

Include your pricing strategy and any special promotions or loyalty programs. Also, consider public relations and media outreach efforts that can raise awareness about your farm and its sustainable practices.

Prepare for unique farming challenges

Running an agricultural business comes with its own set of challenges, including weather-related disruptions and market volatility. Your business plan should identify these potential risks and present contingency plans to address them.

Include a plan to mitigate weather-related risks, such as crop diversification, employing weather-resistant farming practices, investing in appropriate infrastructure like greenhouses or drainage systems, or taking out insurance to cover weather-related losses.

Detail the operational aspects of your business , including land ownership, employee status, farm maintenance, and safety requirements. Also, illustrate your strategies for managing crop production, livestock care, land stewardship, and regulatory compliance.

Plan for the future

Contingency planning is important in all businesses.

But the unique challenges in agriculture of changing market dynamics, regulatory changes, and climate impacts make it especially necessary to plan for the future. Detail how you’ll measure success, and how you will be prepared to adapt your offerings if you need to change the focus of the business due to factors outside your control.

Also, be ready to discuss opportunities for scaling your business over time, such as introducing new crops, expanding farm operations, or opening additional locations.

• Get started with your farm business plan sample

There are obviously plenty of reasons farm owners can benefit from writing a business plan — for example, you’ll need one if you’re seeking a loan or investment. Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.

Download this  agriculture farm sample business plan PDF  for free right now, or visit  Bplans’ gallery of more than 550 sample business plans  if you’re looking for more options.

See why 1.2 million entrepreneurs have written their business plans with LivePlan

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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Organic Farming Business Plan, Profitability, Schemes

Table of contents, importance of organic farming, the site is a key factor for business plan for organic farming, organic farm industry overview, government schemes for promoting organic farming, opportunities in organic farming business, organic farming market analysis business plan, organic agriculture business ideas, financing your organic farming business, the profitability of organic farming in india, advantages of organic farming, key characteristics of the organic farming business.

Business plan for organic farming: Organic farming mainly involves the cultivation of plants and rearing of animals in natural ways. Organic farming relies on ecologically balanced agricultural principles such as crop rotation, green manure, organic waste, biological pest control, organic fertilizers, and rock additives. A successful organic farming business always includes a good business plan. It is the system of production that is capable of avoiding or majorly block the use of pesticide, synthetically compounded fertilizers, livestock feed additives, and growth regulators. The flexible organic farming system relies upon crop residues, green manure, weeds, crop rotations, legumes, aspects of biological pest control, animal manures, and etc. Methods of organic farming are used in developing countries, majorly because of economics and fewer resource of chemicals.

A guide to organic farming business plan

Different organic farming methods

Organic farming is to release nutrients to the crops for increased sustainability in a pollution-free environment. It aims to produce a crop with nutritional value. There are different methods by which organic farming is practiced are as follows;

Fertilizers

Applying organic fertilizers without prior knowledge of their properties may cause crop yield decline under low application or pollute the environment. The application of organic fertilizers to ponds mainly depends on the fertilizer form and moisture content. Organic matter could be applied through the application of manure, compost, and animal by-products, such as feather meal or blood meal.

Crop diversity

Crop diversity is an aim of organic agriculture system, and a number of advantages can be obtained by the use of crop diversity such as improved crop yield, and reduced weed, diseases, and pests. However, a legal and logistic problem counteracts the diversification of crops.

Soil management

After the cultivation of crops, the soil loses its nutrients and quality depletes. Organic agriculture initiates the use of natural methods to increase the health of the soil. Soil management focuses on the use of bacteria that is present in animal waste helps in making the soil nutrients more productive to enhance the soil.

Pest control

Organic pesticides are derived from naturally occurring sources. These contain living organisms such as the bacteria Bacillus thuringiensis, used to control caterpillar pests or plant derivatives such as pyrethrins or neem oil. Mineral-based inorganic pesticides such as sulfur and copper are allowed.

In addition to pesticides, organic pest control integrates biological, cultural, and also genetic controls to minimize pest damage. Biological control utilizes the natural enemies of pests, that are predatory insects (e.g., ladybugs) or parasitoids (e.g., certain wasps) to attack insect pests. Pest cycles can be disrupted with cultural controls, of which crop rotation is widely used. The use of such varieties and the planting of genetically diverse crops provide genetic control against pests and plant diseases.

Crop rotation

In this organic farming, farmers do not grow the same crops on the same section of land year after year. If you are thinking about why there are numerous advantages associated with this practice, this technique naturally replenishes the soil as diverse plants donate nutrients to the soil. And, disrupting the habitat of weeds and insect pests helps control them.

Weed management

Weed is the unwanted plant and that grows in agricultural fields.  Organic agriculture farming focuses on lowering weed and not removing it completely. The most widely used weed management techniques are;

Mulching – Mulching is a process where we use plastic films or plant residue on the surface of the soil to block the growth of weed.

Mowing or Cutting – Mowing is the removal of weeds’ top growth.

• The environment benefits as natural habitat sources are less threatened.
• And it provides healthier food for people.

You should not miss the Poultry Farm Subsidy, NABARD Schemes .

The site plays an essential role in any venture to be successful. An organic farm’s location generally determines how the venture will turn out.

The organic farm site must be near a clean water source – water is a non-negotiable resource for crop growth and health. If the water source is far, it is more difficult to manage the irrigation process. This is a tedious consideration to make but is crucial for the success of the venture.

The proximity of the farm to the marketplace plays a big role in the sustainability of the farm. The farm’s closeness to the market allows for the easy transport of creating for selling. And, this helps save costs when transporting materials to the farm. However, site selection should be aligned with the purpose of the organic farm. The purpose of the farm determines its size.

The organic farm industry includes farms that mainly cultivate organic fruit, vegetables, grains, and other crops or livestock. It is very important to categorically state that organic farming does not involve the use of artificial chemicals, pesticides, and fertilizers, or genetically modified organisms.

The organic farming industry provides a variety of farm produce including beef, fruit, vegetables and also poultry. These farm products are free from artificial chemicals, pesticides, fertilizers, or genetically modified organisms. The organic farming business has been one of the economy’s best performing industries over the last half a decade. Global demand for the organic farm is rising due to increasing health concerns about food.

The Indian government will offer capital investment subsidy for organic farmers. It is offered through the National Centre of Organic Farming (NCOF) under the Department of Agriculture and Cooperation with the National Bank for Agriculture & Rural Development (NABARD). The prime objective is to readily obtainable organic resources for improving farm productivity without letting soil health.

Incentives are obtainable for reducing dependence on chemical aids and promote the conversion of organic wastes into nutrition sources for plants. Credit linked and back-ended subsidies are obtainable.

Under organic farming, there are a number of categories and you can select any one of them and specialize in that particular category.

If you have a proper financial background that can withstand loss at times, you can concentrate on the production of organic fruits and organic vegetables. The term loss was indicated due to the perishable nature of fruits and also vegetables. In this business category, its either success or loss.

Organic medicines are another group of products that will create more income. The shift is not to organic food alone, medicines are taken when it is organically produced.

You may also check the Aquaculture Subsidy, Loan, Eligibility, License .

Organic farming is a newly emerging concept with huge success and used to increase your profits. In an organic business view, the demand for these products increases when the supply is less. So, prices can be higher than the normal prices and this will not affect your sales. From reports, it is said that there are fewer outlets for buying organic products and there is a mismatch in supply and demand.

Market trends

One of the regular trends in the commercial organic farming line of business is that most players in the industry are no longer concentrating only on organic crop farming . They now find it easier to run organic crop cultivation and organic livestock farming . The fact those organic foods are expensive, the sale for organic food is on the increase and it is indeed profitable.

Organic farmers are known to pay attention to one or more organic products depending on farm location and types of farms suitable to the local climate. Market trends can influence farmers’ choices of more profitable crops or produce. Organic vegetables and organic fruits are the most established products provided by the industry. They have the highest demand as they are considered susceptible to chemical residues. Lastly, with the recent advancement in technology, organic farmers can now comfortably produce a variety of crops in a country where such crops can hardly survive and in places where there are few farmlands.

Organic Produce Farm – One of the popular ways you can get into the organic agriculture business is to grow organic produce. This is similar to regular produce farming, just without the chemical pesticides and fertilizers mainly used by conventional farms.

Organic Dairy Farming  – You can start a dairy farm where you use natural processes and organic feed for the cows.

Organic Livestock Farming – Or you could start a livestock farm where you use natural materials and processes to raise your livestock. Organic livestock farmers want to use organic animal feed.

Organic Fish Farming – There is some debate about how organic farmed fish can really be.

Organic Market – You could open up own organic food market where you sell organic items directly to consumers.

Farmers Market Vending – There are plenty of farmers’ markets around the country that you can rent space from to sell your organic foods.

Organic Farmers Market – Or you could actually organize very own farmers market and just work with organic farmers.

Orgnic Herb Growing – If you have a smaller space, then you can grow herbs to package for sale to consumers or retail outlets.

There are not several companies that have sufficient working capital on their own to completely finance their business by themselves.

A producer organization will need capital for the below purposes;

• Investments such as buildings, trucks, motorbikes, furniture, computers, and processing equipment, etc.
• Working capital such as payment of personnel, running cost of the business, and inputs
• Trade finance for buying of harvest
• Capital to overcome start-up losses

If the right market can be accessed then organic farming in India is profitable. Profit increases in mostly two ways;

• The cost of farm input reduces by using crop and also animal residue, organic waste as bio-fertilizer.
• Market value and demand for an organic product is high compared to traditionally developed farm produces.

There is a very good export potential of organic produces but organic farming methods should be strictly followed and along with organic certification from the authorizing body.

• Farmers can reduce their production costs as they do not need to buy expensive chemicals and also fertilizers.
• In the long term, organic farms save energy and also protect the environment.
• And the pollution of groundwater is stopped.
• Organic crops are structurally and also metabolically superior to other crops. Such crops are less vulnerable to rotting or molding and stored for a protracted period.
• Input costs are considerably lower compared to conventional farming.
• Organic plants can tolerate drought better and can grow even in areas with meager irrigation system facilities.
• Organic produces are tastier as the sugar content in them is richer due to better quality nutrients absorbed by crops.
• Plant diseases, weeds, and pests are naturally repelled through scientific crop rotation and other methods.
• Yields from the same piece of land are higher.
• Security of income and rich returns on investment assured.

The key characteristics of organic farming include;

• Providing crop nutrients indirectly using relatively insoluble nutrient sources which are made obtainable to the plant by the action of soil micro-organisms.
• Nitrogen self-sufficiency through the use of biological nitrogen fixation and efficient recycling of organic materials.
• Protecting soil quality using organic material and also encouraging biological activity.
• Indirect provision of plant nutrients using soil microorganisms.
• Nitrogen fixation in soils using legumes.
• Rearing of livestock, taking care of housing management, nutrition, health, rearing, and breeding.
• Care for the larger environment and also the conservation of natural habitats and wildlife.

Incase if you like this: Organic Hydroponic Gardening .

I am looking to work on my passion of food with a sustainable organic farming business startup…have few ideas that I need to work on with some established industry professional and organization to take it forward…

interested in organic vegetable farming

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• Organic Farm Business Plan

Article Index:

2.0 Company Description

3.0 products, 4.0 market analysis, 5.0 marketing strategy and implementation, 6.0 organization and management, 7.0 financial plan, 1.0 executive summary.

Once the humble family vegetable garden, Franks Organic Farm is today a one acre working farm with over 30 varieties of vegetables. When Frank Burns was laid off from his corporate position three years ago, he first he turned to the vegetable garden for money saving / economic reasons. But with the uncertainty of recent events in the Middle East, the energy crisis, the long term effects of reliance on fossil fuels, and his personal philosophies on conservation, Frank Burns and his wife Kathy, turned this family vegetable patch into a thriving certified organic produce business.

Franks Organic Farm is based on the sound principles of conserving natural resources, limiting the carbon footprint, growing, hiring and eating locally grown and prepared foods, and making the world a better place to live in. This unique perspective clearly shows in the quality of the produce, the well cared for gardens, and natural friendliness and ease of its owners.

Franks Organic Farm was created to meet the growing needs of a community that shares these same views and is concerned about what they eat and feed their children. This is a community that is tired of ‘fresh’ tomatoes bought at the local grocery store. When more than likely the “fresh” tomatoes were picked while still unripe, shipped 3,000 miles over several days/weeks, and then artificially “ripened” using ethylene gas, thus robbing it of practically all of its nutritional value.

Franks Organic Farm is a Community Supported Agriculture (“CSA”) Business entity. CSA is both a marketing strategy and a philosophy. The farmers sell shares (subscriptions) in the next season’s produce, usually before the season begins. Each week of the season, the member receives a ‘share’ of produce from the farm. In some cases the members are involved in decision-making of all aspects of the operation; in others the farmer makes all the decisions. Each CSA is as unique to the farmer and the community it serves. Members may pick up their boxes at the farm, at delivery sites, or home delivery may be offered.

The purpose of this business plan is to provide a blueprint for near term and long term goals. The business plan will be utilized as a tool to gauge how well the farm is doing in the future compared to their initial goals and keep them on target. The business plan is also a tool for lenders, explaining the need for initial financing, the source and use of funds, and debt repayment capabilities.

1.1 Business Objectives

Franks Organic Farm has simple objectives: provide healthy and delicious tasting vegetables while simultaneously leaving a minimal carbon footprint. In order to accomplish this, the farm plans to:

• Sell 60 shares by Year 2 and have full-time income or 90 shares sold by Year 3.
• In Year 4, Franks Organic Farm plans to purchase an additional 9 acres for a total of 12 acres. The initial 3 years of operations will provide the excellent credit history and track record necessary for this large purchase.

1.2 Mission Statement

Franks Organic Farm’s mission is to raise the best tasting and finest quality fruits and vegetables for the local community. Franks Organic Farm uses only natural and sustainable farming methods, free from pesticides or fertilizers. Natural foods and natural farming methods leaves a smaller carbon footprint while simultaneously improves the health of its customers and its local community.

1.3 Guiding Principles

Franks Organic Farm’s slogan is simple: “Live life simply and simply live”. The owners also believe in contributing to their community and the planet by:

1. Local Franks Organic Farm believes that in order for the survival of the planet, we must rely on local resources. Buying from local farmers supports the local economy.

2. Sustainable Living By reducing reliance on energy is better for the planet and conserves our natural resources.

3. Satisfied Customers Happy members ensure repeat business and their referrals grow the business.

1.4 Keys to Success

Below are a Franks Organic Farm’s Keys to Success:

• Superlative Communication  – Franks Organic Farm keeps its members current on all aspects of the farm – through its weekly newsletters and blog updates on what is happening during the winter months such as new and exciting vegetable offerings being planted in the greenhouse. Additionally, Franks Organic Farm encourages member feedback and input and has its members complete surveys and questionnaires regarding how the farm is doing and what can be done to improve operations.
• Healthier Food Choices  – All vegetables are USDA certified organic. The vegetables are pesticide free and chemical free and no preservatives are used.
• Support the Local Economy – Statistically more than 70 percent of the local food supply is grown outside the state. Buying from Franks Organic Farm ensures that its members buy locally and creates jobs that support the local market.
• Offer Personalized Selections  – Franks Organic Farm strives to be the leading CSA farm supplier of choice by providing customized offerings to its members. If, say a member wants a cucuzzi fruit – Franks Organic Farm will grow this item if the soil and temperatures can accommodate this item. By providing foods the customers want (and will actually eat) cuts down on waste and makes the planet a better place for everyone.
• Home Delivery  – Franks Organic Farm will establish weekly delivery times that are convenient for its customers. This saves customers time and gas money – making everyone happy. Alternatively customers will also have the option to pick up directly at the farm.

Frank and Kathy Burns run, manage, and operate Franks Organic Farm. The company initially sold farm to market then quickly began supporting local restaurants with surplus (waste) sold at the local farmers market. Frank and Kathy are operating the business as a CSA, a business for the first time this year.

The Burns selected the CSA model, in which both the farmer and the members have a mutual interest in the crop. And because the shares are essentially presold prior to planting, the ‘waste’ factor (or excess crops risk) are eliminated. Based on their success at the farmer’s market and local restaurants, the Burns have already sold 100 percent of their 30 shares.

Franks Organic Farm is located on one of three acres located at the Burns’ primary residence in Plymouth, Wisconsin. During the off season, the owners of Franks Organic Farm will actively target and market new members, engage in public speaking events, and complete their forthcoming E Books.

2.1 Ownership

Franks Organic Farm is a C-Corporation formed in the State of Wisconsin and is wholly owned by Frank and Kathy Burns.

Frank Burns, a former Human Resources Director at Sargento Cheese, was recently downsized. Not desiring to re-enter corporate America, and concerned about the environment, global issues and the state of the economy, Frank began expanding his family garden. What began as a way for the family to save some money and reduce the carbon foot print, today has grown from its small ¼ acre plot to over 1+ acre with plans for expansion to 12+ acres. A shrewd businessman and well known in the community, Frank initially approached colleagues and friends in the local restaurant community. These connections marked the beginning of business for the startup farm and as word of mouth spread, Franks Organic Farm attracted ten other additional restaurants. All surplus was sold at the local farmer’s market.

Kathy Burns is an elementary school teacher for the Sheboygan Area School District. A graduate of Marquette University in Milwaukee, Kathy has been teaching fifth grade Science for over ten years. Raised on a family dairy farm, Kathy’s family also had a small fruit and vegetable farm and she loved helping the family grow and harvest the crop. Mrs. Burn’s summer schedule is flexible and helps the family maintain the garden during the busy summer growth season.

2.2 Legal Form

Franks Organic Farm is C-Corporation formed in the State of Wisconsin. The entity is wholly owned by Frank and Kathy Burns.

2.3 Start-Up Summary

The Burns have been managing the family farm successfully for the last fifteen years. Recently the owners installed a greenhouse with warming lights for early starts. They also invested in a pickup truck (2005 Ford F150) for delivering vegetables to the members. Most recently they purchased a tractor and borrowed their neighbor’s attachments as needed for harvest.

Last year, Franks Organic Farm passed the stringent requirements needed to qualify as certified organic as deemed by the USDA. This allows them to market all produce as organic and can also bring higher margins when surplus produce is sold outside the CSA or to restaurants or market stands. The Burns realized that although consumers may not understand all the requirements associated with the organic label (such as pesticide control and fertilizers), the consumer is comfortable with the label. This, is one of the keys, they believe which will set Franks Organic Farm apart from its peers.

All pre-harvest and harvest supplies have been paid for out-of-pocket. The owners have already spent in excess of $40,000 to start their farm business.

When the owners announced they were becoming a CSA, the news traveled fast and demand for their products was so great that they have already presold 100 percent of their shares for the upcoming growing season. In order to meet these demands and meet the opportunity for growth, the owners are seeking an operating loan from the USDA’s Farm Service Agency, Insurance Company or private investor.

The credit facility will be used to meet operating and cash flow needs for the pre harvest and harvest season. The $14,500 credit facility will be secured by a first lien position on the 3 acre plot of land, all buildings and improvements (a greenhouse). The land is valued at $30,000 and is currently owned free and clear by the Burns. The land is adjacent to the Burn’s primary residence.

2.4 Location and Facilities

Franks Organic Farm is located in Plymouth, Wisconsin, located in Sheboygan County Wisconsin. Sheboygan County is located in east-central Wisconsin. Sheboygan County is a one-hour drive to Milwaukee and Green Bay, and less than a 3 hour trip Chicago. Interstate 43 and State Highways 23 and 57 make are the main highways.

Sheboygan County’s population is 117,566. It has grown 4.4 percent between 2000 and 2009. The County is expected to continue to grow by a similar rate until 2015 when it reaches a population of 123,209. Major employers include: Kohler Company, Bemis Manufacturing, Aurora Health Care, Johnsonville Sausage, Rockline Industries, and Sargento Foods. The City of Plymouth is located in west-central Sheboygan County along State Highways 23, 57, and 67. It is the second largest municipality in Sheboygan County and one of the fastest growing in the County. (Sheboygan County Economic Development Corporation).

3.1 Products/Services Descriptions

Franks Organic Farm’s growing season will start in early May and end in October with the goal of 20 weeks. Shares will be comprised approximately 10-15 different crops every 8 weeks of in-season produce. Here is an example of types of produce throughout the season:

Spring: Beets, Broccoli, Cabbage, Carrots, Garlic, Green Onions, Kale, Lettuce (several varieties), Radishes, Peas, Spinach.

Summer: Beans, Carrots, Cucumbers, Eggplant, Green Onions, Leeks, Melons, Onions, Sweet Peppers, Summer Squash, Tomatoes, Zucchini.

Fall: Beans, Beets, Broccoli, Cauliflower, Cucumbers, Chard, Lettuce (several varieties), Potatoes, Red Onions, Spinach, Winter Squash.

All share sales are sold in advance.

A Full Share will provide a family of four vegetables for a week. (estimate). Likewise, a Half Share provides a week of vegetables for two people. Full Shares are $750 and Half Shares are $375 for the season. (The owners are currently only considering the sale of Full Shares at this time).

The Burns will utilize a detailed planting schedule which historically has helped immensely especially in the hectic summer planting season. The detailed guide begins with the plantings that tolerate the coldest spring and these are started in their greenhouse. Summer crops will be shaded with cloths if necessary (like spinach for instance). The farmers will plant many tomatoes (which are very popular) and only some eggplant which is less popular. Other considerations that are detailed in the planting calendar will be the amount of produce that is needed. One way to plant more is to plant smaller amounts more often. Examples include broccoli, carrots, scallions, and summer squash. The Burns have learned that planting these items two or three times during the growing season yields more crop and the surplus can readily be sold at the farmers market. Picking peas is difficult at harvest time, so the Burns always plan to plant surplus to make harvest time worthwhile. It is expected that any surplus can be sold at the farmers market.

3.2 Competitive Comparison

Plymouth, Wisconsin, reports six CSA entities, of which three represent direct competition for the subject.

3.3 Product/Service Sourcing

All produce will be grown on Franks Organic Farm. Frank and Kathy Burns will both actively work and manage the farm.

Distribution At Franks Organic Farm, members have the option for home delivery or to travel to the farm on the scheduled pickup day.

The home delivery choice is what most members prefer and allows the Burns to deliver the farm fresh produce directly. This distribution method has the least carbon footprint, with one driver and one truck. It is obviously the most intensive for the Burns and with busy summer season, this can be too time consuming for them. Items are delivered in reusable boxes. This distribution method represents any easy way to deal with any shortfalls in produce the Burns will simply ‘mix and match’ items for the members.

Alternatively, the members have the option to pick up the produce directly at the farm. The Burns enjoy this option especially during the busy season, because it frees up some of their time. This option requires that the driveway be easily accessible to the members and that the farm appears in good condition at all times. This onsite setup allows members to view firsthand what is growing, the condition of the plants and soil. The members will also be aware of any draught issues for example, and what remediation efforts the farmers are taking to care for the crops. On pickup day, the Burns have setup a stand and a ‘buffet-style’ layout in which members can pick and choose up to a specific limit of produce for that week. This option creates a ‘festive’ environment on the farm in which members can interact with each other, the farmers, and exchange recipes. If any shortfalls exist, this mix and match buffet style provides the solution. Just like home delivery, members are given a one box to fill and refill weekly with their selections for the duration of the growing season.

3.4 Inventory Management

N/A. The CSA farm concept is all about freshness. The produce is delivered immediately from the farm to the (member’s) table.

3.5 Warehousing and Fulfillment

3.6 future products/services.

• The owners of the farm have plans to introduce honey bees the following season and offer honey as another organic product.
• On occasion, Franks Organic Farm partners with its neighboring dairy farm and an organic bakery in town. From time to time members will find fresh cheeses and organic breads in their weekly selection boxes. Franks Organic Farm owners are currently considering joining forces with a local orchard company as well. The orchard will supply apple butter and jams.
• Within one year, Franks Organic Farm plans to utilize an additional acre and add 30 more families to their growing share program. They plan to add 30 more families (shares) by Year Three.
• Franks Organic Farm has long term plans to purchase an additional 9 acres or a total of 360 shares. To support the farm, they will hire apprentice farmers, part-time delivery drivers and a bookkeeper. The Burns would then be able to focus their efforts on crop research, marketing trends and their members. Part of the focus of organic growing is returning back to the community. All employees will earn fair wages for work performed.
• Other future plans include accessing the internet to increase awareness and the importance of local and community farming. Kathy Burns is compiling a recipe E-book which will supplement cash flow during non-productive months. In his spare time, Frank Burns is also compiling an E-Book to sell on Franks Organic Farm website. The book will focus on modern organic farming techniques for the novice farmer. A second book is forthcoming dealing with environmental concerns and social responsibility.
• Additionally, Franks Organic Farm will publish a weekly newsletter to be included in the member’s box as well as the website. The newsletter will identify what is in the weekly box, what is happening on the farm and recipes. The newsletter will educate members to seasonal eating and sustainable principles.
• Franks Organic Farm has future plans for constructing a vegetable processing area with electricity and water. The facility will have a walk in cooler, a washing and grading area, stainless steel tables and two scales. Additional capital expenditures will be for the purchase of a newer (used) pickup truck and attachments for their tractor. (Currently they borrow their neighbor’s).

Sheboygan County’s cost of living is lower than the national average and housing costs are much lower than the national average. At the same time, Sheboygan County personal income is greater than the national average. In other words, this community not only has a high demand for organic items, but it can afford them as well.

4.1 Industry Analysis

This analysis is based on the North American Industry Classification System (“NAICS”) 111998: Agriculture – All Other Miscellaneous Crop Farming. The US crop production industry includes about 1 million farms with combined annual revenue of about $205 billion. Major companies include Dole Food Company, Chiquita Brands International, and Sunkist Growers. Crop farming is the growing and harvesting of field crops such as grain, oilseeds, tobacco, dry beans, potatoes, vegetables and melons, fruits and nuts, and floriculture.

Global crop production revenue exceeds $1 trillion. The US and China are among the top crop producers. Large companies outside the US include Fresh Del Monte Produce (headquartered in Cayman Islands); Total Produce (Ireland); and Amaggi Exportação e Importação (Brazil).

Demand is driven by federal agricultural policy programs, food consumption trends, and the grain and oilseed export market. The profitability of individual companies depends on maximizing crop yield and minimizing disease risk. Large companies have advantages in highly automated technologies and access to the latest in seed and crop technologies. Small operations can compete effectively by harvesting heirloom, non-genetically modified (GM), or specialty products. The industry is capital-intensive: average annual revenue per employee is about $390,000. (First Research)

The CSA makes the following generalizations/guidelines regarding its industry:

• New entrants should practice farming 2 years prior to making a commitment to the challenge of CSA farming
• In general, 20-30 shares per acre is possible
• 30 shares per farmer or laborer is possible
• To earn full time income 80-100 shares may be necessary
• The share price ranges from $300-$800 per share annually ($15-$40 per share weekly) (CSA – Michigan 2012)

4.1.1 Market Size

The US crop production industry includes about 1 million farms with combined annual revenue of about $205 billion. (First Research)

Although the USDA does not have official statistics on U.S. organic retail sales, information is available from industry sources. U.S. sales of organic products were $21.1 billion in 2008–over 3 percent of total food sales and were expected to reach $23.0 billion in 2009. (Nutrition Business Journal)

4.1.2 Industry Participants

Major participants include Dole Food Company, Chiquita Brands International, and Sunkist Growers. (First Research)

4.1.3 Main Competitors

Plymouth, Wisconsin reports six CSA entities, of which three represent direct competition for the subject.

Backyard Bounty W4873 County Hwy U Plymouth, WI 53073 http://ljcomerford.wordpress.com/

This is a 22 acre family owned farm and has been operating as a CSA for several years. In addition to its offerings of organic fruits and vegetables this farm also sells organic poultry and eggs. The farm had mixed reviews by its members.

Eilert’s Acres N5575 County Road ZZ Plymouth, WI 53073 http://www.eilertsacres.com/

Owned by Edward and Kay Eilert, this farm began business as a CSA in 2011. The farm provides many of the same vegetables as the subject as well as providing farm to door delivery service.

Springdale Farms W7065 Silver Spring Lane Plymouth, WI 53073 http://www.springdalefarmcsa.org/

This CSA farm is the most established in the direct market and has been in existence 20+ years. Springdale Farm has various pick up sites in the greater Sheboygan MSA. Based on the farm’s website, members are not given the option to select specialty vegetables and instead members are encouraged to ‘trade-in’ any unwanted produce back to the community to share and thus avoid waste. This has not proven to be a deterrent for the farm’s following. For the most recent growing season, the farm has a waiting list.

The following are CSA businesses that compete indirectly with the subject:

Old Plank Farm W6028 County Road C Plymouth, WI 53073 http://www.oldplankfarm.com/

This entity only sells its goods at a local farm stand; it does not sell shares. In addition, this indirect competitor sells organic eggs at its farm stand. Based on its limited selection and differing offerings, this indirect competitor attracts individuals who are only seeking small, specialty quantities of produce, but do not want to commit to purchasing shares for a full season.

Log Cabin Orchard N4797 County Rd E Plymouth, WI 53073 www.logcabinorchard.com

This indirect competitor is a fruit orchard selling apples, pears, plums, honey, apple and maple syrup, fresh apple cider and apple butter. In the fall, this CSA generally offers U-Pick apples options. Due its differing selection of products, this entity is not a direct competitor.

Red Twig Farm http://redtwigfarm.wordpress.com/

This entity only sells to Goodside Co-op and Trust Local Foods; because this CSA farm differs in its target client, it is does not represent a direct competitor for the subject.

4.1.4 Market Segments

2008, Sheboygan County’s median household in-come was $51,681 and the mean household income was estimated to be $61,889.

Nearly 72 percent of Sheboygan County’s housing units are owner-occupied. The median housing value in Sheboygan County is estimated to be $149,700, which is $43,000 less than the United States estimated median home value. At the same time, Sheboygan County income is higher than the national average, which is the reason for high home ownership rates.

Franks Organic Farm is targeting the households with incomes above $50,000. The target market represents approximately 51.5 percent of the total population, which should easily absorb Franks Organic Farm’s entrance.

Sheboygan County’s population is 117,566. It grew 4.4 percent between 2000 and 2009. The County is expected to continue to grow by a similar rate until 2015 when it reaches a population of 123,209.

4.2 Market Tests

While selling produce to local restaurants, Mr. Burns realized that the CSA option could potentially come to fruition. Historically the restaurant patrons always asked the source of the beautiful and delicate lettuces and quality tomatoes. Realizing the popularity of his produce, Mr. Burns, while continuing on a quest for global carbon footprint reduction, began researching the possibility of beginning a CSA effort. With the help of his restaurant partners, Mr. Burns posted fliers and brochures in their lobbies. By the end of the summer, Franks Organic Farm had presold 100 percent of the shares for the upcoming growing season.

4.3 Target Market Segment Strategy

Franks Organic Farm is targeting households with earnings in excess of $50,000 in the greater Sheboygan County. Approximately 51 percent of the population resides in this category. Other farmers have missed this target by focusing on traditional farming methods while Franks Organic Farm has obtained the Certified Organic stamp of approval. Additionally, Franks Organic Farm will focus its energies primarily on its members and provide services exceeding expectations by offering farm to door delivery service, providing supplemental local organic products and by providing a festive like atmosphere at the farm – especially on harvest day and other special occasions.

The following chart depicts the target market:

4.3.1 Market Needs

According to a USDA survey of market managers (Organic Produce, Price Premiums, and Eco-Labeling in U.S. Farmers’ Markets, April 2004) found that demand for organic products was strong or moderate in most of the farmers’ markets surveyed around the country, and that the managers felt more organic farmers were needed to meet consumer demand in many states. (USDA updated 06/19/12)

As demonstrated on the national map Sheboygan County represents a strong demand for organic produce.

“Organically” grown’ is the key. The term “organic” is now legally defined and can only be used to describe produce that is grown in accordance with the USDA rules and is certified as such by an independent agency.

4.3.2 Market Trends

While consumers may not understand all the requirements associated with being certified organic, they are comfortable with the label. Which is why Franks Organic Farm sought the services of the independent certification agency and has earned the distinction to be labeled an organic farm. Comparatively their CSA counterparts that continue to operate by traditional farming methods, Franks Organic Farm holds itself to a higher standard, which in time, they believe will attract and keep new members.

4.3.3 Market Growth

U.S. sales of organic products were $21.1 billion in 2008 – over 3 percent of total food sales- and were expected to reach $23.0 billion in 2009 (Nutrition Business Journal).

4.4 Positioning

Franks Organic Farm is aware that its members are crucial to its survival and growth. The owners will make certain each member feels that Franks Organic Farm is indeed his/her farm! After all, they do own a portion of the farm! The Burns will encourage its members to stop by to see operations. In addition the owners will host an open house at harvest time to celebrate the season’s bounty.

To further ensure its members are satisfied and encourage retention, the owners will use surveys and questionnaires as tools to gauge member satisfaction. The surveys/questionnaires will allow members to express feedback and also represent additional opportunities to communicate with Franks Organic Farm.

Franks Organic Farm is targeting households with earnings in excess of $50,000 in the greater Sheboygan County. Other farmers have missed this target by focusing on traditional farming methods while Franks Organic Farm has obtained the Certified Organic stamp of approval. Additionally, Franks Organic Farm will focus its energies primarily on its members and provide services exceeding expectations by offering farm to door delivery service, providing supplemental local organic products and by providing a festive like atmosphere at the farm – especially on harvest day and other special occasions.

5.1 SWOT Analysis

SWOT stands for strengths, weaknesses, opportunities and threats. The following is the SWOT analysis for Franks Organic Farm.

5.1.1 Strengths

• Franks Organic Farm receives share proceeds prior to start of the season which helps to pay for seeds, supplies and inputs
• During the off-season the owners of Franks Organic Farm can market and recruit new members and complete their E Books
• Franks Organic Farm will establish long term relationships with its members lasting at least one season
• Members share in the financial risks of the farm
• Low capital requirements, relatively inexpensive startup business

5.1.2 Weaknesses

• As many as 30 or more different crops must be grown to provide diversity to members throughout the season
• Location-if the farm is not close to its customers, it becomes burdensome for the farmer to make deliveries
• Labor intensive – during the season, crops are continually being planted, harvested, cleaned, sorted and packed – leaving little extra time for the farmer
• Member retention is key – if the member is not happy the likelihood of returning next season or providing a good recommendation is not good.

5.1.3 Opportunities

• The greater Sheboygan County is a prime location for organic produce with an historically high demand.
• Because many farmers still utilize traditional farming methods (pesticide and herbicide applications) Franks Organic Farm stands out from the crowd with its Certified Organic stamp of approval

5.1.4 Threats

• New entrants to the market pose a threat. Partially mitigating this risk is the recommended 2-3 year trial farming period – which would give Franks Organic Farm the necessary ‘heads-up’ to go against (said) competitors.
• Weather, storms, pests – can damage or even destroy crops.
• The farm is economically tied, and in inflationary times, consumers could revert back to traditional methods of buying fruits and vegetables at the local grocery store.

5.2 Strategy Pyramid

Strategy Create awareness that Franks Organic Farm delivers a wide variety of quality wholesome and healthy vegetables on a consistent basis.

Tactics Create a specific, detailed planting guide, planting several times over the growing season.

Programs Post fliers and brochures at local restaurants, and locally owned and operated organic/natural item stores in town.

Strategy Create a community of awareness to think globally, act locally.

Tactics Constant communication with members will foster the awareness who in turn will relate these ideals to the local community.

Programs Host open house events at Franks Organic Farm for special events such as Harvest Time and Earth Day.

5.3 Unique Selling Proposition (USP)

Kathy and Frank Burns stand out from the competition: They are experienced operators and have demonstrated ability to grow large quantities of many different vegetables. They have demonstrated their ability to manage the crops, harvest, pack and deliver to their customers. They are doing business as a CSA. And unlike their conventional farming peers, Franks Organic Farm has met the stringent requirements to be designated Certified Organic.

5.4 Competitive Edge

CSA farming differs greatly from traditional farming due to the fact that members have ownership shares in the farm. Bearing this in mind, Franks Organic Farm will wholeheartedly focus on this vital aspect to retain members. The owners will constantly stay in touch with their members and encourage them to come and visit ‘their’ farm.

Unlike its traditional farm stand competitors, Franks Organic Farm will offer a variety of selections – up to 30 different types of produce during season. It should be noted that variety is a double edged sword: Many members will join a CSA because of the variety of offerings. It is important to have plenty of the basics like green beans, tomatoes and carrots. Conversely, too little a selection will be disappointing. To meet this balance, the Burns have created a questionnaire asking members what they prefer.

The Burns also provide weekly recipes and meal planning tips to coincide with the weekly boxes. Customers like the convenience of knowing how to prepare the items they are picking up from ‘their’ farm.

5.5 Marketing Strategy and Positioning

Franks Organic Farm will utilize product differentiation to stand apart from the competition. By growing wholesome organic produce, offering farm to door service, and actively engaging with its members, Franks Organic Farm will go above and beyond to maintain and grow its member base.

5.5.1 Positioning Statement

Franks Organic Farm will be the premier organic CSA in the greater Sheboygan County by offering at least 30 of the most delicious and mouth watering organic vegetables available in the local growing area and by providing exceptional relationships with its members, its community and the planet.

5.5.2 Pricing Strategy

Franks Organic Farm will utilize a fair price for a fair value. Some research suggests that the CSA farm is usually lower in price than organically grown food from local markets and is often less than foods from the supermarket. This could be a selling point for attracting new members, however, it also important to note this in not about cheap food.

5.5.3 Promotion and Advertising Strategy

The best strategy is word of mouth advertising. When people are happy with their shares they tell friends.

Franks Organic Farm will place brochures with other CSA businesses such as the local organic bakery and neighboring dairy farm.

Franks Organic Farm’s website will provide additional marketing information. In addition to its map and location, Franks Organic Farm will be listed with other CSA organizations such as national CSA and the USDA.

In the off season, the Frank Burns will provide lectures to civic and environmental groups.

During harvest time, the farm will be open to the public to browse and purchase surplus from the harvest bounty. They will also host special events such as Earth Day.

5.5.4 Website

Franks Organic Farm’s website will be a vital key in marketing. In addition to providing its history, location and contact information, the site will also have links to its CSA affiliations, the USDA website and current organic industry topics. The website will also have links to the current weekly newsletter (during season) and off season the owners will maintain a blog of what items are currently going to seedlings in the greenhouse and what new and exciting produce will be available in the upcoming season.

Additionally, the site will have links to Kathy and Frank’s forthcoming E-books which will provide additional cash flow during the non-production months.

The site will also take advantage of social media and have a Facebook link as well.

5.5.5 Marketing Programs

Franks Organic Farm will actively work to engage its members and local community by:

• Creating fliers and brochures and posting in community gathering places such as churches, community centers, farmers markets and other environmentally centric business.
• Franks Organic Farm’s website with emphasis on its USDA Certified Organic stamp of approval; the website will also have links to the USDA website and the national CSA website.
• Word of Mouth will play an important role

5.6 Sales Strategy

Franks Organic Farm has already sold all 30 of its shares for the upcoming season with future plans to sell 60 shares in Year Two and 90 shares in Year Three. In order to meet these goals, the farmers will continue to rely on advertising fliers, its online presence and most importantly word of mouth. The word of mouth recommendation from a satisfied member not only generates an opportunity for repeat business, but also is beneficial in recruiting new members.

5.6.1 Sales Forecast

The following table represents the annual sales forecast for the initial three years of operations:

Table 5.6.1 Annual Sales Forecast

5.6.2 Sales Programs

Franks Organic Farm’s primary sales program is the sale of shares. Additional sales programs will come from the sale of their forthcoming books. Honey production is expected to come online by Year Three.

During the slow winter months, both Frank and Kathy Burns will actively market their Franks Organic Farm, by providing speaking engagements at local events, becoming involved in the local community primarily its environmental issues, and writing and publishing papers supporting locally grown businesses. This slower time will also be utilized to create the weekly newsletter templates which coincide with the weekly deliveries. Historically the members love the newsletters – which facilitate additional contact between farmer and member. The weekly newsletter summarizes what is included in the weekly delivery, offers recipes and cooking suggestions, and summarizes what activities are transpiring at the farm. (This will be helpful especially during the busy summer months when there is little time available to write the weekly newsletters).

Franks Organic Farm is a C-Corporation doing business in the State of Wisconsin.

5.8 Milestones

The following chart depicts the Milestones Franks Organic Farm anticipates achieving:

Table 5.8 Milestones

5.9 Exit Strategy

In the event that Franks Organic Farm will cease operations, all assets (farm equipment, tools, scales) will be sold at auction. Proceeds from the sale will be first be used to pay off the financial obligation to the operating capital loan and the remaining proceeds will be paid to the members (if any obligations remain).

6.1 Organizational Structure

Franks Organic Farm will be wholly owned and operated by Frank and Kathy Burns. Mr. Burns will perform all office and accounting functions such as calculating the initial garden costs, seed costs and planting times. Both owners will harvest the crop. Franks Organic Farm will hire one apprentice farmer for each additional acre that is cultivated. Over time, they have plans to hire part-time delivery drivers as well as bookkeeper.

6.2 Management Team

Frank Burns, will actively manage the farm. Farm management duties will include the creation of a detailed planting guide and building a living soil. Only sustainable and organic farming methods will be used with no reliance on off-farm inputs and chemical pesticides/fertilizers. Growing methods include crop rotation, planting cover crops, applying finished compost and mulches, and encouraging beneficial insects, weed management, irrigation and harvesting. Mr. Burns will also be responsibility for preparing detailed accounting records for their tax accountant.

Kathy Burns will also actively participate in managing the crop during the busy summer months. During the slower winter months, both will work to complete their E-books which will be sold on line and supplement revenue. They will also actively market Franks Organic Farm by speaking to local civic groups, providing tours of the farm, and drafting the weekly newsletters.

6.3 Management Team Gaps

Franks Organic Farm will rely on its Tax Accountant to assist with tax reporting.

6.4 Personnel Plan

The following is a summary of Franks Organic Farm’s Personnel Plan.

Table 6.4 Personnel Plan

6.5 Board of Directors

The financial plan will cover the following:

• Required Cost of Start-Up
• Profit and Loss
• Balance Sheet
• Financial Ratios

7.1 Important Assumptions

• Revenues increase 50% Year One and 33% Year Two
• The following variable expenses are tied to volumes and will increase the same amount as revenue: salaries, fuel charges, postage, repairs and maintenance and supplies
• The loan example is based on traditional lending – with a collateralized working capital loan, fully amortizing with a three year pay down.
• The loan interest rate is based on the Prime Lending Rate plus 4.00%; Wall Street Journal Prime at this writing is 3.25%

7.2 Start-Up Costs

The following chart summarizes start-up expenses:

Table 7.2 Start-Up Costs

7.3 Source and Use of Funds

To date, the owners have come out of pocket approximately $40,600 or 74 percent of the project’s total costs. The following chart summarizes the source and use of funds:

7.4 Break-Even Analysis

Total fixed costs are estimated to be $18,437. The variable costs (salaries, fuel charges, postage, repairs and maintenance, and supplies) are estimated to be $109.74 per unit (full share). Units are considered full shares for analysis purposes and do not consider half shares. Based on the assumption of $750 as the average share price, the breakeven revenue then is $21,597 or 4 units (shares). This is further depicted in the Table Below and the Graph that follows:

7.5 Projections

7.5.1 projected profit and loss.

Franks Organic Farm’s estimated profit and loss for the initial three years of operations is reflected below:

Table 7.5.1 Pro Forma Profit and Loss

7.5.2 Projected Cash Flow

The statement of cash flow shows the incoming and outgoing cash of Franks Organic Farm:

Table 7.5.2 Pro Forma Cash Flow

7.5.3 Projected Balance Sheet

The following chart depicts the proforma balance sheet:

7.6 Business Ratios

The following ratios are based on the North American Industry Classification System (NAICS) code 111998– All Other Miscellaneous Crop Farming. The ratio analysis compares the subject to industry peers based on similar asset size and revenues.

Table 7.6 Ratio Analysis

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Business Plan for setting up An Organic Farm

The business development plan is intended for establishing a new venture as an entrepreneur. Every new venture requires a detailed business proposal plan. A business plan is a formal written document containing business goals, the methods on how these goals can be attained, and the time frame within which these goals need to be achieved. It also describes the nature of the business, background information on the organization, the organization's financial projections, and the strategies it intends to implement to achieve the stated targets. In its entirety, this document serves as a road map that provides direction to the business. The evolving universal prospects for organic farm produce and the realization of long-lasting damages caused to soils by chemical fertilizers and pesticides have impelled a shift to organic farming methods both in developed and developing countries. Worldwide, about 130 countries produce certified organic products on a large commercial scale. There are various reasons for increasing the demand for organic products. This document demonstrations a proposed business plan, with a financial model, for setting up and functioning an organic farm company in Bangladesh.

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The Organic System Plan

What you need to know about creating an organic system plan.

To apply for organic certification, you must create an Organic System Plan (OSP ), which describes how your farming, handling and/or processing practices meet organic standards. The OSP should clearly explain your operating plan, including information on crops, animals, harvests, sales, records, soil-building practices, pest management, health care, pasture, and any other practices related to organic production.

Organic records include:

• Materials list outlining all substances used during the production of organic crops and livestock, including composts, fertilizers, insecticides, fungicides, health-care products, and feed.
• A map of all farmlands and production areas, illustrating how organic products are protected from contact with non-organically managed land.
• Complete field history for growing areas and pastures used in organic production, which includes plot size, crops, and any substances that have been used.
• Biodiversity plan outlining natural resource conservation.

Once completed, producers and handlers will send the OSP to a certifier as a part of their certification application.

• Access free training in the NOP Organic Integrity Learning Center , like the “NOP-150 Organic System Plans” course.
• Download sample OSP templates

Download the Guide for Organic Crop Producers (pdf) for more detailed guidance

OSPs for Split Operations, Livestock Producers, and Handlers/Processors

Split operations.

Many transitioning producers choose to convert only a portion of their land to organic production, while continuing to use conventional practices on other plots. This is known as a “split operation” and allows producers to begin raising organic products gradually. Producers may choose to transition to a fully organic operation over time or maintain split operations indefinitely.

When completing an OSP, split operations:

• Must document any way that organic products might mix or come in contact with non-organic products or prohibited substances.
• May need to provide information on both conventional and organic activities so that certifiers and inspectors can make sure the products are separated.

Download the Guide for Organic Crop Producers (pdf)   for more detailed guidance

Livestock Producers

Organic livestock producers must also follow organic guidelines for growing organic pasture and feed, as well as raising organic animals. Guidelines include the following:

• Generally, organic livestock must be raised organically from at least the third trimester of gestation.
• Birds used for poultry or egg production, may come from any source, but must be raised organically beginning the second day of life.
• Dairy animals must be raised organically for at least one year before their milk and milk products can be sold as organic.
• Organic livestock may only eat certified organic feed.
• Any pastures, forages, and plant-based bedding (such as hay) that livestock use or eat must be certified organic.
• Ruminant animals (cattle, sheep, and goats) must spend at least one-third of the year on pasture.

Download the Guide for Organic Livestock Producers (pdf)   for more detailed guidance

Handlers and Processors

Since their operations don’t use land for production, organic handlers and processors do not have a three-year transition. However, they must still complete an OSP that describes their handling and processing activities, including information about the type of business, ingredient purchases, transportation of raw ingredients, storage, cleaning and sanitation, processing, pest management, sales, and records.

The OSP for handlers should also include the following items:

• Flowchart that shows the movement of organic products from the time they are received at the facility to the time they are sold as finished products
• Facility map with enough detail to show the inspector where processing equipment is located
• Product profile for each individual product that lists all ingredients and processing aids used and the suppliers from which they were obtained
• Organic certificates from each supplier that verify ingredients are in fact organic
• Labels for each organic product produced
• List of materials used on food-contact surfaces, including cleansers and sanitizers
• List of substances used during or after products are washed

Download the Guide for Organic Processors (pdf)   for more detailed guidance

Other Helpful Resources

• Transitioning to Organic
• Becoming a Certified Operation
• Learn about conservation programs  
• NOP Organic Integrity Learning Center

All About NOP

• Contact Us  

[Pdf Sample] Business Plan For Horticulture Farming Docx

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Read Also:  [Pdf Sample] Business Plan For Goat Farming In South Africa Docx

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