how to write a small farm business plan

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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.

Details of a Small Farm Business Plan

• Swarthmore College

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

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

What Is a Business Plan?

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

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

Mission Statement

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

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

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

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

SMART Goals are:

• Rewarding, and have a

Background Information

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

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

Farm Strategy

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

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

Marketing Strategy and Plan

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

Management Summary

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

Financial Analysis

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

Pulling It All Together

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

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

12: Business Plans

What is a business plan.

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

A good business plan will contain the following:

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

Helpful Publications for Writing a Business Plan

General Business Resource Publications:

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

Cornell Cooperative Extension Publications for Specific Commodities:

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

Getting Help Writing a Business Plan

Farm Business Planning

Farm Business Planning is key to beginning farmer success.

It helps beginning farmers :

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

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

• Developing a Farm Business Plan
• Enterprise Budgeting

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

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

1. Developing a Farm Business Plan

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2. Enterprise Budgets

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

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

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

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

Enterprise Budgeting (Kerr Center)

Organic Specific Enterprise Budgets

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

More Enterprise Budget Pages and Information

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

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Farm Business Plan: Essential Steps for Success

Company overview

Setting short-term and long-term goals, competitive analysis, pricing strategy and promotion, regulatory compliance, creating financial statements, exploring angel investors and other funding sources, mentorship and training opportunities, step-by-step: create your farm’s ecommerce site on 10web, value-added products, vegetable farm business plan example.

Starting a farm is an exciting and a complex undertaking. One of the most important aspects is developing a detailed farm business plan. A well-structured plan helps you set goals, manage resources, and prepare for long-term success by covering financial projections, market analysis, and growth strategies.

Farming offers immense opportunities for profitability and growth, especially when utilizing sustainable practices and diversifying through value-added products and agritourism, which add excitement to the journey.

This article explores key steps to creating an effective agricultural business plan, from writing a mission statement and conducting SWOT analyses to exploring marketing and operational strategies.

How do you write a farm business plan?

Which farming is most profitable?

How do I start a mini farm business?

Is farm business profitable?

Which type of land is most suitable for farming?

What do farmers farm the most?

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Farm business plan structure

A good agricultural business plan covers several important aspects. It should include financial projections, market research, and strategies for growth. Using resources from experts can provide valuable insights and help you navigate the complexities of farming .

Executive summary

The executive summary gives potential partners and investors a snapshot of what your farm business stands for, along with the essential components that make it thrive. You’ll provide insight into your motivations and an overview of your company’s operations, helping others understand what makes your business unique.

Mission statement

Your mission statement is the heart of your farm business. It’s a brief yet impactful description of why your farm exists. This statement should capture your values, the goals you’re striving for, and the unique edge that sets your farm apart.

Think about what drives you and your farm. Whether it’s supplying organic produce to local communities, advancing sustainable farming practices, or delivering top-quality crops, highlight these points clearly.

By stating your mission thoughtfully, you give others a clear vision of the path your business is on. This can inspire trust in stakeholders and motivate your team to align with these core values.

The company overview provides a detailed look into your farm’s operations and setup. Here, you’ll outline key aspects like your farm’s location, size, and the type of agriculture you focus on. You should discuss the kinds of products or services your farm offers and any notable achievements or partnerships.

It’s also important to highlight your target market. Are you catering to local grocery stores , participating in farmer’s markets, or supplying to major retailers? Clarifying your market helps readers see your business’s reach.

Discuss key competitors and what makes your approach or offerings distinct. This adds context to your market position and offers insights into potential growth strategies.

Business planning process

Understanding the business planning process is key to running a successful farm. By evaluating your strengths and weaknesses and setting clear goals , you create a roadmap for your farm’s future. This approach helps maximize opportunities and address potential challenges effectively.

Analyzing strengths, weaknesses, opportunities, and threats

To start, identify the strengths and weaknesses within your farm. Strengths could include abundant resources or skilled workers, while weaknesses might be limited equipment or a lack of market knowledge. Listing these can help in focusing on what works well and what needs improvement.

Next, consider the opportunities that can benefit your farm. These might include emerging market trends or new technology that can enhance production. Equally important are the threats which could impact your operation. Threats might be economic shifts or regulatory changes. Conducting a SWOT analysis is a practical method to evaluate these factors and strategize accordingly.

Begin by outlining short-term goals that are attainable within a year. These might include increasing crop yield or improving farm management practices. Short-term goals should be specific and measurable to track progress effectively.

For long-term goals , think about where you want your farm to be in five years or more. Long-term objectives might involve expanding your farm’s size, introducing new crops, or entering new markets. Setting these goals requires planning and investment in resources. Clearly defining both short-term and long-term goals helps in maintaining focus and guiding the growth of your farm business.

Market analysis

To develop a strong farm business plan, you need to conduct a market analysis . This includes understanding the industry, identifying who your customers are, and knowing who your competitors are.

Industry analysis

The farming industry is diverse and can vary widely depending on your location and type of farm. You need to research trends in agriculture, such as the demand for organic produce or locally sourced ingredients. Look into technology advancements that might impact farming practices, like automation or new farming techniques. Understanding the regulatory environment is also key, as it affects crop choices and farming methods.

Stay informed about economic factors influencing farming, like commodity prices, which can affect profitability. Feed this information into your business plan to ensure you’re positioning your farm effectively within the market.

Customer segments analysis

You should also assess their price sensitivity and purchasing power. Knowing your customer segments allows you to tailor marketing strategies, product offerings, and pricing accordingly, as recommended by Growthink .

Understanding your competitors is essential for carving out a niche in the market. Identify direct and indirect competitors. Direct competitors include similar farms in your area producing the same goods. Indirect competitors might be those offering alternative products that can substitute yours.

Analyze their strengths and weaknesses. Look at their pricing, customer service, and marketing strategies. Determine what sets your farm apart, whether it’s product quality, unique farming practices, or superior customer service. Use this information to develop strategies that give you a competitive edge.

Marketing plan

A marketing plan for your farm outlines strategies to reach your audience, attract more customers, and boost sales. You need to identify your target market, choose effective marketing strategies, and decide on pricing and promotions to appeal to your audience.

Target market identification

Identifying your target market is the first step. This involves understanding who your customers are and what they need. You should consider factors like age, location, and lifestyle. This helps in determining which groups are more likely to buy your farm products .

Survey your community and current customers to learn more about their preferences. Identifying your ideal customers lets you tailor your marketing efforts. For example, if your farm specializes in organic produce, you may aim to attract health-conscious consumers in nearby urban areas.

Marketing strategies and tactics

Marketing strategies are essential for promoting your farm. Social media platforms like Instagram and Facebook are great for reaching potential customers. Sharing stories and updates about your farm can engage and attract followers.

Another tactic is organizing on-farm events or tours, allowing people to see where their food comes from. Community-supported agriculture (CSA) programs can also expand your customer base by offering subscription-based produce deliveries.

Using a marketing calendar to schedule promotions and content releases ensures you stay consistent. Regular communication with your audience builds relationships and encourages repeat business.

A good pricing strategy is important for attracting customers while maintaining profitability. You need to compare prices with similar farms to find a competitive edge. Offering seasonal discounts or bulk purchase deals can draw more interest.

Promotions, such as buy-one-get-one-free deals or loyalty programs, can incentivize buyers. These strategies encourage customers to try your products and stay loyal. Highlighting any unique features, like pesticide-free goods, can justify premium pricing and inspire customer trust.

Deciding on the right price and promotions affects how your products are perceived in the marketplace. It’s important to balance affordability with quality, ensuring both customer satisfaction and financial sustainability.

Operational plan

An effective farm business focuses on day-to-day operations, ensuring efficient farm management, logistics, and compliance with regulations. This plan provides a detailed look at how you will manage your farm, coordinate supply chains, and meet regulatory requirements.

Farm management structures

Communication is also critical. Regular meetings keep everyone aligned with goals and responsibilities. You can use scheduling tools for task assignments and tracking progress. In larger setups, you may need specialized managers for different areas like crops or livestock. These roles streamline operations and allow you to tackle issues more proactively.

Supply chain and logistics

The supply chain starts with sourcing materials and ends with delivering products to the market. Understanding your supply chains helps in maintaining efficiency and reducing costs. Whether you require seeds, fertilizers, or equipment, sourcing the best quality materials can impact production.

Logistics involves planning how to transport products from the farm to buyers. This requires reliable vehicles and storage facilities. Timely transportation ensures freshness, especially for perishable goods. Consider investing in cold storage and refrigerated transport if you deal with such products.

A key element is maintaining good relationships with suppliers and buyers. Regular communication can help negotiate better terms and faster delivery times. Digital logistics platforms can assist in tracking shipments and managing inventory levels effectively.

Compliance with regulations is important for the uninterrupted operation of your farm. Different types of farms will have unique rules to follow, so familiarize yourself with the ones applicable to your business. Health and safety standards often vary whether you’re dealing with crops or livestock.

Record-keeping is essential for audits and inspections. Keep detailed records of pesticide usage, livestock health, and worker safety training. You can use digital tools to store and organize these records for easier access.

Make sure to stay updated with changes in laws that may affect your farm. Subscribing to industry newsletters or joining local farming associations can provide timely updates. Keeping your certifications and licenses up-to-date can prevent legal issues and promote trust with customers.

Financial planning

To succeed in farming, you need a solid financial plan covering start-up costs, forecasting, and financial statements. These elements form the backbone of a strong farm business strategy.

Projecting start-up costs

Start-up costs are the initial expenses you’ll face when launching your farm. You need to consider land acquisition, equipment purchases, seeds, and livestock. Understanding these costs upfront helps in creating a realistic budget.

Key expenses may include:

• Land purchase or lease
• Machinery and equipment
• Seeds, plants, or animals
• Infrastructure like barns or fences

Knowing these costs helps in finding financial support through loans or grants.

Financial forecasting and projections

Financial forecasting involves predicting future revenues and costs. You need to look at past data and market trends to estimate sales and expenditures over time. Creating a plan for the next few years helps you prepare for potential challenges and opportunities.

Consider various scenarios:

• Best-case (high yields and prices)
• Worst-case (low market prices)

These forecasts guide your strategy and help in securing funding .

Financial statements are detailed records of your farm’s financial health. Essential documents include the balance sheet, income statement, and cash flow statement. These documents provide insights into your assets, liabilities, and income.

A balance sheet offers a snapshot of your assets and debt. Income statements reveal profitability by showing revenues minus expenses. Cash flow statements detail cash entering and leaving the farm.

Use tools like Form FSA-2037 for organized and accurate financial documentation, helping you make informed decisions and attract investors.

Funding strategies

Getting the right funding for your farm business is important. It can involve tapping into personal savings, seeking bank loans , or looking for support from angel investors. Each option comes with its own benefits and challenges, which can influence how you finance your farm operations.

Personal savings and contributions

Using personal savings is often a common starting point for farmers. It shows commitment and can reduce dependency on external funding. Leveraging your own funds gives you control over your business without incurring debt. Involving family or friends might also support this initial stage.

Starting with your own money can be risky if you don’t carefully plan your expenses. So, it’s crucial to develop a detailed budget. Consider how much you can afford to invest without sacrificing your personal financial stability. If you are involving family or friends, establish clear terms to avoid misunderstandings later. This approach can illustrate a personal belief in the business idea and might be a good foundation for further investment from external sources.

Bank loans and credit options

Bank loans are another traditional method for funding your farm. These loans give access to larger sums of money to cover significant expenses like purchasing land or equipment. Banks often offer various types of loans, such as microloans for smaller amounts or conventional loans for larger needs. When seeking a bank loan, prepare a solid business plan that outlines how funds will be used and repaid.

Interest rates and repayment terms should be carefully reviewed to ensure they fit your business plan. Building a good relationship with your banker can help in understanding the products they offer. Ensure you have a good credit score as it’s crucial in securing favorable terms. Prepare necessary documents including financial statements, a business plan, and any relevant experience in farming or business management.

Angel investors can provide a beneficial alternative for some farm businesses. Unlike banks, these investors often look for innovative farming methods or unique business opportunities. They can bring not just money, but also valuable experience and connections.

To attract angel investors, present a clear and detailed business plan that highlights what makes your farm unique. Demonstrating potential growth and return on investment can be key in swaying potential investors. You might also consider exploring grants or programs specifically supporting agricultural endeavors. Be prepared for thorough scrutiny, as investors will want assurances of profit and sustainability.

Agricultural practices

In agriculture, adopting sustainable methods and choosing a specialization can guide your farm’s success. Sustainable practices focus on resources, while specialization helps tailor farming activities to specific needs.

Integrating sustainable farming

• Cover crops: Planting cover crops can improve soil health, reduce erosion, and retain moisture.
• Crop rotation: By rotating crops, you can prevent pests and diseases from becoming a problem. This also helps maintain soil fertility.
• Integrated pest management (IPM): IPM uses natural pest controls and reduces the need for chemical pesticides. This method benefits both crops and the local ecosystem.

Taking these steps not only improves your farm’s sustainability but also contributes to the agricultural industry’s shift toward more environmentally-friendly practices.

Specializing in types of farms

Choosing a specific farm type allows you to focus efforts on fewer crops or livestock, which often results in better quality and increased efficiency.

• Vegetable farms: If you focus on vegetables, you’ll concentrate on optimizing soil health and planting schedules. Water management becomes key here to ensure a good crop yield.
• Fruit farms: Specializing in fruit requires attention to pest management and soil quality. Techniques like pruning and grafting often make a big difference in fruit size and taste.
• Dairy farms: In dairy farming, you might look at improving animal health and milk production. Proper nutrition and housing for livestock are central to achieving the best results.

Specializing can help you meet specific market demands and contribute to a robust local food supply.

Community involvement and networking

Active participation in the agricultural community is key for business growth and industry connections. Agricultural fairs and networking events provide platforms to showcase products and exchange ideas.

Joining farmers’ associations and engaging in collaborative projects fosters partnerships and innovation. Community outreach programs and workshops educate the public and build community support , while cooperative marketing enhances market presence through shared resources.

Building local partnerships with businesses and retailers strengthens local food systems , ensuring steady demand and economic resilience. Mentorship opportunities help beginning farmers navigate challenges and develop effective strategies. By leveraging these networking opportunities, farmers can create a supportive network that drives growth and sustainability.

Conservation and risk management planning

Incorporating conservation and risk management into business plans ensures farm sustainability and resilience. A comprehensive conservation plan protects natural resources and promotes soil health through practices like crop rotation and water conservation. Identifying resource needs minimizes environmental impact and maintains productivity.

Risk management strategies, including crop insurance and whole farm revenue protection , provide financial security against pests, diseases, and adverse weather. Developing a disaster recovery plan prepares farms for quick recovery from natural disasters . Efficiently managing costs and schedules allows for proactive responses to market changes and operational challenges. These strategies enhance farm stability and promote sustainable practices.

Access to mentorship and training is vital for farmers to enhance their skills and manage their businesses effectively. Cooperative extension services and the USDA offer formal education programs and workshops tailored to both beginning farmers and those with agribusiness experience . Field days organized by local and regional agricultural organizations provide hands-on learning and exposure to new techniques.

Connecting with subject matter experts through these events offers specialized advice on crop management, livestock care, and financial planning. Mentorship opportunities pair experienced farmers with newcomers, providing personalized guidance and support. Utilizing these training resources helps farmers adopt best practices, stay updated on industry advancements, and foster overall agricultural growth and innovation.

Building an online presence

Creating a strong online presence for your farm business is important in the digital age. Start by setting up a website . This is your main hub where customers can learn about your products, services, and values. Make sure it’s easy to navigate and mobile-friendly.

Utilize social media platforms to reach a wider audience. Platforms like Facebook, Instagram, and Twitter can help you engage with customers. Share photos, updates, and stories about your farm activities. This builds a connection with your audience and provides a personal touch.

Consider setting up an email newsletter to communicate directly with your customers. Keep them informed about new products, upcoming events, and special promotions. This method keeps customers engaged and interested in what your farm has to offer.

Local businesses can benefit from a well-maintained Google My Business profile. It’s crucial for being visible in local searches. Keep your information updated and encourage satisfied customers to leave positive reviews.

Utilize online marketplaces to sell your products. Websites like 10Web , Etsy or specialized farming platforms can expand your reach. They offer new opportunities to market and sell directly to consumers who are looking for fresh, local products.

Lastly, invest in online advertising to target specific audiences. Tools like Google Ads or Facebook Ads allow you to reach potential customers based on their interests and location. This helps drive traffic to your website and increases your business’s visibility.

Creating your farm website with 10Web

10Web provides powerful tools to help you create a professional and fully functional farm website. With 10Web’s AI Ecommerce Website Builder, you can quickly set up a site that showcases your farm, manages orders, and sells products like fresh produce, dairy, or farm experiences. Here’s how 10Web can help a farm business:

• AI Ecommerce Website Builder : Create a unique website section by section without relying on pre-made templates. Customize the site to reflect your farm’s offerings, whether it’s farm-to-table produce, subscriptions, or tours.
• WooCommerce integration : Sell your farm products directly online, manage orders, inventory, and customers seamlessly. WooCommerce provides a flexible backend for running your store.
• Website Booster : Automatically enhance website performance with fast hosting on Google Cloud and built-in optimization tools for quicker load times and better conversion rates.
• Sign up for 10Web : Visit the 10Web website and create a free account. You can start by describing your farm, including the products or services you want to offer online.
• Describe your business : When prompted, provide details about your farm, such as whether you sell fresh produce, organic products, or offer experiences like farm tours. The AI will use this information to generate the website outline.
• Generate an outline : 10Web’s AI builder will create a structured outline for your site, with sections like “Farm Products,” “Our Story,” “Visit Us,” or “Shop Online.” You can customize or rearrange these sections to match your vision.
• Customize the design : Select fonts, colors, and styles that fit your farm’s branding. Use the Ultimate UI Kit to fine-tune your website’s look.
• Add products and set up the store : Using the WooCommerce integration, add the products you want to sell online. Manage your inventory, set shipping zones, and integrate various payment methods like PayPal or Stripe.
• Optimize performance with Website Booster : Ensure that your farm’s website loads quickly and performs well on all devices by enabling 10Web’s PageSpeed Booster. This helps attract more customers and increases your sales.

Diversification strategies

Farm diversification can provide new revenue streams and reduce risks. It often involves branching out into agritourism and creating value-added products that use farm resources in creative ways.

Agritourism

Agritourism involves inviting visitors to experience farm life, which can become a significant income source. Activities like farm tours, hayrides, or seasonal events attract families and school groups. Providing hands-on experiences, like fruit picking or animal feeding, can enhance visitors’ experience. For a successful agritourism venture, you need to ensure proper safety measures and obtain any necessary permits. Promoting your activities using social media and local partnerships can increase visibility and attract more visitors.

Creating value-added products involves using your farm goods to create items with a higher market value. This could mean turning fruits into jams or vegetables into pickles. These products can be sold at farm stands, farmers’ markets, or even online. Labeling and packaging play an important role in appealing to consumers and setting your products apart. It’s also important to understand local regulations regarding food processing and sales. Offering samples can be a great way to attract customers and boost sales while also creating brand loyalty.

Sample plans and templates

When you’re planning to start a farm, having access to the right business plan templates can make all the difference. These tools offer guidance and examples to help structure your strategy effectively.

Small farm business plan template

For small farm operators, using a dedicated business plan template can be incredibly beneficial. These templates typically focus on key areas such as budget planning, marketing strategies, and management structures. A great example is the Small Farm Business Plan Template , which helps organize everything from the types of crops or livestock to financial projections. You’ll find sections for your company history, owner backgrounds, and the specific goals you have for your farm. These templates can also include parts on identifying customers and competitors, making it easier to plan for future growth.

Having a well-organized template keeps you on track and helps attract potential investors or lenders by providing a clear view of your farm’s business model. It’s like a roadmap guiding you through the complexities of running a farm, detailing your plans for success.

A vegetable farm business plan focuses on the details specific to growing crops. These focus areas include planting cycles, crop selection, and market analysis. An example such as the Vegetable Farm Business Plan Example typically covers these elements in depth. You might find helpful budget tables listing the initial investments in seeds, machinery, and labor costs needed for starting and maintaining your vegetable farm.

These examples often feature sections that encourage you to plan your sales strategy. They help identify your target market and outline marketing plans for selling your produce. This approach ensures that you can deliver fresh products timely and build a loyal customer base around your farm. By consulting these examples, you can adapt tried-and-true methods for your venture, minimizing risks and maximizing the chances of a successful yield each season.

In this blog we looked at the essential steps to creating a successful farm business plan. The blog covered everything from writing a mission statement and conducting SWOT analyses to developing marketing strategies and operational plans. We also explored the financial planning process, sustainable farming practices, and diversification strategies like agritourism.

Understanding these elements is central for managing resources, maximizing profitability, and ensuring long-term success. With this knowledge, you can navigate the complexities of farming, set clear goals, and position your farm for growth and sustainability.

Develop and launch your store with 10Web AI Ecommerce Website Builder.

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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.

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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