Agriculture business plan for starting your own business
Farming and agriculture business is not as easy as it seems. An even difficult step is to plan how to write a business plan for agriculture. Whether it is a Christmas tree farm business plan or an organic fertilizer business plan, you need to put real effort into planning each and every aspect of your agriculture business plan. To become successful, you should know the ways to operate your enterprise efficiently. You should know your revenue and cash position. You also need to forecast your crop rotations.
We have here provided a detailed business plan so that you can avoid any inconvenience in making a plan for yourself. No matter if you want to make a fish farm business plan or fountain pepper farm business plan, hydroponics farm business plan, or even an aquaponics farm business plan, this sample business plan agriculture template will help you.
A well-formed business plan of agriculture will help your agriculture business plan grow and generate the revenue that you dream of. It will help in managing your business in hard times and will also improve the chances of getting loans from the government for your business. So, if are thinking of creating a business for a bank loan, check out this template.
Executive Summary
2.1 The Business
The Old Maple Way will be a registered farm in New York, US. The business will aim to provide fresh fruits and vegetables to its customers. Along with it, we provide high-quality dairy products. Instead of competing with other farms in town, we will mainly focus on the quality and pricing of our products.
In any business plan agriculture project, the aims and goals should be clear. Instead of looking for an online business plan expert, you can write your business plan exact like agriculture business plan examples available online.
2.2 Management of Agriculture
The Old Maple Way Farm will be managed by James Celery. He will look into all the operations going on the farm. For his assistance, three managers will work with him. These managers will be trained for a month before starting their jobs. As per this agriculture business plan pdf, James will hire some highly experienced farmers who will look after the growth and management of fruits and vegetables. James will ensure the quality of production himself.
2.3 Customers of Agriculture
Customers are the backbone of every business. If you know the right audience for your agriculture business, you will be able to achieve your target. You will get the idea of how to run your agriculture business plan if you understand your customers. The main customers for the agriculture business will be the following:
- Export to Foreign Markets
- Domestic Hotels and Restaurants
- Domestic Food Companies
2.4 Business Target
Note
The main goal of Old Maple Way Farm is to produce high-quality products for the people. We do not compromise on the hygiene and our team takes care of it. The most important thing matter to us is our customers’ satisfaction.
Here are our targets:
- Our primary target is to become the most loved farm by people within the next 3 years of our launch.
- Our secondary target is to increase the net profit every month.
Company Summary
3.1 Company Owner
The owner of the Old Maple Way will be James Celery. James had a dream of starting his own agriculture business plan since he was a teenager. He wanted to produce high-quality products that do not contain harmful chemicals.
3.2 Why the farm is being started?
When James was asked why he is interested in starting a farm, he said he wanted to produce chemical-free and organic products for the people. He says that nowadays, it is difficult to find something that is purely organic and chemical-free.
Companies and farms are using harmful chemicals to increase their production. Due to it, they have ignored the quality and only focus on the quantity of production. To produce pure products, he planned to start a farm of his own. He further added that he wants to produce products that are affordable and easy to buy.
3.3 How the Farm will be started?
In a business plan for agriculture, you should mention the steps to start a farm. When you know how to make a business plan for agriculture, your agriculture business will be successful. The agriculture export business plan includes all the necessary steps needed to start an agriculture business. To start a farm, you need the right techniques and ideas. Before starting a farm, you need to consider these essential steps:
Know your Niche
The first and most important step before starting the agriculture business is to identify your niche. Without deciding the niche, you cannot start a healthy business.
Research Market
Once you have decided on your niche, you need to do market research. For instance, you have planned to grow a specific fruit, so to make the business successful, you should know who will buy your product. Making research on the market will let you know about your competitors and how will you sell your product.
If you are interested in particular fruit, vegetable or product, first learn more about the local market.
Find the Right Land
Once you have decided what product you are going to plant, you need to take the next step, i.e, deciding the land.
If you are starting at a low budget, you can take land on lease. But if you have sufficient investment to start, you can buy your land. If you start the farm on your land, you will have complete control of your farm. But at the same time, there will be more risk factors of financial loss.
In the sample of an agricultural business plan, you will find more detailed steps on how to start an agriculture business depending upon the type of farm you want to start.
| Start-up Expenses | |
| Legal | $252,000 |
| Consultants | $0 |
| Insurance | $28,000 |
| Rent | $30,000 |
| Research and Development | $29,000 |
| Expensed Equipment | $59,000 |
| Signs | $3,700 |
| TOTAL START-UP EXPENSES | $401,700 |
| Start-up Assets | $330,000 |
| Cash Required | $348,000 |
| Start-up Inventory | $52,000 |
| Other Current Assets | $215,000 |
| Long-term Assets | $239,000 |
| TOTAL ASSETS | $1,184,000 |
| Total Requirements | $1,585,700 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $401,700 |
| Start-up Assets to Fund | $1,184,000 |
| TOTAL FUNDING REQUIRED | $1,585,700 |
| Assets | |
| Non-cash Assets from Start-up | $1,566,000 |
| Cash Requirements from Start-up | $378,000 |
| Additional Cash Raised | $58,000 |
| Cash Balance on Starting Date | $36,000 |
| TOTAL ASSETS | $2,038,000 |
| Liabilities and Capital | |
| Liabilities | $30,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $48,000 |
| Other Current Liabilities (interest-free) | $0 |
| TOTAL LIABILITIES | $78,000 |
| Capital | |
| Planned Investment | $1,585,700 |
| Investor 1 | $0 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,585,700 |
| Loss at Start-up (Start-up Expenses) | $374,300 |
| TOTAL CAPITAL | $1,960,000 |
| TOTAL CAPITAL AND LIABILITIES | $2,038,000 |
| Total Funding | $1,585,700 |
Services
In agriculture service business plan, you should mention all the services and products that your farm will produce. In the business plan agriculture pdf and business plan for agriculture available online. You will find the services that farms offer. Our products include the following:
Fruits
We will produce fruits that are chemical-free and pure. We believe in producing organic products. Unlike other farms, we do not use any chemical that increases the quantity.
Vegetables
We will produce 100% organic vegetables. Our main focus is on quality and our customer satisfaction.
Cereals & Grains
We will also produce export-quality cereals and grains.
Dairy Products
We will also be offering two dairy products (milk and butter) to further supplement our sales.
20 Highly Profitable Agricultural Farm Business Ideas
If you are an entrepreneur willing to start an agriculture farm business, the following 20 agriculture farm business ideas can come in handy for your business venture.
Growing Mushrooms
Mushroom is a very popular Unlike various other crops, mushrooms can grow in less than a month. It is ready to be harvested in just about 21 days. This is the reason mushrooms have a high profit margin. Often new entrepreneurs are restless to harvest and sell their crops. So, if you too are one such impatient entrepreneur then mushrooms won’t make your wait too long to be ready. You can sell them in 3 weeks time from d date of cultivation.
- Mushroom farming comprises of 6 stages- first you need to compost; next spawn; case; pin and finally crop it.
- The soil of your farming land must be suitable for growing mushrooms. If this suits your soil then this is the best crop to grow. Some soils only support specific mushroom cultivation. The environment also plays a significant factor.
- You can aim to sell the produce in the local markets and also trade them. There are various countries that use mushrooms in their everyday meals. If your land in near such countries, where mushrooms are a favorite among the masses, then this is the best crop to cultivate in your farming land. Also, the convenience of export can take your mushroom business to far off markets as well.
Potato Farming
This is a very common vegetable. Yet, you should consider this as potato cultivation is greatly rewarding in many ways. Potato is consumed in meals almost daily by people both at home as well as in canteens. It is yummy, simple and very nutritious. The demand for potato is so high that even if there are other near-by farming areas growing potatoes, you still can produce it and benefit largely.
- There are a large variety of potatoes, so check the soil and the market, in order to decide which potato you should cultivate in your land. You can opt for the sweet potatoes or Irish potato farming. They are quite popular across the globe. Furthermore, they can be sold as vegetables directly and can also be sold in the processed form.
- You can choose bulk potato farming and process them if you have the capital and equipment. Potato chips and French fries are savory snacks loved by all. You can never go wrong with potato business as it ensures a high profit margin.
- You can also choose to sell potato seeds. This is an excellent money-spinning business idea. Get in touch with local, national and international potato cultivators to sell potato seed tubes and make a flourishing agriculture business out of it.
Spice Production
With the widespread knowledge about the health benefits hidden in various spices, household cooking as well as commercial restaurants have started using spices in their food in daily basis around the world. Furthermore, the boost in flavor and the pleasant aroma that come from adding spices to cuisines has made spices a favorite ingredient in the kitchen. The high demand and being a very costly product, spices are a great option for agriculture farm business plan. Spice cultivation can churn a lot of money making farming a flourishing business opportunity.
- There are a large variety of spices available such as cardamom, black pepper, nutmeg, cumin, etc. You have a lot of agriculture farming options when it comes to spices.
- You can choose to start farming the spice as per the popularity in your locality.
- Spices can be used in food either whole, sun dried, powdered, paste or even in liquid form. You can sell the whole spice. You can also extract the oils from the spices and sell it in bottles.
- You can plan to grow either a single type of spice or multiple ones depending on your soil. There are different spices that grow in different seasons. You can also opt to grow a spice rarely cultivated in your state and reap huge profits.
Cashew nut agriculture production
Cashew nuts a type of dry fruit that is widely popular across the globe. It is consumed mostly as a savory snack with salt and other spices. You can sell them raw, as well as in processed form. Cashew nut processing entails 4 simple stages. It starts with cleaning the nuts, they roasting them, followed by drying and finally removing the peel.
- Cashew nuts are highly nutritious, boosts energy and fiber in the body. Hence, demand for cashew nuts is quite high globally. You can earn huge capital by producing cashew nuts in your farm land.
- Processed cashew nut sale can get you high profits if you can ally with wholesalers near your land and draw in a fixed cashew nut supply. Wholesalers will sell you the raw cashew nuts at a low cost. You can process the cashew and make profit.
- The medicinal value of cashew nuts has made cashew nut farming a highly lucrative business.
Poultry farming
Chicken is the particular poultry bird raised to the highest number. Gone are the days when households had a few chickens in their backyard to serve their need for eggs and meet. Currently, poultry farming is a huge money-making business that has made its mark internationally. Poultry farming being a lucrative venture has led to the birds being injected with harmful chemicals and are reared in large number without proper hygiene. This has resulted in the rise in demand for good quality poultry farms. This can be your opportunity to grab. Strategize to start an excellently well-maintained poultry farm business to give the masses the best quality eggs and meat.
- Eggs and meat being a high source of protein have notched a vital place in the dietary charts for good health. This has made people from all walks of life add eggs to their breakfast and consume a portion of meat regularly. Hence, a magnificent rise in the sales of poultry farms.
- Another way of making gains through poultry farming is selling frozen chicken. You would needs some additional tools and storage facilities incorporated in your farm for this sort of business. Get in touch with the local eateries, fast-food joints, restaurants and hotels to deliver them- frozen chicken. This can be a profitable venture when you have some good contacts established.
Bee-Keeping and Honey-Making Business:
Producing honey by keeping bees in the garden was a personal choice earlier. People passionate about making honey who had a little space in their backyard kept bees. But now, it has turned out to become a huge farming industry that a large number of entrepreneurs take interest in pursuing as an agriculture endeavor. With the heightened honey consumption worldwide, the sales margin has also increased drastically. This has drawn more entrepreneurs in bee farming. The reason for such rise in the demand for honey is because people are switching to honey intake instead of sugar. Honey has been proved very healthy, helps in losing weight and is also used in beauty products.
If you desire to start agriculture farm business plan, then this is one of the best choices. Bee-keeping does not require a large farming land nor do you need to invest huge capital. All you require is- some knowledge and training on the basics of keeping bees for agriculture business. There are training schools and experts who teach how to start a honey producing business and also how bees should be monitored. Furnished with such skillful training you can conveniently start farming and run a bee-keeping and honey making business.
If you produce honey in your farming area, you can have several prospective clients to sell, such as –
- Sell it to high net-worth person,
- There are hard-working people, fitness conscious people who prefer honey to sugar
- You can buy low-priced top quality honey from dealers, bottle it up and sell it in the market, both in the local as well as global arena.
Herb and Flower Plantation
The best part about herbs and flower plantation is that they can be grown in small quantities. You do not need any skills or expertise to grow them. They can be grown indoors as well as outdoors. Moreover, both hers and flower plants have multiple usages. You can even do a profitable business with dry herbs and flowers. Both are easy to grow, high in demand and lucrative ventures. Furthermore, you can grow both herbs and flowers in the same farming land. Yes, you will need some appropriate apparatus for good quality plantation results. Adequate water supply, proper sunshine, manure and right method must be followed too.
Herbs have a wide range of usages-
- They are a central ingredient in flavoring food
- Used for making beautiful fragrances
- Is majorly bought by the Pharma company
- Are also used in healing centers to help people relax and loose there stress
Flowers too have multiple usages-
- There are edible flowers used in cakes and various cuisines
- They are used in beauty products, to make lipsticks, nail-polish, hair color and so on
- Several fragrances and extracted from flowers, rose, lavender, orchid being popular blooms. In fact, dry flowers are majorly bought by the fragrance company.
- Extensively used for decorating venues
- Flower bouquets, for weddings as well as gifting item is always in trend
Aloe Vera Plantation
Aloe Vera is basically a tropical plant but the good thing about this plant is that, it can be cultivated in dry farming lands as well. Aloe Vera is a profitable agriculture business idea because its medicinal value makes it a highly saleable agriculture product. It can be consumed as well as applied externally. It has lots of vitamins and minerals that are good for heart, immune system, digestion, skin ailments and many more.
Aloe Vera crop is most suitable if your farming land is in a dry area where the climate is mostly warm and humid. This plant doesn’t require much rainfall and doesn’t grow is cold regions. Light sandy type of soil is absolutely befitting for the plantation of aloe Vera agriculture crops.
Aloe Vera plants are best suited for selling globally to the-
- Herbal industry
- Pharma companies
Bamboo Plantation
Bamboos mostly grow in the hilly areas. This is why we most often see bamboo farming in the mountains. The immense uses of bamboos plants have made it a successful agriculture business plan choice for several entrepreneurs. There is no way you can fail with bamboo farming plan as there are always buyers inclined to purchase the raw product and process it to use in various form.
Some of the uses of bamboo plants may be listed as follows-
- Bamboos are strong and flexible. Thus, a very useful construction product. Be it to build roofs, floors, fences etc.
- They are utilized to build various interior decoration items
- Furniture made from bamboo plants are a modern trend
- Best writing papers are made from bamboo fiber
- Various types of musical instruments are also made using bamboos
- Tender Bamboo tips are used in cooking
- Several infectious diseases can be cured through the medicine made from bamboo plants
- In Asia, the chopsticks being used, are mostly made of bamboo
The huge number of uses makes bamboo plantation a very rewarding business.
Coffee & Tea Plantation
Tea and coffee are two drinks that are very popular globally. So, with coffee and tea plantation you can extend your agriculture business plan and earn huge benefits through export. Coffee and tea plantation requires a suitable soil and good amount of rainfall. The rains and dry season must be well defined so that there can be a growing season and a maturing season. You can plan to directly sell the tea leafs and coffee beans or choose to sell the processed product. With the basic plantation and harvesting techniques learnt, and equipped with the processing tools, machinery and staff, you can make flourishing business out of tea and coffee farming.
Get in touch with the tea manufacturing industries, restaurants and cafeterias where there is a constant demand for tea leaves and coffee beans.
Cocoa Farming
Take your love for chocolates a step further! Plan on beginning a cocoa agriculture business. It can prove to be a flourishing enterprise. Chocolate is a favorite not only among kids but among all age groups. Relished across the globe, cocoa farming can be hugely profitable agriculture prospect. You can earn huge capital income by exporting the produced cocoa from your farming area.
Cocoa is grown mostly in humid tropical region. Its beans are extracted for cocoa solids and cocoa butter. So, in order to begin farming cocoa trees in your land, you first must ensure you have an agriculture land in a humid area, or plan to buy some area. Once you have the suitable soil you can begin with your cocoa plantation business.
- To satisfy chocolate lovers delight, cocoa is added in all sorts of foods, beverages and even fragrances.
- Dark chocolates, chocolate ice-cream, cakes, muffin, cookies, various sweets, deserts, etc., are found everywhere.
- Spas & beauty parlors too use cocoa in their beauty therapies as it’s very good for skin.
- Chocolate consumption is a very delicious and easy way to counter bouts of stress & depression.
So, you have a farming soil and climate suitable for growing cocoa; prepare yourself to turn your passion into a agriculture business venture. Cocoa crops can land for hundreds of years. So follow the proper methods of farming and you can be very rich soon.
Lettuce Plantation
Lettuce has become a very popular farming vegetable for its fresh flavor.
Restaurants add it to their salads, burgers, sides, etc. as consumers enjoy the crunchy fresh texture of this leafy vegetable.Additionally, the health benefits in lettuce have also made it a favorite among those fit and active person who are always on the look-out to incorporate healthy greens to their daily meal.
Lettuce can be grown in several types of farming soils. Mostly, it is suitable to grow in soils rich in organic matter. The best soils for lettuce are those that can contain good quality of water and also have well made drainage system. As far as the temperature goes, lettuce grows well in fairly cool weather, about 15 degree Celsius. If your agriculture farm business plan space is in a slightly warmer land, you can grow lettuce crops by building a shade. You can go for a soil test before beginning to work on the farming area.
Lettuce crops cannot be stored for a longer period. So, keep connected with nearest markets and eateries. After harvesting the lettuce, you must sell them fresh. Lettuce farming is a rewarding business idea for start-ups.
Fruit Plantation
Various types of fruits are consumed around the globe. You may opt to begin farming any type of fruit that suits the land and climate of your particular region. When the soil is befitting only then you will get a productive yield out of which you can gain revenue.
Peaches, exotic fruits, papaya, berries, mangoes, apples, jackfruit, oranges etc., are some fruit types. You can grow any of these fruits or any other for your agriculture business endeavor depending on your soil suitability. Most fruits are used for making juices, added to cuisines, incorporated in meals as fruit salads, and beauty treatments. Since fruits can be consumed raw you may plan to market and export them immediately after you harvest the produce. You may build processing equipments to make fruit juices and pack them to sell them anywhere in the world.
Fruits contain various healthy & healing ingredients. Hence, maximum nutritionists & doctors suggest children, adults and the elderly; to consume fruits regularly. The fruit agriculture business is an opportunity you must definitely try out.
Palm Tree Cultivation
This is the crop that gives the most quantity of oil. Due to it high yielding capacity palm tree farming is considered a money-spinning business idea. If you intend to earn on a monthly basis through agriculture business then palm tree cultivation is the best choice for your start-up venture.
Deep, moist and well-drained soils are best suited for farming palm trees. This particular crop requires a humid tropical climate. Throughout the year an even amount of rainfall is essential. When every aspect is satisfactory for palm tree farming then you should start off with it at the earliest.
Palm tree plantation and selling of the palm oils, can aid you to cut down the sale of other oils , in turn enhancing the sale of your business. Those oils that are imported are costly for the local market, thus your palm oil will sell more. It is a win-win situation for both you as well as your buyers. Thus, your business will flourish.
Cotton & Wool Production
Textile firms need wool and cotton at all times. They need it constantly for manufacturing various types of cloths. Therefore, it’s a lucrative business idea for any entrepreneur.
Cotton flower and sheep give cotton and wool respectively. So for cotton crop cultivation you need a suitable land. There may be some basic agriculture methods to be followed, certain tools and apparatus required. Of course you have to invest at the onset but after harvest you can make high business gains from your sales. You can also opt to rear sheep and get wool from them.
An advantageous factor of cotton flower and wool is that you can export them easily. There is not much critical process attached to attain the cotton from flowers and the wool is just shaved off the sheep. Furthermore, unlike fruits and vegetable, cotton and wool can be stored for as longer time span and exported to far-off countries as they do not get damaged. Thus you can plan to earn good capital by national and global export of your cotton and wool.
Rubber Production
Rubber, a stretchy materiel, is in huge demand in the market. This crop plantation can prove to be very rewarding. The innumerable items made from rubber makes it a very suitable farming product as it is sale-able in the worldwide market. For instance- Tires, Bags, etc are made from rubber.
Rubber plants cannot grow in extremely windy and freezing temperature. It needs 5-7 hrs of sunlight per day and adequate rainfall. Porous farming soil which is somewhat acidic having well-drainage is best suited for rubber plantation.
Rubber trees when taken proper care can survive for generations. So, this is a good agriculture business investment indeed.
Cattle Ranch
A very common and popular livestock raising business that includes animals such as cows, calves, ox, donkeys, bulls, etc., are known as a cattle ranch. You can choose to breed a single type of animal or several ones depending on the capital and land you have. It is best to start off with a single type of animal and slowly progress to rearing more types in your farming area. Actually, each type of animal needs to be well taken care of, with the proper food and hygiene maintained in your farming space.
Cattles are reared for multiple purposes, milk, manure, skin, as well as meat. Having a cattle ranch can instantly place you in the international business market if the quality of milk, meat and manure supplied by you if of good quality. With high sales and recognition in the global market you can easily gain huge profits and grow your agriculture business.
Shrimp Business
If you plan to own a land near the coastal region, or rent a riverside area, you can earn cash through shrimp farming. Earlier shrimp was farmed in a smaller quantity, but the rapid growth of consumption worldwide has turned it into a large scale global industry.
Shrimp is high in protein and contains anti-oxidants. A favorite among a large group of people, this is marketed in bulk in several countries. Japan, US, Thailand and China are some countries where shrimp farming is done is large quantity. You can definitely give shrimp farming a shot as success is guaranteed.
Saffron Cultivation
This costly spice is actually very easy to grow in any type of farming area. The reason for saffron being so pricey is the extensive toil that goes into harvesting the crop. Only a few strands of saffron are acquired from a flower.
Saffron is mostly used in cooking, creating beautiful fragrances and in cosmetic products. If you have a fertile agriculture soil suitable for saffron cultivation and reside in a sub-tropical warm region then saffron is the spice you must opt to cultivate in your farming area.
You can market it across the whole world. This expensive spice can churn huge money.
Rosemary Cultivation
Rosemary shrub can be cultivated across the world. It is best suited for region with cool temperatures. It can also handle frost. You can harvest rosemary 2 times per year. It depends on whether you want to harvest it for the leaves or the oil.
Rosemary is most famous for its oils. It has high commercial value for its medicinal and herbal properties. This is a lucrative business idea and if you reside in a cold region then get a soil test done and you can start off your rosemary cultivation.
Marketing Analysis of agriculture
Business Plan for Investors
To make your agriculture business successful, you need to keep an eye on the market trends as well. If you run a complete analysis of the market, you will get an idea about many things. Understanding the trends and variables will help you in making decisions for your business. The goal of this market research is to understand and get a general idea of the overall market around your farm and how you can adjust to that ecosystem. The marketing plan for agriculture business includes market trends and market segmentation.
5.1 Market Trends
The agriculture industry is a kind of industry that never goes into loss. It continues to evolve with time. Over the past five years, the agricultural industry has grown at an incredible rate. People are now more attracted to buy organic products that are chemical-free and hygienic.
5.2 Marketing Segmentation
In agricultural business ideas and agricultural business proposal, the market segmentation is clearly defined. Besides knowing how to start an agricultural business, you need to make a complete analysis of market segmentation for it.
The most important part of a farm business plan is to have an idea of the expected marketing segmentation. In agriculture start up, you should know about the market segmentation. Here is the market segmentation that will be facing our farm:
5.2.1 Foreign Markets
The products that we manufacture will be exported. It will generate the largest part of our revenue.
5.2.2 Domestic Hotels and Restaurants
We will offer our products to restaurants and hotels. Along with fruits and vegetables, we will provide dairy products such as milk and butter to the restaurants in town.
5.2.3 Domestic Food Companies
We will also sell our products to food companies in the domestic markets.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Foreign Markets | 37% | 46,000 | 48,000 | 49,000 | 52,000 | 53,000 | 10.00% |
| Domestic Hotels and Restaurants | 33% | 41,000 | 43,000 | 45,000 | 47,000 | 49,000 | 10.00% |
| Domestic Food Companies | 30% | 35,000 | 36,000 | 39,000 | 41,000 | 44,000 | 11.00% |
| Total | 100% | 122,000 | 127,000 | 133,000 | 140,000 | 146,000 | 10% |
5.3 Business Target
In a community sustained agriculture business plan, the following are our business target
- Building a trustworthy relationship among customers
- Providing high-quality products to customers
- Making an excellent customer care service for our loyal customers
- Recovering the initial investment within two years of launch
- Increase the revenue every year by at least 20%.
5.4 Product Pricing
The prices of the products that Old Maple Way provide are comparable to other farms. We will try to provide better products and customer care to our clients. We will satisfy our customers by providing exceptional services to make as much profit as possible.
Marketing Strategy
When you are starting an agricultural business, you should also know the marketing strategy. No business can grow and become successful without a marketing strategy. No matter how many excellent services you offer, if you do not have customers, it is all in vain. The more people know about your farm and its products, the more they reach out to you.
Nowadays, the best way of marketing is social media marketing. Social platforms are strong, and they are accessible to everyone. A good thing about social media marketing is its low cost. You can reach out to millions of people with online marketing. All the business ideas in agriculture explain the importance of social media marketing and how you can use them to reach out to people.
Along with that, you need a competitive analysis to make a strategy that will make your agriculture business plan successful. You also need some agro processing business ideas as well as a perfect understanding of what is an agricultural business.
6.1 Competitive Analysis
- People are not satisfied with the products manufactured by other farms because of the chemicals they use to increase their quantity.
- The products that other farms sell are expensive and everyone cannot afford them.
6.2 Our Strategy
- We will use social media platforms to advertise our products.
- We will make our online presence so that we can reach out to more and more people.
- We will use the advertisements channels in the area to reach out to the people.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Fruits | 50,000 | 53,000 | 56,180 |
| Vegetables | 67,000 | 71,020 | 75,281 |
| Cereals & Grains | 48,000 | 50,880 | 53,933 |
| Dairy Products | 45,000 | 47,700 | 50,562 |
| TOTAL UNIT SALES | 210,000 | 222,600 | 235,956 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Fruits | $58.00 | $67.28 | $78.04 |
| Vegetables | $45.00 | $52.20 | $60.55 |
| Cereals & Grains | $40.00 | $46.40 | $53.82 |
| Dairy Products | $53.00 | $61.48 | $71.32 |
| Sales | |||
| Fruits | $2,900,000.00 | $3,565,840.00 | $4,384,556.86 |
| Vegetables | $3,015,000.00 | $3,707,244.00 | $4,558,427.22 |
| Cereals & Grains | $1,920,000.00 | $2,360,832.00 | $2,902,879.03 |
| Dairy Products | $2,385,000.00 | $2,932,596.00 | $3,605,920.04 |
| TOTAL SALES | $10,220,000.00 | $12,566,512.00 | $15,451,783.16 |
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Fruits | $56.00 | $64.00 | $74.00 |
| Vegetables | $43.00 | $49.00 | $57.00 |
| Cereals & Grains | $38.00 | $43.00 | $50.00 |
| Dairy Products | $51.00 | $58.00 | $67.00 |
| Direct Cost of Sales | |||
| Fruits | $2,800,000.00 | $3,392,000.00 | $4,157,320.00 |
| Vegetables | $2,881,000.00 | $3,479,980.00 | $4,291,028.40 |
| Cereals & Grains | $1,824,000.00 | $2,187,840.00 | $2,696,640.00 |
| Dairy Products | $2,295,000.00 | $2,766,600.00 | $3,387,654.00 |
| Subtotal Direct Cost of Sales | $9,800,000.00 | $11,826,420.00 | $14,532,642.40 |
Personnel plan
To make your business best agricultural business, you need to make sure that the staff should work as a team. In the agriculture business model, you will find out that the environment of the farm depends on the number and type of staff which should be determined in the initial stages.
7.1 Company Staff
James Celery will be the owner and CEO of the Old Maple Way farm business. The following people will be hired to run the farm:
- 1 Operations Manager
- 2 Deputy Managers
- 8 Farm Workers
- 2 Packaging Helpers
- 1 Accountant
- 2 Drivers
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Operations Manager | $14,000 | $15,400 | $16,940 |
| Deputy Managers | $22,000 | $24,200 | $26,620 |
| Farm Workers | $80,000 | $88,000 | $96,800 |
| Packaging Helpers | $20,000 | $22,000 | $24,200 |
| Accountant | $9,000 | $9,900 | $10,890 |
| Drivers | $18,000 | $19,800 | $21,780 |
| Total Salaries | $163,000 | $179,300 | $197,230 |
Financial Plan
Proper planning and execution of the finance help you to maintain a stable budget for the upcoming entire year. To execute farming ideas for profit, you need to manage the finances wisely. In agricultural business plans, all the finances are mentioned.
- Money to buy a land or take it on lease
- The cost of buying and maintaining animals
- The salary of employees
- The cost of buying fruits and vegetables seeds
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 8.14% | 8.19% | 8.27% |
| Long-term Interest Rate | 8.33% | 8.44% | 8.48% |
| Tax Rate | 23.87% | 24.91% | 25.03% |
| Other | 0 | 0 | 0 |
8.2 Break-even Analysis
| Break-Even Analysis | |
| Monthly Units Break-even | 5342 |
| Monthly Revenue Break-even | $133,400 |
| Assumptions: | |
| Average Per-Unit Revenue | $236.00 |
| Average Per-Unit Variable Cost | $0.61 |
| Estimated Monthly Fixed Cost | $161,300 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $10,220,000 | $12,566,512 | $15,451,783 |
| Direct Cost of Sales | $9,800,000 | $11,826,420 | $14,532,642 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $9,800,000 | $11,826,420 | $14,532,642 |
| Gross Margin | $420,000 | $740,092 | $919,141 |
| Gross Margin % | 4.11% | 5.89% | 5.95% |
| Expenses | |||
| Payroll | $163,000 | $179,300 | $197,230 |
| Sales and Marketing and Other Expenses | $123,000 | $126,000 | $128,000 |
| Depreciation | $2,400 | $2,300 | $2,200 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $3,000 | $3,100 | $3,200 |
| Insurance | $1,800 | $1,900 | $2,100 |
| Rent | $3,200 | $3,500 | $3,700 |
| Payroll Taxes | $29,000 | $31,000 | $32,000 |
| Other | $0 | $0 | $0 |
| Total Operating Expenses | $325,400 | $347,100 | $368,430 |
| Profit Before Interest and Taxes | $94,600 | $392,992 | $550,711 |
| EBITDA | $94,600 | $392,992 | $550,711 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $18,920 | $78,598 | $110,142 |
| Net Profit | $75,680 | $314,394 | $440,569 |
| Net Profit/Sales | 0.74% | 2.50% | 2.85% |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $55,000 | $59,400 | $64,152 |
| Cash from Receivables | $22,000 | $23,760 | $25,661 |
| SUBTOTAL CASH FROM OPERATIONS | $77,000 | $83,930 | $90,644 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $77,000 | $84,000 | $91,000 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $40,000 | $42,000 | $44,000 |
| Bill Payments | $20,000 | $23,000 | $24,000 |
| SUBTOTAL SPENT ON OPERATIONS | $60,000 | $65,000 | $68,000 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $62,000 | $66,960 | $72,317 |
| Net Cash Flow | $13,900 | $16,000 | $17,000 |
| Cash Balance | $28,500 | $29,000 | $32,000 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $284,000 | $318,080 | $349,888 |
| Accounts Receivable | $29,000 | $32,480 | $36,508 |
| Inventory | $4,200 | $4,704 | $5,287 |
| Other Current Assets | $1,000 | $1,000 | $1,000 |
| TOTAL CURRENT ASSETS | $298,000 | $333,760 | $375,146 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $18,000 | $20,160 | $22,680 |
| TOTAL LONG-TERM ASSETS | $22,500 | $25,200 | $28,350 |
| TOTAL ASSETS | $295,000 | $330,400 | $371,700 |
| Liabilities and Capital | Year 4 | Year 5 | Year 6 |
| Current Liabilities | |||
| Accounts Payable | $19,500 | $21,840 | $24,548 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $16,000 | $17,920 | $20,142 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $16,000 | $17,920 | $20,142 |
| Paid-in Capital | $31,000 | $32,000 | $33,000 |
| Retained Earnings | $57,300 | $62,457 | $68,703 |
| Earnings | $199,800 | $217,782 | $239,560 |
| TOTAL CAPITAL | $273,000 | $297,570 | $327,327 |
| TOTAL LIABILITIES AND CAPITAL | $289,000 | $330,400 | $371,700 |
| Net Worth | $276,000 | $300,840 | $330,924 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.05% | 7.81% | 8.66% | 3.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 9.23% | 10.23% | 11.33% | 9.80% |
| Inventory | 5.56% | 6.16% | 6.83% | 9.90% |
| Other Current Assets | 2.14% | 2.37% | 2.63% | 2.40% |
| Total Current Assets | 150.00% | 151.00% | 152.00% | 158.00% |
| Long-term Assets | 11.50% | 11.80% | 11.93% | 12.00% |
| TOTAL ASSETS | 100.00% | 100.00% | 100.00% | 100.00% |
| Current Liabilities | 4.61% | 4.65% | 4.69% | 4.34% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 0.00% |
| Total Liabilities | 7.38% | 7.44% | 7.51% | 7.38% |
| NET WORTH | 100.24% | 101.04% | 101.97% | 110.00% |
| Percent of Sales | ||||
| Sales | 100.00% | 100.00% | 100.00% | 100.00% |
| Gross Margin | 93.65% | 96.18% | 98.87% | 99.00% |
| Selling, General & Administrative Expenses | 93.60% | 96.13% | 98.82% | 97.80% |
| Advertising Expenses | 1.59% | 1.63% | 1.68% | 1.40% |
| Profit Before Interest and Taxes | 39.88% | 40.96% | 42.10% | 33.90% |
| Main Ratios | ||||
| Current | 37 | 38 | 38 | 32 |
| Quick | 32.5 | 33.6 | 34.44 | 33 |
| Total Debt to Total Assets | 0.20% | 0.19% | 0.18% | 0.40% |
| Pre-tax Return on Net Worth | 74.60% | 75.12% | 76.70% | 75.00% |
| Pre-tax Return on Assets | 94.50% | 99.23% | 104.19% | 111.30% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 31.50% | 32.48% | 33.48% | N.A. |
| Return on Equity | 55.80% | 57.53% | 59.31% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 7.7 | 7.8 | 7.9 | N.A. |
| Collection Days | 100 | 100 | 100 | N.A. |
| Inventory Turnover | 31.4 | 32.97 | 33 | N.A. |
| Accounts Payable Turnover | 16.2 | 16.4 | 16.6 | N.A. |
| Payment Days | 27 | 27 | 27 | N.A. |
| Total Asset Turnover | 2.4 | 2.5 | 2.6 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | -0.03 | -0.03 | -0.04 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $235,000 | $248,160 | $262,057 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.82 | 0.84 | 0.88 | N.A. |
| Current Debt/Total Assets | 1% | 0% | 0% | N.A. |
| Acid Test | 27.65 | 28.5 | 29 | N.A. |
| Sales/Net Worth | 2.1 | 2.2 | 2.3 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
FAQ
- How do I make an agricultural business plan?
When you look out to sample business plan agriculture farm, you will see the steps to write a business plan. Business plan for agriculture company may not necessarily be long but it should be written in an easily understandable way. - What is an agriculture farm business plan?
It is the farming production, creating a plan for marketing and management of crops and livestock in a profitable way is an agriculture farm business plan. It includes everything such as a detailed business plan for agriculture and an agriculture equipment business plan. - Which agriculture is most profitable?
One of the most profitable agriculture is an agricultural farm. You can start this business by investing a small amount of money. According to the demand of the local public, you can produce the items and sell them. - Is agriculture farming profitable?
Agriculture farming is profitable as it offers a stable revenue. It is one of the fastest-growing agricultural businesses all over the world.