business plan for orange farming

Orange Farming

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Commercial orange farming is not a new business idea. It’s a common agribusiness throughout the world. And people are growing this fruit for making profits from the ancient time.

The orange actually is the fruit of various citrus species in the family Rutaceae (it primarily refers to Citrus × sinensis) which is also called sweet orange, to distinguish it from the related related Citrus × aurantium, referred to as bitter orange.

The orange is actually a hybrid between pomelo and mandarin. The chloroplast genome, and therefore the maternal line, is that of pomelo. The sweet orange has had its full genome sequenced.[ 1 ]

The orange originated in a region encompassing Southern China, Northeast India and Myanmar. As of 1987, orange trees were found to be the most cultivated fruit tree in the world.

Orange trees are generally grown widely in tropical and subtropical climates for their sweet fruits.

You can enjoy fresh orange or processed for it’s juice or fragrant peel. As of 2012, sweet oranges accounted for approximately 70% of citrus production.

In the year of 2019, around 79 million tonnes of oranges were grown worldwide, with Brazil producing about 22% of the total, followed by China and India .

Table of Contents

Orange Nutrition & Health Benefits

Oranges are among the world’s most popular and common fruits. They are a healthy source of vitamin C, fiber, thiamine, folate and antioxidants.

And regular consumption of oranges has many health benefits. Here we are trying to describe more about nutrition value and health benefits of oranges.

Nutritional Value of Oranges

Orange flesh is around 1% protein, 12% carbohydrates, 87% water and contains negligible amount of fat. 100 grams orange flesh provides 47 calories, and is a rich source of vitamin C, providing 64% of the DV (daily value).

Oranges contain diverse phytochemicals, including carotenoids (beta-carotene, lutein and beta-cryptoxanthin), flavonoids (e.g. naringenin) and numerous volatile organic compounds producing orange aroma, including aldehydes, esters, terpenes, alcohols, and ketones.

According to healthline , 100 grams orange flesh provides:

• Calories: 47
• Protein: 0.9 grams
• Carbs: 11.8 grams
• Sugar: 9.4 grams
• Fiber: 2.4 grams
• Fat: 0.1 grams

Oranges are mainly made up of carbs and water, and are also a great source of fiber, protein, minerals and vitamins. They are also a good source of fiber, which may support digestive health.

Health Benefits of Consuming Oranges

Oranges are great for human health. There are numerous health benefits of regular consumption of oranges. Here we are trying to describe the top health benefits of consuming oranges.

• Oranges are good source of carbs, fiber, protein, minerals and some vitamins.
• They are primarily made up of carbs and water. They are also good source of fiber, which may support digestive health.
• Many vitamins and minerals are found in oranges such as vitamin C, thiamine, folate and potassium.
• Sweet oranges are a rich source of several plant compounds that are responsible for man of their health benefits.
• Oranges are very good for heart health. Regular consumption of oranges or juice has a blood thinning effect and may reduce blood pressure significantly.
• Sweet oranges are a good source of citric acid and citrates, which are believed to help prevent kidney stone formation.
• Oranges can also help to protect against anemia by increasing your iron absorption.
• You can enjoy oranges in many different ways. But eating whole oranges is healthier than drinking orange juice.

Oranges are among the world’s most popular and common fruits. And they are both tasty and nutritious. Consuming oranges daily is good for health.

Advantages/Benefits of Orange Farming Business

Commercial orange farming is a very common and popular business in many countries around the world. Cultivating oranges is very easy and even the beginners can also start commercial orange farming business.

Large scale or commercial orange production is a great system for earning some extras, because this business is highly profitable. Here we are trying to describe more about the top advantages of commercial orange farming business.

• Commercial or large scale orange farming is a very old business, and people are doing this business from the ancient time.
• So, you don’t have to worry much about starting and operating this business. You will be able to find many experienced farmer within your area to learn and practice practically.
• Commercial orange farming is very profitable, and you will be able to make good profit from this business (even if you are a beginner).
• Commercial orange production is a very old and established business. So, you don’t have to worry much about this business.
• Both price and demand of oranges are high in domestic and international market.
• Orange plants grow easily and it’s also very easy to take care of them. You can start growing orange trees even if you are a beginner.
• Commercial orange farming is highly profitable. So, this venture can be a very good employment source for the rural people.
• Especially, the educated but unemployed people can take this business as their carrier.
• Commercial orange farming business doesn’t require high investment, but will take some time for making good profits. But once the trees are established, you will get fruits continuously for many years.
• As we have mentioned above, oranges are very nutritious and consuming oranges regularly has numerous health benefits.
• You can enjoy fresh oranges if you start your own orange farming business.

How to Start Orange Farming Business

Orange plants are generally very strong and hardy. And caring them is generally easy. You will be able to take good care of them, even if you are a beginner.

Starting commercial orange farming business is very easy. Here we are trying to describe more information about starting and operating this business from planting, caring to harvesting and marketing.

Select Good Location

First of all, select a very good location for starting your orange farming business. Orange trees are generally grown in a wide range of soils ranging from sandy loam or alluvial soils.

Deep soils with a pH range of 5.5 to 7.5 are considered ideal for orange farming. Although, orange plants can also be grown in a pH range of 4.0 to 9.0.

Adequate sunlight and availability of water is a must for growing orange plants, and also for having good production.

Land Preparation

You have to prepare the land perfectly for having good production. Perfect land preparation is the key to successful orange farming business.

Land should be ploughed, cross ploughed and leveled before planting. Terrace planting is done on hills. High density planting is possible in hilly areas.

Add as much organic fertilizers as you can while preparing the land. Adding organic fertilizers is a must for good orange production.

Climate Requirement For Orange Farming

Orange trees grow successfully in all frost-free tropical and sub-tropical regions. Annual rainfall of 100-120 cm, and temperature ranging from 10°C to 35°C is suitable for orange farming.

Choose the Right Variety/Cultivars

There are many varieties or cultivars of oranges available throughout the world. Main varieties are Common oranges, Navel oranges, Blood oranges, Acidless oranges and Hybrids.

Each of these varieties have numerous sub or similar varieties. Here we are listing the name of some popular common orange varieties.

• Biondo Comune (“ordinary blond”)
• Biondo Riccio
• Calabrese or Calabrese Ovale
• Cherry Orange
• Jaffa orange
• Lue Gim Gong
• Maltaise Blonde
• Maltaise Ovale
• Moro Tarocco
• Parson Brown
• Seleta, Selecta
• Shamouti Masry
• Xã Đoài orange

Navel Orange Varieties

• Dream navel
• Washington or California Navel

Blood Orange Varieties

• Sanguinelli
• Scarlet navel

Purchase Plants

After selecting the right variety for your business, you have to purchase plants from any of your nearest nurseries.

Orange plants are generally propagated by seeds and also vegetatively propagated by T-budding.

Seedlings are generally planted in the month of July-August after the commencement of monsoon. Orange plants are generally planted in pits of 0.5 m x 0.5 m x 0.5 m size in a square system with spacing of 4.5 meters to 6 meters accommodating 350-450 plants per hectare.

Spacing of 6 m x 6 m accommodating 120 plants per acre has been considered ideal for the present model.

Taking good care of the plants is very important for better growth of the plants and also for better fruit production.

Orange plants are very strong and hardy, and they generally require less caring. Here we are trying to describe more about the caring process of orange plants.

Fertilizing

Providing adequate fertilizers is very important for getting better production. For 1-3year old crop, apply well decomposed cowdung@10-30kg, Urea@240-720gm per tree.

For 4-7year old crop, apply well decomposed cow dung@40-80kg, Urea@960-1680gm and SSP@1375-2400gm per tree. For eight years and above crop, apply cowdung@100kg, Urea@1920gm and SSP@2750gm per Tree.

Apply whole amount of cow dung during December month whereas apply Urea in two parts, apply first of Urea in February, and second dose in April-May month. At time of applying first dose of Urea, apply whole dose of SSP fertilizer.

If fruit drop is observed, to control excessive fruit drop, take spray of 2,4-D@10gm in 500Ltr of water. Take first spray in March end, then in April end. Repeat the spray in August and September end. If cotton is planted in nearby field of citrus, avoid spraying of 2, 4-D, instead take spray of GA3. [ 2 ]

Watering/Irrigation

Water or irrigation requirement of orange tree is very high due to it’s evergreen nature throughout the year. Although, exact amount of water requirement depends upon the type of soil.

Adequate watering should be provided at the time of flowering, fruit set and fruit development stage.

Orange plants can’t tolerate water logging, so try to avoid water logging. And water of irrigation should be free from salts.

Mulching not only helps to retain moisture but also helps to prevent weeds. You can use organic materials for mulching.

Weeds consume nutrients from the soil. So, it’s very important to control weeds. You can control weeds by hand-hoeing and also by chemically.

If you prefer chemical method, use glyphosate at the are of 1.6 liter per 150 liter of water. Use glyphosate only on weeds not on orange plants.

Pests & Diseases

Like many other crops, orange plants are also succeptible to some pests and diseases. Here we are trying to describe more about the common pests and diseases of the orange plants.

Common Diseases & Their Management

Common diseases of the orange plants are citrus canker, gummosis, powdery mildew, black spot, collar rot, zinc defieiency and iron deficiency.

Iron Deficiency

Color of the leaves of the infected trees changes to yellowish green. This deficiency mostly occurs in case of alkaline soils. Iron chelates should be provided to the plants.

Zinc Deficiency

Zinc deficiency in orange plants is very common. It is notified as yellow areas between main lateral veins and midrib of the leaves. Twings may die back, dense shoots having stunted bushy appearance is commonly seen.

Fruits tend to become pale, elongated and become smaller in size. Provide zinc sulphate by dissolving 2 table spoons in 10 liters of water. This should be sprayed thoroughly on all the tree branches and foliage.

Collar rot is caused due to fungus, and affects the bark on tree trunk. Bark begins to rot and forms a band just above ground surface (and this band decay gradually and covers the whole trunk).

Cut and scrape away the soft, infected bark to clean the trunk of the tree to protect the trees from collar rot.

Mixture of copper spray or Bordeaux mixture should be painted on the affected part of the tree. Remove all the weak, diseased and congested tree branches to ensure proper air circulation.

Black spot is also a fungal disease. Common symptoms of this diseases are circular, dark spots on fruits.

Copper spray in early spring should be sprayed on foliage helps to cure plants from black spots. It should be repeated in 6 weeks again.

Powdery Mildew

White cottony powdery growth is noticed on all aerial plant parts, and the leaves tend to become pale yellow and crinkle. Distorted margins are also seen. Upper surface leaves are more affected.

To control powdery mildew, affected plant parts should be removed and destroyed completely. Carbendazim, three times at 20-22 days of interval helps to control this disease.

Exudation of gum from the bark of the tree is the characteristic symptom of gummosis disease.

This disease can be managed through proper selection of site with proper drainage, use of resistant varieties etc.

Drench the soil with 0.2% metalaxyl MZ-72 + 0.5% trichodermaviride, which helps to control this disease. Bordeaux mixture should be applied to plant upto 50-75 cm height from ground level at least once in a year.

Citrus Canker

Plants have lesions on stems, leaves and fruits with brown, water-soaked margins. This disease can be controlled by cuttin the affected branches and twigs.

Spraying of Bordeaux mixture @1%. Aqueous solution of 550ppm, Streptomycin Sulphate is also helpful in controlling citrus canker.

Common Insect-Pests & Their management

Common pests and insects of the orange plants are aphids and mealy bugs, orange shoot borer, scale insects, cutrys ostkka and leaf miner.

Aphids & Mealy Bugs

Aphids and mealy bugs are small sap sucking pests. Bugs are generally present on the underside of the leaves. You can use synthetic pyrethroids or pest oil to control aphids and bugs.

Orange Shoot Borer

Affected plants tend to lose it’s vigor, and it is a very serious pest of the citrus plant. It can be controlled by destroying the affected branches.

Kerosene oil/petrol injection can also help to control this insect. Monocrotophos (5ml/20ml of water) also helps to control orange shoot borer.

Scale Insects

Scale insects can be controlled with the introduction of indigenous parasitic wasps. Neem oil is also effective against them. Spraying of Parathion (0.03%) emulsion, dimethoate 150ml or malathion @0.1% are effective against scale control.

Best management for leaf miner is to leave it alone and let the natural enemies to feed upon them and parasitize their larvae. It can also be controlled by spraying Phosphomidon @1ml or Monocrotophos @1.5ml per 3-4 times fortnightly. Pheromone traps are also available for detecting leaf minor moths.

Citrus Psylla

Citrus psylla are juice sucking pests, and damage is mainly caused by Nymphs. It can be controlled by pruning of the affected plants. Spraying of Monocrotophos-0.025% or carbaryl- 0.1% can also be helpful.

You can start harvesting when the fruits attain proper size, shape along with attractive color. Depending upon variety, fruits are generally ready for harvesting in Mid-January to Mid-February.

Timely harvesting is very important. Because too early or too late harvesting will give poor quality fruits. Harvesting is generally done by hand.

Post Harvesting

Post harvesting tasks include grading, washing the fruits with clean water and then dip fruits in Chlorinated water at the rate of 2.5 ml per Liter water.

After that, partially dry them. To improve appearance along with to maintain good quality, do Citrashine wax coating along with foam. Then these fruits are dried under shade and then packing is done. Fruits are packed in boxes.

Yield vary depending on the age of the plants. You can expect around 50 fruits per tree from their 5th year of age. Fruit production stabilizes in the 8th year. Average production is about 700 to 800 fruits per tree after stabilization.

Marketing oranges is very easy. You can easily sell your oranges in your local market. You can also target some large companies for selling your products.

Best Orange Farming Tips

Orange farming can be a lucrative business if done right, but it requires a lot of hard work and dedication. Here we will provide you with the best orange farming tips to help you become a successful orange farmer.

• Choose the Right Variety: Selecting the right variety of orange is the first step in orange farming. There are many types of oranges available in the market, but not all of them are suitable for your climate and soil. Before planting, research the varieties that grow best in your region and select the one that suits your needs.
• Soil Preparation: Preparing the soil before planting is critical to the success of your orange farm. The soil should be well-drained and fertile, with a pH level of 6.0-7.5. Test your soil before planting and make necessary adjustments to ensure it has the necessary nutrients for healthy orange growth.
• Planting: Orange trees should be planted in a sunny location with adequate spacing between trees. Planting during the cooler months is ideal, as it allows the trees to establish themselves before the onset of the hot summer weather.
• Watering: Watering is critical to the growth and health of your orange trees. Provide regular irrigation to keep the soil moist but not waterlogged. Too much or too little water can result in poor fruit quality and yield.
• Fertilization: Fertilizing your orange trees is essential for healthy growth and high yield. Apply a balanced fertilizer with a ratio of 3:1:2 (N:P:K) during the growing season. Alternatively, use organic fertilizers such as compost, manure, or bone meal.
• Pruning: Pruning is essential for maintaining the shape and size of your orange trees. Prune during the dormant season to remove dead or diseased branches and to encourage new growth.
• Pest and Disease Control: Orange trees are prone to pests and diseases, which can affect their growth and yield. Monitor your trees regularly for signs of infestation and take appropriate measures to control them. Use organic methods such as neem oil, insecticidal soap, or garlic spray.
• Mulching: Mulching helps retain moisture in the soil and suppresses weed growth around the base of your orange trees. Use organic materials such as straw, leaves, or grass clippings as mulch.
• Sun Protection: Protect your orange trees from scorching sun rays during the hot summer months. Use shade cloth or plant your trees in areas with natural shade.
• Harvesting: Harvesting oranges at the right time is crucial for their taste and quality. Oranges are ready for harvesting when they are fully mature and have reached their desired size and color.
• Post-Harvest Handling: Proper post-harvest handling is essential to maintain the quality of your oranges. Clean and sort the fruits, remove any damaged or diseased ones, and store them in a cool, dry place.
• Marketing: Marketing your oranges is critical to your farm’s success. Develop a marketing plan, build relationships with buyers, and explore various marketing channels such as farmers markets, online platforms, and direct selling.
• Record Keeping: Keeping detailed records of your orange farm’s activities is crucial for tracking progress and identifying areas for improvement. Keep records of planting dates, fertilization, pest and disease control, and yield.
• Irrigation Management: Proper irrigation management is critical for healthy orange growth. Use efficient irrigation methods such as drip irrigation, and adjust the frequency and amount of water based on weather conditions and the stage of growth of your trees.
• Soil Management: Maintaining healthy soil is essential for healthy orange trees. Monitor soil health regularly and take necessary measures such as adding organic matter or adjusting pH levels to improve soil quality.
• Pest and Disease Monitoring: Regular monitoring of pests and diseases is essential to catch any infestations early and prevent them from spreading. Use traps, pheromone lures, or visual inspections to monitor pests and diseases.
• Pest and Disease Identification: Proper identification of pests and diseases is essential to select the appropriate control measures. Consult with experts or use online resources to identify the pests and diseases affecting your orange trees.
• Integrated Pest Management: Integrated pest management (IPM) is a holistic approach to pest and disease control that combines various methods such as cultural, biological, and chemical control. Implement IPM practices to reduce the use of chemicals and protect the environment.
• Pruning Techniques: Different pruning techniques can be used for different types of orange trees, such as dwarf or standard trees. Learn the appropriate pruning techniques for your orange trees to maintain their health and shape.
• Weed Control: Weeds can compete with your orange trees for nutrients and water, affecting their growth and yield. Use mulching or hand weeding to control weeds around your orange trees.
• Insect Control: Insects such as aphids, scales, or mites can damage your orange trees and affect their fruit quality. Use appropriate insecticides or insecticidal soap to control insect infestations.
• Disease Control: Diseases such as citrus greening, black spot, or powdery mildew can affect your orange trees’ health and yield. Use appropriate fungicides or cultural practices such as pruning or improving soil health to prevent and control disease outbreaks.
• Climate Considerations: Different types of oranges require different climate conditions to thrive. Consider your local climate and choose the appropriate variety of oranges for your region.
• Pollination: Oranges require pollination to produce fruit. Ensure that you have enough pollinators such as bees or butterflies in your farm to ensure healthy fruit development.
• Farm Maintenance: Regular farm maintenance such as clearing debris, repairing irrigation systems, or fixing fences is essential for the smooth operation of your orange farm.

These are the common steps and ways for starting and operating a successful orange farming business. Hope this guide has helped you! Good luck & may God bless you!

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Orange Farm Business Plan Template

Explore Options to Get a Business Plan.

Are you interested in starting your own orange farm  Business?

Introduction

Global market size, target market, business model, competitive landscape, legal and regulatory requirements, financing options, marketing and sales strategies, operations and logistics, human resources & management, why write a business plan.

• Business Plans can help to articulate and flesh out the business’s goals and objectives. This can be beneficial not only for the business owner, but also for potential investors or partners
• Business Plans can serve as a roadmap for the business, helping to keep it on track and on target. This is especially important for businesses that are growing and evolving, as it can be easy to get sidetracked without a clear plan in place.
• Business plans can be a valuable tool for communicating the business’s vision to employees, customers, and other key stakeholders.
• Business plans are one of the most affordable and straightforward ways of ensuring your business is successful.
• Business plans allow you to understand your competition better to critically analyze your unique business proposition and differentiate yourself from the market.
• Business Plans allow you to better understand your customer. Conducting a customer analysis is essential to create better products and services and market more effectively.
• Business Plans allow you to determine the financial needs of the business leading to a better understanding of how much capital is needed to start the business and how much fundraising is needed.
• Business Plans allow you to put your business model in words and analyze it further to improve revenues or fill the holes in your strategy.
• Business plans allow you to attract investors and partners into the business as they can read an explanation about the business.
• Business plans allow you to position your brand by understanding your company’s role in the marketplace.
• Business Plans allow you to uncover new opportunities by undergoing the process of brainstorming while drafting your business plan which allows you to see your business in a new light. This allows you to come up with new ideas for products/services, business and marketing strategies.
• Business Plans allow you to access the growth and success of your business by comparing actual operational results versus the forecasts and assumptions in your business plan. This allows you to update your business plan to a business growth plan and ensure the long-term success and survival of your business.

Business Plan Content

• Executive Summary
• Company Overview
• Industry Analysis
• Consumer Analysis
• Competitor Analysis & Advantages
• Marketing Strategies & Plan
• Plan of Action
• Management Team

The financial forecast template is an extensive Microsoft Excel sheet with Sheets on Required Start-up Capital, Salary & Wage Plans, 5-year Income Statement, 5-year Cash-Flow Statement, 5-Year Balance Sheet, 5-Year Financial Highlights and other accounting statements that would cost in excess of £1000 if obtained by an accountant.

The financial forecast has been excluded from the business plan template. If you’d like to receive the financial forecast template for your start-up, please contact us at [email protected] . Our consultants will be happy to discuss your business plan and provide you with the financial forecast template to accompany your business plan.

Instructions for the Business Plan Template

To complete your perfect orange farm business plan, fill out the form below and download our orange farm business plan template. The template is a word document that can be edited to include information about your orange farm business. The document contains instructions to complete the business plan and will go over all sections of the plan. Instructions are given in the document in red font and some tips are also included in blue font. The free template includes all sections excluding the financial forecast. If you need any additional help with drafting your business plan from our business plan template, please set up a complimentary 30-minute consultation with one of our consultants.

Ongoing Business Planning

Want a bespoke business plan for your orange farm business, our expertise, orange farm business plan template faqs, what is a business plan for a/an orange farm business, how to customize the business plan template for a orange farm business, what financial information should be included in a orange farm business plan, are there industry-specific considerations in the orange farm business plan template, how to conduct market research for a orange farm business plan, what are the common challenges when creating a business plan for a orange farm business, how often should i update my orange farm business plan, can i use the business plan template for seeking funding for a orange farm business, what legal considerations are there in a orange farm business plan.

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How to Start a Profitable Orange Farming Business

• Agriculture , Business Ideas
• February 23, 2023

Do you want to start a commercial orange farming business with low capital investment? Find here a detailed orange cultivation business plan for your ready reference.

Orange is economically an important fruit worldwide. The orange has its origin in Southern China, Northern and East India, and Southeast Asia. Nowadays, around six continents in over 100 countries grow orange throughout the year.

The scientific name of the sweet orange is Citrus sinensis. And it belongs to the Rutaceae family. It occupies nearly 40% of the total area under citrus cultivation in India. The most important commercial citrus species in India are the mandarin (Citrus reticulata), sweet orange (Citrus sinensis), and acid lime (Citrus aurantifolia) sharing 41, 23, and 23 % respectively of all citrus fruits produced in the country.

Is Orange Farming Profitable?

The citrus industry in India is the third-largest fruit industry in the country after mango and banana. India ranks ninth among the top orange-producing countries. In addition, the country contributes around 3% of the world’s total orange production. However, India exports only 1.72% of the country’s production in the global market.

Apart from fresh fruit and juice consumption, the orange is an essential item for the food processing industry. Different types of processed foods include packaged fruit juice, squash, jam, jelly, and marmalade. In addition, orange peels are important ingredients in some Chinese cuisine.

Health Benefits of Orange

There are several benefits of oranges. Some of them are listed below:

• First of all, orange is a rich source of Vitamin C
• Oranges contain phytochemicals that protect against cancer.
• Additionally, orange juice can help prevent kidney diseases.
• Mandarin oranges fight liver cancer, according to studies.
• In addition, oranges lower cholesterol.
• The fruits are rich in potassium and boost heart health.
• The fruit regulates high blood pressure.
• Finally, oranges are full of dietary fiber which stimulates digestive juices and relieves constipation.

Here are the 5 Steps to Start Orange Farming Business

1. create a business plan.

First of all, you must have a business plan before starting the business. Basically, a business plan provides a comprehensive guide about the input cost, projected return, and profitability.

Alike any other fruit farming business, you will not get any return before harvesting the fruits. That is why you must have the financial preparation to carry on the cultivation.

Orange crops demand irrigation in the time of winter and summer seasons. So you must have the proper irrigation facility.

Finally, apart from fresh fruit selling, you must have some business tie-ups with the food processing industries.

2. Choos the Best Varieties for Commercial Orange Farming

Some of the important Indian varieties are Nagpur Santra, Coorg Santra, Khasi Santra, Mudkhed, Shringar, Butwal, Dancy, Kara (Abohar), SZ-IN-COM, Darjeeling Mandarin, Sumithra mandarin, Seedless-182, and Kinnow mandarin.

Worldwide the commonly cultivated varieties (cultivars) include:

• Washington navel, which is suitable for direct eating as a table fruit (dessert). The fruit is seedless. It matures early in the season.
• Valencia, with a lot of juice and therefore suitable for juice extraction. This cultivar matures late in the season and this is advantageous. The juice has highly soluble solids. The fruit has rough skin.
• Hamlin has good juice extraction properties. It is a small fruit with smooth and shiny skin.
• Additionally, other popular varieties are Kuno navel, Nova, and Minneola.

3. Check the Agro Climatic Condition For Orange Farming

Mandarins grow successfully in all frost-free tropical and sub-tropical regions up to 1,500 m. above m.s.l. However, annual rainfall of 100-120 cm. and temperature ranging from 10° – 35°C are suitable for the cultivation of the crop. A dry hot day and cool at-night climate also favor good color development.

However, extremely high temperatures are harmful, especially during flowering or if cool temperatures are followed by a hot period. Damage occurs in the form of flower and leaf drops. Additionally, winds can also cause serious damage to orange trees and fruits.

4. Suitable Soil For Orange Farming

Orange grows over a wide range of soils. However, the light, well-drained (sandy) soils are ideal. For good production oranges require well-distributed rainfall or supplementary irrigation throughout the year. Therefore, a good source of water is essential in orange farming.

Generally, water requirements vary according to weather conditions, but as a whole, the ideal range is between 450mm – 2,700mm per year.

Related Post:  Is Soil Testing Important In Agriculture? 

5. Orange Cultivation Basic Steps for Orange Farming

A) planting of orange seeds.

Orange propagates in many different ways. You can go for propagation from seeds and also vegetative propagation by T-budding. You can transplant the seedlings mostly in the month of July-August after the commencement of the monsoon.

Usually, you can plant the mandarins in pits of 50 cm. X 50 cm. X 50 cm. size in a square system with a spacing of 4.5-6 m., accommodating 350-450 plants/ha.

b) Irrigation for Orange Farming

You must provide irrigation at an interval of 10-15 days during the winter months and at an interval of 5-7 days during the summer months. Drip irrigation leads to the effective, efficient, and economic use of irrigation water. Especially, you can opt for drip irrigation in low-rainfall regions.

However, you must provide regular watering all the way up to fruiting, depending on weather conditions. After the trees are fully grown leave it as a mono-crop. Citrus is easily affected by root rot as other intercrops are being cultivated. Avoid planting the cover crop very close to the orange stalk.

c) Manuring

Normally, you can apply Sodium Super Phosphate (SSP) to the soil before planting at a rate of half a kg per hole. Additionally, you can add about 10-20kg of manure to the soil.

Also, you can apply NPK fertilizer at the rate of half a kg per plant per year of growth, split into 2-3 applications per year i.e. apply about 250 gm per rainy season. Increase the fertilizer by about 300 gms NPK per year of growth up to year 10 when each tree gets 2.5 – 3 kg per year. Additionally, you can add farmyard manure also.

As per the soil testing report, you must add micronutrients also.  An improper supply of nutrients may cause serious disorders which may lead to the decline of the whole orchard. However, you must supply the micro-nutrients through foliar spraying. Some of the major required micronutrients are zinc, copper, manganese, iron, boron, and molybdenum.

Relate Post: Most Profitable Cash Crops to Grow 

d) Weed control for Orange Cultivation

Generally, weeds compete with young oranges. The weed before the weeds flower to prevent the production of more seeds. Do not dig through as this will damage roots and cause root rot disease. Ring weed around the plants to get a weed-free area for irrigation and application of manure or other fertilizers. Keep the fields weed-free to avoid fruit and leaf spots.

In case you are using a herbicide, spray in the inter-rows-avoiding drift to the plants. In this case, there should be no intercrop. Where mulching materials are available, mulching is encouraged.

e) Harvesting & Yield of Oranges

First of all, you can harvest the fruits when they attain full size, and develop attractive colors with optimum sugar and acid blend. You must harvest the fruits preferably with clippers, shears, or secateurs. However, you must not harvest mandarins in wet weather or during rain.

Mandarins start bearing from the fourth year. However, you can expect a substantial yield only from the sixth year onwards. Mandarin produces 500-800 fruits after about 9-10 years. However, its plants attain the level of full bearing at the age of 10-12 years. The net productive life span of orange orchards after deducting the first 5 pre-bearing years is only 15-20 years. However, if you go for the treatment, you also get still substantial yield from your orange cultivation business.

Tips on How to Start an Orange Farming

Oranges are one of the nutritious and succulent edible fruits seen in orchards or compounds in most parts of the world. Orange is the commonest fruit that can be grown in a small space or in the greenhouse if the climatic condition of the residence is not warm. The fruit of this tree, scientifically known as citrus reticulata & botanically citrus aurantium is not just nutritious but contains lots of vitamins and minerals which are beneficial to human health.   This quality alone makes it good to yield a huge benefit to any farmer who is considering orange farming as an agribusiness. It is readily available at all seasons though it might be a little pricey sometimes. It is an all-season fruit but grows abundantly during late April, early May and December; many farmers tend to venture into it or in some cases complement it with other farming activities. Going into the agricultural business of planting oranges is good but it’s better to have the knowledge of the necessary requirements that will make you succeed. The best way to grow healthy orange is to buy a young orange tree or seedling.  You can learn how to plant the orange seed directly in the soil. The tips discussed below will provide you with proper insight into successful orange farming.

ii.    Plant each seed about 1.2cm beneath a well-drained soil surface prepared in a soil-mix inside a small container that is a ½ inch deep in moist potting soil. The soil you prepared for it should be a type that can drain water as quickly as possible when watered. iii.    Ensure appropriate sunlight exposure. It will do best whether indoors or outdoors but should be under the temperature between 24 to 29°C. Sunlight is always the best way to warm the soil to the correct level. iv.    It is a good option to add fertilizer at least once in a week to the soil as you watch the germination of the seeds. v.    Check the sprouts so as to remove the weaker one amongst them. An orange seed is likely to give out 3 sprouts during germination which among them will have a smaller one that is always slow in growth. This weak sprout is usually cut off while the 2 fast-growing ones are left in the container. vi.    Check the seedling always to know when it has grown to be planted in another container or to an outdoor location where it will be left for fruit production. 7.    Fertilizer Application One thing is to apply fertilizers to plants and another thing is to know when to apply it and the suitable one for such crops. To get a better outcome, try and know what essential nutrients like minerals that an orange tree needs to grow and develop well. This will make you channel your idea on the type of fertilizer to use so that you will supply the plants with the needed nutrients to avoid malnutrition. 8.    Orange Tree Spacing Try as much as possible to space the orange tree well so that it can receive adequate sunlight, air and more that will make it grow effectively. In most cases, the spaces or the meter each tree is away from the other depends on the type of soil used as well as the method for its cultivation. You have to avoid crowing the shades as they grow. Full-sized or standard orange trees can grow more than 20 feet tall. Therefore, you should ensure to plant the trees 12 feet of 25 feet apart. If the rows are many, the spacing should be at least 10 feet apart.

Related Information:

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How to Start Orange Farming Business

Do you want to learn How to Start Orange Farming Business? Do you want to start a commercial orange farming business but don’t know how? this article explains all you need to start a successful Orange Farming Business with ease.

Orange is a tasty fruit known to all people of the world. Orange belongs to the citrus fruit family which it’s largely made up of the variety of oranges in them. The name of the fruit is synonymous with its color and it is tastier due to its orange color.

Orange has many uses which are almost infinite. It is used to make tropical drinks both for commercial and personal purposes. 

  It is also a major ingredient for soap, perfumery, antiseptic, drugs, and many others.

The market for this fruit is enormous because almost everyone loves orange and it is probably the best choice of fruit for every household out there.

So if you are interested in growing oranges for commercial purposes, here are the major tips on how you can start growing oranges and sell them and reap the result of your labor in a short period of time.

READ ALSO : Orange Fruits Nutrition Facts and Health Benefits

GET A BUSINESS PLAN:

 You need to first write or get a business plan at hand before starting this business. With the business plan, you will be able to know how you want your plantation business to operate, whether on a long-term goal or a short-term goal, and also ways to weather competition while still staying relevant in the business. To get a Sample business plan, contact us.

DECIDE ON THE SCALE TO OPERATE:

As a new entrepreneur or an individual who is inclined to grow oranges for a business venture, it is imperative to decide on the scale you want to operate.  Decide whether you want to start on a large scale, which requires huge capital, large farm space like 200mm or thereabouts, modern farming equipment, management/operational costs, and the rest. Or on a small-scale, where you will take your time to plant your orange seeds, water, and nurture them till it gets to harvesting time where you can then sell and make good profits.

  CULTIVATION AREA:

Orange cultivation is done everywhere. There are many varieties of oranges out there and to enable the orange plants to grow very well, you need to know the particular type that best suits the soil in your farmland. Orange as a fruit needs to be planted in sunny areas that have means of draining water, the oranges also need to be water like 6 to 10 days tops during the rainy season as heat tends to dry the soil faster. but during the dry season, it needs less water as rain will do most of the watering for you.

Another way to cultivate oranges is by using fertilizer. According to agricultural experts, it is much better if you fertilize orange plants every 3 to 5 weeks. Putting fertilizer help the fruit to grow faster which is more favorable for those growing oranges for commercial purpose.

READ ALSO: Top 10 Profitable Agriculture Business Ideas

CULTIVATION PROCESS:

This involves; * Preparing farmland, * dip a deeper and wider hole * bring sapling * place sapling in the hole and cover After some days, you can either water or use fertilizer on the soil.

PENETRATE THE RIGHT MARKET:

Once you know it is getting to the time for harvest, you need to go out there and get buyers for your orange fruit. This won’t be a difficult task as there is a never-ending market for orange fruits. You have a host of buyers to choose from, from the conglomerate manufacturing companies to the smoothie bar owners, wholesalers, and retailers in the local markets and to individuals for their personal use.

READ ALSO: How To Start Grasscutter Farming Business: Beginners Guide

I do hope this article has been able to spark off the entrepreneurial spirit in you and help you with how to make orange plantation a successful farming business.

  To Assist you further we’ve written a detailed comprehensive business plan on the Orange farming business, containing all you need to get started and succeed. to order, contact us .

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How to Start a Farm: Plan Your Operation

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

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

On This Page

Why you need a farm business plan.

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

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

How USDA Can Help

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

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

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

Build a Farm Business Plan

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

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

Business History

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

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

Mission, Vision, and Goals

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

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

Organization and Management

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

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

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

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

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

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

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

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

Farm Business Plan Worksheets

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

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

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

Planning for Conservation and Risk Management

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

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

Conservation in Agriculture

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

Disaster Recovery

Special Considerations

Special considerations for businesses.

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

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

Special Considerations for Individuals

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

• socially disadvantaged
• limited resource
• military veterans

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

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

Business Planning

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

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

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

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

Training Opportunities

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

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

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

2. Visit Your USDA Service Center

How to Start a Farm with USDA

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

Find Your Local Service Center

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

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

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How to Write a Farming Business Plan: Template and Guide

americanfarmfi

May 22, 2023

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

Overview of a Farming Business Plan

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

The Purpose of a Farming Business Plan

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

Key Elements of a Farming Business Plan

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

Executive Summary

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

Market Analysis

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

Products and Services

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

Marketing and Sales

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

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

Financial Plan

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

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

Setting Financial Goals

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

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

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

Conducting Market Research

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

Writing a Farming Business Plan

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

Creating a Timeline for Implementation

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

Preparation: 1-6 Months 

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

Operations: 6-12 Months

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

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

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Orange Farm Business Plan (PDF, Excel, Word)

Description

• Executive summary
• Company overview
• Products and services
• Operation plan
• Market and industry overview
• Sales & marketing plan
• Financial plan
• Risk management plan
• Potential funding sources

PURCHASE NOW

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

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

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

Find the right agriculture business plan template for your business

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

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BUSINESS PLAN FOR ORANGE FARMING

TABLE OF CONTENT

• Executive Summary

1.1       Management Team

1.2       Background of the Business

1.3       Product

1.4       Market

1.5       Competitor

1.6       Personnel Objectives

1.7       Business Goal

1.8       Objective

2.0       Marketing Plan

2.1       Marketing Goal

2.2       Sales Forecast

2.3       Revenue Forecast

2.4       Marketing Objectives

2.5       Strategies for Achieving the objective

2.6       Estimate of Cost of Marketing Action

3.0       Production and Operation Plan

4.0       Organizational and Human Resources Plan

4.1       Administrative Department

4.2       Marketing Department

4.3       Production Department

4.4       Maintenance and Security Department

4.5       Enterprise Employees

5.0       Financial Plan

5.1       Annual Personnel Cost

5.2       Estimate of Capital Expenditure

5.3       Estimate of Net working Capital

5.4       Cash Flow Forecast

5.6       Balance Sheet

5.7       Break-Even Analysis

5.8       Pay-back plan

6.0     Risk Assessment

EXECUTIVE SUMMARY

Miragrade Orange Farm is a sole proprietorship agricultural business that is registered under the Laws of Federal Republic of Nigeria. It is owned by Mr. Olu Olawale, who has a Master Degree in Agricultural Technology and a Master in Business Administration. The business is located at No, 4, Step Down, Lagos Benin Express, Ore, Ondo State. The farm is intended to sit on a fifteen acres of land that will cover the farm itself and offices for administrative purposes. The expected total capital investment is N10,000,000 (Ten Millions Naira Only) and it is expected to commence in June, 2021.Going by the operational plan, marketing analysis, intended management approach, financial plan and projection and risk management plan ;the business is expected to generate massive return on investment, and hence it is considered a profitable and viable business.

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CHARGES FOR BUSINESS PLAN/PROPOSAL 0 - 50 Millions                         -N10, 000 N51Millions - N150Millions - N20, 000 151Millions - N300Millions - N30,000 301Millions - N500Millions -N40,000 501Millions AND ABOVE    - N50, 000

Center for Commercial Agriculture

May 7, 2024

Discussing Key Resources and Risk Exposure in Your Farm Business Plan

by Margaret Lippsmeyer, Michael Langemeier, and Michael Boehlje

Introduction

Developing a business plan for your farm helps align day-to-day operations with overarching business goals. In this article, we explore the importance of assessing current business resources and exposure to risk while creating a business plan. We provide discussion on risks to your business’s key resources, a framework to evaluate the strength of your farm’s resource base, and an outline of how to craft an effective business plan. These topics link back to our previous articles on integrated risk management (Lippsmeyer, Langemeier, and Boehlje, 2024a) and key resources (Lippsmeyer, Langemeier, and Boehlje, 2024b) where we discussed how macroeconomic factors and other external shocks can influence timing and effectiveness of investments in key business resources.

Assessing Resources

Availability and strength of key resources—including financial, physical, human, organizational, and information technology—should shape your business objectives and determine an effective business plan. Business objectives and business plans should focus on strengthening your farm’s key resource base. This resource base acts as a foundation for potential farm expansion, or ability to withstand shocks or stresses in the business environment. Evaluating key resources is a critical initial step in business planning, ensuring you have accurate benchmarks for your business’s resources. These benchmarks help to identify which key resources to leverage and which need to be strengthened.

In the next sections we discuss different types of key resources and major risks associated with each. In addition to this discussion, Figure 1 poses a series of questions which can be used to assess the strength of your farm’s key resources. These questions are intended to pinpoint potential shortcomings in a farm’s resource base, thereby assisting in the development of a business plan that addresses resources needing improvement. Figure 2 illustrates risk exposure by resource category.

Figure 1: Assessing Strength of Business Resources,  Adapted from Olsen (2007)

Figure 2: Risk Exposure

Organizational Resources

Organizational resources are the glue which binds together physical, financial, human resources, and information technology, giving direction and meaning to a farming operation. Organizational resources include business reputation, core values, operational structures, and systems, and play a vital role in differentiating your farm from competitors. For example, most operations can effectively produce yellow corn, but consistent product quality, reliable logistics, trustworthy relationships with input suppliers and product distributors are ways in which your organizational resources may yield a competitive advantage. Many risks associated with organizational resources are considered strategic risks. Strategic risks are caused by external shocks or stresses which create a misalignment between a farm’s business strategy and available resources and capabilities (Lippsmeyer, et al., 2023). These risks lack off-the-shelf risk mitigation strategies, making them particularly threatening for businesses. Risks to organizational resources exemplify strategic risk: coming from a variety of sources, are known to cause brand erosion, tarnish reputation, obscure business strategy, and lack effective tools to mitigate these risks.

Adverse weather conditions reducing crop yield is often categorized as a production risk. However, if as a consequence your operation fails to fulfill a sales contract, the risk becomes a strategic risk, impacting your business’s reputation. Although distributors may have alternative sources to compensate for your shortfall, your farm’s reliability in meeting contractual obligations could come under scrutiny. This could adversely affect your future prospects of securing contracts with the same distributor.

Brand erosion and loss of reputation frequently relate to three factors: price, timeliness, and quality. Balancing a competitive price and product quality is a challenge which impacts a farm’s ability to maintain a positive reputation and retain customers. Moreover, perceptions of certain farming practices (i.e., production using certain chemicals or hormone treatments), negative publicity, or increases in competition may also contribute to brand erosion and reputation loss.

The clarity of a business strategy is another component of strategic risk. Business strategy may become compromised due to complexities of relationships between operators, employees, and outside parties; or through attempts to expand to seize economies of scope. For example, business strategy may become unclear during periods of high employee turnover or when a business expands into new market channels. Periods high turbulence, when structure, goals, and values become unclear, are when resilience is most necessary. Operational resilience can serve as a dynamic buffer, enabling quick adaptation to internal and external pressures, and sufficient slack resources to provide leeway while maneuvering through unforeseen challenges (Lippsmeyer and Langemeier, 2023).

Information Technology

Information technology draws parallels between the collection and use of farm data to the concept of ‘surveillance capital’ used to enhance social media platforms (Lippsmeyer, Langemeier, and Boehlje, 2024b). In the context of production agriculture, information technology provides data-driven insights, helping producers identify operational inefficiencies, and assisting in on farm decision-making. The effectiveness of this resource is highly dependent on data collection, organization, and ability to accurately analyze the data and draw correct interpretations.

A common risk associated with information technology is data security. Whether it is financial data collected by a lender, input supplier data, or your farm production data, there are significant concerns about how to protect data from being stolen or accessed without permission. Strategies to limit data accessibility include user authentication to ensure only authorized users can access your farm records, data encryption for sending sensitive information, and access control limits to restrict who can view, modify, or delete data. In the age of increasing data collection and use, it is critical to read and fully understand contracts with equipment or information technology companies prior to signing away rights, and subsequently, knowing how to revoke access if necessary.

Risks relating to information technology span beyond data security. Often even if data collection and storage is done in a secure manner, there remain difficulties or limitations associated with data processing. This poses potential issues of uninformed or ill-informed farm decisions if incorrect conclusions are drawn from analysis, despite best efforts to use data driven insights.

Financial Resources

Financial resources include cash, investments, equity, and receivables, all of which provide liquidity to fund business expenses and updates to physical resources. Sufficient financial resources ensure farming operations can pursue new opportunities when they arise and have ability to weather through unexpected periods of high input costs or low market prices. Risks to financial resources include limited access to debt or equity capital and insufficient liquidity. Without the availability of financial resources, the ability to grow or seize new opportunities is significantly constrained, if not entirely unfeasible.

Physical Resources

Physical resources include land, machinery, buildings, and inventories. These assets are characterized by significant initial investment, continual need for maintenance, and a lack of liquidity relative to financial resources. Assessments of physical resources may vary based on the type of farming operation and the type of resource but generally take into account the resource’s useful life, initial level of investment, quality of maintenance, and salvage value. For example, maintaining land resources may involve soil testing, use of fertilizers to improve nutrient content, or use of cover crops to prevent erosion. While other physical resources like planters and combines need much more frequent maintenance and replacement after exhaustion of their useful life.

One of the major risks related to physical resources is inefficient use (i.e., low utilization rates). Inefficient use of machinery or storage facilities results in higher than necessary production costs. However, inefficient use may be justified in some scenarios. While inefficient use of physical resources is undesirable in the long run, for an operation that plans to grow, having some degree of slack may increase flexibility.

Other risks include improper care and overuse of a resource. These risks are often attributed to poor management or lack of investment due to ownership structure – for example, producers who rent versus own machinery or farm ground are typically more hesitant to make major investments because there is no guarantee they will reap the future benefit from the investment.

Inventories are the final physical resource we will address. Inventories, particularly stored crops, present unique risks including contamination with aflatoxin, insect infestation, or fire in storage bins from inadequate drying procedures. Inventories are the most liquid physical resource for farming operations, typically being sold within one year of harvest, and often used to supplement financial resources.

Human Resources

There are two varieties of human resources we will discuss: those internal to an operation and those which are external. Internal human resources include employees, management, company owners, as well as the relationships, knowledge, and competencies of each. These resources have extensive operational and industry knowledge which is built through time. Prior research shows experience displays positive relationships with profitability and financial efficiency (Vanhuyse, Bailey, and Tranter, 2021). Lippsmeyer, Langemeier, and Boehlje (2024b), discuss the importance of human resources and provide strategies for how to attract and retain quality employees. Risks relating to internal human resources include talent shortages, insufficient workforce, employee retention, and lack of experience. Losing employees incurs significant operational costs, both directly (due to insufficient labor availability) and indirectly (due to loss of tacit operational knowledge) (Spender and Grant, 1996).

External human resources include customer relations, interactions with and knowledge of suppliers. These relationships are more challenging to control due to their indirect connection with a business, yet remain critical for success. Risks relating to customer relations include losses of long-term customers and related market opportunities. Often these risks are closely related to product quality, pricing, and timeliness, as well as organizational resources. If customers perceive you as an unreliable supplier, relationships will deteriorate quickly. Maintaining consistent product quality, efficient logistics, knowledgeable employees, and quality service are all strategies businesses use to encourage longevity of reliable customer relationships (Claycomb and Martin, 2001).

Supplier risks include untimely deliveries, varying quality of inputs, and excessive or unexpected costs. These factors have the potential to influence quality or price of a product, potentially reflecting poorly on your business. Careful and frequent evaluation is necessary to decide which suppliers to continue doing business with, how to set and maintain input standards, and strategies to reward suppliers for desirable behaviors.

Setting Business Objectives

Obtainable business objectives are a critical part of every good farm business plan, so a direct path can be plotted from current performance levels to improved performance where objectives are met. Objectives may vary by enterprise, but likely revolve around improving quality standards, profitability metrics, and timeliness.

Objectives may include achieving specific quality benchmarks for products, retaining a specific proportion of contract agreements from year to year, ensuring a given percentage of deliveries are completed on time, or having management take part in strategy, business, or leadership improvement workshops. Objectives relating to information technology include learning to collect and store yield data, or developing systems to analyze the impact of different inputs on crop health. Objectives for financial resources include achieving specific financial ratio benchmarks, paying off high-interest lines of credit, or saving to invest in a new piece of machinery. Objectives to enhance and maintain human resources might involve hiring additional staff, offering career development opportunities, or offering incentives for loyal customers.

Developing A Business Plan

Using Figure 1, we encourage you to evaluate each of your farm’s key resources to help pinpoint any weaknesses in your resource base and subsequently identify areas in your operation needing improvement. Business plans should begin by identifying strengths or weaknesses of current resources, assessing the implications of relative strengths (or weaknesses) in achieving business objectives, and then focus on setting up step by step plans to achieve those objectives.

Once your business plan has been created, considerations also need to be made for the timing of major organizational changes or substantial investments. Both external shocks (e.g., macroeconomic uncertainties) and available operational slack must be considered to identify optimal timing to improve your resource base (Lippsmeyer, Langemeier, and Boehlje, 2024b).

In order to identify actions effective in making change, regular evaluations with consistent standards must be used to assess resource strength and progress made towards achieving objectives. Continually assessing strengths and weaknesses of key resources and identifying potential improvements can prevent businesses from developing a ‘needs-based strategy’ which waits for major issues to arise, then scrambles to control damage.

Conclusions

This article has provided a discussion of key resources and risks associated with each. By considering the strengths and weaknesses of your resource base, combined with the appropriate timing for investments, you will be better equipped to develop an effective business plan. Using the tools provided in this article, we prompt you to critically assess your farm’s key resources and develop a business plan which progresses from your current resource base to achieving business objectives.

Claycomb, C. and C.L. Martin, C. L. (2001). “Building Customer Relationships: An Inventory of Service Providers’ Objectives and Practices.” Marketing Intelligence & Planning, 19 (6). doi: https://doi.org/10.1108/EUM0000000006109

Lippsmeyer, M. and M. Langemeier. (2023). “ Agility and Absorption Capacity .”  Center for Commercial Agriculture, Department of Agricultural Economics, Purdue University, April 20.

Lippsmeyer, M., M. Langemeier, J. Mintert, and N. Thompson.  (2023). “ Resilience to Strategic Risk .”  Center for Commercial Agriculture, Department of Agricultural Economics, Purdue University, June 20.

Lippsmeyer, M., M. Langemeier, and M. Boehlje.  (2024a). “ Integrated Risk Management: Developing an Asset-Based Business Strategy .”  Center for Commercial Agriculture, Department of Agricultural Economics, Purdue University, March 15.

Lippsmeyer, M., M. Langemeier, and M. Boehlje.  (2024b). “ Key Resources Determining the Future of the Farm .”  Center for Commercial Agriculture, Department of Agricultural Economics, Purdue University, April 4.

Olsen, E. (2007). Assessing Your Business and Its Capabilities. In Strategic Planning for Dummies (pp. 121-140). Indianapolis: Wiley Publishing, Inc.

Spender, J., and R. Grand, R. (1996). Knowledge and the Firm: Overview. Strategic Management. doi: https://doi.org/10.1002/smj.4250171103

Vanhuyse, F., A. Bailey, and R. Tranter. (2021). “Management Practices and the Financial Performance of Farms.” Agricultural Finance Review, 81(3) . doi: https://doi.org/10.1108/AFR-08-2020-0126

risk , strategic risk

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Michael Langemeier

Related resources, farm resilience, management practices, and producer sentiment: segmenting u.s. farms using machine learning algorithms.

Margaret Lippsmeyer, Michael Langemeier, James Mintert, and Nathan Thompson segment U.S. farms by farm resilience, management practices, and producer sentiment. This paper was presented at the Southern Agricultural Economics Meeting in Atlanta, Georgia in February. 

Key Resources Determining the Future of the Farm: Human Capital & Information Technology

This article emphasizes the significance of human resources and information technology (the ability to manage and analyze data) as we transition into a new era of production agriculture. This new era brings further innovation of agricultural technology, information processing, and use of artificial intelligence to digitize agriculture.

Integrated Risk Management: Developing an Asset-Based Business Strategy

Integrated risk management is a comprehensive approach that addresses business, financial, and strategic risks collectively, safeguarding your organization against potential threats. This article analyzes the importance of integrated risk management for production agriculture, an industry which is highly susceptible to external shocks.

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(Part 1) Indiana Farmland Values 2023 Update

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How to create a financial forecast for an orange farm?

Developing and maintaining an up-to-date financial forecast for your orange farm is key in order to maintain visibility on your business’s future cash flows. 

If you feel overwhelmed at the thought of putting together an orange farm financial forecast then don’t worry as this guide is here to help you.

We'll cover everything from: the main objectives of a financial forecast, the data you need to gather before starting, to the tables that compose it, and the tools that will help you create and maintain your forecast efficiently.

Let's get started!

In this guide:

Why create and maintain a financial forecast for an orange farm?

What information is used as input to build an orange farm financial forecast, the sales forecast for an orange farm, the operating expenses for an orange farm.

• What investments are needed for an orange farm?

The financing plan of your orange farm

What tables compose the financial plan for an orange farm.

• Which tool should you use to create and maintain your orange farm's financial forecast?
• Financial projections template for an orange farm

The financial projections for your orange farm act as a financial blueprint to guide its growth with confidence and ensure its long-term financial viability. 

To create them, you will need to look at your business in detail - from sales to operating costs and investments - to assess how much profit it can generate in the years to come and what will be the associated cash flows.

During challenging market conditions, maintaining an up-to-date financial forecast enables early detection of potential financial shortfalls, allowing for timely adjustments or securing financing before facing a cash crisis. 

Your orange farm's financial forecast will also prove invaluable when seeking financing. Banks and investors will undoubtedly request a thorough examination of your financial figures, making precision and presentation essential.

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

A orange farm's financial forecast needs to be built on the right foundation: your assumptions. 

The data required to create your assumptions will depend on whether you are a new or existing orange farm.

If you are creating (or updating) the forecast of an existing orange farm, then your main inputs will be historical accounting data and operating metrics, and your team’s view on what to expect for the next three to five years.

If you are building financial projections for a new orange farm startup, you will need to rely on market research to form your go-to-market strategy and derive your sales forecast.

For a new venture, you will also need an itemised list of resources needed for the orange farm to operate, along with a list of equipment required to launch the venture (more on that below). 

Now that you understand what is needed, let’s have a look at what elements will make up your orange farm's financial forecast.

From experience, it is usually best to start creating your orange farm financial forecast by your sales forecast.

To create an accurate sales forecast for your orange farm, you will have to rely on the data collected in your market research, or if you're running an existing orange farm, the historical data of the business, to estimate two key variables: 

• The average price 
• The number of monthly transactions

To get there, you will need to consider the following factors:

• Weather conditions: The weather can greatly affect the production and quality of oranges. A severe drought or frost can lead to a decrease in supply, causing prices to increase.
• Pest infestations: Pests such as insects and rodents can damage orange trees and reduce the yield of oranges. This can lead to a decrease in supply and an increase in prices.
• Competition: If there are other orange farms in your area, they may offer lower prices or better quality oranges. This can affect your average price and number of monthly transactions.
• Transportation costs: The cost of transporting oranges from your farm to the market can impact your prices. If transportation costs increase, you may need to raise your prices to maintain profitability.
• Health concerns: Consumer concerns about the safety and healthiness of oranges can affect their demand and ultimately your prices. For example, if there is a widespread outbreak of a citrus disease, demand for oranges may decrease and prices may drop.

Once you have an idea of what your future sales will look like, it will be time to work on your overhead budget. Let’s see what this entails.

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

The next step is to estimate the expenses needed to run your orange farm on a day-to-day basis.

These will vary based on the level of sales expected, and the location and size of your business. 

But your orange farm's operating expenses should include the following items at a minimum:

• Labor Costs: Includes wages, salaries, and benefits for your farm workers. This can also include seasonal workers or part-time help during peak harvesting times.
• Seed and Fertilizer: The cost of purchasing seeds and fertilizers for your orange trees. This is a recurring expense each year.
• Pest Control: To protect your orange trees from pests and diseases, you may need to hire a pest control company or purchase pesticides and other treatments.
• Irrigation and Water: Orange trees require regular watering, and this expense can include the cost of irrigation systems, water pumps, and water usage fees.
• Fuel and Transportation: This includes the cost of fuel for tractors and other farm equipment, as well as transportation costs for delivering oranges to market.
• Packaging Materials: To sell your oranges, you will need to purchase packaging materials such as boxes, bags, and labels.
• Marketing and Advertising: Promoting your orange farm and products through various channels, such as print and digital ads, can help attract more customers and increase sales.
• Equipment Maintenance: Regular maintenance and repairs for your farm equipment, such as tractors, irrigation systems, and harvesters, can help prolong their lifespan and ensure efficient operation.
• Accounting and Bookkeeping: Hiring an accountant or bookkeeper can help you keep track of your farm's finances and ensure compliance with tax laws.
• Insurance: Protecting your farm and its assets with insurance coverage, such as crop insurance and liability insurance, can help mitigate financial risks.
• Software Licenses: If you use any software for farm management, accounting, or marketing, you may need to pay for yearly licenses or subscriptions.
• Banking Fees: This includes fees for bank accounts, credit card processing, and other financial transactions related to your farm's operations.
• Utilities: The cost of electricity, gas, and other utilities for your farm, including the cost of running refrigeration for storing harvested oranges.
• Legal and Consulting Fees: If you need legal advice or consulting services for your farm, these expenses should be included in your forecast.
• Taxes and Permits: Don't forget to factor in the cost of property taxes, income taxes, and any required permits or licenses for operating your orange farm.

This list is, of course, not exhaustive, and you'll have to adapt it according to your precise business model and size. A small orange farm might not have the same level of expenditure as a larger one, for example.

What investments are needed to start or grow an orange farm?

Once you have an idea of how much sales you could achieve and what it will cost to run your orange farm, it is time to look into the equipment required to launch or expand the activity.

For an orange farm, capital expenditures and initial working capital items could include:

• Tractors: Tractors are essential for an orange farm and are used for various tasks such as plowing, tilling, and harvesting. These heavy-duty vehicles can be a significant capital expenditure for your orange farm.
• Irrigation System: Investing in a high-quality irrigation system is crucial for maintaining a healthy orange farm. This will ensure that your orange trees receive the right amount of water, especially during dry seasons.
• Storage Facilities: As an orange farmer, you will need adequate storage facilities to store your produce. This can include refrigerated storage units or warehouses to keep your oranges fresh and prevent spoilage.
• Fertilizer and Pesticide Equipment: Keeping your orange trees healthy and free from pests is crucial for a successful harvest. Purchasing equipment such as sprayers, spreaders, and dusters for applying fertilizer and pesticides can be a significant capital expenditure for your farm.
• Packaging and Labeling Equipment: Once your oranges are harvested, you will need to package and label them for sale. Investing in equipment such as labeling machines, packaging materials, and scales can help streamline this process and improve the overall presentation of your product.

Again, this list will need to be adjusted according to the specificities of your orange farm.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

The next step in the creation of your financial forecast for your orange farm is to think about how you might finance your business.

You will have to assess how much capital will come from shareholders (equity) and how much can be secured through banks.

Bank loans will have to be modelled so that you can separate the interest expenses from the repayments of principal, and include all this data in your forecast.

Issuing share capital and obtaining a bank loan are two of the most common ways that entrepreneurs finance their businesses.

Now let's have a look at the main output tables of your orange farm's financial forecast.

The forecasted profit & loss statement

The profit & loss forecast gives you a clear picture of your business’ expected growth over the first three to five years, and whether it’s likely to be profitable or not.

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

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

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

The projected balance sheet

The projected balance sheet gives an overview of your orange farm's financial structure at the end of the financial year.

It is composed of three categories of items: assets, liabilities and equity:

• Assets: are what the business possesses and uses to produce cash flows. It includes resources such as cash, buildings, equipment, and accounts receivable (money owed by clients).
• Liabilities: are the debts of your orange farm. They include accounts payable (money owed to suppliers), taxes due and bank loans.
• Equity: is the combination of what has been invested by the business owners and the cumulative profits to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

The projected cash flow statement

A projected cash flow statement for an orange farm is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organised by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

Cash is king and keeping an eye on future cash flows is imperative for running a successful business. Therefore, you should pay close attention to your orange farm's cash flow forecast.

If you are trying to secure financing, note that it is customary to provide both yearly and monthly cash flow forecasts in a financial plan - so that the reader can analyze seasonal variation and ensure the orange farm is appropriately capitalised.

Which tool should you use to create your orange farm's financial forecast?

Using the right tool or solution will make the creation of your orange farm's financial forecast much easier than it sounds. Let’s explore the main options.

Using online financial forecasting software to build your orange farm's projections

The modern and easiest way is to use professional online financial forecasting software such as the one we offer at The Business Plan Shop.

There are several advantages to using specialised software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You have access to complete financial forecast templates
• You get a complete financial forecast ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast, and recalibrate your forecast as the year goes by
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck
• It’s cost-efficient and much cheaper than using an accountant or consultant (see below)

If you are interested in this type of solution, you can try our forecasting software for free by signing up here .

Calling in a financial consultant or chartered accountant

Outsourcing the creation of your orange farm financial forecast is another possible solution.

This will cost more than using software as you can expect as your price will have to cover the accountant’s time, software cost, and profit margin.

Price can vary greatly based on the complexity of your business. For a small business, from experience, a simple three-year financial forecast (including a balance sheet, income statement, and cash flow statement) will start at around £700 or $1,000. 

Bear in mind that this is for forecasts produced at a single point in time, updating or tracking your forecast against actuals will cost extra. 

If you decide to outsource your forecasting:

• Make sure the professional has direct experience in your industry and is able to challenge your assumptions constructively. 
• Steer away from consultants using sectorial ratios to build their client’s financial forecasts (these projections are worthless for a small business).

Why not use a spreadsheet such as Excel or Google Sheets to build your orange farm's financial forecast?

You and your financial partners need numbers you can trust. Unless you have studied finance or accounting, creating a trustworthy and error-free orange farm financial forecast on a spreadsheet is likely to prove challenging.

Financial modelling is very technical by nature and requires a solid grasp of accounting principles to be done without errors. This means that using spreadsheet software like Excel or Google Sheets to create accurate financial forecasts is out of reach for most business owners.

Creating forecasts in Excel is also inefficient nowadays:

• Software has advanced to the point where forecasting can be done much faster and more accurately than manually on a spreadsheet.
• With artificial intelligence, the software is capable of detecting mistakes and helping decision-making.

Spreadsheets are versatile tools but they are not tailor-made for reporting. Importing your orange farm's accounting data in Excel to track actual vs. forecast is incredibly manual and tedious (and so is keeping forecasts up to date). It is much faster to use dedicated financial planning tools like The Business Plan Shop which are built specially for this.

Use our financial projection templates for inspiration

The Business Plan Shop has dozens of financial forecast templates available.

Our examples contain a complete business plan with a financial forecast and a written presentation of the company, the team, the strategy, and the medium-term objectives.

Whether you are just starting out or already have your own orange farm, looking at our financial forecast template is a good way to:

• Understand what a complete business plan should look like
• Understand how you should model financial items for your orange farm

• Having a financial forecast enables you to visualise the expected growth, profitability, and cash generation for your business over the next three to five years.
• Tracking actuals vs. forecast and keeping your financial projections up-to-date is the only way to get a view on what your orange farm future cash flows may look like.
• Using financial forecasting software is the mordern and easy way to create and maintain your forecasts.

This is the end of our guide on how to build the financial forecast for an orange farm, we hope you found it useful. Don't hesitate to contact us if you want to share your feedback or have any questions.

Also on The Business Plan Shop

• Example of financial forecast

Know someone who owns or is thinking of starting an orange farm? Share our forecasting guide with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

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

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

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

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Orange Farming Business Plan – How To Cultivate Orange ?

Orange cultivation in India Orange is one of the top citrus fruits grown in most countries after bananas and apples. This fruit is rich in vitamins like C, A, B and phosphorus. Oranges can be consumed fresh or in the form of juice, squash, syrup and jam. Oranges are the main source of peel oil, citric acid and cosmetics. These orange fruits have good value in the international market. The orange tree belongs to the family of the genus “Rutaceae” and “Citrus”. Many different types of sweet oranges are grown in Asia and other parts of the world. However, one of the most common types is called a “Valencia” orange.

This variety (variety) comes from Spain and is also grown in Africa and Australia. Mandarin Orange is another variety which is very famous in the cultivation of Indian citrus. ‘Sweet Orange’ is the variety that is most commonly consumed in the world today. Actually sweet oranges were first grown in Asia but are now grown in many parts of the world. Oranges are round orange-coloured fruits that grow on a tree that can reach a height of 10 meters. Orange trees have shiny dark green leaves and small white flowers with five petals. Orange tree flowers are very sweet and attract many bees. Oranges can be grown in pots, containers even in the backyard. The commercial cultivation of oranges is very successful and profitable.

Major Orange Production Countries:

Major Orange Production Countries:-

1. Brazil. 2. USA. 3. China. 4. India. 5. Mexico. 6. Spain. 7. Egypt. 8. Turkey. 9. Italy. 10. South Africa.

Note: In Asia, India is the second producer of oranges after China and in India, oranges are mainly grown in the states of Maharashtra, Andhra Pradesh, Telangana, Punjab, Karnataka, Tamil Nadu, Kerala, Uttaranchal, Bihar, Orissa, Assam and others. Gujarat.

Health benefits of oranges

Health Benefits of Orange:-

• Orange is a good source of Vitamin ‘C’.
• Orange is good for skin health.
• Oranges are good for eye health.
• Prevents cancer.
• Orange controls high blood pressure.
• Good for heart health.
• Lowers cholesterol.
• Reduces the risk of liver cancer.
• Orange helps in relieving constipation.
• Promotes healthy body tissue.
• Orange is good for the health of bones and teeth.
• Promotes immune health.
• Orange is good for digestion.
• Helps fight infection.
• Orange is good for kidney health.

Varieties of Oranges

Several improved varieties have been developed for each region. Find pest and disease resistant and high yielding cultivars from your local horticulture department.

Some of the important varieties grown in India are: Jaffa, Hamlin, Nagpur Orange (Mandarin), Coorg Orange, Valencia, Blood Red, Mosambi, Sathukudi (Satgudi), Khasi Orange, Mudkhed, Shringar, Butwal, Densi, Kara, SZ- In-com, Darjeeling Mandarin, Sumitra Mandarin, Seedless-182 and Kinno Mandarin.

Climate Required for Orange Cultivation

Climate Required for Orange Cultivation:- Oranges can be grown up to 1,500 m (above msl) in both tropical and subtropical climate conditions. However, a dry climate with a soil temperature around 25 °C would be optimal for the plant’s root growth. When it comes to best crop growth, low rainfall ranging from 75 cm to 250 cm in dry and arid conditions as well as well-defined summers

The most favorable are the conditions. The orange crop is very sensitive to frost conditions and high humid conditions leading to the spread of many diseases. The other risk involved in the cultivation of oranges is that during hot summers, hot winds cause the crop to shed flowers and young fruit. In order to get good yield of the crop, it is necessary to maintain good temperature during its growth period.

Soil requirement for orange cultivation

orange cultivation in india Orange can be grown in variety of soils like alluvial, sandy loam to loam, red sand soil to black clay soil. However, soil properties such as soil reactivity, soil fertility, drainage, free lime and salt concentration are some of the important factors of the soil used for orange cultivation.

Light loamy soil with deep and good drainage is best for the cultivation of oranges. The best soil pH for orange cultivation is 6.0 to 7.5. If the crop is planned on a large scale or on a commercial line, one should consider going for a soil test to ascertain the suitability and fertility of the soil.

Planting Season for Orange Cultivation:

Orange Farming Business Plan:- In Southeast Asia, after the onset of monsoon (July-August month) orange plants are mostly planted in the main field.

Field preparation for orange cultivation

orange cultivation in India For the cultivation of oranges, first of all, do two to three good slant ploughing through the cultivator in the field. After ploughing, make the field level by putting a pad in the field. After making the field level, prepare pits in rows leaving a distance of 15 to 18 feet. While preparing the pits, their size should be one meter wide and one meter deep. After preparing the pits, mix the old cow dung manure in the soil in appropriate quantity and fill them in the pits and irrigate them deeply. After irrigating, cover the pits through pulao.

How to prepare seedlings for orange cultivation?

Before planting orange plants in the field, their saplings are prepared in the nursery, you can buy seedlings made from any other plant nursery, but if you do not want to buy from there and want to make it yourself, then for this, orange seeds are dried by mixing them in ashes. leave for. After the seeds have dried, they are planted in a polythene bag prepared by filling the soil in the nursery. Two to three seeds should grow in each bag. Its seeds will take at least 15 to 20 days to germinate.

After that, when the plants are about two feet in height, then through the technique of planting saplings, their grafted plants are prepared, then after making the cuttings, they are planted in the field, apart from this, the farmer brothers are registered by the government. You can also buy its plants from the nursery. Orange Farming Business Plan

Irrigation in Orange Farming

Orange cultivation in India Irrigation is an important step in orange cultivation as citrus trees generally require more water than other fruit crops due to repeated growth and development. Irrigation depends on factors such as soil type, climatic conditions and age of the plants. Irrigation should be given every 5-8 days from March to June and every 9-12 days during November-February. Orange plants are sensitive to stagnation of water;

Therefore, waterlogging in the trunk of the tree should be avoided. Irrigate the orange orchard after transplanting. A large orange tree requires about 20-25 irrigations a year, with about 1,400 mm of water. It is recommended to go for drip irrigation as it has many benefits. The advantages of drip irrigation system are given below.

• The amount of irrigation or water is controlled and can be supplied as per requirement.
• Water is applied to the root system of the plant by drip irrigation.
• In the form of systematic irrigation, it improves plant growth and crop quality and yield.
• Water wastage is reduced by about 60% as compared to flood irrigation.
• Since water is supplied to the root system, fertilizers applied to the roots are used very efficiently.
• It reduces soil erosion and nutrient uptake compared to flood irrigation.
• Land leveling work is done minimally hence labor is required.
• Drip irrigation helps reduce weeds, pests and diseases.
• The crop can be grown anytime with drip irrigation.

Amount of Fertilizer in Orange Farming Orange Farming Business Plan

Manures and Fertilizers in Orange Cultivation The orange plant needs a very good amount of fertilizer, initially when preparing the pits, mix 20 to 25 kg of old dung manure in the soil and put it in the pits, then after that when the plant becomes three years old, then cow dung manure. With half kg NPK as chemical fertilizer. The amount should be given to the plants thrice a year. As the plant grows. Similarly, the amount of fertilizer should be increased, which will give good fruits and the plant will also grow well.

Pests and diseases in orange cultivation

Pests and Diseases in Orange Cultivation Pests found in Orange Cultivation: The main pests found in orange cultivation are black fly, citrus psylla, citrus leaf miner, bark-eating caterpillar, mealy bug, citrus aphids, citrus thrips, fruit fly and mites. These pests produce poor quality fruit and result in low crop yield. Spraying of insecticides such as monocrotophos, fosalon, dimethoate, phosphamidone and quinalphos has been found to be effective in most cases of these pests depending on the type of insect infestation.

Diseases found in orange cultivation: The major diseases found in orange cultivation are twig blight, gummosis, damping off, root and collar rot. Affected plants should be sprayed with Ridomil MZ 72, Bavistin, Benomyl etc depending on the type of infection.

Note: Contact your local horticulture department for pest and disease symptoms and their control. They are the best source of pest control solution in orange production.

Fruit Harvesting in Orange Farming Orange Farming Business Plan

The yield of the orange crop starts from the 4th or 5th year depending on the cultivar. The fruits of orange are harvested from January to March. During this, when the colour of the fruit becomes yellow, pluck a small twig along with the fruit so that the fruit does not spoil quickly and after plucking, clean it with a good cloth and put it in cold storage.

More than 100 plants can be planted in one acre of field. Whose total yield is obtained from 10000 to 15000 kg at a time? Whose wholesale price in the market is found around Rs 10 to 30 per kg, according to this, earning 2 lakhs can easily be done by cultivating in one acre.

If you like this Orange Farming Business Plan If you liked the information or got to learn something, then please share this post on social networks like Facebook, Twitter and other social media sites Orange Farming Business Plan.

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Discussing Key Resources and Risk Exposure in Your Farm Business Plan

• Margaret Lippsmeyer, Michael Langemeier , and Michael Boehlje
• Center for Commercial Agriculture
• Purdue University

Introduction

Developing a business plan for your farm helps align day-to-day operations with overarching business goals.  In this article, we explore the importance of assessing current business resources and exposure to risk while creating a business plan.  We provide discussion on risks to your business’s key resources, a framework to evaluate the strength of your farm’s resource base, and an outline of how to craft an effective business plan.  These topics link back to our previous articles on integrated risk management (Lippsmeyer, Langemeier, and Boehlje, 2024a) and key resources (Lippsmeyer, Langemeier, and Boehlje, 2024b) where we discussed how macroeconomic factors and other external shocks can influence timing and effectiveness of investments in key business resources.

Assessing Resources

Availability and strength of key resources—including financial, physical, human, organizational, and information technology—should shape your business objectives and determine an effective business plan.  Business objectives and business plans should focus on strengthening your farm’s key resource base.  This resource base acts as a foundation for potential farm expansion, or ability to withstand shocks or stresses in the business environment.  Evaluating key resources is a critical initial step in business planning, ensuring you have accurate benchmarks for your business’s resources.  These benchmarks help to identify which key resources to leverage and which need to be strengthened.

In the next sections we discuss different types of key resources and major risks associated with each.  In addition to this discussion, Figure 1 poses a series of questions which can be used to assess the strength of your farm’s key resources.  These questions are intended to pinpoint potential shortcomings in a farm’s resource base, thereby assisting in the development of a business plan that addresses resources needing improvement.  Figure 2 illustrates risk exposure by resource category.

Figure 1. Assessing Strength of Business Resources

Adapted from Olsen (2007)

Organizational Resources

Organizational resources are the glue which binds together physical, financial, human resources, and information technology, giving direction and meaning to a farming operation.  Organizational resources include business reputation, core values, operational structures, and systems, and play a vital role in differentiating your farm from competitors.  For example, most operations can effectively produce yellow corn, but consistent product quality, reliable logistics, trustworthy relationships with input suppliers and product distributors are ways in which your organizational resources may yield a competitive advantage.

Many risks associated with organizational resources are considered strategic risks.  Strategic risks are caused by external shocks or stresses which create a misalignment between a farm’s business strategy and available resources and capabilities (Lippsmeyer, et al., 2023).  These risks lack off-the-shelf risk mitigation strategies, making them particularly threatening for businesses.  Risks to organizational resources exemplify strategic risk: coming from a variety of sources, are known to cause brand erosion, tarnish reputation, obscure business strategy, and lack effective tools to mitigate these risks.

Adverse weather conditions reducing crop yield is often categorized as a production risk.  However, if as a consequence your operation fails to fulfill a sales contract, the risk becomes a strategic risk, impacting your business’s reputation.  Although distributors may have alternative sources to compensate for your shortfall, your farm’s reliability in meeting contractual obligations could come under scrutiny.  This could adversely affect your future prospects of securing contracts with the same distributor.

Brand erosion and loss of reputation frequently relate to three factors: price, timeliness, and quality.  Balancing a competitive price and product quality is a challenge which impacts a farm’s ability to maintain a positive reputation and retain customers.  Moreover, perceptions of certain farming practices (i.e., production using certain chemicals or hormone treatments), negative publicity, or increases in competition may also contribute to brand erosion and reputation loss.

The clarity of a business strategy is another component of strategic risk.  Business strategy may become compromised due to complexities of relationships between operators, employees, and outside parties; or through attempts to expand to seize economies of scope.  For example, business strategy may become unclear during periods of high employee turnover or when a business expands into new market channels.  Periods high turbulence, when structure, goals, and values become unclear, are when resilience is most necessary.  Operational resilience can serve as a dynamic buffer, enabling quick adaptation to internal and external pressures, and sufficient slack resources to provide leeway while maneuvering through unforeseen challenges (Lippsmeyer and Langemeier, 2023).

Information Technology

Information technology draws parallels between the collection and use of farm data to the concept of ‘surveillance capital’ used to enhance social media platforms (Lippsmeyer, Langemeier, and Boehlje, 2024b).  In the context of production agriculture, information technology provides data-driven insights, helping producers identify operational inefficiencies, and assisting in on farm decision-making.  The effectiveness of this resource is highly dependent on data collection, organization, and ability to accurately analyze the data and draw correct interpretations.

A common risk associated with information technology is data security.  Whether it is financial data collected by a lender, input supplier data, or your farm production data, there are significant concerns about how to protect data from being stolen or accessed without permission.  Strategies to limit data accessibility include user authentication to ensure only authorized users can access your farm records, data encryption for sending sensitive information, and access control limits to restrict who can view, modify, or delete data.  In the age of increasing data collection and use, it is critical to read and fully understand contracts with equipment or information technology companies prior to signing away rights, and subsequently, knowing how to revoke access if necessary.

Risks relating to information technology span beyond data security.  Often even if data collection and storage is done in a secure manner, there remain difficulties or limitations associated with data processing.  This poses potential issues of uninformed or ill-informed farm decisions if incorrect conclusions are drawn from analysis, despite best efforts to use data driven insights.

Financial Resources

Financial resources include cash, investments, equity, and receivables, all of which provide liquidity to fund business expenses and updates to physical resources.  Sufficient financial resources ensure farming operations can pursue new opportunities when they arise and have ability to weather through unexpected periods of high input costs or low market prices.  Risks to financial resources include limited access to debt or equity capital and insufficient liquidity.  Without the availability of financial resources, the ability to grow or seize new opportunities is significantly constrained, if not entirely unfeasible.

Physical Resources

Physical resources include land, machinery, buildings, and inventories.  These assets are characterized by significant initial investment, continual need for maintenance, and a lack of liquidity relative to financial resources.  Assessments of physical resources may vary based on the type of farming operation and the type of resource but generally take into account the resource’s useful life, initial level of investment, quality of maintenance, and salvage value.  For example, maintaining land resources may involve soil testing, use of fertilizers to improve nutrient content, or use of cover crops to prevent erosion.  While other physical resources like planters and combines need much more frequent maintenance and replacement after exhaustion of their useful life.

One of the major risks related to physical resources is inefficient use (i.e., low utilization rates).  Inefficient use of machinery or storage facilities results in higher than necessary production costs.  However, inefficient use may be justified in some scenarios.  While inefficient use of physical resources is undesirable in the long run, for an operation that plans to grow, having some degree of slack may increase flexibility.

Other risks include improper care and overuse of a resource.  These risks are often attributed to poor management or lack of investment due to ownership structure – for example, producers who rent versus own machinery or farm ground are typically more hesitant to make major investments because there is no guarantee they will reap the future benefit from the investment.

Inventories are the final physical resource we will address.  Inventories, particularly stored crops, present unique risks including contamination with aflatoxin, insect infestation, or fire in storage bins from inadequate drying procedures.  Inventories are the most liquid physical resource for farming operations, typically being sold within one year of harvest, and often used to supplement financial resources.

Human Resources

There are two varieties of human resources we will discuss: those internal to an operation and those which are external.  Internal human resources include employees, management, company owners, as well as the relationships, knowledge, and competencies of each.  These resources have extensive operational and industry knowledge which is built through time.  Prior research shows experience displays positive relationships with profitability and financial efficiency (Vanhuyse, Bailey, and Tranter, 2021).  Lippsmeyer, Langemeier, and Boehlje (2024b), discuss the importance of human resources and provide strategies for how to attract and retain quality employees.  Risks relating to internal human resources include talent shortages, insufficient workforce, employee retention, and lack of experience.  Losing employees incurs significant operational costs, both directly (due to insufficient labor availability) and indirectly (due to loss of tacit operational knowledge) (Spender and Grant, 1996).

External human resources include customer relations, interactions with and knowledge of suppliers.  These relationships are more challenging to control due to their indirect connection with a business, yet remain critical for success.  Risks relating to customer relations include losses of long-term customers and related market opportunities.  Often these risks are closely related to product quality, pricing, and timeliness, as well as organizational resources.  If customers perceive you as an unreliable supplier, relationships will deteriorate quickly.  Maintaining consistent product quality, efficient logistics, knowledgeable employees, and quality service are all strategies businesses use to encourage longevity of reliable customer relationships (Claycomb and Martin, 2001).

Supplier risks include untimely deliveries, varying quality of inputs, and excessive or unexpected costs.  These factors have the potential to influence quality or price of a product, potentially reflecting poorly on your business.  Careful and frequent evaluation is necessary to decide which suppliers to continue doing business with, how to set and maintain input standards, and strategies to reward suppliers for desirable behaviors.

Setting Business Objectives

Obtainable business objectives are a critical part of every good farm business plan, so a direct path can be plotted from current performance levels to improved performance where objectives are met.  Objectives may vary by enterprise, but likely revolve around improving quality standards, profitability metrics, and timeliness.

Objectives may include achieving specific quality benchmarks for products, retaining a specific proportion of contract agreements from year to year, ensuring a given percentage of deliveries are completed on time, or having management take part in strategy, business, or leadership improvement workshops.  Objectives relating to information technology include learning to collect and store yield data, or developing systems to analyze the impact of different inputs on crop health.  Objectives for financial resources include achieving specific financial ratio benchmarks, paying off high-interest lines of credit, or saving to invest in a new piece of machinery.  Objectives to enhance and maintain human resources might involve hiring additional staff, offering career development opportunities, or offering incentives for loyal customers.

Developing A Business Plan

Using Figure 1, we encourage you to evaluate each of your farm’s key resources to help pinpoint any weaknesses in your resource base and subsequently identify areas in your operation needing improvement.  Business plans should begin by identifying strengths or weaknesses of current resources, assessing the implications of relative strengths (or weaknesses) in achieving business objectives, and then focus on setting up step by step plans to achieve those objectives.

Once your business plan has been created, considerations also need to be made for the timing of major organizational changes or substantial investments.  Both external shocks (e.g., macroeconomic uncertainties) and available operational slack must be considered to identify optimal timing to improve your resource base (Lippsmeyer, Langemeier, and Boehlje, 2024b).

In order to identify actions effective in making change, regular evaluations with consistent standards must be used to assess resource strength and progress made towards achieving objectives.  Continually assessing strengths and weaknesses of key resources and identifying potential improvements can prevent businesses from developing a ‘needs-based strategy’ which waits for major issues to arise, then scrambles to control damage.

Conclusions

This article has provided a discussion of key resources and risks associated with each.  By considering the strengths and weaknesses of your resource base, combined with the appropriate timing for investments, you will be better equipped to develop an effective business plan.  Using the tools provided in this article, we prompt you to critically assess your farm’s key resources and develop a business plan which progresses from your current resource base to achieving business objectives.

Claycomb, C. and C.L. Martin, C. L. (2001). “Building Customer Relationships: An Inventory of Service Providers' Objectives and Practices.” Marketing Intelligence & Planning, 19 (6). https://doi.org/10.1108/EUM0000000006109

Lippsmeyer, M. and M. Langemeier. (2023). “ Agility and Absorption Capacity .”  farmdoc daily (13):75, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, April 24.

Lippsmeyer, M., M. Langemeier, J. Mintert, and N. Thompson.  (2023). “ Resilience to Strategic Risk .”  farmdoc daily (13):115, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, June 23.

Lippsmeyer, M., M. Langemeier, and M. Boehlje.  (2024a). “ Integrated Risk Management: Developing an Asset-Based Business Strategy .”  farmdoc daily (14):54, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, March 18.

Lippsmeyer, M., M. Langemeier, and M. Boehlje.  (2024b). “ Key Resources Determining the Future of the Farm .”  farmdoc daily (14):60, Department of Agricultural and Consumer Economics, University of Illinois at Urbana-Champaign, March 27.

Olsen, E. (2007). Assessing Your Business and Its Capabilities. In Strategic Planning for Dummies (pp. 121-140). Indianapolis: Wiley Publishing, Inc.

Spender, J., and R. Grand, R. (1996). Knowledge and the Firm: Overview. Strategic Management. https://doi.org/10.1002/smj.4250171103

Vanhuyse, F., A. Bailey, and R. Tranter. (2021). "Management Practices and the Financial Performance of Farms." Agricultural Finance Review, 81(3) . https://doi.org/10.1108/AFR-08-2020-0126

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Business | When a financial plan is no plan at all

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I wish this was the opening to a fun riddle, but sadly, when estate plans (wills, trusts, powers of attorney, health care directives) are unclear or out of date, it’s never funny, and can often be disastrous.

Said vs. meant to say

More often than I’d like to see, someone has gone to the trouble of having their estate plan created, but they sign the documents without understanding its terms. Sometimes, misunderstandings result because assets or circumstances changed, but the plan was not updated. Sometimes what’s in the documents does not match what mom or dad have told the kids, resulting in hurt feelings and often litigation.

A typical “plan” and sentiment is that a trust is to take care of the surviving spouse if there is one, and then “to my children equally” (often in fancy legal terms like “descendants” and “per stirpes,” both of which sounds like things you’d find in a pharmacy). But what if one child has been living in mom’s house taking care of mom in her final years, and mom has promised to leave that child the house? What if one child has worked in dad’s business and dad has always said to the hard-working child, “One day, this will all be yours”?

If a trust states, “to my children equally,” and says nothing about specific assets to specific children, the trustee’s hands are tied. Thus, in the above house example, the only way the house could be distributed to the caretaking child is if there are enough other assets to give the other children an equally valuable share. Even then, the trustee may need the consent of the other children. If the caregiving child was expecting the house and 1/3 of the other assets, they’re going to be out of luck. This is true even if that child was paying the mortgage on the house, unless the child can prove they were purchasing the house from their parent and thus entitled to some portion of the house as a purchaser rather than an heir.

The bigger problem

Even when a trust says “house to child A,” problems can arise. It should be clear whether child A gets the house “off the top” before all other assets are split among the children, or if child A gets the house as part of their share.

For example, assume dad dies with a trust holding a house worth $600,000, and other assets of $900,000, for a total of $1.5 million in assets.

If child A is getting the house, and the “remainder” (also referred to as “residual”) is going to all three kids equally, then child A gets $900,000 of assets (the house plus one-third of the $900,000 of other assets), and the other children each get $300,000. If, on the other hand, child A has the right to the house as a part of their one-third share, they are only entitled to $500,000 (one-third of $1.5 million) and will need to buy out their siblings’ share of the house.

Without specific terms, whichever way the trustee goes, this trust is likely to be contested by one child or another, and the legal fees will eat up a significant portion of the estate. Probate might have been cheaper.

When a gift is to be distributed is another important and overlooked issue that can nullify a plan.

If dad is leaving the family business to the child who works in the business, the trust again should make clear if that’s “off the top” or part of that child’s share. But what if dad’s spouse is still alive? Is the surviving spouse meant to continue receiving income from the business? Is the gift only made once both spouses are deceased (particularly a concern with children from different marriages)?

What if the child is no longer working in the business at the time of dad’s death? At the time of surviving spouse’s death? The trust should cover these conditions — e.g., the child only received the business as part of their share of the trust assets, after the surviving spouse has died, and only if the child is still working in the business.

Formula trust

Estate planning attorneys often draft trusts with complicated formulas for how a trust is divided. We do that not because we’re showoffs or charge by the word (that only seems true) but because tax laws change, asset values change, and we don’t know when you’re going to die. But sometimes, if the law changes drastically, or your assets significantly change, these formulas can up-end a plan.

When a trust is drafted, the formula could benefit the surviving spouse (i.e., the largest share under the formula is set aside for the spouse), but as laws and assets change over the years, that could reverse, and the formula may benefit the children more, or perhaps unintentionally reduce a spouse or child’s share to zero.

Make sure you consult with counsel every few years and confirm the formula still works.

If you have a trust that was put in place before 2012 and hasn’t been updated yet, you should have it reviewed. Tax laws have changed significantly, and where pre-2012, it was commonplace that a trust would split into two at the death of the first spouse to save on estate taxes, this is no longer the case. And in fact, splitting the trust into the “old school” two trusts may cause higher income taxes.

An estate plan is a living document for so long as you are a living person. Just as you buy new clothes, move homes, and change your diet and exercise habits, your trust is going to need an update as well. Just like those jeans you wore in high school, a plan is not a plan if it no longer fits you.

Teresa J. Rhyne is an attorney practicing in estate planning and trust administration in Riverside and Paso Robles, CA. She is also the #1 New York Times bestselling author of “The Dog Lived (and So Will I)” and “Poppy in The Wild.”  You can reach her at [email protected]

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Orange Farming Business Plan

$59.00 $39.00 2 reviews

Resources On Orange Farming

• Financial Model
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model

Marketing Plan

• Bundle Business Plan & Fin Model
• Description

Executive Summary

Products & services, market analysis.

• Management Plan
• Financial Plan

The US orange farming industry has been dominated by a few large players, making it difficult for new entrants to establish themselves in the market. Additionally, there is a growing demand for high-quality oranges and value-added products such as orange juice, which current suppliers are unable to meet adequately. This presents an opportunity for a new player to enter the market and fill this gap in the demand. Orange Harvest Farms aims to be this solution by providing top-quality oranges and value-added services to meet the demand of the market. Furthermore, the lack of innovation and sustainability in the industry is also a significant concern that Orange Harvest Farms aims to address with its focus on modern farming techniques and environmentally-friendly practices.

Target Market

The target market for Orange Harvest Farms includes individuals and businesses seeking high-quality oranges and orange-related products. The company's primary focus will be on consumers who value products made from natural, organic ingredients. Additionally, Orange Harvest Farms will cater to the needs of juice production companies, food and beverage manufacturers, and other businesses that require high-quality oranges as raw materials for their products.

The target market for Orange Harvest Farms will be individuals and businesses located in California, where the company is based, as well as other regions of the US. The company's distribution network will be designed to ensure that its products reach customers in a timely and efficient manner, and its marketing activities will be tailored to appeal to the target market's preferences and needs.

Competition

Financial summary.

Here are the key highlights of the financial plan:

• The funding goal for Orange Harvest Farms is $5 million over the next three years
• The funds will be used for the acquisition of land, construction of orchards, equipment and machinery, and marketing and advertising campaigns
• The primary business goal is to become a leading supplier of top-quality oranges in the US by 2030
• The company will seek funding from venture capitalists, angel investors, and other related funding sources
• The company will also look for partnerships with established players in the industry to gain access to new markets and distribution channels
• With adequate funding and support, Orange Harvest Farms is poised to become a household name in the US orange market and achieve profitability within the first five years of operation

Funding Requirements

In order to achieve our goal of becoming a leading supplier of top-quality oranges in the US by 2030, Orange Harvest Farms requires a total funding of $5 million over the next three years. The funding will be utilized as follows:

• $2 million for the acquisition of land and construction of state-of-the-art orange orchards.
• $1 million for the purchase of equipment and machinery for the processing and packaging of oranges.
• $1 million for marketing and advertising campaigns to promote the company's products and services.
• $1 million for operational expenses including salaries, utilities, and other expenses.

The company will seek funding from various sources including venture capitalists, angel investors, and established players in the industry. We are confident that with adequate funding and support, Orange Harvest Farms will establish itself as a market leader in the US orange market.

Milestones and Traction

Orange Harvest Farms has a strategic roadmap in place to achieve its goals of becoming a leading supplier of high-quality oranges in the US by 2030. The following are the specific milestones that the company plans to hit:

Each milestone is essential to the achievement of the overall objective of the company, and the team will work relentlessly to ensure they are all met within the given time frame.

Problem Worth Solving

Our solution.

Orange Harvest Farms is dedicated to providing the highest quality oranges to our customers. Our orchards will be meticulously cultivated utilizing sustainable farming practices and state-of-the-art technology to ensure the best possible harvest. We will offer our customers freshly picked, hand-selected oranges that will be shipped directly to their doorstep.

In addition to the sale of fresh oranges, Orange Harvest Farms will also offer value-added services, such as orange juice production and packaging. Our orange juice will be made with only the freshest oranges, and the juice will go through a strict quality control process to ensure that only the best juice makes it to the market.

To further cater to our customers' needs, Orange Harvest Farms will provide a range of packaging options, including bulk packaging for restaurants and juice bars and individual packaging for retail. Each package will be designed to protect the oranges and extend their shelf life while maintaining optimal freshness and taste.

We understand that our customers are looking for more than just a product. They are looking for a reliable and sustainable partner to provide them with the best possible oranges. Orange Harvest Farms is committed to being that partner and delivering on that promise.

Validation of Problem and Solution

Product overview.

Orange Harvest Farms will specialize in the cultivation and distribution of high-quality oranges from our orchards in Riverside, California. Our oranges will be grown with the utmost care and attention to ensure each fruit is packed with flavor and nutrients.

Our services will include orange juice production and packaging, providing our customers with fresh and tasty juice that is perfect for breakfast or a refreshing drink anytime. We strive to deliver high-quality products that meet the needs and preferences of our customers, thereby ensuring their satisfaction.

Our products and services are designed for consumers who appreciate the importance of high-quality, nutritious, and fresh produce. We believe that our commitment to quality, innovation, and sustainability will benefit our customers by providing them with top-quality oranges and juice for their daily consumption.

Through our products and services, we aim to add value to our customers' lives by providing them with superior quality oranges and orange juice that are both nutritious and delicious.

Currently, there are numerous companies that produce and distribute oranges in the US. Some of the prominent players in the market include Sunkist, Wonderful, and Fresh Del Monte.

However, Orange Harvest Farms aims to differentiate itself from its competitors by focusing on quality, innovation, and sustainability. The company will produce high-quality oranges from its state-of-the-art orchards, while also utilizing advanced technology and processes for packaging and processing. Moreover, Orange Harvest Farms will strive to be environmentally responsible by adopting sustainable practices throughout its operations.

Through these initiatives, Orange Harvest Farms believes that it can establish a unique brand identity that sets it apart from other companies in the orange farming industry. By delivering top-quality oranges and value-added services to consumers, Orange Harvest Farms plans to establish itself as a leader in the market and position itself for long-term success.

Roadmap: Products & Services

Here is a comprehensive roadmap of steps taken so far, along with an outline of steps we plan to take in establishing and growing Orange Harvest Farms:

Steps taken so far:

• Conducted extensive market research on the orange farming industry in the US.
• Identified the key niche opportunities with a high potential for growth.
• Secured the land in Riverside, California for the orchards.
• Collaborated with industry experts to create a solid business plan for the company.
• Developed a marketing and advertising strategy to promote the company's products and services.

Steps we plan to take to establish and grow Orange Harvest Farms:

• Establish the state-of-the-art orange orchards with high-quality trees.
• Procure equipment and machinery for the processing and packaging of oranges.
• Set up a strong supply chain and distribution network to ensure the prompt delivery of products to customers.
• Implement sustainable farming practices to ensure a positive impact on the environment.
• Establish partnerships with reputable players in the industry to gain access to new markets and distribution channels.
• Conduct regular research and development to improve our products and services and stay ahead of competitors.

With these steps in place, we aim to establish Orange Harvest Farms as a leading supplier of top-quality oranges in the US by 2030.

Market Segmentation

Market segmentation is the process of dividing the market into groups of customers with similar needs and characteristics. By doing so, businesses can tailor their marketing strategies and products to better suit the needs of each group. The potential groups of customers for our orange farming business are:

Each segment may have different preferences, budgets, and purchasing behaviors, and our marketing strategies should take these differences into account. By understanding our potential customers' needs and characteristics, we can create more effective marketing campaigns, offer products with features that meet specific needs, and improve customer satisfaction.

Target Market Segment Strategy

Our ideal customers are individuals who value organic produce and seek out healthy, high-quality fruit options. We will target health-conscious consumers who are willing to pay a premium for fresh, locally sourced oranges. Our focus will be on reaching out to families, farmers' markets, supermarkets, and restaurants. Additionally, we will target small juice and smoothie bars in the region to supply them with fresh, high-quality oranges. Our marketing efforts will be aimed at highlighting the health benefits of our organic oranges to attract our target market.

Key Customers

Our ideal customer archetype is the health-conscious consumer who is passionate about sustainability and locally sourced produce. They are willing to spend more for high-quality, organic produce and prioritize supporting small businesses in their community. This customer will be the main advocate for our business, spreading the word about our delicious and eco-friendly oranges to their friends and family.

Future Markets

Below is a table of potential competitors for our orange farming business:

While there are a few well-established players in the market, we believe that our unique approach to organic orange farming and direct-to-consumer sales will allow us to successfully differentiate ourselves and gain a competitive advantage.

Marketing and Sales Plan

Our marketing and advertising strategy is centered on establishing a strong market presence and creating brand awareness within the orange farming industry. Our target market includes individuals and businesses who are interested in purchasing high-quality oranges for consumption or resale. Our advertising channels will include the use of social media, press releases, direct mail, and local advertising.

Our marketing and advertising costs will include ongoing expenses for website development and maintenance, social media advertising, promotional materials, market research, and advertising fees.

Our marketing goals are to increase our market share by 20% in the first year and to achieve a revenue of $500,000 by the end of year two. To achieve these goals, our marketing and advertising objectives will include building loyalty with our current customers, attracting new customers, and developing partnerships with wholesalers and retailers.

Location and Facilities

Equipment and tools.

For a successful orange farming business, you will require different types of equipment and tools. Below is an outline of the required equipment/tools and the cost associated with purchasing or renting them.

It is important to note that you can start with basic equipment and tools, and as the business grows, you can add other essential tools to improve efficiency.

Management and Organization

Organizational structure.

Our orange farming business will have a simple organizational structure that will facilitate effective communication and decision-making. The following table provides an overview of the structure:

The flow of information between levels of the organization will be as follows:

• Field workers report to the Agricultural Manager
• The Agricultural Manager reports to the General Manager
• The General Manager reports to the Founder/CEO
• The Marketing Manager and Accountant report directly to the Founder/CEO

Management Team

As our Orange Farming business grows, we anticipate taking on high-level management roles within our company. Below is a table of potential candidates we have identified:

We will continue to seek out other potential candidates and ensure that our management team is well-rounded and experienced in all relevant areas for our Orange Farming business.

Management team gaps

Currently, the Orange Farming business plan does not have candidates ready to fill certain positions that require specific areas of expertise. These positions include:

• Marketing Manager
• Supply Chain Manager
• Finance Manager

However, we plan to fill these gaps by recruiting experienced professionals with relevant knowledge and skills. In the interim, the founding team will handle these responsibilities.

Personnel Plan

In order to run the Orange Farming business effectively, we expect to require the following positions:

We will also hire seasonal workers during peak harvesting periods to assist with the picking and packing of oranges.

Company History and Ownership

Orange Harvest Farms has developed a detailed roadmap that outlines the specific goals and objectives we plan to achieve over the next three years. This roadmap is presented in a table format to help us manage and steer our business towards success:

By achieving these milestones, Orange Harvest Farms will be well on its way to becoming a leading supplier of top-quality oranges in the US by 2030.

Key Metrics

Key Performance Indicators (KPIs) are essential for any business as they help in the monitoring and tracking of the overall performance and health of the business. As an Orange Farming business, some of the KPIs that we will be tracking include:

• Yield per acre: This metric measures the amount of oranges harvested per acre of land. It helps in determining the productivity of our Orange Farming business.
• Inventory turnover: This metric helps us in understanding how quickly we are able to sell our inventory. It provides insights into our sales strategies and pricing.
• Customer retention rate: It measures the percentage of customers that return to buy our products. Customer retention is crucial for maintaining a steady revenue stream.
• Profit margins: This metric tells us how much profit we are making from our Orange Farming business. By tracking this, we can identify areas of the business that need improvement.

Financial Plan and Metrics

Sales forecast.

Below is the projected sales for Orange Harvest Farms over the next three years:

For the Orange Farming business, there are several expected or incurred costs necessary to start and operate the business. The expenses can be categorized into two tables: startup costs and operational expenses.

It is important to note that these costs are estimates and may vary depending on several factors such as location, size of the farm, and market conditions. As the business grows, the expenses may increase or decrease accordingly.

Projected Profit and Loss

Orange Harvest Farms projects increasing revenues over the next three years due to increased production and expansion of market share. Cost of goods sold will increase accordingly, but the gross margin percentage is expected to remain stable at around 50%. Expenses will primarily be allocated towards equipment maintenance, staffing, marketing and advertising campaigns, and expansion costs like land acquisition and construction. The company expects to see healthy profits in each of the three years, with consistent profit margins of around 20-25%.

Projected Cash Flow

Here is a table summarizing Orange Harvest Farms' projected cash flow statement for the next three years:

As shown in the table, Orange Harvest Farms is projected to have positive net cash flow each year. The cumulative net cash flow for the three-year period is expected to reach $1,000,000. This indicates that the company is on track to meet its financial goals and become a leading supplier of top-quality oranges in the US.

Projected Balance Sheet

Here are the expected balances for business assets, liabilities, and equity for the next three years:

This balance sheet demonstrates the growth of the business over the next three years. As the business expands and acquires more assets, the liabilities increase slightly to support this growth. The equity position shows a consistent increase, indicating a profitable and healthy business.

Use of Funds

Exit strategy.

As the business grows, we anticipate several options for exiting the orange farming business. One option is to look for potential buyers who can acquire the business, which would allow us to cash out and move on to other ventures. Another option is to sell our shares in the business to interested parties, who can then take over the operations. Alternatively, we can consider passing along the business to a family member or employee who has shown a keen interest in managing the farm.

It is important for us to consider all options as we aim to maximize returns for our investors and ourselves. Our exit strategy will be developed in consultation with professional advisors to ensure that it aligns with our business objectives and goals.

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