executive summary for organic farming business plan

Farm Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

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

Farm Executive Summary

Business overview.

Veggie Good Vegetable Farm is a certified organic vegetable farm located in Northfield, Vermont. It is owned by Joe and Amanda Green, a local couple who have made it their lifelong goal to own and operate a vegetable farm. Joe and Amanda perfectly complement each other, as Joe is experienced and knowledgeable in operating a farm and Amanda has made her career as an accounting, tax, and finance professional. Joe will oversee all operations of the vegetable farm and Amanda will manage the farm’s accounting, accounts payable, tax payments, licenses and permits, as well as all marketing functions.

Veggie Good Vegetable Farm will offer the freshest, organic, and responsibly sourced and farmed vegetables using the most technologically advanced farming equipment. Veggie Good will be the only Vermont farm utilizing these techniques and Joe and Amanda will market this to their advantage. The advanced technological practices ensure less waste for the soil and environment and it will produce a more robust and fresh vegetable.

Veggie Good Vegetable Farm will sell their products by offering Community Supported Agriculture (CSA) membership subscriptions, where a customer can pay a monthly subscription to receive a weekly vegetable box. We will also participate in local farmers markets to receive maximum exposure from the Northfield community. Lastly, Veggie Good will target local restaurants to offer wholesale pricing for it to receive their vegetables and be able to offer their local produce on the restaurant’s menu.

Product Offering

The following are the products that Veggie Good Vegetable Farm will provide:

• Specialty greens

Customer Focus

Veggie Good Vegetable Farm will target all residents of Northfield, Vermont. We will also target local restaurants to offer wholesale pricing to, and consumers of local farmers markets.

Management Team

Veggie Good Vegetable Farm will be owned and operated by Joe and Amanda Green. The team has over 15 years of experience working at farms and researching professional and effective farming techniques.

Joe Green has had a 15 year career working at a local dairy farm as a farm operator. During his tenure with the dairy farm, he has worked in all aspects of operating the farm and became the lead farmer for the owner. Joe has amassed a wealth of knowledge in the operation and business of a farm and is ready to put his knowledge to work with his own vegetable farm.

Amanda Green has worked as an accountant for over 10 years at a local CPA firm. She is extremely knowledgeable and certified in all accounting functions, tax regulations, licensing, and permitting. Amanda is also knowledgeable with marketing efforts, website design, and social media management. Her organization, skills, and business competence will ensure the success and profitability of Veggie Good Vegetable Farm.

Success Factors

Veggie Good Vegetable Farm will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly qualified team of farmers who share the same sustainability and environmentally-friendly mindset of its customers.
• Certified organic vegetable farm that utilizes the latest technology in horticulture and farming practices.
• Cost-effective CSA membership pricing and the ability to customize subscription vegetable boxes.

Financial Highlights

Veggie Good Vegetable Farm is seeking $300,000 in debt financing to launch its vegetable farm. The funding will be dedicated towards securing 10 acres of farmland and purchasing farm equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the website development, and working capital. The breakout of the funding is below:

• Farmland and facility build-out: $100,000
• Farm equipment, supplies, and materials:  $100,000
• Three months of overhead expenses (payroll, rent, utilities):  $75,000
• Marketing costs: $10,000
• Working capital:  $15,000

The following graph below outlines the pro forma financial projections for Veggie Good Vegetable Farm.

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

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

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

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

Let's get started!

In this guide:

Why write a business plan for an organic vegetable farm?

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

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

To have a clear roadmap to grow the business

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

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

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

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

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

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

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

To get visibility on future cash flows

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

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

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

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

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

To secure financing

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

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

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

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

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

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

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

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

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

Carrying out market research for an organic vegetable farm

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

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

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

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

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

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

Developing the sales and marketing plan for an organic vegetable farm

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

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

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

The staffing and equipment needs of an organic vegetable farm

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

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

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

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

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

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

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

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

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

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

The projected P&L statement

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

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

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

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

The forecasted balance sheet of your organic vegetable farm

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

It shows three elements: assets, liabilities and equity:

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

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

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

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

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

The projected cash flow statement

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

The cash flow statement is divided into 3 main areas:

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

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

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

The initial financing plan

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

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

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

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

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The written part of an organic vegetable farm business plan

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

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

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

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

1. The executive summary

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

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

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

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

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

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

2. The presentation of the company

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

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

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

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

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

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

3. The products and services section

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

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

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

4. The market analysis

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

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

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

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

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

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

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

5. The strategy section

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

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

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

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

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

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

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

6. The operations section

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

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

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

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

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

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

7. The presentation of the financial plan

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

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

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

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

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

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

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

There are several advantages to using specialized software:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Also on The Business Plan Shop

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

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

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

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

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

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

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Organic Farming Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Agriculture Sector

Are you about starting an organic farm? If YES, here’s a complete sample organic farming business plan template & feasibility report you can use for FREE to raise money .

Okay, so we have considered all the requirements for starting an organic farming business. We also took it further by analyzing and drafting a sample organic farm produce marketing plan template backed up by actionable guerrilla marketing ideas for organic farms. So let’s proceed to the business planning section.

There are loads of business opportunities in the commercial farming industry and organic farming is one of them. Organic foods are known as one of the world’s healthiest foods and are eaten in all continents of the world.

Organic farming is known to be a profitable business that has evolved from small scale to a global industry in most countries where it is carried out. Countries like The United States of America, Germany, China, Japan, Ireland, Australia et al are known to be in the forefront when it comes organic farming.

Starting an organic farming business comes with its own fair share of challenges, but that does not rule out the fact that it is indeed a profitable business venture. An aspiring entrepreneur can either choose to start an organic farm on a small scale cultivating organic vegetables and fruits, or on a large scale cultivating organic crops and livestock.

If you have decided to go into organic farming, you should carry out thorough feasibility studies and also market survey. Business plan is yet another very important business document that you should not take for granted when launching your own business.

Below is a sample organic farming business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Organic Farming Business Plan Template

1. industry overview.

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

The Organic Farming industry provides a variety of farm produce including beef, fruit, vegetables and poultry. These farm produce are free from artificial chemicals, pesticides and fertilizers, or genetically modified organisms. Organic farming has been one of the economy’s best performing industries over the last half a decade.

Global demand for organic farm produce is rising due to increasing health concerns about food. Statistics has it that farming (most especially commercial farming) of which organic farming is a part of, employs more than 24 million American workers (which is roughly 17 percent of the total workforce in the united states).

For example, in 2006 the average American commercial farmer grew enough food for about 144 other people, but in 1940, the average farmer grew food for only about 19 other people (which was close to enough food).

Records have it that in 2007, just 187,816 of the 2.2 million farms in the United States of America accounted for 63 percent of sales of agricultural products, marking a trend toward the concentration in agricultural production. Agricultural efficiency has increased over the past century from 27.5 acres/worker in 1890 to 740 acres/worker in 1990.

Organic farmers are known to pay attention to one or more different organic products, depending on farm location and types of farm produce suitable to the local climate. Market trends can also influence farmers’ choices of more profitable crops or produce.

Organic vegetables and fruits are the most established products provided by the industry. They have the highest demand as they are considered the most susceptible to chemical residues.

In addition, they are often the entry point for organic producers due to their lower start-up costs, smaller land requirements and greater proximity to urban areas. For instance, livestock used for organic meats such as beef, lamb and poultry are some of the industry’s fastest-growing product segments in terms of total sales.

As a matter of fact, with the recent advancement in technology, organic farmers can now comfortably grow a variety of crops in a country where such crops can hardly survive; in places where there are few farm lands, people can make use of the rooftop (basement) of their houses to cultivate organic crops such as vegetable even for commercial purposes.

One thing is certain when it comes to organic farming, if you are able to conduct your market research and feasibility studies before choosing a location for your organic farm, you are more likely not going to struggle to grow your organic crops and also to sell your organic farm produce because there are always food processing companies, grocery stores/organic stores and consumers out there who are ready to buy from you.

Lastly, with commercial organic farming, it will pay you to not only cultivate crops and sell them for consumption in farm markets to retailers and consumers.

You can start a complimentary business like organic food processing plant so as to easily package your organic farm produce. The bottom line is that if you have enough farm land (space) and you are interested in maximizing commercial organic farming, you are sure going to make huge profits from the business.

2. Executive Summary

Kelvin Durham® & Sons Organic Farms, LLC is a world class commercial organic farm that will be based in the outskirts of Tallahassee, Florida – United States.

We have done our detailed market research and feasibility studies and we were able to secure a well – situated and suitable farm land to start our commercial organic farm. Our commercial organic farm is going to be a standard farm that will be involved in fruit and vegetable growing, livestock farming, grain and oil-seed production, honey production and other crops production.

We have put plans in place to help us launch a standard organic food packaging plant within the first three years of officially running Kelvin Durham® & Sons Organic Farms, LLC. We will package organic foods and ensure that they flood the market both in the United States and in other countries of the world.

We want to compete with the best in the industry which is why aside from the fact that we have secured the required farm land and most of the farming equipment and machines, we have also hired key employees who are currently undergoing training so as to fit into the ideal picture of the 21 st  century commercial organic farm workforce that we want to build.

We are in the commercial organic farming business because we want to leverage on the vast opportunities available in the commercial organic farming industry to contribute our quota in growing the U.S. economy, in national food production, raw materials production for industries, to export organic farm produce from the United States to other countries and over and above to make profit.

Kelvin Durham® & Sons Organic Farms, LLC is well positioned to become one of the leading commercial organic farms in the United States of America, which is why we have been able to source for the best hands and farm machinery to run the farm with.

We have put process and strategies in place that will help us employ best practices when it comes to commercial organic farm processes and packaging as required by regulatory bodies in the United States of America.

Kelvin Durham® & Sons Organic Farms, LLC is a family business that is owned by Mr. Kelvin Durham and his immediate family members. The farm cum business will be fully and single handedly financed by Kelvin Durham and his immediate family members.

Before starting Kelvin Durham® & Sons Organic Farms, LLC, Kelvin Durham has worked with some of the leading commercial organic farms in the United States of America; he also has a degree (B.Sc.) in Agricultural Science from the University of Florida.

3. Our Products and Services

Kelvin Durham® & Sons Organic Farms, LLC is a world class commercial organic farm that is committed to cultivating both organic crops and livestock for both the United States’ market and the global market.

We are in business to produce both organic food and raw materials for people and industries in commercial quantities. We will also ensure that we operate a standard organic food packaging plant as part of our complimentary business.

We are in this line of business to make profits, and we will ensure that we do all that is allowed by the law of the United States of America to achieve our business goals and objectives. These are the areas we will concentrate on in our commercial organic farms. If need arises we will definitely cultivate related crops;

• Fruit and vegetable growing
• Livestock farming
• Grain and oilseed production
• Honey production
• Other crop production

4. Our Mission and Vision Statement

• Our Vision is to become one of the leading commercial organic farms and organic food packaging brand not just in the United States of America but also on the global stage.
• Kelvin Durham® & Sons Organic Farms, LLC is a world class commercial organic farm that is in business to cultivate in commercial quantities both organic crops and livestock for both the United States market and the international market. We want our well – packaged organic food to flood every nooks and crannies of the United States and other countries of the world.

Our Business Structure

Kelvin Durham® & Sons Organic Farms, LLC is a commercial organic farm that intends starting small in Tallahassee – Florida, but hope to grow big in order to compete favorably with leading commercial organic farms in the commercial farming industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own; this is why we are committed to only hire the best hands in and around Florida.

At Kelvin Durham® & Sons Organic Farms, LLC, we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the management of the farm. In view of the above, Kelvin Durham® & Sons Organic Farms, LLC have decided to hire qualified and competent hands to occupy the following positions;

• Chief Operating Officer

General Farm Manager

Administrator/Accountant

Organic Crop Cultivation Manager/Supervisor

• Organic Livestock Farming Manager
• Sales and Marketing Executive
• Field Employees
• Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
• Supervises other section managers (organic crop cultivation manager and organic livestock manager)
• Ensures compliance during project executions
• Provides advice on the management of farming activities across all sections
• Responsible for carrying out risk assessment
• Uses IT systems and software to keep track of people and progress of the growth of crops, fishes, birds and animals
• Responsible for overseeing the accounting, costing and sale of farm produce after harvest
• Represent the organization’s interest at various stakeholders’ meetings
• Ensures that farming goals are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied. Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Handles all financial transactions for the company
• Defining job positions for recruitment and managing interviewing process
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of daily farm activities across the various farming sections
• Defining job positions for recruitment and managing the interviewing process
• Carrying out staff induction for new team members
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for financial forecasting and risks analysis
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Serves as internal auditor for the company
• Responsible for managing the organic crop cultivation section of the commercial organic farm
• Supervises other workers within the department
• Works closely with the General Manager to achieve the organizations’ goals and objectives

Organic Livestock Farming Manager/Supervisor

• Responsible for managing the organic livestock farming section of the commercial organic farm

Sales and Marketing Officer

• Identify, prioritize and reach out to new partners and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects
• Writing winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develop, execute and evaluate new plans for expanding sales
• Document all customer contact and information
• Represents the company in strategic meetings
• Helps increase sales and growth for the organization

Field Workers/Contract Staff

• Responsible for preparing farm lands for organic crop cultivation
• Responsible for watering the crops
• Weeding the farm land
• Handle farm implements and machines as instructed by the section manager/supervisor
• Assist in handling the harvest of crops
• Carry out task in line with the stated job description
• Assist in transporting work tools and equipment from the farm and back to the designated store room
• Handle any other duties as assigned by the line manager

Client Service Executive/Front Desk Officer

• Welcomes guests and clients to the farm by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels/documents for Kelvin Durham® & Sons Organic Farms, LLC
• Distribute mails in Kelvin Durham® & Sons Organic Farms, LLC
• Handles any other duties as assigned by the line manager

6. SWOT Analysis

Kelvin Durham® & Sons Organic Farms, LLC do not intend to launch out with trial and error hence the need to conduct a proper SWOT analysis. We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard organic farm that will favorably compete with leading commercial organic farms in the United States of America and in other parts of the world.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well equipped to confront our threats.

Kelvin Durham® & Sons Organic Farms, LLC employed the services of an expert HR and Business Analyst with bias in the commercial organic farming industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Kelvin Durham® & Sons Organic Farms, LLC;

Our strength as a commercial organic farm is in the fact that we have healthy relationships with loads of major players in the organic farms industry; both suppliers and buyers within and outside of the United States. We have some of the latest commercial farm machines; tools and equipment that will help us cultivate crops in commercial quantities with less stress. Asides from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in Tallahassee – Florida on our payroll.

Our weakness is that we are a new commercial organic farm in the United States, and the fact that we have decided to diversify our commercial organic farming activities could count against us. We are aware of this and from our projection, we will overcome this weakness with time and turn it to a major advantage for the business.

• Opportunities:

The opportunities that are available to us cannot be quantified, we know that there are loads of individuals who consume both organic crops and livestock in different forms both in the United States of America and other parts of the world. We will ensure that we maximize the opportunities available in the industry.

Some of the threats and challenges that we are likely going to face when we start our own commercial organic farm are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), unfavorable government policies and the arrival of a competitor (a commercial farm that cultivates same crops) within same location. There is hardly much you can do as regards these threats and challenges other than to be optimistic that things will continue to work for your good.

7. MARKET ANALYSIS

• Market Trends

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

Organic farmers are known to pay attention to one or more organic products depending on farm location and types of farm produce suitable to the local climate. Market trends can also influence farmers’ choices of more profitable crops or produce. Organic vegetables and fruits are the most established products provided by the industry. They have the highest demand as they are considered the most susceptible to chemical residues.

In addition, they are often the entry point for organic producers due to their lower start-up costs, smaller land requirements and greater proximity to urban areas. For instance, livestock used for organic meat such as beef, lamb and poultry are some of the industry’s fastest-growing product segments in terms of total sales.

Lastly, with the recent advancement in technology, organic farmers can now comfortably grow a variety of crops in a country where such crops can hardly survive and in places where there are few farm lands.

8. Our Target Market

Naturally, the end consumers of organic food and those who benefit from the business value chain of the commercial organic farming industry is all encompassing.

In view of that, we have positioned our organic farming business to service (supply) supermarkets, grocery stores, hotels, restaurants and other outlets all across Tallahassee – Florida and other key cities all over the United States of America and Canada. We have conducted our market research and we have ideas of what our target market would be expecting from us.

We are in business to retail our organic crops and livestock to the following groups of people and businesses;

• Supermarkets
• Grocery Stores
• Restaurants
• Outdoor caterers

Our competitive advantage

The truth is that it is easier to find entrepreneurs flocking towards an industry that is known to generate consistent income which is why there are more commercial organic farmers in the United States of America and of course in most parts of the world.

For example, Statistics has it that there are 2.2 million farms in the United States of America, covering an area of 922 million acres. These goes to show that there are an appreciable number of farmers in the United States of America but that does not mean that there is stiff competition in the industry.

Kelvin Durham® & Sons Organic Farms, LLC is fully aware that there are competitions when it comes to selling commercial organic farm produce all over the globe, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in the United States and in other parts of the world.

We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable organic farming processes that can help us sell our organic farm produce at competitive prices, good network and excellent relationship management.

Another competitive advantage that we are bringing to the industry is that we have designed our business in such a way that we will operate an all – round standard commercial organic farm that will be involved in organic livestock farming. With this, we will be able to take advantage of all the available opportunities within the industry.

Lastly, our employees will be well taken care of and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us, help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Kelvin Durham® & Sons Organic Farms, LLC is in the commercial organic farming business for the purpose of maximizing profits, hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives. For now, we are going to rely only on the sale of our organic farm produce to generate income for the business.

Below are the sources we intend exploring to generate income for Kelvin Durham® & Sons Organic Farms, LLC;

10. Sales Forecast

We conducted a thorough market survey and feasibility studies and we were able to discover that the sales generated by a commercial organic farm depends on the size of the farm and the nature of the commercial organic farm (whether cattle rearing, poultry farming, fish farming and crops cultivation et al).

We have perfected our sales and marketing strategies and we are quite optimistic that we will meet or even surpass our set sales target of generating enough income/profits from the very first year of operation and build the business from survival to sustainability.

We have been able to critically examine the agriculture industry cum commercial organic farming line of business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

• First Fiscal Year-: $150,000
• Second Fiscal Year-: $300,000
• Third Fiscal Year-: $500,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), and unfavorable government policies. Please note that the above projection might be lower or higher.

• Marketing Strategy and Sales Strategy

We are aware that the reason why some commercial organic farms hardly make good profits is their inability to sell off their organic crops and livestock as at when due.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We want to build a standard and world – class organic farm that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).

Over and above, we have perfected our sale and marketing strategies first by networking with agriculture merchants and businesses that rely on steady supply of organic crops and livestock. In summary, Kelvin Durham® & Sons Organic Farms, LLC will adopt the following strategies in marketing our commercial organic farm produce;

• Introduce our business by sending introductory letters alongside our brochure to stakeholders in the agriculture industry, organic food merchants, hotels, restaurants and groceries stores et al.
• Advertise our business in agriculture and food related magazines and websites
• List our commercial organic farms on yellow pages ads
• Attend related agriculture and food expos, seminars, business fairs et al
• Leverage on the internet to promote our business
• Engage in direct marketing
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.

Below are the platforms we will leverage on to boost our commercial organic farm brand and to promote and advertise our business;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events/programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our business
• Install our billboards in strategic locations all around Tallahassee – Florida
• Engage in roadshows from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact hotels, restaurants, grocery stores, agriculture produce merchants and residents in our target areas by calling them up and informing them of Kelvin Durham® & Sons Organic Farms, LLC and the organic farm produce we sell
• List our commercial organic farms in local directories/yellow pages
• Advertise our commercial organic farms in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are branded with our company logo et al.

12. Our Pricing Strategy

If you want to get the right pricing for your organic farm produce, then you should ensure that you choose a good location for your commercial organic farm, choose a good breed/seed that will guarantee bountiful harvest, cut the cost of running your organic farm to the barest minimum and of course try as much as possible to attract buyers to your farm as against taking your organic farm produce to the market to source for buyers; with this, you would have successfully eliminated the cost of transporting your harvest to the market and other logistics.

We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for all our organic crops and livestock is to sell them at competitive prices, hence we will do all we can to ensure that the prices of our organic farm produce are going to be what other commercial organic farmers would look towards beating.

One thing is certain, the nature of commercial organic farming makes it possible for farmers to place prices for their farm produce based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into a loss. The easier you sell off your harvested organic farm produce, the better for your business.

• Payment Options

The payment policy adopted by Kelvin Durham® & Sons Organic Farms, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Kelvin Durham® & Sons Organic Farms, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for their purchases without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

When it comes to calculating the cost of starting a commercial organic farm, there are some key factors that should serve as a guide; factors such as the capacity of the organic farm and the number of organic crops and livestock you want to cultivate.

Besides, in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to start a world – class commercial organic farm, then you would need huge capital as you would need to ensure that your employees are well taken care of, and that your organic farm is conducive enough for workers to be creative and productive.

This means that the start-up capital can either be low or high depending on your goals, vision and aspirations for your business. Below are some of the basic areas we will spend our start – up capital when setting up our organic farm;

• The total fee for incorporating the business in United States of America – $750.
• The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) at a total premium – $9,400
• The amount needed to acquire/lease a farm land – $50,000
• The amount required for preparing the farm land – $70,000
• The cost for acquiring the required working tools and equipment/machines/fencing et al – $10,000
• The amount required for purchase of the first set of seedlings and livestock et al – $50,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost of launching an official website – $600
• The amount required for payment of workers for a period of 3 months – $100,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000

Going by the report from detailed research and feasibility studies conducted, we will need an average of $500,000 to start a standard commercial organic farming business in the United States of America. These are some of the equipment that we would need to fully launch our commercial organic farm,

• Soil cultivator
• Harrow (e.g. Spike harrow, Drag harrow, Disk harrow)
• Stone/Rock/Debris remover implement (e.g. Destoner, Rock windrower/rock rake, Stone picker/picker)
• Broadcast seeder (alternatively: broadcast spreader, fertilizer spreader, or Air seeder)
• Plastic mulch layer
• Transplanter
• Sprinkler system irrigation
• Wheel Barrow

Basically, the nature of a commercial organic farm does not require an office space, most people that run commercial organic farms operate directly from their farms. But we have decided to open a small liaison office; a place where administrative jobs will be carried out on behalf of the business.

Generating Funds / Startup Capital for Kelvin Durham® & Sons Organic Farms, LLC

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a commercial organic farm.

Kelvin Durham® & Sons Organic Farms, LLC is a family business that will be owned and managed by Kelvin Durham and his immediate family members. They are the sole financiers of the firm, but may likely welcome other partners later which is why they decided to restrict the sourcing of the start–up capital for their business to just three major sources.

These are the areas where we intend sourcing for fund for Kelvin Durham® & Sons Organic Farms, LLC;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B:  We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

One of our major goals of starting Kelvin Durham® & Sons Organic Farms, LLC is to build a business that will survive off its own cash flow without the need of injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell our farm produce (organic crops and organic livestock) a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Kelvin Durham® & Sons Organic Farms, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organization’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more as determined by the management of the organization. We know that if this is put in place, we will be able to successfully hire and retain the best hands we can get in the industry, and they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts in various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All forms of Insurance for the Business: Completed
• Leasing of farm land and preparing the farm land in Tallahassee – Florida: Completed
• Conducting Feasibility Studies: Completed
• Start – up Capital Generation: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Design of The Company’s Logo: Completed
• Graphic Design and Printing of Packaging, Marketing/Promotional Materials: Completed
• Recruitment of employees: In Progress
• Building/construction of cages and fence et al: In Progress
• Purchase of the needed farm cultivating tools, machines and equipment: Completed
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Farm land Treatment, Health and Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the industry (agriculture farm produce merchants, seedling suppliers and transport/haulage companies, hotels, restaurants, and grocery stores et al): Completed

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Article Index:

2.0 Company Description

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

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

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

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

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

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

1.1 Business Objectives

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

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

1.2 Mission Statement

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

1.3 Guiding Principles

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

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

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

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

1.4 Keys to Success

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

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

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

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

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

2.1 Ownership

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

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

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

2.2 Legal Form

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

2.3 Start-Up Summary

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

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

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

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

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

2.4 Location and Facilities

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

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

3.1 Products/Services Descriptions

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

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

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

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

All share sales are sold in advance.

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

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

3.2 Competitive Comparison

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

3.3 Product/Service Sourcing

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

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

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

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

3.4 Inventory Management

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

3.5 Warehousing and Fulfillment

3.6 future products/services.

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

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

4.1 Industry Analysis

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

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

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

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

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

4.1.1 Market Size

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

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

4.1.2 Industry Participants

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

4.1.3 Main Competitors

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

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

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

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

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

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

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

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

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

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

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

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

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

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

4.1.4 Market Segments

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

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

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

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

4.2 Market Tests

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

4.3 Target Market Segment Strategy

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

The following chart depicts the target market:

4.3.1 Market Needs

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

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

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

4.3.2 Market Trends

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

4.3.3 Market Growth

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

4.4 Positioning

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

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

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

5.1 SWOT Analysis

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

5.1.1 Strengths

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

5.1.2 Weaknesses

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

5.1.3 Opportunities

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

5.1.4 Threats

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

5.2 Strategy Pyramid

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

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

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

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

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

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

5.3 Unique Selling Proposition (USP)

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

5.4 Competitive Edge

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

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

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

5.5 Marketing Strategy and Positioning

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

5.5.1 Positioning Statement

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

5.5.2 Pricing Strategy

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

5.5.3 Promotion and Advertising Strategy

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

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

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

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

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

5.5.4 Website

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

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

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

5.5.5 Marketing Programs

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

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

5.6 Sales Strategy

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

5.6.1 Sales Forecast

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

Table 5.6.1 Annual Sales Forecast

5.6.2 Sales Programs

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

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

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

5.8 Milestones

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

Table 5.8 Milestones

5.9 Exit Strategy

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

6.1 Organizational Structure

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

6.2 Management Team

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

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

6.3 Management Team Gaps

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

6.4 Personnel Plan

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

Table 6.4 Personnel Plan

6.5 Board of Directors

The financial plan will cover the following:

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

7.1 Important Assumptions

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

7.2 Start-Up Costs

The following chart summarizes start-up expenses:

Table 7.2 Start-Up Costs

7.3 Source and Use of Funds

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

7.4 Break-Even Analysis

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

7.5 Projections

7.5.1 projected profit and loss.

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

Table 7.5.1 Pro Forma Profit and Loss

7.5.2 Projected Cash Flow

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

Table 7.5.2 Pro Forma Cash Flow

7.5.3 Projected Balance Sheet

The following chart depicts the proforma balance sheet:

7.6 Business Ratios

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

Table 7.6 Ratio Analysis

Business Plan For Organic Farming

Congratulations on taking the first step in creating a business plan for organic farming. This is an essential step towards entrepreneurial success and a well-crafted business plan will provide a solid foundation for your business venture!

Whether you're a budding entrepreneur with a brilliant idea or a seasoned business owner looking to expand, a thoughtfully constructed business plan will help you plan and navigate towards business prosperity.

In this comprehensive guide, we will walk you through the essential elements of creating a business plan for organic farming that captures your vision as well as attracting investors, partners, and customers alike. From defining your mission and identifying your target market to formulating financial projections and developing a robust marketing strategy, our aim is to empower you with the knowledge and tools needed to turn your aspirations into a reality.

So whether you're just starting out or you're looking to revamp your existing business plan, read on for everything you need to know.

Why is a business plan important?

A business plan is an essential tool that will revolutionise the way you think about your organic farming business. It provides a structured approach to help you clarify your long-term goals and objectives, allowing you to develop effective strategies and marketing campaigns to achieve them.

One of the key benefits of creating a business plan is gaining a deep understanding of your target customers. By analysing their wants, needs, and preferences, you can identify where they spend their time and how to effectively reach them. This valuable insight will enable you to tailor your products or services to meet their demands.

Furthermore, if you are seeking external funding, a well-crafted business plan demonstrates your commitment and professionalism. It showcases your dedication to your business and outlines a comprehensive plan of action to ensure success.

A Business Plan For Organic Farming - The Key Parts

The executive summary, your company description, market analysis, products and services.

• Marketing Strategy
• Operational Plan
• Financial Projections

Risk Analysis

• Funding Request and Use of Funds (if applicable)
• Additional Information

An executive summary of your business plan for organic farming is a brief overview of your business plan.

This is the first thing that potential investors or lenders will see, so it is crucial that you make a good impression. Keep this section short and highlight the key points of your plan.

What should an executive summary include?

• Overview of the Business
• Mission Statement
• Key Objectives
• Summary of Products/Services
• Financial Highlights and Funding Requirements (if applicable)

Remember potential investors don’t always have huge amounts of time to read your document so make sure that you condense the critical information, enabling the reader to make quick and well-informed judgments. Tips for the Executive Summary

Wait until you’ve written the whole business plan and then come back and complete the executive summary. This way you will know your business plan for organic farming inside and out so you can highlight the key elements of the document. Remember the Executive Summary will shape the reader's initial perception of the business and whether they continue reading the document.

If you are looking for any tips on how to improve any section of your business plan, check out our Learning Zone , which has several in-depth guides on each section of the business plan.

The Company Description section of your organic farming business plan is crucial as it offers a comprehensive overview of your business. This section provides essential information about your company's history, mission, vision, legal structure, location, and key milestones. It allows readers to gain a clear understanding of your company's fundamental characteristics and the context in which it operates.

When crafting your company description, make sure to include the following key elements:

• Business Name and Legal Structure: Clearly state the legal name of the company and its legal structure.
• Business History: Provide a brief overview of how the business came into existence. Highlight key milestones or events that shaped the company's growth and development.
• Mission and Vision Statements: Present the company's mission statement, which outlines its purpose and primary goals. Additionally, share the vision statement, which describes the long-term vision and objectives for your business.
• Products and Services: Briefly explain the products or services your business offers, emphasising their unique selling points and how they address customer needs.
• Competitive Advantages: Clearly state the competitive advantages that differentiate your business from others in the market. This could include unique features, patents, proprietary technology, or a strong brand presence.
• Location and Facilities: Provide details about the physical location of your business and any facilities required to operate successfully.

Tips for writing the company description section:

• Interweave storytelling into the company's history, tell the reader about your passion for the business and the journey you’ve been on to get to this point.
• Include strong visuals and infographics.
• Avoid jargon and keep the writing style clear and concise.
• Focus on your company's unique selling point (USP) and how that makes you stand out in the marketplace.
• Back up this information with customer testimonials if possible.

The market analysis section of your organic farming business plan is essential for understanding the competitive landscape and the overall business environment. It is crucial to execute this section effectively as it demonstrates your in-depth knowledge of the market dynamics. This process will enable you, as an entrepreneur, to identify opportunities, mitigate risks, and develop strategies for success.

To conduct a good market analysis, it is important to have a deep understanding of the industry you are operating in. This information will help you make informed decisions about your product or service offerings, marketing strategies, and pricing.

Key elements to include in your market analysis section:

• Industry Overview: Provide a general overview of your industry. Describe the industry's size, growth rate, major players, and key trends. Include relevant statistics and data to support your claims.
• Target Market and Customer Segmentation: Clearly define your target market and outline the specific customer segments you aim to serve. Identify the needs, preferences, and behaviours of each segment.
• Competitor Analysis: Identify direct and indirect competitors in the market. Analyse their strengths, weaknesses, market share, and strategies. Highlight areas where your business differentiates itself from competitors.
• Market Trends and Opportunities: Explore current and future trends in the industry and market. Assess how these trends can impact your business positively and identify potential opportunities for growth.
• SWOT Analysis (optional): Consider including a SWOT analysis specific to your market. This can help you understand your business's strengths, weaknesses, opportunities, and threats in the context of the market.

How to nail the market analysis section?

• Differentiation: Focus on highlighting how your business differentiates itself from competitors, really try to drum home this point.
• Market Surveys or Interviews: Adding surveys or interviews and adding the key findings and quotes in the Market Analysis to support your claims will help reinforce the plans in your document.
• Competitive Matrix: a competitive matrix visually comparing your business against key competitors based on factors such as price, features, and customer service. This matrix is a great visual method highlighting your competitive advantages.
• Emerging Technologies or Trends: Identifying potential disruptions and how your company is prepared for them shows a great understanding of market dynamics and trends.

Looking for more inspiration on how to make your market analysis section even better, then check out our in-depth business market analysis guide.

In this section, we will highlight the core products and services that make your organic farming business unique and valuable. It is essential to showcase what sets you apart from the competition and why your offerings are exceptional. This information is especially important for potential investors, partners, and customers who are keen to understand what sets your business apart in the market.

When describing your products and services ensure you include the following information:

• Description of Products/Services: Provide a clear and concise description of each product or service your business offers. Explain their primary function and how they address customer needs.
• Unique Selling Proposition (USP): Highlight the unique features or benefits that make your products or services stand out from competitors. Clearly state why customers should choose your offerings over alternatives.
• Product/Service Life Cycle: Describe where each product or service stands in its life cycle (e.g., introduction, growth, maturity, decline) and outline plans for updates or new offerings in the future.
• Intellectual Property (if applicable): If your business has any intellectual property (e.g., patents, trademarks, copyrights) related to your products or services, mention them in this section.

Extra elements to make this section stand out:

• Customer Use Cases: Present real-life customer use cases or success stories that illustrate how your products or services have solved specific problems for customers. Use compelling narratives to engage readers.
• Product Roadmap: If applicable, include a product roadmap that outlines future updates, enhancements, or new offerings. This showcases your business's commitment to innovation and continuous improvement.
• Quality and Testing Standards: Discuss the quality standards your business adheres to and any testing processes you conduct to ensure the reliability and performance of your offerings.
• Pricing Strategy: Integrate your pricing strategy into this section. Explain how you've determined the pricing of your products or services, considering factors like production costs, competition, and value to customers.
• Environmental and Social Impact: If your products or services have positive environmental or social implications, highlight them in this section. Increasingly, customers appreciate businesses that contribute positively to society.

The Marketing Strategy Section

Key Information to Include Within the Marketing Strategy Section:

• Marketing Goals and Objectives: Clearly state the marketing goals you aim to achieve. Focus on how you will increase brand awareness and drive customer conversions or leads.
• Target Market Strategy: Describe the specific strategies you will use to reach and engage with your target customers. This could involve digital marketing, traditional advertising, or other channels.
• Pricing Strategy: Explain how your pricing will attract the target market and how it compares to competitors' pricing.
• Promotion and Advertising Plan: Outline the promotional activities and advertising campaigns you plan to execute. Include details about social media marketing, content marketing, email campaigns, and other promotional tactics.
• Sales Strategy: Describe your sales process and how you plan to convert leads into paying customers. Mention any sales team structure and their responsibilities if applicable.
• Customer Relationship Management (CRM) Approach: Discuss how you intend to build and maintain strong relationships with your customers to encourage repeat business and loyalty.

Getting Creative with the Market Strategy Section

• Create a visual marketing timeline.
• Outline influencer or brand ambassador partnerships if applicable.
• Detail key metrics and KPIs.

By infusing creativity and innovative marketing ideas with sound fundamental marketing, you can really make this section stand out and impress potential investors and partners.

The Operation Plan Section

While marketing activities may seem more exciting, operational planning is essential for the success of your organic farming business. This section focuses on the day-to-day operations and internal processes that drive your business forward. By providing a comprehensive roadmap of your resources, workflows, and procedures, you can instill confidence in potential investors that your business is well-equipped for growth.

Here are some key items to include in your operational plan:

• Organisational Structure: Describe the organisational structure of the company, including key roles and responsibilities.
• Key Personnel and Team: Introduce key team members and their qualifications. Highlight how their expertise contributes to the success of the business.
• Operational Workflow and Processes: Provide a high-level step-by-step overview of delivering your product or service, from production to delivery or distribution.
• Resource Requirements: Outline the key resources required to run the business, such as equipment, technology, facilities, and human resources.
• Quality Control and Assurance: Explain how the company ensures the quality and consistency of its products or services, and how it addresses any potential issues.
• Supply Chain Management (if applicable): If the business involves sourcing materials or products from suppliers, describe the supply chain management process.
• Legal and Regulatory Compliance: Discuss any legal or regulatory requirements specific to the industry and how the company ensures compliance.

How to add value to the Operation Plan section:

• Use visuals to outline organisation structures and workflows.
• Outline contingency plans, for example how the company is prepared for supply chain shortages or price shocks.
• Efficiency, efficiency, efficiency. Describe how you have driven efficiency gains for the business.
• Have you considered your business's environmental impact? If so, mention within this section.

The operational section of a business plan does have the potential to be dryer than more exciting elements such as marketing, however, by incorporating creative elements and forward-thinking workflows you can help keep reader engagement high.

The Financial Projections

The Financial Projections section can make or break a business plan. Always include well-researched and accurate projections to avoid undermining your business plan and losing out on potential investment. What to include in the financial projections section:

• Sales Forecast: Provide a detailed projection of the company's sales revenues for each product or service category over the forecast period.
• Expense Projections: Outline the expected operating expenses, including costs related to production, marketing, salaries, rent, utilities, and any other significant expenses.
• Profit and Loss (P&L) Statement: Present a comprehensive Profit and Loss statement that summarizes the business's revenue, cost of goods sold (COGS), gross profit, operating expenses, and net profit or loss for each year of the forecast.
• Cash Flow Projection: Include a cash flow statement that outlines the inflows and outflows of cash over the forecast period. This will help identify potential cash flow gaps.
• Break-Even Analysis: Perform a break-even analysis to determine the point at which the business's total revenue equals total costs, indicating when it becomes profitable.

How to add value to your financial projections section:

• Be prepared to defend your assumptions with data. If you are planning for a high-growth % make sure you can justify this assumption. If in doubt the more conservative the better.
• Include visuals that help readers quickly grasp the trends and patterns in revenue, expenses, and profits.
• Offer different scenarios based on varying assumptions. For example, present a conservative, moderate, and aggressive growth scenario.
• Include key financial ratios like gross margin, net profit margin, and return on investment (ROI).

The Funding Request and Use of Funds Section

This section outlines the financial requirements of the company and how the requested funds will be utilised to support its growth and operations.  Providing potential investors or lenders with a clear picture of how their money will be used will improve the business case for the funds and provide further confidence to investors. What to include in this section?

• Funding Request Amount: State the specific amount of funding you are seeking to obtain from investors, lenders, or other sources.
• Use of Funds: Provide a detailed breakdown of how the requested funds will be allocated across different aspects of the business. Common categories include product development, marketing, operational expenses, hiring, equipment, and working capital.
• Timeline of Funds Utilisation: Outline the timeline for utilising the funds. Specify when and how the funds will be disbursed and the expected milestones or deliverables associated with each funding phase.
• Expected Return on Investment (ROI): If applicable, include information on the expected ROI for investors. Highlight the potential for financial gains or equity appreciation over time.
• Repayment Plan (if applicable): If seeking a loan, provide a clear repayment plan that outlines the repayment period, interest rate, and the proposed schedule for repayment.

How to maximise this section?

• Create a visual timeline for key milestones such as the initial investment and key payback periods.
• Outline risk mitigation plans to instil confidence.
• Reiterate the company's long-term vision and how the funds can help achieve these goals.

As you near the end of your organic farming business plan, it is crucial to dedicate a section to outlining potential risks. This section holds immense significance as it can greatly influence the confidence of potential investors. By demonstrating your market awareness and addressing challenges head-on, you can instill trust and credibility.

When conducting a risk analysis for your organic farming car rental business plan, consider including the following:

• Identification of Business Risks: Enumerate the key risks and uncertainties that could affect the business. These risks can be internal (e.g., operational, financial) or external (e.g. market changes, regulatory changes, economic downturns).
• Impact Assessment: Analyse the potential impact of each identified risk on the business's operations, finances, and reputation. Rank the risks based on their severity and likelihood of occurrence.
• Risk Mitigation Strategies: Present specific strategies and action plans to mitigate each identified risk. Explain how you will proactively address challenges and reduce the negative impact of potential risks.
• Contingency Plans: Describe contingency plans for worst-case scenarios, outlining how the business will respond and recover from significant risks if they materialise.

How to make your risk analysis stand out?

• Add context with real-life examples. Are there similar businesses that have dealt with risks successfully in a similar manner to your strategy? This will add credibility to this section.
• Create adaptive strategies that demonstrate your business’s flexibility and adaptability.
• Outlining the responsible person for each risk and how they own it, giving further confidence in your risk management strategies.

Some additional information you may want to include in your business plan for organic farming:

• Customer Surveys and Feedback
• Letters of Support or Intent
• Legal Documents (e.g., licenses, permits)
• Resumes of Key Team Members

A Business Plan For Organic Farming Wrapping It All Up

A business plan is one of the most important documents that you will create about your business. It can literally be the difference between securing additional finance or missing out. Developing your business is not an easy task, however, the opportunity to think about your business in such detail will no doubt help you develop new and important insights along with new ideas and strategies. With all sections of your business plan and especially the financial plan, be prepared to defend your position to potential investors or lenders. This means that you should never publish anything that you can’t back up with additional data or rationale. Business Plans are not created overnight so take the time to research and think about each section properly, always try to support your claims and strategies with market insight and data. We hope you’ve enjoyed reading this guide, if you are looking for more tips on creating a business plan check out our learning centre .Good luck with your next business endeavour! Action Planr

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Business Plan Template for Organic Farming

• Great for beginners
• Ready-to-use, fully customizable Subcategory
• Get started in seconds

Are you ready to sow the seeds of success in the organic farming industry? With ClickUp's Business Plan Template for Organic Farming, you can cultivate your dream into a thriving reality!

Crafted specifically for entrepreneurs and individuals venturing into the organic farming business, this template helps you outline your goals, strategies, and financial projections with ease. Here's what this template offers:

• A comprehensive framework to map out your business model
• A step-by-step guide to identify target markets and develop marketing strategies
• Tools to forecast expenses, revenue, and profit margins
• A platform to attract investors and secure loans for your organic farming venture

Don't let your dreams wilt away! Plant the seeds of success with ClickUp's Business Plan Template for Organic Farming today.

Business Plan Template for Organic Farming Benefits

When using the Business Plan Template for Organic Farming, you can expect the following benefits:

• Clearly define your goals, strategies, and financial projections for your organic farming business
• Attract potential investors or secure loans by presenting a well-structured and comprehensive business plan
• Identify potential challenges and risks in advance, allowing you to develop strategies to mitigate them
• Ensure that your organic farming operations are aligned with industry best practices and regulations
• Track the progress of your business and make informed decisions based on your financial projections and goals

Main Elements of Organic Farming Business Plan Template

When it comes to starting your organic farming business, ClickUp's Business Plan Template has got you covered with all the essential elements:

• Custom Statuses: Keep track of your progress with statuses like Complete, In Progress, Needs Revision, and To Do, ensuring that every step of your business plan is accounted for.
• Custom Fields: Add vital information to your plan using custom fields like Reference, Approved, and Section, so you can easily organize and analyze your data.
• Custom Views: Access multiple views such as Topics, Status, Timeline, Business Plan, and Getting Started Guide, allowing you to visualize your plan from different angles and stay on top of your goals.
• Task Management: Utilize ClickUp's task management features like due dates, assignees, comments, and attachments to collaborate with your team and ensure that every aspect of your business plan is addressed.
• Document Collaboration: Leverage ClickUp's Docs feature to create and collaborate on your business plan in real-time, ensuring that all stakeholders are on the same page and can contribute seamlessly.

With ClickUp's Business Plan Template for Organic Farming, you'll have all the tools you need to create a comprehensive and persuasive plan for your organic farming business.

How To Use Business Plan Template for Organic Farming

Crafting a business plan for your organic farming venture is crucial for success. Follow these six steps to effectively use the Business Plan Template for Organic Farming in ClickUp:

1. Define your mission and vision

Start by clearly outlining your mission and vision for your organic farming business. What is the purpose of your farm? What values do you uphold? This will help you establish a strong foundation for your business plan.

Use a Doc in ClickUp to articulate your mission and vision statement.

2. Analyze the market

Conduct thorough research on the organic farming industry and identify your target market. Who are your potential customers? What are their needs and preferences? Understanding the market will help you position your farm effectively.

Utilize the Gantt chart in ClickUp to create a timeline for your market research and analysis.

3. Develop your farm's offerings

Detail the products and services your organic farm will provide. What crops will you grow? Will you offer livestock or value-added products? Outline your pricing strategy and any unique selling points that set your farm apart.

Create tasks in ClickUp to identify and categorize your farm's offerings.

4. Create a financial plan

Develop a comprehensive financial plan that includes projected revenue, expenses, and profit margins. Consider costs such as land acquisition, equipment, labor, and marketing. This will help you understand the financial feasibility of your organic farming business.

Use custom fields in ClickUp to track and calculate your projected financial data.

5. Outline your marketing strategy

Determine how you will promote your organic farm and reach your target audience. Will you use social media, local markets, or direct sales? Outline your marketing channels, branding, and advertising strategies to ensure maximum visibility and customer engagement.

Use the Calendar view in ClickUp to schedule marketing activities and campaigns.

6. Set goals and milestones

Establish short-term and long-term goals for your organic farming business. These could include production targets, revenue milestones, or sustainability objectives. Break down these goals into actionable tasks and assign them to team members.

Utilize the Milestones feature in ClickUp to track and celebrate your progress towards achieving your goals.

By following these steps and utilizing the Business Plan Template for Organic Farming in ClickUp, you'll be well-prepared to launch and grow a successful organic farming business.

Get Started with ClickUp’s Business Plan Template for Organic Farming

Entrepreneurs or individuals interested in starting an organic farming business can use the ClickUp Business Plan Template for Organic Farming to create a comprehensive and professional business plan that will help attract investors or obtain loans.

First, hit “Add Template” to sign up for ClickUp and add the template to your Workspace. Make sure you designate which Space or location in your Workspace you’d like this template applied.

Next, invite relevant members or guests to your Workspace to start collaborating.

Now you can take advantage of the full potential of this template to create a successful organic farming business plan:

• Use the Topics View to organize your business plan into different sections, such as Executive Summary, Market Analysis, Financial Projections, etc.
• The Status View will help you track the progress of each section, with statuses like Complete, In Progress, Needs Revision, and To Do.
• Utilize the Timeline View to set deadlines and milestones for each section of your business plan.
• The Business Plan View will give you a comprehensive overview of your entire plan, allowing you to easily navigate and make edits.
• Use the Getting Started Guide View to access helpful resources and tips on how to create a successful organic farming business plan.
• Customize the custom fields, such as Reference, Approved, and Section, to add additional information and categorize your business plan.
• Monitor and analyze your business plan to ensure it is comprehensive, well-structured, and ready to present to investors or lenders.
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Cultivating Success with a Comprehensive Farm Business Plan

Farm business planning involves outlining the goals, strategies, and financial projections for an agricultural operation. It serves as a roadmap that guides farmers in making informed decisions, managing resources effectively, and adapting to changing market conditions. A well-crafted farm business plan provides a clear direction for the farm’s future, enabling farmers to identify potential risks, capitalize on opportunities, and secure financing from lenders or investors.

Importance of a Farm Business Plan

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Having a farm business plan is crucial for several reasons. Firstly, it helps farmers clarify their vision and set realistic goals for their agricultural enterprise. By clearly defining their objectives, farmers can focus their efforts on areas that contribute to their long-term success. Secondly, a farm business plan facilitates effective communication and collaboration with stakeholders such as partners, employees, and financial institutions . It ensures that everyone involved understands the farm’s mission, strategies, and financial expectations.

Furthermore, a business plan for farms enables farmers to identify potential risks and develop strategies to mitigate them. By conducting a thorough market analysis, farmers can anticipate market trends, assess consumer demands, and identify potential competitors. This information allows them to tailor their products and marketing strategies to meet the needs of their target audience effectively. Additionally, a farm business plan helps farmers plan their operational processes, including production schedules, supply chain management, and quality control, ensuring efficiency and productivity.

Key Components of a Comprehensive Farm Business Plan

Break down the essential sections that make up a comprehensive farm business plan. Provide an overview of each component and explain their significance in convincing investors.

The executive summary is a concise overview of the entire farm business plan. It provides a snapshot of the farm’s mission, goals, strategies, and financial projections. This section should be compelling enough to capture the reader’s attention and generate interest in the rest of the plan.

In this section, you will provide detailed information about your farm, including its location, size, infrastructure, and history. Describe the type of farming you engage in (crop cultivation, livestock production, organic farming, etc.) and highlight any unique selling points or competitive advantages your farm possesses.

Conducting a thorough market analysis is crucial to understanding the demand and competition in your target market. Identify your target customers, analyze their preferences and purchasing power, and evaluate the market trends that may affect your farm’s operations.

Detail the range of products and services your farm offers. Include information about the specific crops or livestock you produce, their quality, and any value-added products or services you provide, such as organic certification or agritourism activities.

Outline your marketing and sales strategies for promoting and selling your farm products. Identify the channels you will use to reach your target customers, such as direct sales, farmers’ markets, online platforms, or partnerships with local restaurants or grocery stores.

In this section, explain how you will manage the day-to-day operations of your farm. Outline the production processes, equipment and machinery required, labor needs, and any other relevant operational considerations.

Develop comprehensive financial projections for your farm business. Include information on the initial investment required, projected revenue and expenses, cash flow statements, and profitability forecasts. This section will help you assess the financial viability of your farm and attract potential investors or lenders.

Identify the potential risks and challenges your farm may face, such as weather-related events, disease outbreaks, or market fluctuations. Describe the strategies and contingency plans you will put in place to mitigate these risks and ensure the continuity of your farm’s operations.

Steps to Create a Farm Business Plan

Creating a farm business plan may seem overwhelming, but breaking it down into manageable steps can simplify the process. Follow these steps to develop a comprehensive and effective farm business plan:

Start by clarifying your long-term goals and objectives for your farm. What do you want to achieve in terms of profitability, sustainability, and growth? Having a clear vision will guide your decision-making throughout the planning process.

Thoroughly research your target market to identify consumer demands, market trends, and potential competitors. This information will help you tailor your products and marketing strategies to meet the needs of your customers effectively.

Evaluate the resources and infrastructure available on your farm. Consider factors such as land availability, water sources, equipment, storage facilities, and labor availability. Assessing these resources will help you determine the scale and type of farming practices you can undertake.

Based on your market research, develop a comprehensive marketing strategy that outlines how you will promote and sell your farm products. Consider different marketing channels, such as online platforms, farmers’ markets, community-supported agriculture (CSA) programs, or direct sales to local businesses.

Describe the day-to-day operational processes required to run your farm. Include details about cultivation techniques, livestock management practices, quality control measures, and supply chain management. Consider any necessary certifications or licenses required for your specific farming practices.

Develop realistic financial projections for your farm business. Calculate the initial investment required, projected revenue streams, and anticipated expenses. Consider factors such as production costs, marketing expenses, equipment maintenance, and labor costs. Regularly monitor and update these projections to track your farm’s financial performance.

Review and refine your farm business plan regularly. Seek feedback from trusted advisors, industry experts, or experienced farmers. Continuously monitor market trends and make adjustments to your strategies and projections accordingly.

A well-developed farm business plan offers several benefits:

Guidance and Direction : A farm business plan provides a roadmap for your farm’s operations, helping you make informed decisions and stay focused on your goals.

Effective Communication : It facilitates communication and collaboration with stakeholders, including partners, employees, lenders, and investors, ensuring everyone is aligned with the farm’s vision and objectives.

Risk Mitigation : By identifying potential risks and developing contingency plans, a farm business plan helps you proactively manage risks and navigate unforeseen challenges.

Opportunity Identification : A thorough market analysis and competitive assessment enable you to identify emerging trends and opportunities in your target market, allowing you to adapt and seize new business prospects.

Financial Planning and Investment : A well-crafted financial projection helps you understand the financial feasibility of your farm business, attract potential investors or lenders, and secure the necessary funding for your operations.

Operational Efficiency : By outlining your operational processes, a farm business plan enables you to streamline your operations, improve productivity, and optimize resource allocation.

Long-Term Sustainability : A farm business plan encourages sustainable farming practices, ensuring the long-term viability of your agricultural enterprise while minimizing environmental impact.

Challenges in Farm Business Planning

While developing a farm business plan, farmers may encounter several challenges. It’s important to be aware of these challenges and develop strategies to overcome them:

Agricultural markets can be volatile, with unpredictable price fluctuations and changing consumer preferences. Farmers must stay updated on market trends, consumer demands, and potential disruptions to make informed decisions and adjust their strategies accordingly.

Farmers are highly dependent on weather conditions and environmental factors, such as rainfall, temperature, and soil quality. Climate change and extreme weather events can significantly impact crop yields, livestock health, and overall farm productivity. It’s important to incorporate climate resilience strategies into your farm business plan.

Securing adequate financing for farm operations can be challenging, especially for small-scale or new farmers. Limited access to capital and funding sources may restrict the implementation of growth strategies or necessary investments in equipment, infrastructure, or technology. Exploring alternative funding options, such as grants, loans, or partnerships, can help overcome this challenge.

Looking at examples of successful farm business plans can provide valuable insights and inspiration for your own planning process. Take the time to study the approaches and strategies adopted by established farmers in your industry or region. Understand their marketing tactics, operational processes, and financial management techniques, and adapt them to suit your own farm’s unique circumstances and goals.

Ready to Create a Solid Farm Business Plan? Get Started Today!

Creating a well-crafted farm business plan is crucial for the success and sustainability of your agricultural venture. Whether you’re a small-scale farmer, a family-run farm, or an aspiring agribusiness entrepreneur, our team at Easy Capraise is here to help. We specialize in assisting businesses like yours in finding investors and securing the capital raising you need to bring your farm business to new heights.

Don’t miss out on the opportunity to maximize your farm’s potential. Contact us today and let our experts guide you through the process of creating a comprehensive farm business plan that will attract investors and set you on the path to success.

A farm business plan provides a roadmap for your farm’s operations, helping you set goals, make informed decisions, secure funding, and adapt to market conditions.

The time required to create a farm business plan depends on various factors, such as the farm’s complexity and your familiarity with the planning process. It can range from several weeks to a few months.

Using a template as a starting point can be helpful, but ensure that you customize it to reflect your specific farm’s goals, strategies, and financial projections.

Financial projections should include initial investment requirements, projected revenue streams, anticipated expenses, and cash flow statements. It’s crucial to regularly monitor and update these projections to track your farm’s financial performance.

A farm business plan should be regularly reviewed and updated, at least annually or whenever significant changes occur in your farm’s operations, market conditions, or financial situation.

Here’s a guide on how to start a farm business and where to find a sample farm business plan: Identify your farm’s purpose and goals: Determine the type of farming you want to engage in and the specific goals you wish to achieve. This could include crop farming, livestock production, organic farming, or specialized farming practices. Conduct thorough market research: Understand the demand and market potential for your chosen farming niche. Identify your target market, competitors, pricing trends, and any regulatory requirements specific to your area. Determine your farm’s resources: Assess the resources you have available, such as land, capital, equipment, and labor. Determine if you need to acquire additional resources or secure financing for your farm business. Develop a farm business plan: Create a comprehensive business plan that outlines your farm’s mission, vision, and strategies. Include sections on market analysis, production methods, operational plans, marketing and sales strategies, financial projections, and risk management. Seek out sample farm business plans: There are various resources where you can find sample farm business plans to use as templates or references. Consider the following options: a. Online resources: Many agricultural organizations, government agencies, and agricultural universities provide sample farm business plans on their websites. Search for “sample farm business plan” and explore the available resources. b. Local agricultural extension offices: Visit your local agricultural extension office or cooperative extension service. They often have resources, workshops, and sample farm business plans tailored to your specific region.

Seek professional advice: If you need guidance in developing your farm business plan or need assistance customizing a sample plan, consider reaching out to Easycapraise.com.

Developing a comprehensive farm business plan is a vital step toward the success and sustainability of your agricultural venture. By outlining your goals, conducting thorough market research, assessing resources, and creating financial projections, you can create a roadmap that guides your farm’s operations and positions you for long-term success. Remember to regularly review and update your plan to adapt to changing market conditions and seize new opportunities. With a well-developed farm business plan in hand, you can navigate the challenges of the agricultural industry and achieve your desired outcomes.

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Crafting a comprehensive farm business plan is a crucial step towards transforming your agricultural visions into tangible realities. This plan serves as a blueprint, enabling you to formally articulate your thoughts, ideas, and aspirations. Engaging in this process can lead to profound insights, illuminating the path to a thriving agricultural enterprise.

Even though the term ‘farm business plan’ might evoke a sense of formal rigidity, it’s important to remember that this document is, in fact, a living, evolving entity. Just like a seedling that sprouts, grows, and changes with the seasons, your business plan is not meant to be static.

It’s something you nurture, revise, and expand as circumstances dictate and as your farm business matures. Feeling pressure to perfect your business plan from the outset could be paralyzing. Instead, we suggest you view this document as a foundation that can be continuously built upon.

To get you started, we offer a detailed farm business plan template. This invaluable resource can be tailored and expanded to suit your unique agricultural venture, whether you’re cultivating a sprawling wheat field or nurturing a boutique organic herb garden.

The most effective business plans are those that exhibit flexibility and resilience, characteristics that are at the heart of any successful farm business. Agriculture, by its very nature, is a domain subject to the whims of Mother Nature. From unpredictable weather patterns to seasonal variations, farmers of all kinds grapple with an array of external factors.

Therefore, your farm business plan should not only anticipate these challenges but also prescribe adaptive measures to navigate through them. It’s this inherent adaptability that transforms a good farm business plan into a great one.

Writing a Farm Business Plan Template: 15+ Things Entrepreneurs Should Include

A farm business plan, like any strategic document, should be comprehensive, encompassing all aspects of your operation, be it agricultural (crops) or product-based. Utilize these 15 key sections to shape your farm business plan template.

Do bear in mind that while these sections are integral, they are by no means exhaustive. Your farm business plan may necessitate additional topics based on your specific farming operations.

Creating a robust business plan is of paramount importance, whether you’re kickstarting a farm venture or acquiring an existing one. Our farm business plan template starts off with an executive summary.

Executive Summary

The executive summary provides an essential overview of your farm business. It helps to streamline communication and understanding between various stakeholders, such as internal team members, potential lenders, business partners, and customers. When drafting your executive summary, consider the following key components:

• Business Profile : Provide a snapshot of your farm business, describing its nature and scope. Are you into crop cultivation, livestock rearing, or any specialized farming practices?
• Products : Clearly outline what product or products your farm will produce. These could range from dairy products to specific crops or even services like agrotourism.
• Production Methodology : Describe how you plan to achieve your production goals. This could involve discussing your farming techniques, usage of technology, or unique methodologies.
• Target Audience : Identify the individuals or groups who will be interested in your farm products or services. These might be local consumers, restaurants, farmers’ markets, or even online customers.
• Key Strategies : Highlight the strategies you plan to implement to run and grow your business. This could cover marketing techniques, sustainability practices, or partnerships.
• Mission and Vision : Briefly outline the mission and vision of your farm business. This helps to convey your long-term objectives and core values.

Remember, your executive summary is essentially the first impression of your business plan. Making it comprehensive, clear, and compelling will help attract interest and support from stakeholders.

Goals and Objectives

A well-crafted business plan should encapsulate both personal and economic goals and objectives. Many successful farm business plans also address environmental stewardship and community outreach. You may want to include goals around preserving farm resources for future generations, ensuring that both the operational and stewardship aspects remain within the family.

Introduction

Your introduction should provide information about the business owners, including their backgrounds and levels of industry experience.

Mission Statement and Values of Your Farming Business Plan

This section enables you to express the core values that led you to the farming business, whether it’s an urban farming venture or a homemade product-based farm. Your mission statement should reflect these values. Sustainable practices and conservation are often key motivations that draw people to farming, so don’t be shy to share your commitment to such principles.

Industry History

Understanding your place within the wider agricultural landscape is key. Be sure to research farms that have historically dominated your region, whether they specialize in vineyards, urban farming, or livestock rearing. Use this research to make educated projections about the future.

Company Background and History

Share the history of your farm if it has been a long-standing family venture or the journey leading up to your purchase if it wasn’t. If your farm business is a startup, focus on the business experience and backgrounds of the involved parties.

Competitor Analysis

Understanding your competition is crucial. In the agricultural sector, farmers often share resources, such as a high-tech corn planter , or cooperate in marketing endeavors. Factor in such synergies when analyzing competitors.

Target Market

Clearly define your target market. This can include area groceries, farmers’ markets, or online customers. If you’ll be relying on online sales, ensure your website is professionally designed, keyword optimized, and easily discoverable.

Products and Services

Describe each product or service offered by your farm, highlighting those features most appealing to your target market.

Organization, Human Resources, and Management Plans

These interconnected elements cover your farm’s day-to-day operations, employee roles and responsibilities (including their job descriptions ), and overarching management plans.

SWOT Analysis

Conduct a SWOT analysis to identify your farm’s strengths, weaknesses, opportunities, and threats. This will help you strategize on how to leverage your strengths, mitigate your weaknesses, exploit opportunities, and neutralize threats.

Your vision is the roadmap for your farm’s future. It should express not just your financial aspirations but also your plans for the farm operation in the long run.

Growth Strategy

A comprehensive growth strategy should outline your plans for debt reduction, savings, and business expansion. Keeping detailed farm production records is key to evaluating the effectiveness of your growth strategy.

Financial Plan

Your financial plan should include elements like balance sheets, income statements, projected cash flows, loan repayment schedules, and depreciation factors.

Marketing Strategy

A robust marketing strategy is essential for your farm’s success. Look into brochures, advertisements, and joining co-op groups. Resources from institutions like the University of Minnesota and Cornell University offer comprehensive insights into effective marketing strategies for farm businesses.

Establishing a Farming Business Entity

Discuss the legal structure of your farm business. Will it be a sole proprietorship, a partnership, an LLC, or a corporation? Outline the pros and cons of each and why the chosen structure is the best fit for your farm business.

Detailed Description of Farm Operations

Include a section that provides an in-depth look at your day-to-day farm operations. This can cover everything from crop rotation plans, livestock breeding programs, to the use of technology and machinery in your farming activities.

Risk Management Strategies

Address potential risks and challenges your farm might face, such as natural disasters, market fluctuations, or pest infestations. Discuss the strategies you plan to implement to mitigate these risks, like insurance coverage, diversification, and emergency response plans.

Sustainability and Environmental Impact

Highlight your farm’s approach to sustainability and its impact on the environment. Discuss practices like organic farming, conservation techniques, and renewable energy usage, which demonstrate your commitment to environmental stewardship.

Community Involvement and Social Responsibility

Describe how your farm business plans to engage with and contribute to the local community. This could include hosting educational farm tours, participating in farmers’ markets, or supporting local food programs.

Supply Chain and Vendor Relationships

Detail your farm’s supply chain and vendor relationships. Explain how you plan to source inputs like seeds, feed, or equipment, and any partnerships with local suppliers or distributors.

Technology and Innovation

Discuss the role of technology and innovation in your farm business. This could include the use of precision agriculture, innovative irrigation systems, or the adoption of farm management software to enhance efficiency and productivity.

Training and Development Plans

Explain how you intend to train and develop your staff. Include plans for ongoing education, skill development, and potentially, leadership training for future farm managers.

Expansion and Diversification

Outline your long-term plans for expansion and diversification. This could involve adding new crops, branching into agrotourism, or exploring value-added products like farm-produced jams or cheeses.

Exit Strategy

Consider including an exit strategy for your farming business. This could be a plan for succession, selling the business, or transitioning to a different type of agricultural operation.

Wrap up your business plan with a conclusion that reiterates your farm’s core mission and vision, and express your enthusiasm and commitment to making your farm business a success.

Frequently Asked Questions

Include a FAQ section at the end of your business plan to address common questions potential investors or partners may have about your farm business. This can include queries about your business model, funding needs, or market potential.

Provide an addendum for additional documents that support your business plan. This can include resumes of key team members, detailed financial projections, market research data, or letters of support from future customers or partners.

Do I Need a Business Plan for My Farm?

Even if you’re knee-deep in the dirt, tending to your crops or livestock, every farming enterprise has the core elements of a business at its heart. These include aspects such as operations, marketing, human resources, and finances. When you embark on developing a farm business plan, it might astonish you to see where the journey takes you. You could end up discovering facets of your farm business that you hadn’t previously considered.

One of the many advantages of constructing your business plan is the opportunity it affords to involve others. Employees, family members, even your loyal farm dog might have innovative small farm business ideas that could significantly enhance your farm’s productivity and marketability. A different perspective can often yield solutions for issues you might not have even been aware of. Therefore, encourage an open exchange of thoughts and ideas. Who knows, the next great idea could be lying right under your hay bale!

More than just a document outlining your farm’s structure, your farm business plan should serve as a valuable decision-making tool. With it, you can confidently navigate the varied terrain of farm management, from daily operations to larger strategic initiatives. When you’ve got a meticulously crafted, robust farm business plan, it doesn’t just narrate your farm’s story, but also provides you with a roadmap to future growth and success.

Beyond this, a top-notch farm business plan can also be a lever that helps you access critical financing. Lenders and investors are more likely to support your venture when they see a well-structured, thoughtful business plan that articulates your vision, illustrates your understanding of the market, and demonstrates your commitment to fiscal responsibility.

So, where to begin? Let’s dive into our fundamental guide to crafting a farm business plan using our adaptable template. This resource has been designed to help you capture every aspect of your agricultural venture, laying a strong foundation for a bountiful future.

How Do I Write a Small Farm Business Plan?

Don’t sit down to write the whole thing. Chip away, one section at a time. Keep in mind that the plan doesn’t have to be the definitive last word. You can make adaptations.

How do you start a farm business plan?

Start with one piece of the business plan. One of the hardest sections of a business plan to write is the Mission Statement . If you get bogged down there, continue and come back to it later.

How much do farm owners make a year?

As you can imagine, the net income varies greatly by type of farm business.

The bottom line after expenses may not be high. Farmers need to consider net worth as assets grow and the farm property increases in value.

How much does it cost to start a small farm?

Getting set up to raise 100 beef cattle costs lots more than getting set up to raise 100 rabbits.

Things like property acquisition, soil preparation, equipment and machinery and the key costs. Other costs may be i rrigation systems , packaging and trucking.

What is the most profitable farming business?

Poultry farming is currently the most profitable – and common – farm business in the world. It includes chicken, turkey, quail, ducks and goose, that are being raised for meat or eggs.

It’s also one of the most expensive businesses to start, requiring significant capital investment. The industry is very labor-intensive and labor costs are high.

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Free Agriculture Sample Business Plan PDF + How to Write

Elon Glucklich

6 min. read

Updated February 7, 2024

Free Download:  Agriculture Business Plan Template

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

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

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

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

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

No two agriculture farming businesses are alike.

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

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

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

1. Executive summary

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

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2. Business summary and funding needs

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

3. Products and services

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

4. Marketing plan

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

5. Financial plan

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

• Building on your farm business plan sample

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

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

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

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

Invest time in market research

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

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

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

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

Craft your agriculture go-to-market strategy

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

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

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

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

Prepare for unique farming challenges

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

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

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

Plan for the future

Contingency planning is important in all businesses.

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

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

• Get started with your farm business plan sample

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

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

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

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

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Agricultural Business Plan Template

Written by Dave Lavinsky

Agricultural Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their agricultural companies.

If you’re unfamiliar with creating an agricultural business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an agricultural business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your agricultural business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start an agricultural business or grow your existing agricultural company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your agricultural business to improve your chances of success. Your agricultural business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Agricultural Businesses

With regards to funding, the main sources of funding for an agricultural business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for agricultural companies.

    Finish Your Business Plan Today!

How to write a business plan for a agricultural business.

If you want to start an agricultural business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your agricultural business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of agricultural business you are running and the status. For example, are you a startup, do you have an agricultural business that you would like to grow, or are you operating an established agricultural business you would like to sell?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the agricultural industry.
• Discuss the type of agricultural business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of agricultural business you are operating.

For example, you might specialize in one of the following types of agricultural businesses:

• Animal feed manufacturing: the production and sale of food formulas for farm animals.
• Agrichemical and seed manufacturing: the production and sale of agrichemicals (e.g., fertilizers, pesticides, and fungicides) and seeds to farmers that support the growth of their crops.
• Agricultural engineering: development, testing, and implementation of new agriculture tools and machinery to improve the process for farmers.
• Biofuel manufacturing: the production of energy from biomass.
• Crop production: the process of growing and harvesting a variety of crops such as fruits, vegetables, and grains.

In addition to explaining the type of agricultural business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include reaching X number of harvests per year, the number of customers served, or reaching $X amount in revenue.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the agricultural industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the agricultural industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your agricultural business plan:

• How big is the agricultural industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your agricultural business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your agricultural business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of agricultural business you operate. Clearly, schools would respond to different marketing promotions than corporations, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.  

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other agricultural businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of farmers, wholesalers, and distributors.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of agricultural business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for your customers to engage with you?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a agricultural business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of agricultural company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you produce fruit, soy, or vegetable products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your agricultural company. Document where your company is situated and mention how the site will impact your success. For example, is your agricultural business located on a small or large farm near your customer base?  And, will you operate one or multiple locations? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your agricultural marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your agricultural business, including scheduling employees, tracking inventory, accepting orders and payments, and meeting with customers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to reach your Xth harvest, or when you hope to generate $X in revenue. It could also be when you expect to expand your agricultural business to a new region.  

Management Team

To demonstrate your agricultural business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing agricultural businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an agricultural business, or owning their own farm.

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, how many pounds of each crop do you plan to yield each season? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your agricultural business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a agricultural business:

• Cost of farm equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your farm’s location lease or a list of agricultural equipment and machinery used on your farm.  

Writing a business plan for your agricultural business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the agricultural industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful agricultural business.  

Agricultural Business Plan Template FAQs

What is the easiest way to complete my agricultural business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your agricultural business plan.

How Do You Start an Agricultural Business?

Starting an agricultural business is easy with these 14 steps:

• Choose the Name for Your Agricultural Business
• Create Your Agricultural Business Plan
• Choose the Legal Structure for Your Agricultural Business
• Secure Startup Funding for Your Agricultural Business (If Needed)
• Secure a Location for Your Business
• Register Your Agricultural Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Agricultural Business
• Buy or Lease the Right Agricultural Business Equipment
• Develop Your Agricultural Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Agricultural Business
• Open for Business

Don’t you wish there was a faster, easier way to finish your Agricultural business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

Click here to see how Growthink’s business plan professional services can help you create a winning business.  

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