horticulture farming business plan

Farming With Precision!

[Pdf Sample] Business Plan For Horticulture Farming Docx

In today’s thriving market, the horticulture industry presents a world of opportunities for entrepreneurs seeking to cultivate their own green success. Whether you have a passion for plants, a love for nature, or a desire to contribute to sustainable living, developing a well-structured horticulture business plan is essential for turning your dreams into reality.

This comprehensive guide will take you through the key steps of creating a horticulture business plan, providing you with insights, strategies, and practical tips to help your venture blossom and thrive.

[Pdf Sample] Horticulture Business Proposal Plan Docx

Table of Contents

Agrolearners.com is a horticulture-focused business dedicated to providing education and resources to individuals interested in the field of horticulture. We believe in the power of horticulture to create sustainable and eco-friendly solutions for food production, environmental preservation, and personal well-being.

By offering comprehensive online courses, practical training, and a vibrant community platform, Agrolearners.com aims to empower individuals with the knowledge and skills necessary to thrive in the horticulture industry.

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Executive Summary: Painting a Picture of Success

Agrolearners.com envisions becoming the leading online platform for horticulture education globally. By leveraging innovative teaching methodologies, state-of-the-art technology, and a passion for horticulture, we strive to revolutionize the way people learn and engage with the industry.

Our goal is to empower a new generation of horticulturists who are equipped with the expertise to address pressing global challenges related to food security, environmental sustainability, and urban development.

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Company Overview: Cultivating a Vision

Agrolearners.com is founded by a team of horticulture enthusiasts who possess a deep understanding of the industry and a shared commitment to fostering knowledge and skill development. Our core values revolve around quality, accessibility, and community engagement.

Through our online platform, learners can access a wide range of courses, from introductory modules for beginners to specialized programs for professionals seeking to enhance their expertise. We also provide interactive learning materials, practical demonstrations, and a supportive community forum for learners to connect, share experiences, and seek guidance from experts.

Market Analysis: Sowing the Seeds of Opportunity

The horticulture industry is experiencing significant growth due to increased consumer demand for organic produce, sustainable farming practices , and the desire for greener living environments. Market research indicates a surge in the popularity of home gardening, urban farming, and landscape design, further driving the demand for horticulture-related knowledge and skills.

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Agrolearners.com aims to tap into this growing market by providing accessible and comprehensive online education tailored to the needs of aspiring horticulturists, hobby gardeners, and professionals seeking career advancement.

Products and Services: Nurturing Nature’s Bounty

Agrolearners.com offers a diverse range of horticulture courses and resources designed to cater to various skill levels and interests. Our course catalog includes subjects such as plant biology, crop production, landscape design, pest management, and sustainable agriculture practices .

We employ a mix of instructional videos, interactive quizzes, practical assignments, and live webinars to ensure an engaging and immersive learning experience. Additionally, learners have access to a vast library of resource materials, case studies, and expert advice to support their educational journey.

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Marketing and Sales Strategy: Growing Your Customer Base

To attract a broad customer base and increase brand awareness, Agrolearners.com will implement a multi-faceted marketing and sales strategy. This strategy includes digital marketing campaigns, content creation, search engine optimization (SEO), social media engagement, and strategic partnerships with relevant influencers and organizations.

We will also offer free trial courses, discounted packages, and referral programs to incentivize enrollment and foster customer loyalty. By actively engaging with our target audience and consistently delivering high-quality content and learning experiences, we aim to establish Agrolearners.com as the go-to platform for horticulture education.

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Operational Plan: Tending to Business Operations

Agrolearners.com will primarily operate as an online platform, allowing learners to access courses and resources from anywhere in the world. We will invest in robust e-learning infrastructure, including a user-friendly website, a learning management system (LMS), and secure payment gateways to ensure a seamless and secure user experience.

Our team will consist of experienced horticulture professionals, instructional designers, content creators, and customer support staff who will collaborate to develop and deliver high-quality educational content, maintain the platform, and provide responsive customer service.

Organizational Structure: Building a Strong Foundation

To effectively manage operations and drive growth, Agrolearners.com will adopt a hierarchical organizational structure. The core team will comprise a CEO, department heads, and key personnel responsible for content development, technology, marketing, customer support, and finance.

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As the business expands, additional staff will be recruited to meet growing demands. We will prioritize building a collaborative and inclusive work culture that fosters innovation, continuous learning, and employee satisfaction.

Financial Plan: Harvesting Profitable Growth

Agrolearners.com’s financial plan encompasses revenue projections, cost analysis, and funding requirements. The primary sources of revenue will be course enrollment fees, subscription packages, and revenue generated through partnerships and collaborations.

We will closely monitor expenses, such as content development, platform maintenance, marketing, and administrative costs, to ensure profitability and sustainable growth. Additionally, we will seek external funding through grants, investments, and strategic partnerships to support expansion plans and further enhance our offerings.

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Risk Analysis: Preparing for Stormy Weather

While Agrolearners.com is poised for success, we recognize potential risks and challenges that may affect our operations. These include evolving market dynamics, competition from traditional educational institutions and other online platforms, technological disruptions, and regulatory compliance.

To mitigate these risks, we will maintain a proactive approach by continuously monitoring the market landscape, investing in technological upgrades, building strategic partnerships, and fostering a culture of adaptability and innovation.

Here is the Download Link To Horticulture Business Plan Pdf Sample By Agrolearner.com

Sustainability and Environmental Considerations: Cultivating a Greener Future

Agrolearners.com is committed to promoting sustainable horticulture practices and environmental stewardship. We will actively integrate ecological principles into our course curriculum, emphasizing organic farming , water conservation, biodiversity conservation, and responsible pesticide use.

Additionally, we will strive to minimize our carbon footprint by adopting energy-efficient technologies, reducing waste generation, and offsetting our operational emissions through carbon offset programs.

Conclusion: Planting the Seeds of Success

Agrolearners.com is well-positioned to capitalize on the growing demand for horticulture education. By leveraging our expertise, embracing technological advancements, and nurturing a vibrant learning community, we are confident in our ability to revolutionize horticulture education globally.

With a strong business plan, a dedicated team, and a passion for sustainable agriculture, Agrolearners.com is ready to sow the seeds of success and empower individuals to create a greener and more sustainable future.

Author: Adewebs

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How to Start a Farm: Plan Your Operation

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

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

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

How USDA Can Help

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

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

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

Build a Farm Business Plan

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

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

Business History

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

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

Mission, Vision, and Goals

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

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

Organization and Management

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

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

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

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

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

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

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

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

Farm Business Plan Worksheets

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

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

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

Planning for Conservation and Risk Management

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

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

Conservation in Agriculture

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

Disaster Recovery

Special Considerations

Special considerations for businesses.

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

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

Special Considerations for Individuals

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

socially disadvantaged
limited resource
military veterans

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

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

Business Planning

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

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

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

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

Training Opportunities

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

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

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

2. Visit Your USDA Service Center

How to Start a Farm with USDA

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

Find Your Local Service Center

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

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

Vegetable Farming Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Agriculture Sector

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

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

Why Start a Vegetable Farming Business?

As an aspiring entrepreneur who is interested in starting a business in the agricultural sector of your country, you can be rest assured that there are loads of business opportunities available, and vegetable farming is one of them. Vegetable farming is known to be a profitable business which has over the years evolved from small scale (backyard garden), into a global industry in all countries where it is carried out.

Countries in the Caribbean, South America, North America, Europe, Asia, Australia and Africa are known to be in the forefront when it comes to cultivating varieties of vegetables. If you are considering starting a vegetable farm business, the good news is that you cannot get it wrong.

This is because various types of vegetable are consumed by almost everybody all over the globe. It is important to state that starting a vegetable farming business comes with its own 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 a vegetable farm on a small scale or on a large scale depending on their financial status.

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

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

A Sample Vegetable Farming Business Plan Template

1. industry overview.

Vegetable farmers grow a wide variety of vegetables in open fields and in greenhouses. Some vegetable farmers also grow a variety of fruits and other crops.

If you are a close observer of the vegetable farming industry, you will agree that the industry is anticipated to increase due to increasing consumer health consciousness, which has led to increasing demand for fresh produce. While per capita fruit and vegetable consumption has remained stable in recent time, the price of vegetables has increased as consumers demand premium, fresh vegetables.

So also, the number of both small and large farms has been increasing. Small, local farms are benefiting from the organic, local movement, while large, commercial farms are improving labor efficiency. Going forward, players in the vegetable farming industry will continue to increase revenue generation for their business.

The Vegetable Farming industry is indeed a fast – growing industry that is pretty much active in all countries of the world. As a matter of fact, The Netherlands has some of the largest greenhouses where vegetables are cultivated in the world.

That is the scale of food production in the country so much so that in 2000 alone, greenhouses occupied about 10,526 hectares, or 0.25 percent of the total land area.

The Netherlands has an estimate of 4,000 greenhouse establishments that operate well over 9,000 hectares of greenhouses and employ about 150,000 workers, producing €7.2 billion worth of vegetables, fruit, plants and flowers, some 80% of which are exported.

Statistics has it that in the united states of America alone, there are about 76,459 registered and licensed vegetable farms scattered all across the United States responsible for employing about 317,590 and the industry rakes in a whooping sum of $26 billion annually. The industry is projected to enjoy 2.5 percent annual growth.

One thing is certain when it comes to vegetable farming, if you are able to conduct your market research and feasibility studies before choosing a location for cultivating your vegetable, you are likely not going to struggle to grow the vegetable farming business and also sell your vegetables because there are always food processing companies and consumers out there who are ready to buy from you.

Lastly, with vegetable farming it will pay you not to only cultivate vegetable and sell them for consumption in farm markets to retailers and consumers. You can as well start a complimentary business like vegetable processing plant to package your vegetables to save cost.

The bottom line is that if you have enough farm land (space) and you are interested in maximizing vegetable farming, you are sure going to make huge profits from the business.

2. Executive Summary

Johnson Jael® Vegetable Farms, LLC is a registered and licensed commercial farm that will be based in the outskirts of Los Angeles, California – United States. We have done our detailed market research and feasibility studies and we were able to secure 25 hectares of land to start our vegetable farm.

We will always leverage on greenhouse farming to cultivate vegetable hence we will construct a structure with walls and roof made essentially of transparent material, such as glass, in which plants requiring regulated climatic conditions are grown.

At Johnson Jael® Vegetable Farms, LLC we will be involved in the cultivation of crops such as; cucumbers, shallots, tomatoes, lettuce, chilis, capsicum, red salad onions and snow peas, chinese cabbage, lettuce, basil, roses, tomatoes, okra, cantaloupe and bell peppers, watercress,

Basil, coriander, parsley, lemongrass, sage, beans, peas, kohlrabi, taro, radishes, strawberries, melons, onions, turnips, parsnips, mushroom, carrot, melon, sweet potato, cauliflower, cabbage, broccoli, and eggplant as well as the choys that are used for stir fries. We will also be involved in greenhouse vegetable production.

In the nearest future, hopefully within the first five years of officially running Johnson Jael® Vegetable Farms, LLC, we will start our food processing and packaging plant and also start exporting our vegetables to other parts of the world.

This 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 be able to fit into the ideal picture of the 21 st century vegetable farming business workforce that we want to build.

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

Johnson Jael® Vegetable Farms, LLC is well positioned to become one of the leading vegetable farms in the United States of America, which is why we have been able to source the best hands and machines to run the business with. We have put process and strategies in place that will help us employ best practices when it comes to vegetable farming in the United States of America.

Johnson Jael® Vegetable Farms, LLC is a Private registered commercial farm that is owned by Johnson Jael and his immediate family members. The company will be fully and single handedly managed by the owner – Johnson Jael and his immediate family members at least for a period of time.

3. Our Products and Services

Johnson Jael® Vegetable Farms, LLC is a commercial farm that will be cultivating various vegetables via greenhouse farming model and land farming for both the United States’ market and the global market. We are in business to produce both vegetables and fruits in commercial quantities.

We will also ensure that we operate a standard food processing and packaging plant as part of our complimentary services. We are in this line of business to make profit 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 vegetable farms. If need arises we will definitely add more agriculture produce to our list;

Cultivation of crops such as; cucumbers, shallots, tomatoes, lettuce, chilis, capsicum, red salad onions and snow peas, Chinese cabbage, lettuce, basil, roses, tomatoes, okra, cantaloupe and bell peppers, watercress, basil, coriander, parsley, lemongrass, sage, beans, peas, kohlrabi, taro, radishes, strawberries, melons, onions, turnips, parsnips, mushroom, carrot, melon, sweet potato, cauliflower, cabbage, broccoli, and eggplant as well as the choys that are used for stir fries
Vegetable and fruit processing and packaging
Greenhouse construction, consultancy and advisory services

4. Our Mission and Vision Statement

Our Vision is to become one of the leading vegetable farm brands not just in the United States of America but also on the global stage.
Our mission statement as a commercial farm is to go into full – time cultivation of vegetables and fruits that will not only be consumed in the United States of America but also exported to other parts of the world.
We want our processed fruits and vegetable to flood the nooks and crannies of the United States and other countries of the world.

Our Business Structure

Johnson Jael® Vegetable Farms, LLC is a commercial vegetable farm that intends starting small in Los Angeles – California, but hopes to grow big in order to compete favorably with leading commercial vegetable 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, which is why we are committed to only hire the best hands in and around California.

At Johnson Jael® Vegetable 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).

In view of the above, Johnson Jael® Vegetable Farms, LLC have decided to hire qualified and competent hands to occupy the following positions;

Chief Operating Officer

General Farm Manager

Administrator/Accountant

Crop (Vegetable and Fruits) Cultivation Manager/Supervisor

Vegetable and Fruits Processing and Packaging Plant Manager/Supervisor

Sales and Marketing Executive
Front Desk Officer

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

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 manager
Ensures compliance during project executions (especially in the construction of greenhouse and hothouse et al)
Providing advice on the management of farming activities across all section
Responsible for carrying out risk assessment
Using IT systems and software to keep track of people and progress of the growth of crops
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
Carrying out staff induction for new team members
Responsible for training, evaluation and assessment of employees
Oversee the smooth running of the daily farming activities across the various farming sections
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

Crop (Vegetable and fruits) Cultivation Manager/Supervisor

Responsible for the cultivation of crops such as; cucumbers, shallots, tomatoes, lettuce, chilis, capsicum, red salad onions and snow peas, Chinese cabbage, lettuce, basil, roses, tomatoes, okra, cantaloupe and bell peppers, watercress, basil, coriander, parsley, lemongrass, sage, beans, peas, kohlrabi, taro, radishes, strawberries, melons, onions, turnips, parsnips, mushroom, carrot, melon, sweet potato, cauliflower, cabbage, broccoli, and eggplant as well as the choys that are used for stir fries
Supervises other workers within the department
Work closely with the General Manager to achieve the organizations’ goals and objectives
Responsible for managing the fruits and vegetable processing and packaging plant section of the business

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 customers
Develop, execute and evaluate new plans for expanding increase sales
Document all customer contact and information
Represent the company in strategic meetings
Help increase sales and growth for the farm

Front Desk/Customer’s Service 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 Hankins Jordan® Banana Farms, Inc.
Distribute mails in Johnson Jael® Vegetable Farms, LLC
Handles any other duties as assigned by the line manager

6. SWOT Analysis

Johnson Jael® Vegetable 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 vegetable farm that will favorably compete with leading commercial vegetable farms in the United States of America and in other parts of the world.

We are quite aware that there are several large, medium and small scale vegetable farms all over Los Angeles – California and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

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 welled equipped to confront our threats.

Johnson Jael® Vegetable Farms, LLC employed the services of an expert HR and Business Analyst with bias in the commercial 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 Hankins Johnson Jael® Vegetable Farms, LLC;

Our strength as a vegetable farm company is in the fact that we have healthy relationships with loads of major players (agriculture merchants) in the agricultural industry; both suppliers and buyers within and outside of the United States.

We have some of the latest vegetable farming machines, tools and equipment that will help us cultivate crops (vegetables and fruits) 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 the vegetable cum greenhouse commercial farming line of business.

Our major weakness is that we are a new vegetable farm in the United States and it might take some time for our organization to break into the market and gain acceptance especially from international markets in the already saturated and highly competitive commercial farming industry. Another weakness is that we may not have the required cash to promote our business the way we would want to.

Opportunities:

The opportunities that are available to us cannot be quantified; we know that everybody on planet earth eats different types of vegetables. So also changes in consumer preferences have led supermarkets and other retail outlets to demand fresh vegetables and fruits all year-round. We are ready to take advantage of any opportunity that is available in the industry.

Both the number of small local farms and the number of larger commercial farms have been growing. Increasing imports of fresh produce will slightly constrain demand for vegetables and fruits. Just like any other business, one of the major threats that we are likely to face is economic downturn.

It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new vegetable farm or commercial greenhouse farm in the same location where our target market exists and who may want to adopt the same business model like us.

7. MARKET ANALYSIS

Market Trends

If you are conversant with rising technology and scientific development in the agriculture industry, you will quite agree that vegetable and fruits farming via greenhouse commercial farming model are at the front burner. Greenhouse commercial farming is rapidly gaining entrance in our world today.

Greenhouse farming gives room for greater control over the growing environment of various crops. Dependent upon the technicality and specification of a greenhouse design, some of the important factors which may be controlled include temperature, levels of light and shade, irrigation, fertilizer application, atmospheric humidity et al.

Basically, greenhouses are used to overcome shortcomings in the growing qualities of a piece of land such as a short growing season or poor light levels. In essence, they are designed to improve food production in marginal environments.

So also, if you are a close observer of the trends in the vegetable farming industry, you will agree that the vegetable farming industry is anticipated to increase due to increasing consumer health consciousness, which has led to increasing demand for fresh produce.

While per capita fruit and vegetable consumption has remained stable in recent time, the price of vegetables has increased as consumers demand premium, fresh vegetables.

So also, the number of both small and large farms has been increasing; small local farms are benefiting from the organic, local movement while large, commercial farms are improving labor efficiency. Going forward, players in the vegetable farming industry will continue to increase revenue generation for their business.

8. Our Target Market

Naturally, the end consumers of vegetable farm produce and those who benefit from the business value chain of the vegetable farm industry is all encompassing. Every household consumes produce from vegetable farms be it vegetables or fruits et al. In essence, a vegetable farmer should be able to sell his or her farm produce to as many people as possible.

We will ensure that we position our business to attract consumers of fresh vegetables and fruits not just in the United States of America alone but other parts of the world which is why we will be exporting some of our vegetables and fruits either in raw or processed form to other countries of the world.

Our competitive advantage

It is easier to find entrepreneurs flocking towards an industry that is known to generate consistent income which is why there are more commercial 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. This goes to show that there is an appreciable number of farmers in the United States of America but that does not mean that there is stiff competition in the industry.

As a matter of fact, entrepreneurs are encouraged by the government to embrace commercial farming. This is so because part of the success of any nation is her ability to cultivate her own food and also export foods to other nations of the world.

Johnson Jael® Vegetable Farms, LLC is fully aware that there are competitions when it comes to selling vegetables and fruits 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 farming processes that can help us sell our produce at competitive prices, good network and excellent relationship management.

Our competitive advantage lies in the power of our team; our workforce. We have a team of hardworking and highly proficient farmers, a team with excellent qualifications and experience in various niche areas in the vegetable farming industry.

Aside from the synergy that exists in our carefully selected team members, we have some of the latest and efficient vegetable and greenhouse farm machines and equipment and we will be guided by best practices in the industry.

Another competitive advantage that we are bringing to the industry is the fact that we have designed our business in such a way that we will operate an all – round standard vegetable farm that will be involved in diverse areas such as vegetable and fruit cultivation, food processing and packaging plant. With this, we will be able to take advantage of all the available opportunities within the industry.

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

9. SALES AND MARKETING STRATEGY

Sources of Income

Johnson Jael® Vegetable Farms, LLC is in the vegetable 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.

In essence we are not going to rely only on the sale of our farm produce to generate income for the business. Below are the sources we intend exploring to generate income for Johnson Jael® Vegetable Farms, LLC;

Sale of crops such as; cucumbers, shallots, tomatoes, lettuce, chilis, capsicum, red salad onions and snow peas, chinese cabbage, lettuce, basil, roses, tomatoes, okra, cantaloupe and bell peppers, watercress, basil, coriander, parsley, lemongrass, sage, beans, peas, kohlrabi, taro, radishes, strawberries, melons, onions, turnips, parsnips, mushroom, carrot, melon, sweet potato, cauliflower, cabbage, broccoli, and eggplant as well as the choys that are used for stir fries

10. Sales Forecast

From the survey conducted, we were able to discover that the sales generated by a vegetable farm depend on the size of the farm and the nature of the vegetable farm.

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 first year of operation and build the business from survival to sustainability.

We have been able to critically examine the vegetable farming industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

First Year-: $250,000
Second Year-: $500,000
Third Year-: $900,000

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 and at the same time it might be higher.

Marketing Strategy and Sales Strategy

We are quite aware that the reason why some vegetable farms hardly make good profits is their inability to sell off their farm produce, especially perishable crops as at when due. In view of that, we decided to set up a standard food processing plant to help us

Introduce our business by sending introductory letters alongside our brochure to stakeholders in the agriculture industry, companies that rely on the agriculture industry for their raw materials, supermarkets, grocery stores, hotels and restaurants and agriculture produce merchants et al.
Advertise our business and agriculture produce in agro – allied and food related magazines and websites
List our vegetable farms on yellow pages ads
Attend related agriculture and food expos, seminars and 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 (conventional and non – conventional 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 can leverage on to boost our vegetable 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 on strategic locations all around Los Angeles – California
Engage in roadshows from time to time in targeted neighborhoods
Distribute our fliers and handbills in target areas
Contact corporate organizations and residents in our target areas by calling them up and informing them of Johnson Jael® Vegetable Farms, LLC and the farm produce we sell
List our vegetable farms in local directories/yellow pages
Advertise our vegetable 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 well branded with our company logo et al.

12. Our Pricing Strategy

If you want to get the right pricing for your farm produce, then you should ensure that you choose a good location for vegetable farm, choose a good breed/seed that will guarantee bountiful harvest, cut the cost of running your farm to the barest minimum and of course try as much as possible to attract buyers to your farm as against taking your farm produce to the market to source for buyers; with this, you would have successfully eliminate the cost of transporting the goods 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 vegetables and fruits is to sell them at competitive prices hence we will do all we can to ensure that the prices of our farm produce are going to be what other commercial farmers would look towards beating.

One thing is certain, the nature of vegetable farming makes it possible for farmers to place prices for their farm produces 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 harvest the better for your business.

Payment Options

The payment policy adopted by Johnson Jael® Vegetable 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 Johnson Jael® Vegetable 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 Point of Sale Machines (POS Machines)
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 farm produces without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfers.

13. Startup Expenditure (Budget)

When it comes to calculating the cost of starting a vegetable farm with a standard greenhouse farm, there are some key factors that should serve as a guide. The most important expenses is the construction of the greenhouse or hothouse as the case may be.

As a matter of fact, if you choose to start mechanized crop farming, then you should be willing to raise huge capital base to start the business. This is so because some cultivation machines/equipment can be pretty expensive. Below are some of the basic areas we will spend our start – up capital in setting up our vegetable 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 the purchase of the first set of vegetables and fruits seedlings et al – $50,000
The amount required to set up a standard vegetable processing plant within the farm facility – $100,000
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 vegetable farm with a processing plant in the United States of America. Basically, vegetable farms do not require an office space, most people that run vegetable 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.

Generating Funds/Startup Johnson Jael® Vegetable 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 vegetable farm. No doubt raising startup capital for a business might not come cheap, but it is a task that an entrepreneur must go through.

Johnson Jael® Vegetable Farms, LLC is a family business that will be owned and managed by Johnson Jael 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 sourcing of start-up capital for the business to just three major sources.

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

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Johnson Jael® Vegetable Farms, LLC is to build a business that will survive off its own cash flow without 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 (vegetables and fruits) a little cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Johnson Jael® Vegetable 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 company’s corporate culture is designed to drive our business to greater heights and training and retraining 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 three years or more as determined by the board 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 form of Insurance for the Business: Completed
Leasing of farm land in Los Angeles – California (preparing the farm land inclusive): 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 Designs and Printing of Packaging, Marketing/Promotional Materials: Completed
Recruitment of employees: In Progress
Building /construction of greenhouse and hothouse facility: In Progress
Purchase of the needed working 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 key players in the industry (agriculture farm produce merchants, transporters/haulage and suppliers of seeds, fertilizers, pesticides and insecticides): Completed

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Vegetable Farming Business Plan for High Yield and Profits

Table of contents, things to consider in starting a vegetable farming business, production factors and techniques for vegetable farming business, marketing strategies used in a small vegetable farming business plan , importance of vegetable production, factors that determine successful vegetable production, production techniques of quality vegetables, production plan of a vegetable farming business, some of the important high yield vegetable crops, the conclusion of a vegetable farming business plan.

Introduction to vegetable farming business plan

Vegetables are very important sources of vitamins, minerals, and antioxidants providing human health benefits. Vegetable farming business is a profitable business and this not only for a big farmer. It is also profitable for small and marginal farmers. A small-scale vegetable farming has the earning potential throughout the year. If you are planning for commercial vegetable production for maximum profits, you must have a proper vegetable farming business plan.

A step by step guide to vegetable farming business plan

Growing vegetable crops is the perfect way to turn your gardening skills and knowledge into extra income. Business planning is the key to success when you’re ready to invest in starting a vegetable-production business . Poor management and lack of planning are, in many cases, the main causes of business failure. Vegetable farming is a type of crop production intended mainly for human consumption of the crop’s edible parts such as the shoot, leaves, fruits, and roots. According to the consuming part of the crop, vegetables are mainly divided into the following groups;

Leafy vegetables (lettuce, cabbage, spinach)
Fruit vegetables (pepper, cucumber, tomato)
Root vegetables (carrot, radish, sweet potato)
Bulb vegetables (garlic, onion, fennel)
Flower vegetables (artichoke, cauliflower, broccoli)

Vegetable farming business demands proper planning, investment, adequate knowledge, and marketing. However, here we have discussed some of the main essentials;

First of all, a solid vegetable farming business plan is very important.
In starting, figure out how must land area you have for vegetable farming.
According to the agro-climatic condition choose the vegetable for farming.
You must consider the local market because vegetables are hugely perishable items.
Also, cultivate the scope of export.
Select the right species.
Furthermore, you must arrange the proper irrigation for your vegetable farm.
Plan for harvesting storage.
Calculate the entire working capital cost.
Finally, you must arrange the required finance.

Vegetable farming business requires attention to all production operations, including insect, disease, and weed control and efficient marketing. The kind of vegetable grown is determined by consumer demands, which can be defined in terms of vegetable variety, size, tenderness, flavor, and type of pack. Though, effective management involves the adoption of methods resulting in a steady flow of the desired amount of produce over the whole of the natural growing season of the vegetable crop. Many vegetable plants can be grown throughout the year in some climates, while yield per acre for a given kind of vegetable varies based on the growing season and region where the crop is produced.

Climate – Climate involves the temperature level, moisture, daylight, and wind conditions of a specific region. Climatic factors strongly affect all stages and processes of vegetable plant growth

Temperature – Temperature requirements are mainly based on the minimum, optimum, and maximum temperatures during both day and night throughout plant growth.

Moisture – The amount and annual distribution of rainfall in a region, particularly during certain periods of development, affects local crops.

Daylight – Light is the source of energy for vegetable plants. The response of plants to light is mainly dependent upon light intensity, quality, and daily duration.

Site – The choice of a site involves such factors as soil and climatic regions.

Soil preparation and management – Soil preparation and management for vegetable growing involves many of the usual operations required for other crops. Good drainage is important for early vegetables because of wet soil retards development.

Propagation – Propagation of vegetable plants, involving the formation and development of new individuals in the establishment of new plantings, is accomplished by the use of either seeds or the vegetative parts of plants.

Planting – Vegetable crops are planted in the field where they are to grow to maturity. A few kinds are commonly started in a seedbed, established in the greenhouse or the open, and transplanted as seedlings.

Cultivation – Vegetable cultivation refers to stirring the soil between rows of vegetable plants.

Irrigation – Vegetable farming requires irrigation in arid and semi-arid regions, and irrigation is frequently used as insurance against drought in more humid regions.

Disease and insect control – The vegetable production of satisfactory crops requires rigorous disease- and insect-control measures. Crop yield can be lowered by disease or insect attack, and when plants are attacked at an early stage of growth the entire crop may be lost. Reduction in the quality of crops may also be caused by diseases and insects.

Harvesting – The development stage of vegetables when harvested affects the quality of the product reaching the consumer.

Marketing strategy to the small vegetable growing farmer can be;

Collective approaches, no individual side marketing
Growing quality vegetables.
Collection through cooperative or committee.
Standardization of the product.
Sale in the outlet by cooperative or Malls.
Welfare strategy for farmers in profit distribution.
Government subsidy to the collective approach.

In case if you miss this: Growing Medicinal Plants Hydroponically .

Vegetables are vital to the general good health of human beings, and providing necessary vitamins and minerals, and reducing risk from dangerous diseases and other medical conditions. First, of course, you would need a piece of land to start vegetable farming and try at least an acre for commercial vegetable growing. Then you would require equipment, which you can buy, lease or borrow, such as a tractor, tiller, plow, disc, cultivator, and planter. Lower your production cost as much as possible by spending on equipment only when required. Unnecessary expenses on equipment can eat away potential profits.

Vegetable production provides a promising economic opportunity for reducing rural poverty and unemployment in developing countries and is the main component of farm diversification strategies. Vegetables are mankind’s most affordable source of vitamins and minerals required for good health.

Importance of vegetable production is;

Importance in human nutrition
Vegetables are a very important source of farm income
Vegetables have aesthetic value
Vegetable production for medicinal purpose
Roll of vegetables in the national economy
Flexibility in plant production program-unlike the fruits with vegetables the production program can be adjusted and changed for better profits according to needs. With fruits, it is a difficult time taking and expensive to change the production program if it turns out to be unprofitable.

Whether the growth of vegetables is intended for fresh consumption, processing, and seed production, it can be a profitable vegetable business . However, there are a few factors that can influence the profitability of vegetable production from its early beginnings;

Seed quality; the sowing of quality, clean, labeled, graded to size, viable, and healthy seed can make all the difference between success and failure in vegetable farming.
Optimal time of sowing and planting; depends on the climate and environmental conditions of the specific area, as well as requirements of each crop.
Method of planting; the secret to successful vegetable farming lies in the managing of optimal plant requirements, by combining the production of transplants in the greenhouses with planting in the field.
Finally, considering effective farm management is the first step in creating profitable vegetable production . In essence, farming of these colorful plants can be a profitable business.
Some plants have high labor requirements to grow. Before selecting a vegetable to raise, know first the extent at which some plants need tending. Then, determine whether you have the time to invest to grow and market it. For example, if you expect to be unable to get your products sold immediately, avoid easily perishable crops such as asparagus, sweet corn, peas and grow potatoes and onions instead.
Some plants are difficult to grow and need special attention from the farmer for optimum results. Your choice of the crop must consider whether you have the knowledge and experience in growing such crops and whether you are willing to learn from available resources. Also, some plants would need special equipment. Select those you won’t need to buy the equipment to grow.

You should not miss this: Chilli Seed Germination, Time, Temperature, Procedure .

Production techniques of quality vegetables.

The quality of vegetables mainly depends on the horticultural production systems, environmental factors, and management practices used. Climatic conditions such as temperature and light intensity have a strong influence on the nutritional quality of vegetables. Hydroponic cultivation technique ensures the production of quality vegetables, and in this culture system, both plant nutrition and environmental conditions are artificially managed according to the plant need. Growing quality vegetables is easier and safer in hydroponic compared to conventional soil culture. The advantages of this system are that plant roots are visible and the root zone environment can be easily monitored. In this system of cultivation, the yield of the vegetable crop can be maximized through the efficient use of all resources, and it is believed to be the intensive form of agricultural enterprises for commercial production of greenhouse vegetable plants .

Soilless culture of vegetables uses inert organic or inorganic substrate through the hydroponic nutrient application. This culture has been reported to practice in the greenhouse as an alternative to conventional filed cultivation of many high-value vegetable crops. Under these protected cultivation systems, weather factors, the amount and composition of nutrient solution, and the growing medium can be managed successfully. Therefore, the quality of vegetable crops grown through soilless culture improves significantly compared to conventional soil culture. Many researchers found better taste, uniformity, color, texture, and higher nutritional value in fruits grown in soilless culture than in soil cultivation methods.

Once you have a clear idea of what you want your vegetable farm business to look like, what you want to produce, and where you will sell your product, you need to establish a production plan. Some factors to consider are listed below;

Capital needs – Identify the investment and cash operating needs and how much you will need to borrow.

Infrastructure and equipment – Identify what equipment you need for the vegetable crops you will produce. Also, depending on the packaging and also handling requirements identify what type of infrastructure will be needed.

Management – Identify the production, management, and marketing skills essential to make your enterprise successful. If you do not have those skills, identify ways to acquire them, which can include hiring additional labor.

Planting and harvesting schedule – Plan the best timing for planting and harvesting your vegetable crops, based on plant varieties and availability of labor. Remember to plan planting dates based on your harvest schedule (e.g., customer demand).

Post-harvest and sanitation – Post-harvesting needs (sanitation, handling, and cooling) are very important aspects that need careful thought. Cooling is essential to delay produce spoilage and keep it fresh. When the product is not sold and delivered immediately after harvest, a cold storage option can be needed.

Enterprise analysis – Keep good plant production and financial records to help you make good decisions in the future. Use records to identify problems that need to be solved and to identify what practices and crops are profitable for your business.

List of high yield vegetable crops can be given below;

Cucumbers – In an acre area, around 12000 cucumber plants are planted (3 plants per square meter) and each plant yields an average of about 5 to 7 kg per cycle. This will yield about 8,400 to 10,500 plants per acre.

Squash – In general, each squash plant produces about 5 to 25 pounds of yellow squash during the growing season. A 10-foot row of yellow squash averages about 20 to 80 pounds of squash.

Beans – The average yield is about 100 to 120 quintals of green pods per hectare can be expected.

Tomatoes – The average tomato crop yield per acre in India is 10 tonnes although the yield varies from 15 to 20 tonnes per acre in case of irrigated crops.

Peanuts – Grown mainly through age-old farming techniques, peanut yield in India is about 700 to 900 kg per hectares.

Potatoes – During the first year of cultivating potatoes, a good yield can be about 10 tons per acre. Experienced farmers after years of practice can achieve yields 16 to 28 tons per acre.

Peppers – The yield per acre of pepper is about 0.39 tonnes per hectare. This indicates a plant population of 10,250 plants per acre, thus the average yield per plant is 3.6 pounds.

Beetroot – The beetroot crop yields about 20–25 tonnes/hectare in 120 days.

Radishes – It yields about 200 to 250 quintals fresh radish per hectare.

Lettuce – The average yield of lettuce is about 80 to 120 quintals per hectare.

The above information may also be used for Polyhouse vegetable farming, Greenhouse vegetable farming, and even vegetable farming at home. In case if you are interested in this: How to Make Money from a Vegetable Farming .

10 COMMENTS

Thanks for ur information it’s very useful to me..

insightful information for beginners like me. How can I get this information handy for referral purposes during my start up farming carrer

I would like to set a agriculture business in 100 Acre land in Gujarat. I need prepare a business plan which should include crop name, it production detail per year and estimed income. I also need to have deails of other related investmenet like equipments, storage facility, labour cost , water cost , fertiliser cost etc

I want to be a farming business man

The content is important for a small scale farmer who is not in a position to get extension services from agricultural officers. It help me acquire some knowledge in writing a proposal for my vegetable project.

Good information for me to start my vegetable project to feed my country I would like to receive more information through my email as a guide for my project Thank you

Thanks for the Info, I am planning to start the farming can I get more info about the farming with Advance Technology how we built the prototype model first.

This is a great insight into vegetable farming. I wanna develop a business plan for vegetable production on campus. How can I start and what kind of marketing strategy plan do I have to implement

Thank you for the information. Also I would like to receive more information.

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Vegetable Farming Business Plan: Key Rules to Start from Scratch

Vegetable farming is an important and lucrative business that has existed for thousands of years. With a growing global population arises an increased need for nutritious food. Vegetable farming can be profitable, but it requires careful planning and execution. A business plan is critical for anyone starting a vegetable farming business. It outlines your goals, objectives, strategies, and tactics for running your farm.

It helps you identify potential challenges, evaluate market trends and competition, and develop a financial plan. This blog post will discuss the key rules to start a successful vegetable farming business plan. We will provide accurate and relevant data and figures to help you make informed decisions about your business.

We will cover everything from market analysis to crop selection, production planning, marketing and sales, financial planning, and legal and regulatory considerations. Whether you’re a seasoned farmer or a beginner looking to start your own vegetable farming business, this blog post will provide the information you need to succeed. So, let’s explore more.

Vegetable Farming Business Plan

What is vegetable farming.

Vegetable farming is cultivating and harvesting vegetables for consumption or sale. It can involve growing various vegetables, including leafy greens, root vegetables, legumes, and more. Vegetable farming can occur on a small scale, such as in a backyard or community garden, or on a large scale, such as in a commercial vegetable farm. As demand for fresh, healthy produce increases. Vegetable farming is a profitable industry globally. When starting a vegetable farming company, understanding vegetable types and market demand is vital for present trends and recommendations.

Leafy vegetables: Their health benefits and versatility make them popular. Kale, arugula, and lettuce are common.
Fruit vegetables: Because of their sweetness and nutritional worth, peppers, cucumbers, and tomatoes are popular. Raw salads and snacks use these veggies.
Root vegetables: Carrots, radishes, and sweet potatoes are vitamin and mineral-rich. Sauces and soups use these long-lasting veggies.
Bulb vegetables: Garlic, onion, and fennel add taste and aroma. They last long and are used in many dishes.

Artichokes, cauliflower, and broccoli are high-fiber, antioxidant-rich flower vegetables. Mediterranean and Asian dishes use them.

Strategies for Starting a Vegetable Farming Business

Develop a solid business plan: A well-structured business plan is crucial to the success of any business, including vegetable farming. It helps you identify your goals, strategies, target market, competition, and financial projections.

In case you missed it: Backyard Vegetable Garden Layouts: A Beginners Guide

Determine land area for vegetable farming: Before starting your farming business, you must identify the required land area. You can start small and gradually expand your operations as your business grows.
Choose the right vegetables: The selection of vegetables should be based on agro-climatic conditions and local market demand. You should also consider the potential for exporting your products to other regions or countries.
Select the right plants: The plants should suit your area’s soil and weather conditions. Consider the species’ yield, shelf life, and disease resistance before deciding.
Proper irrigation: Proper irrigation is essential for the success of your vegetable farming business. You can choose from various irrigation systems, including drip irrigation, sprinkler irrigation, and flood irrigation.
Plan for harvesting and storage: You need to plan for harvesting and storage to ensure that your vegetables are harvested at the right time and stored properly. It will help you maintain the quality and freshness of your produce.
Calculate the working capital cost: It is important to calculate the working capital required for your vegetable farming business. It will help you determine the cost of inputs such as seeds, fertilizers, pesticides, labor, and other expenses.
Arrange the required finance: You must arrange the required finance for your vegetable farming business. It can come from personal savings, loans, grants, or partnerships.

Vegetable Farming Techniques and Factors of Production

The factors and techniques used in production are extremely important to the success of crop yield in the vegetable farming industry. The main variables influencing the growth and development of vegetable plants are the weather, including temperature, moisture, daylight, and breeze conditions. Crop yield is also significantly influenced by the type and grade of soil. Producing high-quality products requires effective disease and insect management, irrigation, and soil preparation and management.

Vegetable plants can be multiplied through seeds or vegetative parts planted in the yard, where they will eventually reach maturity. A larger crop yield can be achieved by using proper cultivation methods, such as stirring the soil in between rows of vegetable plants. Vegetables must be harvested at the proper state of growth for the product’s quality to reach the consumer. For the growing season, efficient management and marketing strategies can guarantee a consistent flow of the desired product.

Importance/Scope of Vegetable Farming Business

Vegetable production is a rich source of vitamins and minerals essential for good health. They are also an important source of income for farmers. They can contribute significantly to reducing rural poverty and unemployment in developing countries. Moreover, vegetables have aesthetic value and can be used for medicinal purposes. The flexibility in plant production programs makes vegetable farming more profitable than fruit farming, where changing the production program is difficult and expensive.

Key Rules in Managing a Vegetable Farming Business

Sowing and planting: Your crops’ sowing and planting times rely on your region’s climate and crop needs.
Planting method: Producing transplants in greenhouses and planting in the open can help vegetable farmers meet plant requirements.
Profitable vegetable production requires good farm management. Consider labor, crop trouble, and equipment.
Labor requirements: Some vegetable crops require more care than others, so it’s essential to know how much time you have to grow and sell them.
Production techniques: Horticultural production methods, environmental factors, and management policies affect vegetable quality. Hydroponic and soilless vegetable cultivation improves crop yield and resource efficiency.
Production plan: Once you have a clear vision for your vegetable farming company, create a production plan that includes capital, infrastructure, machinery, management skills, planting and harvesting schedules, and post-harvest and sanitation needs. Investment and cash operating requirements, crop production and packaging equipment and infrastructure, and product management and marketing skills. Plant varieties and client desires must guide planting and harvesting schedules. Sanitation and cooling after harvesting are important to keep food fresh. Record-keeping helps find profitable crops and practices and areas for improvement.
Market approach: Small vegetable farming businesses can use marketing strategies such as collectively selling their products, producing high-quality vegetables, and standardizing their offerings. Cooperative or committee collection and sale through outlets like malls can be effective, with a welfare strategy for farmers in profit distribution. Government subsidies may also be available for those who use collective approaches.

Some of the Best Crops for Vegetable Farming Business for High Profits

Cucumbers, squash, beans, tomatoes, leafy greens, potatoes, peppers, beetroot, radishes, and cabbage are high-profit crops. Twelve thousand cucumber plants per acre produce 5–10 kg per cycle. Beans give 100–120 quintals per hectare, while tomatoes yield 10–20 tonnes per acre. Skilled potato growers can harvest 16–28 tons per acre. Pepper gives 1 tonne per hectare, and beetroot 25–30 tonnes. Radishes produce 200-300 fresh radishes per hectare, while cabbage produces 80–120 quintals.

In case you missed it: How to Grow Vegetables Organically: A Step-By-Step Guide for Beginners

Key rules include conducting thorough market research, choosing the right location, investing in high-quality equipment, building a strong team, and staying up-to-date on industry trends. With dedication and hard work, your vegetable farming business can thrive and provide fresh produce to your local community.

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Privacy & Terms

Market Gardening: A Start Up Guide

By Janet Bachmann, NCAT Agriculture Specialist

Photo: Edwin Remsberg, USDA/CSREES

Market gardening involves the intense production of high-value crops from just a few acres and gives farmers the potential to increase their income. Market gardening is also of interest to people considering agriculture as an alternative lifestyle. This publication provides an overview of issues you need to be aware of as you consider starting market gardening and suggests helpful resources.

Introduction Business plan Choosing markets Learning production and marketing techniques Selecting equipment Planning and recordkeeping Labor Food safety Agricultural insurance Organic market gardening Grower profiles References Further resources

Introduction

Market gardening is the commercial production of vebgetables, fruits, flowers and other plants on a scale larger than a home garden, yet small enough that many of the principles of gardening are applicable. The goal, as with all farm enterprises, is to run the operation as a business and to make a profit. Market gardening is often oriented toward local markets, although production for shipping to more distant markets is also possible.

Business plan

Starting any business demands an investment of time and money. When you invest in your own business, be it market gardening or something else, a business plan will help ensure success. Developing your business plan helps you define your business, create a road map for operations, set goals, judge progress, make adjustments and satisfy a lender’s request for a written explanation of how a loan will be used. A basic business plan includes:

What? Describe your product or service
Why? Describe the need for your product or service
Who? Describe your customer
When? Draw a timeline and list all the tasks you need to accomplish
Where? Describe the location of your business
How? Describe equipment, materials and supplies you will use in your market garden and how you will finance your market garden

The 280-page publication Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses is an excellent tool for business planning. Developed by the Minnesota Institute for Sustainable Agriculture in St. Paul, Minn., and co-published by the Sustainable Agriculture Network, the book helps people involved with commercial alternative and sustainable agriculture create profitable businesses. The book contains sample and blank worksheets that help you learn how to set goals, research processing alternatives, determine potential markets and evaluate financing options to create a business plan.

The book Sustainable Vegetable Production from Start-Up to Market , published in 1999 by University of Vermont vegetable specialist Vernon Grubinger, has an outline for a basic five-part business plan. The ATTRA publication Agricultural Business Planning Templates and Resources lists additional resources, primarily website links.

Choosing markets

Farmers market. Photo: Jim Lukens

You need to develop a focused marketing plan before planting any crops. A marketing plan helps, but does not guarantee, that most of what you plant will be sold and can help eliminate wasted time, space, produce and money. Many market gardeners try to maximize their income by selling directly to consumers and bypassing wholesalers and other middlemen. Tailgate markets, farmers’ markets, roadside and on-farm stands, pick-your-own operations and subscription marketing are common direct-marketing strategies. Sales to restaurants, institutions and schools and grocery stores are common wholesale marketing strategies. More in-depth details are provided in other ATTRA publications. Most market gardeners use several outlets. Diversity in marketing, as well as diversity in planting, is a cornerstone of stability.

If you choose a wholesale market, you will not be able to charge retail prices, but your labor cost for marketing may be reduced. The case study summarized below points out that price premiums at farmers’ markets are not pure profit and less-costly wholesale marketing produced the highest profits.

A California case study When comparing markets, be sure to compare the costs as well as the returns. If you sell wholesale, you will not get the price premiums expected at a farmers’ market, but your labor cost for marketing will be lower. A case study in California compared marketing costs of three farms selling by wholesale, community-supported agriculture and farmers’ market methods. All three farms were well-established, diversified organic growers in northern California. One farm was small, with 20 acres and two full-time employees; one medium, with 70 acres and seven employees; and one larger, with 240 acres and 30 employees. Labor was the highest marketing expense for all the farms. At the small farm, labor was 77 percent of all marketing costs, ranging from 67 percent for wholesale marketing methods to 82 percent for farmers’ markets. Farmers’ markets generated the lowest net revenue return for all three growers, while wholesale provided the highest net return for all. The study shows that price premiums at farmers’ markets are not pure profit. (Hardesty, 2008).

Selling melons from a tailgate. Photo: UM Food Services

Tailgate marketing is one of the simplest forms of direct marketing. It involves parking a vehicle loaded with produce on a road or street with the hope that people will stop and purchase the produce. This is commonly used for selling in-season regional produce. This method takes very little investment and can be set up on short notice. Check with your city government first if you plan to set up inside a city. Some cities have regulations governing transient vendors.

Farmers’ markets are an excellent place for a beginning market gardener to sell his or her crop. Farmers’ markets do not demand that a vendor bring a consistent supply of high-quality produce every market day, although that is the goal. If you have less-than-perfect tomatoes, you may be able to sell them as canners at a reduced price. A farmers’ market is a wonderful place to meet people and develop steady customers, which can lead to additional marketing channels. Disadvantages include the need to spend time away from the farm and the possibility of having produce left over at the end of the market. The ATTRA publication Farmers’ Markets: Marketing and Business Guide offers more information and resources about establishing, promoting and being successful at a farmers’ market. On-farm marketing strategies include roadside or farm stands and pick-your-own arrangements.

Farm stand. Photo: Maggie Hoback, fullcirclefarm.com

On-farm marketing strategies are often successful because pick-your-own customers who come for the enjoyment of spending time in the field will often also purchase harvested crops. Innovative farmers have found that on-farm entertainment, like animals to pet or pumpkins to carve, can be profitable additions to on-farm markets. For these marketing methods, a mower may be your most important piece of equipment since you will need to keep the farm landscape neat to attract customers. See the ATTRA publication Entertainment Farming and Agri-Tourism for more information about on-farm selling.

Subscription marketing is a strategy that continues to gain interest and has benefited from the use of the Internet. Community supported agriculture (CSA) is one type of subscription marketing that involves providing subscribers with a weekly basket of seasonal produce, flowers or livestock products. The subscribers pay at the beginning of the season for part of or their entire share of the farmer’s planned production.

Community Supported Agriculture (CSA), Bivalve MD. Photo: Edwin Remsberg, USDA/CSREES

This eliminates the problem of covering up-front production costs at the beginning of the season and guarantees a market.

The challenge for the grower is to have a consistent and continuous supply of popular vegetables throughout the growing season. It is helpful to survey the customers or members about their preferences before planting. Refer to ATTRA’s publication Community Supported Agriculture for more information.

Restaurants that are interested in serving fresh, locally grown produce can be a good market. Chefs or restaurant owners are very busy people. Ask the chefs what day and hour is the best time to call to find out what produce they need, and then be consistent about calling at that time every week. You can also find out when to make deliveries. Chefs appreciate the opportunity to tell you what they can use or would like to try. ATTRA’s Selling to Restaurants has more information about selling to chefs, as does Diane Green’s Selling Produce to Restaurants: A Marketing Guide for Small Growers , which is listed in the Further resources section.

A green restaurant supplier Greentree Naturals, a certified-organic farm in Sandpoint, Idaho, supplies a number of local restaurants. Diane Green and her husband, Thom Sadoski, created greentreenaturals.com to let people know about their products, workshops and projects. The website also gives Green and Sadoski a way to answer questions from other farmers. “We receive frequent requests asking us how to do what we do,” Green explains. ” While on the one hand, we do not want to give away the hard-earned knowledge that we have learned about being successful small-acreage growers, we feel it is very important that more people are exploring the possibilities of becoming farmers. We believe that our experience has value. We are proud of what we do.”

Grocery and natural food stores may be one of the most difficult markets to break into for small-scale growers, but as interest in locally grown food increases, some stores are looking for ways to make this easier. If you want to sell to retailers, remember that they need consistently available and high-quality products. Have a sample of your product with you when you visit the store and know your selling price for the product.

A number of farm-to-school programs across the country make schools and institutions another market for small-scale growers. Food service departments at schools across the country are joining forces with concerned parents, teachers, community activists and farmers to provide students with healthy meals while simultaneously supporting small farmers in their region. Check to see if a farm-to-school program exists in your community. Healthy Farms, Healthy Kids: Evaluating the Barriers and Opportunities for Farm-to-School Programs, a campaign started by the Community Food Security Coalition, examines seven farm-to-school projects from around the country and provides plenty of information to start a farm-to-school program. See the Further Resources section for information on how to find the Healthy Farms, Healthy Kids publication.

Market gardeners can use the Internet to transact business or distribute information about farms and products. How to Direct Market Farm Products on the Internet , a U.S. Department of Agriculture Agricultural Marketing Service publication, discusses what to consider before using the Internet as a marketing tool and provides examples of farmers’ experiences, as well as links to more information.

Learning production and marketing techniques

Apprenticing with an experienced market gardener is one of the best ways to learn sound techniques. If that opportunity isn’t available, you can attend workshops and conferences, visit with other market growers, read industry materials, watch videos and experiment. State fruit and vegetable grower organizations, sustainable agriculture and organic grower groups and regional and national organizations host conferences, trade shows, workshops and field days where a wealth of information is shared. A few of these organizations, workshops and educational materials are listed in the Further resources section.

The Cooperative Extension System is an excellent source of bulletins on production basics for most crops. The service may be able to provide on-site consultation if you have production questions. Check calendars in trade magazines and the ATTRA events calendar for conference postings. See ATTRA’s website for current publications on soil fertility management; season extension techniques; organic production of specific crops; postharvest handling; and insect pest, weed and disease management.

The books listed below are all highly recommended by those who have used them. Which one may be the most useful to you on a day-to-day basis depends on your scale of production. See the Further resources section for ordering information.

Market Farming Success was written by Lynn Byczynski, editor and publisher of the journal Growing for Market. The advice in this book comes from the personal experience of the author and her husband, Dan Nagengast, as market growers in eastern Kansas, as well as interviews with many other growers around the country. The book is intended to help those who are or want to be in the business of growing and selling food, flowers, herbs or plants create a profitable and efficient business. Market Farming Success identifies the key areas that usually hamper beginners and shows how to avoid those obstacles. The book discusses how much money you will need to start growing, how much money you can expect to earn, the best crops and markets, essential tools, how to keep records to maximize profits and further resources.

Eliot Coleman’s The New Organic Grower: A Master’s Manual of Tools and Techniques for the Home and Market Gardener is written for market gardeners with about 5 acres of land in vegetable crop production. Coleman, an agriculture researcher, educator and farmer, describes techniques using walking tractors, wheel hoes, multi-row dibble sticks and soil block transplants. The sections on planning, crop rotations, green manures, soil fertility, direct seeding and transplants are inspiring. Coleman includes season extension techniques in this book and authored additional books on this topic, including Four Season Harvest and The Winter Harvest Manual.

Sustainable Vegetable Production from Startup to Market was written by Vern Grubinger, a vegetable and berry specialist for University of Vermont Extension and director of the UVM Center for Sustainable Agriculture. The book is aimed at aspiring and beginning farmers. The book introduces the full range of processes for moderate-scale vegetable production using ecological practices that minimize the need for synthetic inputs and maximize conservation of resources. The book provides practical information on essential matters like selecting a farm site; planning and recordkeeping; marketing options; and systems for starting, planting, protecting and harvesting crops. The book’s final chapter profiles the experiences of 19 vegetable growers, focusing on individual crops, and provides each grower’s budget for these crops.

How to Grow More Vegetables: And Fruits, Nuts, Berries, Grains, and Other Crops Than You Ever Thought Possible on Less Land Than You Can Imagine, by John Jeavons, details biointensive gardening techniques. The book emphasizes the use of hand tools, raised bed production, intensive spacing, companion planting and organic fertility management. The planning charts are aimed at helping families provide for their own food needs, but can be adapted for use by market gardeners as well.

Selecting equipment

Table 1 is adapted from a chart distributed to participants at an Advanced Organic Vegetable Production Workshop sponsored by the Michael Fields Agricultural Institute. The chart provides an estimate of equipment needs for market gardens of various sizes. The publication Grower to grower: Creating a livelihood on a fresh market vegetable farm also provides information on equipment options for different sizes of farms (Hendrikson, 2005). Please keep in mind that your own needs will differ. You may be able to adapt machinery that you already have or you may be able to buy used machinery. If you are just starting out with a small amount of land, it may be more economical to purchase transplants than to build a greenhouse and grow your own. It may make sense to have primary tillage done by someone with a large tractor rather than purchase a tractor for this purpose.

Depending on your location and choice of crops, irrigation is a must for consistent and high-quality production, even on a scale of less than an acre. Drip or trickle irrigation is becoming the method of choice for many fruit, vegetable and flower growers. Grubinger’s book provides a summary of overhead sprinkle and drip or trickle irrigation systems. Byczynski’s book also explains how to set up a drip system. Your local extension office can supply detailed bulletins. An irrigation specialist who will work with you to design a system to meet your needs is also helpful.

Tools of the trade It is possible to operate a market garden of less than an acre with little more than a shovel, rake, hoe and garden hose. However, most serious market gardeners acquire labor-saving tools such as walk-behind rototillers, mowers, small greenhouses and small refrigerator units. Some growers, especially those farming more than an acre, use small tractors with a limited array of implements. Experienced market gardeners advise beginning growers to first purchase equipment that will support the back end of their operations. A small walk-in cooler to maintain high product quality or an irrigation system to assure consistent yields and quality might be more important early purchases than a tractor (Hendrickson, 2005).

Planning and recordkeeping

Recordkeeping may be one of the most difficult tasks for market gardeners, but good records are critical if you want to know which crops are profitable. Market gardeners need records to fine-tune planting, cultivation, pest management and harvest schedules. Records help answer questions about labor, equipment and capital needs, and are valuable when developing business plans.

Alex Hitt of Peregrine Farm in Graham, N.C., keeps extensive records. The records include planned and actual data for what crops he plants, where crops are planted in the field and when Hitt plants the crops. He keeps a harvest record and a crop rotation record. Hitt tallies the produce he brings to farmers’ markets, charts selling prices and notes what doesn’t sell. In addition, he keeps track of farm expenses and income and records daily activities, including time spent on each farm task. A sample planting record is included on a CD titled Organic Vegetable Production and Marketing in the South with Alex Hitt of Peregrine Farm, produced by the Southern Sustainable Agriculture Working Group.

The size of your operation and the crops, markets, and equipment you choose will determine the amount of labor needed. Two of the growers profiled in this publication have decided that they do not want to hire outside help and planned their production and marketing accordingly.

Many market gardeners, however, will need help. In an advanced organic vegetable production workshop offered by the Michael Fields Agricultural Institute, Richard DeWilde of Harmony Valley Farm explains how to manage labor so crews will be happy and productive. DeWilde’s operation is one described in the grower profiles at the end of this publication.

DeWilde emphasizes that it is important to be clear about your employee expectations and operating procedures. He does this by meeting regularly with his employees and using an employee manual. An employee manual details farm standards and expectations. For example, it might tell people what to do with trash and include a Friday night checklist to ensure that supplies and equipment are properly stored at the end of the week. Employees do not work on Saturday or Sunday.

On Monday morning DeWilde meets with his crew in the packing shed. He makes the day and week manageable by writing down all that needs to be accomplished on two dry-erase boards. One board provides information about tasks planned for the entire week. On the other board, De Wilde posts tasks for the day with assignments for who will do each task. Past records show how long it should take to do each task. This information is critical for determining assignments.

Separate task sheets list supplies needed for each task. For example, if floating row covers need to be laid, the task sheet will include shovels, markers and marking pens.

Harmony Valley Farm commits to providing full-time jobs. A list of rainy-day tasks and extra chores is on hand to ensure that employees always have something useful to do.

DeWilde emphasizes that it is important for employers to be knowledgeable about government regulations, including field sanitation, drinking water, worker protection and safety regulations. A resource for learning about government regulations is Neil D. Hamilton’s The Legal Guide for Direct Farm Marketing. The book includes a chapter on labor and employment. See the Further resources section for ordering information.

Food safety

Changing lifestyles and a growing interest among consumers in fresh, nutritious food has created an increase in produce consumption. Along with this increase, there has been an increase in the number of food-borne illness outbreaks associated with fresh fruits and vegetables. An occurrence can cause irreparable damage to a business, both legally and from the negative effects on its reputation (Cuellar, 2001).

Currently, there are no mandatory rules for the safe growing and packing of fruits and vegetables, except for those regulating water and pesticide residues under the surveillance of the Environmental Protection Agency. In 1998, however, the EPA published the Guide to Minimize Microbial Food Safety Hazards for Fresh Fruits and Vegetables, comprising a set of Good Agricultural Practices. Although the practices are optional, many growers incorporate them into their operations. Extension offices in a number of states provide bulletins outlining safe growing and packing practices. Cornell University compiled a number of educational materials in English and other languages. The National GAPs Education Materials can be found at Cornell’s website. Kansas State University published Food*A*Syst , a handbook to help address food safety and environmental concerns. The University of California’s Good Agricultural Practices: A Self Audit for Growers and Handlers is also available online.

Agricultural insurance

According to the Washington State Department of Agriculture, insurance is one of the most overlooked pieces of running a farm business. In today’s litigious culture, it is wise to have adequate coverage for all your farm activities. Insurance coverage is available for nearly any activity on your farm, but the cost of coverage may not be economically viable. Shop around for the insurance that best suits your needs and balance the coverage into your farm business plan.

If your farming operation is very small, you may be able to simply add coverage to your homeowner’s policy. Larger operations may require a farm policy that includes property coverage as well as liability coverage for physical injury and ingested food products. A farm policy can also cover a roadside stand whether or not it is on your property and may be extended by endorsement to cover a farmers’ market stand. Farms that process foods or sell primarily flowers or other non-edibles may require a commercial general liability policy (WSDA, 2006).

Visit the Washington State Department of Agriculture website for more information.

The Pennsylvania State University bulletin Agricultural Business Insurance discusses the different types of insurance you should consider as part of your risk management strategy. Agricultural business insurances include general liability, product liability, business property, workers compensation, vehicle and crop insurance and more.

A very readable discussion on insurance is in Lynn Byczynski’s Market Farming Success . She advises that your best bet in finding what you need is to sit down with an independent agent and explain your business thoroughly. Another excellent resource on this issue is Neil Hamilton’s The Legal Guide for Direct Farm Marketing.

Organic market gardening

Some market gardeners grow their crops organically. The motivations vary. Some market gardeners think it is the socially and environmentally responsible thing to do. Some are motivated by economic benefits. Organically grown produce typically commands higher prices in the marketplace. Growers who sell through CSAs or use other forms of relationship marketing sometimes find that their customers expect and demand organic produce. There is a long history that equates organic farming with fresh, whole foods.

The production and marketing of organic foods is subject to federal regulation. Organic production is defined in legal terms and use of the term organic is controlled. You must be certified by the USDA to market your products as organic unless your annual sales of organic products are less than $5,000. ATTRA has numerous publications that address organic matters. See ATTRA’s Guide to Organic Publications for more information.

Grower profiles

To give you additional ideas and inspiration, several market gardeners from different parts of the United States agreed to share information about their operations. Alex and Betsy Hitt are featured in the Sustainable Agriculture Network publication Building Soils for Better Crops , 2nd Ed. and The New American Farmer . Richard DeWilde and Linda Halley are also featured in The New American Farmer.

It is interesting to note that although each operation is unique, all have a number of things in common. These include:

Diversity of crops
Diversity of marketing strategies
Cover crops grown for soil building
Detailed recordkeeping systems
Willingness to share knowledge and ideas with others

Peregrine Farm , Alex and Betsy Hitt, Graham, N.C.

Alex and Betsy Hitt began market gardening on their 26-acre farm near Chapel Hill, N.C., almost 20 years ago. They grow organic vegetables and specialty cut flowers on 5 acres and have a quarter of an acre in highbush blueberries. The Hitts sell primarily to local farmers’ markets, but have also sold to restaurants and stores.

“Our original goals,” Alex Hitt said, “were to make a living on this piece of ground while taking the best care of it that we could.” For the Hitts, making a living doing work they enjoy and finding a scale that allows them to do most of it themselves are key aspects of sustainability. Their crop mix and markets have changed over the years, as they continue to evaluate the success of each operation and its place within the whole system.

When the horse stable down the road went out of business, it forced the Hitts to reevaluate their farm fertility program. Without this source of free manure, the Hitts created an elaborate rotation that includes both winter and summer cover crops to supply organic matter and nitrogen, prevent erosion and crowd out weeds.

“We designed a rotation so that cover crops play a clear role,” Hitt said. “Many times, where other growers might say, ‘I need to grow a cash crop,’ we’ll grow a cover crop anyway.”

The farm stays profitable thanks to a marketing plan that takes full advantage of their location near Chapel Hill, home to the University of North Carolina. More unusual produce like leafy greens, leeks and rapini find a home in restaurants, and sell well alongside their most profitable lettuce, tomato, pepper and flower crops at area farmers’ markets.

A year in the Hitts’ rotation may include a cool-season cash crop and a summer cover crop like soybeans and sudangrass followed by a fall cash crop and then a winter cover.

“We have made a conscious decision in our rotation design to always have cover crops,” Alex Hitt said. “We have to. It’s the primary source for all of our fertility. If we can, we’ll have two covers on the same piece of ground in the same year.”

While other farmers grow beans, corn or another profitable annual vegetable in the summer after a spring crop, the Hitts don’t hesitate to take the land out of production. Instead, Alex Hitt said, their commitment to building organic matter in the soil yields important payoffs. The farm remains essentially free of soilborne diseases, which they attribute to “so much competition and diversity” in the soil. And, despite farming on a 5-percent slope, they see little or no erosion.

Table 2, above, shows the Hitt’s 10-year rotation plan.

Beech Grove Farm, Ann and Eric Nordell, Trout Run, Pa.

Neither Ann nor Eric grew up on a farm, but both gained experiences on other farms during and after college before they bought Beech Grove Farm, their small farm near Trout Run, Pa. In this area with steep, rugged terrain and a relatively short growing season, they had three goals:

Remain debt-free
Keep the farm a two-person operation
Depend on the internal resources of the farm as much as possible.

Of the 90 acres on the farm, 30 are wooded. Six are cultivated for the market garden. The remainder, excluding the homestead and house garden, is left in pasture. They use draft horses and low-cost implements for cultivation and tillage and have the 6-acre plot divided into half-acre strips of 20 yards by 120 yards, which the Nordells find to be a good size for working with horses and by hand.

Because the farm is distant from major markets, the Nordells first chose crops that can be sold wholesale, like flowers and medicinal herbs for drying and root vegetables. As the couple became known in the area, they were approached by restaurant buyers to supply cool-season and specialty items. By 1998, they were selling to 10 fine restaurants in the area and at the Williamsport farmers’ market. Income from wholesale markets is now only 10 percent of their total income.

For the Nordells, as for all market gardeners, weeds presented a major challenge. They adapted a traditional field crop rotation system of corn, oats, wheat, grass and legume sod used in the Midwest and Pennsylvania to a rotation that includes vegetables, cover crops and a summer fallow. The half-acre strips are managed so that 3 acres are in crops and 3 acres are in fallow or cover crops. Over the years, the Nordells reduced the fallow period to six weeks or less as the weed population has diminished.

The Nordells collected copies of the articles they’ve written about rotation, cultivation, growing onions, using pigs to turn compost, designing a barn for animals and for compost production and more. They have a weed management publication, Weed the Soil Not the Crop ( ordering information can be found here ).

Harmony Valley Farm , Richard DeWilde and Linda Halley, Viroqua, Wis.

Richard DeWilde has farmed for most of his life. He moved to Harmony Valley Farm in 1984 after his farm in Minnesota was paved over by urban sprawl. Linda joined him there in 1990. The DeWildes grow vegetables, fruits and herbs on 70 acres and have pasture, hay and a few Angus steers on 220 acres. They sell produce wholesale at the Dane County Farmers’ Market in Madison, and through a 500-member CSA. DeWilde handles this scale of operation by hiring labor, becoming highly mechanized and through careful management.

DeWilde notes that his wholesale markets have been the most profitable, and CSA the least. The time needed for management makes the difference. The wholesale market is the least diverse. The money-making crops are turnips and daikon radishes. A CSA market demands a tremendous diversity of crops and a complexity of management needed for market.

Soil building is done with cover crops, compost and additional micronutrients as needed. Favored cover crops are sweet clover, vetch, rye, oats and peas. Seeds for these are available locally and are reasonably priced. The residue is chopped into the top 1 or 2 inches of soil with a rotovator.

DeWilde and Halley have experimented with many ingredients for making compost and have been pleased with dairy manure and cornstalks, which are readily available and have a good carbon-to-nitrogen ratio. The compost is made in windrows, turned with an old wildcat turner pulled by an International tractor equipped with a hydrostatic drive so that it can move slowly. Finished compost is spread on fields at a rate of 10 to 15 tons per acre.

One strategy for insect pest management on Harmony Valley Farm is to provide permanent habitat for natural predators and parasites. Refuge strips in the fields are made up of plants that attract and harbor beneficial insects and birds. A number of these plants can also be cut and sold as flowers or woody ornamentals.

Richard says his goal is “to develop an organic farming curriculum, complete with slides. My time and focus could be put into a Harmony Valley Farm operating manual. It would deal with communication, employee training and recordkeeping. Who knows? Maybe I would retire and do training seminars.”

Halley adds, “We really do have clear family goals: to continue to learn new ways to do things on the farm and communicate those things.”

Thompson Farms, Larry Thompson, Boring, Ore.

Oregon farmer Larry Thompson has a long history of using innovative, sustainable practices to grow his array of berries and vegetables. He also works closely with the fast-growing community of Damascus to develop policies that help farmers hold onto their operations as urban boundaries grow around them. Thompson Farms has 140 acres in strawberries, raspberries, cauliflower, broccoli and other crops. Produce is sold at farmers’ markets and farm stands; one in a new location just outside a hospital where patients, nurses and staff benefit from his healthy fruits and vegetables.

Thompson’s parents, Victor and Betty, began raising raspberries, strawberries and broccoli in the rolling hills southeast of Portland in 1947. Thompson’s parents sold their produce to local processors, where agents for canneries always set the purchase price. In 1983, Thompson took over operating the farm and sought more profitable places to sell his produce.

After Thompson started working on the 140-acre farm, he quickly learned that selling to canneries failed to cover production expenses. The family opened their farm to the local suburban community. Thompson started offering pick-your-own berries and selling the fruit at a stand he built at the farm. Strawberry sales were so strong that Thompson decided to plant new varieties to extend the season.

The Thompsons soon attracted a loyal following, primarily from Portland, which is 20 miles away. The family started selling at area farmers’ markets, too. The family and 23 employees raise 43 crops and sell them at six markets and two farm stands and through on-farm activities. For Thompson, profitability means that each year he earns more money than he spends. “I reach that level consistently,” he said.

Thompson makes sure he earns a profit. He calculates the cost of planting, raising and harvesting each crop, and then charges his customers double that. His most profitable crop is strawberries. Retaining different marketing channels gives Thompson a chance to cross-promote.

Thompson is a dedicated advocate of crop rotations and planting a succession of flowering species to control pests without pesticides. He relies on cover crops to control weeds and provide habitat for beneficial insects. Thompson allows native grasses and dandelions to grow between his berry rows. The dandelion blossoms attract bees, which are efficient berry pollinators. The mixed vegetation provides an alluring habitat that, along with flowering fruit and vegetable plants, draws insects that prey on pests. Late in the year, Thompson doesn’t mow broccoli stubble. Instead, he lets side shoots bloom, creating a long-term nectar source for bees into early winter. Thompson Farms sits on erodible soils and runoff used to be a major problem. But thanks to the cover crops and other soil cover, now virtually no soil leaves the farm.

Thompson won the Sustainable Agriculture Research and Education’s 2008 Patrick Madden Award for Sustainable Agriculture. Many call him a pro at relationship marketing, or forming bonds with customers who see a value in local produce raised with few chemicals. Thompson regularly offers tours to students, other farmers, researchers and visiting international delegations to show off his holistic pest-management strategies and bounty of colorful crops. As a result, the farm attracts people by the busload for educational seasonal events.

“Instead of seeing my farm as a secluded hideaway, I am getting the community involved, bringing them to see our principles in action,” Thompson said (USDA CSREES, 2008).

Cuellar, Sandra. 2001. Assuring produce safety: A key industry marketing strategy. Small Fruit News of Central New York. Cornell Cooperative Extension of Oswego County. November. p. 3-5.

Hardesty, Shermain. 2008. Case study compares marketing costs of farms selling wholesale, CSA, and farmers market. Small Farm News. p. 4.

Hendrickson, John. 2005. Grower to Grower: Creating a Livelihood on a Fresh Market Vegetable Farm. CIAS, University of Wisconsin-Madison. p. 7.

U.S. Department of Agriculture Cooperative State Research, Education and Extension Service website. 2008. Larry Thompson-Boring, Oregon. Accessed April 2009.

Washington State Department of Agriculture website. 2006. Insurance and Risk Management. Accessed April 2009.

Further resources

Corum, Vance et al. 2001. The New Farmer’s Market: Farm-Fresh Ideas for Producers, Managers and Communities . Covers the latest tips and trends from leading sellers, managers and market planners all over the country, including the hottest products to grow and sell as well as how best to display and merchandise your products, set prices and run a friendly, profitable business. The second half of the book, written for market managers and city planners, offers ideas about how to use farmers’ markets as a springboard to foster community support for sustainable and locally grown foods. List of additional resources.

Hamilton, Neil D. 1999. The Legal Guide to Direct Farm Marketing. Drake University. 235 p. Covers questions about liability, insurance coverage, labor laws, advertising claims, zoning, pesticide drift, inspections and food safely issues.

Green, Diane. 2005. Selling Produce to Restaurants: A Marketing Guide for Small Growers . 95 p. The author is a certified organic grower in Idaho who markets through restaurants, CSA subscriptions and a farmers’ market.

DiGiacomo, Gigi, Robert King, and Dale Nordquist. 2003. Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses . Minnesota Institute for Sustainable Agriculture. 280 p.

Byczynski, Lynn. 2006. Market Farming Success . Fairplain Publications, Lawrence, KS. 138 p.

Coleman, Eliot. 1995. The New Organic Growers: A Master’s Manual of Tools and Techniques for the Home and Market Gardener , 2nd ed.

Coleman, Eliot. 1998. The Winter Harvest Handbook . 63 p. A supplement to The New Organic Grower, this manual records recent experience in planning, carrying out and fine tuning a fresh vegetable production and marketing operation on the back side of the calendar.

Grubinger, Vernon. 1999. Sustainable Vegetable Production from Start-Up to Market . NRAES-104. 270 p.

Jeavons, John. 2002. How to Grow More Vegetables , 6th ed. Ten Speed Press. 276 p.

Magdoff, Fred and H. van Es. 2000. Building Soils for Better Crops 2nd ed. [PDF/4.03M] Available for $19.95 plus $3.95 shipping and

Valerie Berton, editor. 2005. The New American Farmer . 200 p.

Azuma, Andrea Misako and Andrew Fisher. 2001. Healthy Farms, Healthy Kids . CFS Coalition. 64 p. This report documents the barriers and opportunities for school food services to purchase food directly from local farmers. Case studies and policy recommendationsare included.

Klotz, Jennifer-Claire. 2002. How to Direct Market Farm Products on the Internet . USDA Agricultural Marketing Service. 50 p.

Newenhouse, Astrid et al. 1998-2001. Work Efficiency Tip Sheets . University of Wisconsin. A series of tip sheets on labor efficiency for vegetable and berry growers.

Periodicals

Growing for Market Growing for Market is published 10 times per year. It covers growing and direct marketing vegetables, fruits, herbs, cut flowers and plants, farmers markets, Community Supported Agriculture, the local food movement, organic growing, cut flowers, and much more.

Small Farm News The 12-page Small Farm News is published four times per year. It features farmer and farm advisor profiles, research articles, farm-related print and web resources, news items, and a calendar of state, national, and international events. The newsletter is free. However, contributions to help defray expenses are encouraged. Many past newsletters contained articles on marketing produce and crafts. Other SFC publications of possible interest include Small Farm Handbook, a guide for people interested in operating a successful small farm; Production Practices and Sample Costs, Chili Pepper, Eggplant, Lettuce, and Okra.

The Packer Target audience is primarily large-scale produce growers and wholesalers.

American Vegetable Grower Monthly publication featuring production and marketing information. Annual Sourcebook provides information on state vegetable grower organizations. Also information about equipment and supplies. Print or online. Free to qualified growers and consultants. Meister also publishes American Fruit Grower.

Agencies, associations and organizations

North American Direct Marketing Association NAFDMA is a 501(c)6 trade association whose members include farmers, farmers’ market managers, extension agents, industry suppliers, government officials and others involved with agritourism, on-farm retail, farmers’ markets, pick-your-own, consumer-supported agriculture and direct delivery. The organization hosts an annual conference and trade show.

Association of Specialty Cut Flower Growers Formed in 1988, the essential goal of ASCFG is to help growers of specialty cut flowers produce a better crop. The ASCFG hosts an annual conference and trade show, regional workshops, coordinates new variety trials and publishes the Cut Flower Quarterly. Its members share information based on their field and marketing experience through a Bulletin Board.

Center for Integrated Agricultural Systems Wisconsin School for Beginning Market Growers is an intensive three-day course held in January or February. The course demonstrates what it takes to set up and run a successful market garden or small farm, including capital, management, labor and other resources. Topics include soil fertility, crop production, plant health and pest management, cover crops, equipment needs and labor considerations at different scales of operation and marketing and economics. The course is taught primarily by three growers whose farms vary in scale, cropping mix, marketing strategies and growing methods. It includes presentations and hands-on labs by University of Wisconsin faculty and other specialists.

Michael Fields Institute Michael Fields Agricultural Institute offers courses of benefit to people who want to become farmers and those who have been farming for many years. They are also creating opportunities for consumers to enter into farm life through cooking, gardening and farm tours. These include interactive workshops and on-site field trainings.

These videos were produced by Vern Grubinger, University of Vermont Extension, and feature vegetable growers in the Northeast:

Farmers and Their Diversified Horticultural Marketing Strategies
Farmers and Their Innovative Cover Cropping Techniques
Vegetable Farmers and Their Weed-Control Machines
Farmers and Their Ecological Sweet Corn Production Practices

For more, check out the University of Vermont’s youtube channel .

Market Farming list serve A discussion group that covers tools and equipment, markets, production practices, labor, and more.

Business plans

Developing a Business Plan . 2004. Agriculture Alternatives. Penn State College of Agricultural Sciences Agricultural Research and Cooperative Extension.

Building a Plan for Your Farm: Important First Steps . 2003. Jones, Rodney. Presented at the 2003 Risk and Profit Summer Conference.

Market Gardening: A Start Up Guide By Janet Bachmann NCAT Agriculture Specialist IP195 Slot 201 Version 062409

This publication is produced by the National Center for Appropriate Technology through the ATTRA Sustainable Agriculture program, under a cooperative agreement with USDA Rural Development. ATTRA.NCAT.ORG .

Originally Published May 2009, IP195

Related Publications

Direct Marketing
Community-Supported Agriculture
Farmers’ Markets: Marketing and Business Guide
Entertainment Farming and Agri-Tourism
Postharvest Handling of Fruits and Vegetables
Resource Guide to Organic and Sustainable Vegetable Production
Scheduling Vegetable Plantings for Continuous Harvest
Season Extension Techniques for Market Gardeners
Specialty Cut Flower Production and Marketing

Freshly Picked

Episode 352. Principles Before Practices with Jenny Pluhar
Regional Signature Wine Varieties Can Yield Economic Benefits
Grazing Lands Conservation Initiative
Connecticut’s Conservation Innovation Grants
National Organic Standards Board Seeks Nominees for Vacancies

NCAT Websites

NCAT.ORG ATTRA Sustainable Agriculture Armed to Farm AgriSolar Clearinghouse Soil for Water Latino Farmer Conference LIHEAP Clearinghouse Montana Harvest of the Month Grow Montana Mississippi Food Justice Collaborative

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Farming Business Plan

Agriculture is the one industry that consistently does well, irrespective matter the economic conditions of the world. So, for a stable income and career farming business is a great option.

Are you looking to start writing a business plan for your farming business? Creating a business plan is essential to starting, growing, and securing funding for your business. We have prepared a farming business plan template for you to help in start writing yours.

Free Business Plan Template

Download our Free Business Plan Template now and pave the way to success. Let’s turn your vision into an actionable strategy!

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How to Write a Farming Business Plan?

Writing a farming business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:

Start with a brief introduction:

Market opportunity:, mention your services:, management team:.

Name all the key members of your management team with their duties, responsibilities, and qualifications.

Financial highlights:

Call to action:.

Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.

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2. Business Overview

Depending on what details of your business are important, you’ll need different elements in your business overview . Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:

About the business:

Provide all the basic information about your business in this section like:

The name of your farming business and the type of business you are running or will run: organic farming, agricultural farming, dairy farming, commercial farming, or something else.
Company structure of your farming business whether it is a proprietorship, LLC, partnership firm, or some other.
Location of your farm and the reason why you selected that place.

Mission statement:

Business history:, future goals:.

This section should provide an in-depth understanding of your farming business. Also, the business overview section should be engaging and precise.

3. Market Analysis

Market analysis provides a clear understanding of the market in which your farming business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:

Target market:

Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.

Some additional tips for writing the market analysis section of your business plan:

Use a variety of sources to gather data, including industry reports, market research studies, and surveys.
Be specific and provide detailed information wherever possible.
Include charts and graphs to help illustrate your key points.
Keep your target audience in mind while writing the business plan

4. Products And Services

The product and services section of an agriculture business plan should describe the specific services and products that will be offered to customers. To write this section should include the following:

List the products & services:

List the products you will produce or sell, such as crops, fruits, flowers, livestock, or value-added products like cheese or jams.
Describe each product: Explain the features of your products, such as their quality, variety, and uniqueness. Also, discuss how your products will be packaged and marketed.

Emphasize safety and quality:

Overall, the product and services section of a business plan should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Operations Plan

When writing the operations plan section, it’s important to consider the various aspects of your business operations. Here are the components to include in an operations plan:

Operational process:

Technologies:.

By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your farming business.

6. Management Team

The management team section provides an overview of the individuals responsible for running the farming business. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.

Key managers:

Organizational structure:, compensation plan:, board of advisors:.

Describe your company’s key personnel and highlight why your business has the fittest team.

7. Financial Plan

When writing the financial plan section of a business plan, it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:, financing needs:.

Remember to be realistic with your financial projections, and to provide supporting evidence for all of your estimates.

8. Appendix

When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.

Include a table of contents for the appendix section to make it easy for readers to find specific information.
Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
Provide market research data, such as statistics on the size of the agriculture industry, consumer demographics, and trends in the industry.
Include any legal documents such as permits, licenses, and contracts.
Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.

Remember, the appendix section of your farming business should only include relevant and important information that supports the main content of your plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This farming business plan sample will provide an idea for writing a successful farming business plan, including all the essential components of your business.

After this, if you are still confused about how to write an investment-ready agriculture business plan to impress your audience, then download our farming business plan pdf .

Farmers Market Business Plan

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Frequently asked questions, why do you need a farming business plan.

A business plan is an essential tool for anyone looking to start or run a successful farming business. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your farming business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your farming business.

How to get funding for your farming business?

There are several ways to get funding for your agriculture business, but one of the most efficient and speedy funding options is self-funding. Other options for funding are!

Bank loan – You may apply for a loan in government or private banks.
Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
Crowdfunding – The process of supporting a project or business by getting many people to invest in your farming business, usually online.
Angel investors – Getting funds from angel investors is one of the most sought options for startups.
Venture capital – Venture capitalists will invest in your business in exchange for a percentage of shares, so this funding option is also viable.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

Where to find business plan writers for your farming business?

There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your farming business plan and outline your vision as you have in your mind.

What is the easiest way to write your agriculture business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any farming business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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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 an Agricultural 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 for an Agriculture Business

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.

Resources For Business Planning

Red poppies on flower farm with windmill

Click on each heading for more resources by category:

The financial section of a farm business plan determines whether your business idea is viable and will most likely be required if you are seeking a loan or other financing.

Business Structure

An important aspect of securing the future of your farm business is to establish the right form of business ownership. How you structure your business could affect your taxes, your ability to make timely decisions, your liability, and your farm succession plan.

Licensing and Regulations

Laws and regulations touch on almost every aspect of running a farm business. Some regulations may require you to obtain a permit or license for certain activities. Some of the most common regulations and licenses that apply to small-scale farm businesses in Oregon.

Market Research

Risk management and insurance.

Managing risk involves identifying, evaluating, and prioritizing risks, and then taking actions to reduce those risks or to address your liability.

Farmers running a for profit business have special tax forms required of them when filing with the IRS. Any farm that receives income from the sale of products raised on the farm (or bought for resale) fills out a Schedule F in order to report net income gain or loss from the farm in any one tax year.

Business Trainings and Resources

A list of helpful organizations serving Oregon.

Agriculture

Livestock Farming

Aquaculture

Poultry Farming

These costs can include the purchase of chicken coops and other equipment, feed, vaccines, and other medical care. In addition, you will need to factor in the cost of labor for someone to care for your chickens daily. Once you understand the costs of running a poultry farm, you can begin to develop a sales and marketing strategy.

Choose a location for your farm. Your farm should be located in an area with good access to water and food sources and transportation routes.
Build your poultry houses. Your poultry houses should be well-ventilated and spacious enough to house your birds comfortably.
Stock your farm with birds. You’ll need to decide what type of birds you want to raise on your farm and then purchase the appropriate number of chicks or eggs from a hatchery or breeder.
Care for your birds. Your birds will need regular care and attention, so you’ll need to develop a routine for feeding, cleaning, and monitoring them.
Market your products once your birds attain market weight.

You can find the Poultry farming business plan PDF at the bottom of this post for your download.

A livestock farming business plan is a very important document that outlines the various aspects of starting and running a livestock farm. It includes sections on the type of livestock to be raised, the business model, the management system, the financials, and the marketing strategy. The first section of the plan should focus on the type of livestock to be raised on the farm. This will include a discussion on the breeds of livestock best suited for the climate and terrain of the farm.

In case you missed it: How to Make Cow Dung Manure Compost: A Step-by-Step Guide to Use in Your Farm/Garden

It is important to select breeds that are hardy and adaptable to the conditions on the farm. The second section of the plan should focus on the business model for the farm. There are several options available for livestock farmers, including direct sales, wholesale or contract farming. Each option has its pros and cons; these should be considered before making a decision.

The third section of the plan should focus on the management system for the farm. This will include discussing pasture management, herd health, animal husbandry, and other important aspects of running a successful livestock operation. The fourth section of the plan should focus on the operation’s financials.

This will include a discussion on start-up costs, operating costs, and expected revenues. The final section of the plan should focus on the marketing strategy for the farm. This will include a discussion on how to reach potential customers and create a brand for the farm that will differentiate it from other operations in the area.

You can find the Livestock farming business plan PDF at the bottom of this post for your download.

A business plan for your farming business is like a roadmap — it outlines where you’re going and how you’ll get there. Developing a business plan can seem daunting, but if it breaks down into smaller steps, it becomes much less so. Plus, once you have a plan in place, you’ll be able to track your farming progress and make necessary adjustments as time goes by. Here’s a step-by-step guide to writing a farm business plan:

Define your business goals. What do you want your farming business to achieve? Do you want to grow a certain type of crop? Raise a certain type of livestock? Sell directly to consumers?
Research your industry and target market. What trends are happening in agriculture? Who is your target market? What do they want or need?
Create a marketing plan. How will you reach your target market? What channels will you use?
Make a financial forecast. What are your expected costs and revenues? How will you fund your operations? What is the timeframe you expect to turn into a profit?
Write your agri-business plan. Now that you have all the information, it’s time to put them together into a coherent document. You need to start with an executive summary that outlines your business goals and strategies. Then, flesh out each section with more detail.

You can find the Agricultural farming business plan PDF at the bottom of this post for your download.

Horticulture farming is a type of agriculture that deals with crops, fruits, and vegetables. It is a viable business option for those looking to enter the agricultural sector. There are various factors to consider when creating a horticulture farming business plan. These include the type of crop you wish to grow, the amount of land you have available, your start-up capital, and your target market. It is vital to do your research before starting a horticulture farm.

You need to determine what type of crop you want to grow and if there is a demand for it in the market. It would help if you also considered the available land and whether it is suitable for horticulture farming. If you need more land, you can look into leasing options. Start-up capital is another important factor to consider. You need to invest enough to cover the costs of seeds, fertilizer, equipment, and labor.

In case you missed it: How to Grow Custard Apple in Pots: Soil, Propagation, Planting, and Care

Finally, it will help if you think about who your target market is. Are you selling to local businesses or direct to consumers? Creating a detailed business plan is essential for any new business venture. By taking the time to research and plan, you can increase your chances of getting more profits in the horticulture farming industry.

You can find the Horticulture farming business plan PDF at the bottom of this post for your download.

If you plan to set up a greenhouse farming business, you will need to develop a business plan. This will help you map out your business’s costs, revenue and profits. It will also give you an idea of the competition in the market and how to position your business to be successful. There are a few things that you will need to consider when developing your greenhouse farming business plan:

In case you missed it: Roma Tomato Growing Guide: For Pots, Ground, Raised Beds, and Buckets

The cost of setting up the greenhouse includes the materials, labour, and other associated costs.
The running costs of the greenhouse – this includes the cost of heating, lighting, and ventilation.
The labor cost includes the wages of any staff employed to work in the greenhouse.
The cost of plants and seeds includes the cost of propagating your own plants or buying them from a supplier. The price of your produce is what you will charge for your fruits, vegetables, or flowers.
The income from sales is what you will earn from selling your produce.
The profit margin is the difference between your income and your costs and will determine whether your business is profitable or not.
The competition – this is who else is selling similar products in your area and how you can differentiate yours from theirs.
Your marketing strategy should include a clear manner of marketing crops grown in your greenhouse.

You can find the Greenhouse farming business plan PDF at the bottom of this post for your download.

If you’re considering starting a hydroponic farming business, you’ll need a solid business plan. Here’s what you should include:

An executive summary. This should give a brief business overview, including your goals, target market, and financial projections.
A company description. This should provide more details about your business, including your history, products or services offered, and any unique selling points.
Market analysis. This section should research and analyze your target market, including potential customers, competitor analysis, and trends in the industry.
Marketing and sales strategy. This part of your plan should detail how you intend to market and sell your products or services, including online and offline channels, pricing strategy, and promotional tactics.
Operations plan. Here, you’ll need to outline the day-to-day operations of your business, including facilities, equipment, staff, and processes.
Financial projections. This section should include your financial goals and forecasting for the next 4 to 5 years.

You can find the Hydroponic farming business plan PDF at the bottom of this post for your download.

In case you missed it: Vertical Hydroponic Farming: A Growing Trend In Urban Agriculture

Aquaculture business plan

The aquaculture business plan requires an evaluation of the potential for raising and selling a specific species of fish, shrimp, shellfish, or algae in a particular location. A successful aquaculture business plan must include the following:

An analysis of the market.
An assessment of the farm’s carrying capacity.
A financial projection.

The first step in developing an aquaculture business plan is to evaluate the potential market for your product. What is the demand for your fish, shellfish, or algae species? Who are your potential customers? What price are they willing to pay? What is the competition? This information will help you determine if there is a market for your product and what price you can charge.

In case you missed it: How to Start Polyculture Fish Farming In India: Composite Fish Culture, Mixed Fish Farming Examples, Benefits, and Disadvantages

The second step is to assess your farm’s carrying capacity. This includes determining the land, water, and infrastructure you will need to support your operation. It also includes estimating the number of fish, shellfish, or algae you can raise without damaging the environment.

The third step is to create a financial projection for your business. This includes estimating your start-up costs, operating expenses, and expected revenue. It also includes creating a risk management plan to protect your investment.

You can find the Aquaculture farming business plan PDF at the bottom of this post for your download.

Profitable Village Farming Business Ideas in 2024

High-yield aquaculture: fast-growing fish for farming, effective fish pond construction techniques for beginners, irrigation and water management in pineapple farming, blossom to harvest: mastering flowering and pollination in papaya farming, pig fattening essentials: from selection to sale for beginners, raising wagyu cattle: a complete guide for premium beef production, soil types and their water holding capacity, optimizing irrigation schedules for coconut groves for enhanced yield, espresso your garden: coffee grounds for healthier acid-loving plants.

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VEGETABLE AND FRUITS PRODUCTION BUSSINES PLAN

2016, bussines plan

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Fund Your Farm Planning with PA's Farm Vitality Grant Program

Photo Credit: Canva

The Pennsylvania Farm Vitality Grant Program is funded through state funds under the PA Farm Bill , and administered by the Agricultural Business Development Center. The program aims to encourage farmers to plan and prepare for whatever may be next for their farm operation: registering a new farm business; business, financial, or marketing planning; an expansion; a new enterprise; preparing for an emergency; or preparing for the next generation of farm ownership, retirement, or transition.

Some examples of projects that could be funded include:

A crop farm working with professionals to develop a plan to bring the next generation into the farm business and writing a retirement plan for the older generation to work toward exiting the farm management.
A beef farm planning to add homemade jerky to their product line developing a marketing strategy for their new product.
A produce farm developing a business and financial record-keeping system that will help them more quickly and accurately make changes to their crop plans and market outlets.
A beginning farmer retailing pork at a local farmers market developing a business model, financial projects, and marketing strategy for the new venture.
A produce farm planning to add an on-farm kitchen to can, freeze, or process foods that can be used for value-added products to develop a budget, financial projections, marketing strategy, and loan repayment plan.
A local food entrepreneur retailing pickles to wholesale markets developing a succession and retirement strategy selling to a non-family member.

Keep in mind that the grant is by reimbursement only, so you will need to fund the costs associated with the planning project up front, and the Department of Ag will reimburse you for expenses once an invoice with eligible expenses only has been submitted. Also note that capital purchases like land, supplies, and equipment are not allowable expenses—funds are for planning only.

The Farm Vitality Grant application is available online through the Department of Community and Economic Development’s Single Application for Assistance. The Department has created a step-by-step guide to help you through the process. Before you begin the application, though, you will need to have a Keystone Login account . A Keystone Login is free to create, but it is imperative that you write down and remember your login and password as it will be used for communication and records if the grant is awarded.

Penn State Extension's Business, Entrepreneurship, and Economic Development Team is ready to assist in the grant application and professional services encouraged by the Farm Vitality Grant Program. To learn more or schedule a consultation, email [email protected] .

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2024-23: Horticulture Exports Program – Applications for the export of bananas, capsicum, papaya and sweetcorn to New Zealand

01 May 2024

This Industry Advice Notice (IAN) is to advise industry that applications are now open for the accreditation of farms and packhouses for the export of bananas, capsicum, papaya and sweetcorn under the New Zealand Export Plan (Export Plan).

Summary of changes and key points

Applications are now open for the accreditation of farms and packhouses intending to export fresh bananas, capsicum, papaya and sweetcorn to New Zealand.

Note: Not all treatment pathways require accreditation. Refer to the Export plan for the accreditation and/or registration requirements for your commodity to determine your specific requirements.

The New Zealand Export Plan is available in the ‘Documents’ section of the Manual of Importing Country Requirements (Micor). To access these documents, you must be a registered Micor plant user .
All export certification fees and charges applicable to these commodities will be applied as per the department’s charging guidelines .

Accredited property responsibilities – farms and packhouses

Farms and packhouses intending to export these commodities must apply for accreditation annually (unless otherwise advised).
Farms and packhouses must be available for audits at the frequency outlined in the table of section 12 of the New Zealand Export Plan.
All accredited property applications will now undergo a debt check. Properties with debt owing to the department will be notified and given 10 business days to pay the relevant debt or enter into an arrangement to pay the debt. If the debt is not paid, the accredited property application will be refused.
In addition, new farms and packhouses must pass an audit prior to accreditation.
All other requirements in the New Zealand Export Plan must be adhered to.
For further information please see the Export Plan located in the ‘Documents’ section of Micor .

Crop monitor responsibilities

Online crop monitor training and assessment must be completed annually through the Core Crop Monitoring module on Learnhub .
Crop monitors must register to conduct crop monitor training by completing and submitting the provided form here .
The crop monitor training must be completed prior to budburst.
Crop monitors will be audited for compliance at the relevant accredited property audit.

Treatment facility responsibilities

Treatment facilities must be a registered establishment and approved for the specific country, commodity and treatment combination for protocol markets.

Treatment facilities that are currently not approved for the countries, commodities and treatments they would like, must submit an Application for registration as a plant export registered establishment and/or associated operations and functions (EX26d) to the Certificate Management Group .

Treatment facilities that are currently approved, but wish to vary any plant operation, or make changes to their documented systems must submit an Application for registration as a plant export registered establishment and/or associated operations and functions (EX26d) and an Application to vary an establishment registration (EX26b) to the Certificate Management Group .

Contact information

If you have any questions regarding this IAN, please email the Horticulture Exports Program .

Rossana Carr Acting Assistant Secretary Plant Export Operations Branch

General enquiries

Call 1800 900 090

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Using partnerships and corporations to transfer farm assets

Managing a farm
Transfer and estate planning
Utilizing partnerships and corporations to transfer farm assets

Quick facts

Establishing a business entity, such as a partnership or corporation, can help with the process of transferring a farm business to the next generation.
In Minnesota, there are two major categories of partnerships: partnerships and limited partnerships.
The two corporation entities available to farm businesses are S corporation and C corporation.

Developing any business entity is a complicated process. Seek assistance from a qualified legal expert and accounting assistance if you plan to explore developing a business entity.

Transferring the farm business to the next generation can be a daunting task. However, there are strategies and methods that can help simplify the process.

When operating as a sole proprietorship, it can be challenging to establish a transition plan. There are many individual assets that need to be accounted for such as machinery, equipment, livestock and land. It is difficult and time consuming to transfer separate, individual assets.

One possible solution is to establish a business entity such as a partnership or a corporation to accomplish the business transition. As members and owners of the entity, the parents are issued ownership shares or shares of stock in the entity. These shares can be sold, gifted or passed through an estate to the entering generation, over time, as a method of transferring the business. This does away with the need to transfer separate, individual assets. This also spreads out the parent’s income and thus tax obligations. It allows the entering generation the ability to acquire assets over time thus minimizing their need for large amounts of capital.

In Minnesota, there are two major categories of partnerships: 1. partnerships and 2. limited partnerships. There are separate entities under each category which function differently.

1. Partnerships

There are two entities: general partnerships and limited liability partnerships.

General partnerships (GP)

Two or more people are required for the GP and are referred to as general partners. All partners are generally liable for all debts and obligations of the GP. There is no liability protection for their personal or partnership assets. Minnesota state law does not require a written partnership agreement. However, such an agreement outlining decision making and job responsibilities might be useful. If the name of the partnership is that of the partners (Henderson Family Partnership), the entity does not have to be registered with the State of Minnesota. The entity is taxed as a partnership, pass-through entity, with income allocated to each partner based on their ownership and included in their personal income tax.

Limited liability partnerships (LLP)

The LLP is similar to the GP with exceptions. All partners are general partners (no limited partners) but their liability exposure is limited to the assets they have placed into the LLP. Their personal assets are protected from liability exposure. The LLP is required to register with the Secretary of State in Minnesota. The LLP is taxed as a partnership, pass-through entity.

2. Limited partnerships

There are three partnership categories: limited partnership (LP), limited liability limited partnership (LLLP), and limited liability company (LLC).

Limited partnership (LP)

Two or more persons are required. There are both general and limited partners. General partners have no liability protection for their business assets but do for their personal assets. The limited partners’ assets in the LP as well as their personal assets have liability protection under the LP. The LP is required to register with the Secretary of State in Minnesota. and the Minnesota Department of Agriculture to comply with the Minnesota Corporate Farm Law. The LP is taxed as a partnership, pass-through entity.

Limited liability limited partnership (LLLP)

Two or more people are required. There are both general and limited partners and they have liability protection of both their LLLP assets and their personal assets. The State of Minnesota requires the LLLP be registered with the Secretary of State and the Minnesota Department of Agriculture to comply with the Minnesota Corporate Farm Law. The LLLP is taxed as a partnership, pass-through entity.

Limited liability company (LLC)

Requires only one person as a member of the entity. From a tax standpoint, the LLC can be taxed as a partnership pass-through entity or as an S Corporation. In addition, the LLC can afford tax savings via discounting assets and potential savings of self-employment taxes. The LLC provides liability protection much like that of a corporation.

The LLC has both members and managers. Members elect or appoint a board of directors. The State of Minnesota requires that the LLC register with the Secretary of State and the Minnesota Corporate Farm Law of Agriculture to comply with the Minnesota Corporate Farm Law.

The LLC can offer one additional level of liability protection by being registered in one of what are referred to as “protective states”. Although the list changes occasionally, some of the protective states include: Alaska, Arizona, Delaware, Nevada, New Jersey, South Dakota, Texas, Virginia and Wyoming. These states have written their LLC statutes to include an additional level of liability protection as long as the LLC members abide by all the statute rules. It is legal to register, for example, your Minnesota farm business in one of these protective states and still operate in Minnesota as you have been. You would need a contact in the state where registered. That contact would establish the entity on your behalf and at year end send you a K-1 form for income and you file your tax return just as you do now. This is a complicated process so seek expert legal help if you decide to develop an LLC in one of the protective states.

Registering with Minnesota Department of Agriculture

For the entities that are required to register with the Minnesota Department of Agriculture for compliance with the Minnesota Corporate Farm Law, this is an annual requirement and there is a $15 fee required to file the documentations. In addition, land held in trust must also register annually with the Minnesota Department of Agriculture for compliance with the Minnesota Corporate Farm Law.

As mentioned, partnerships pay no income taxes. All profit/loss, capital gains and credits are passed through to the partners on a prorated basis, depending upon the percent of ownership. However, the partnership must file a Form 1065 informational tax return, which is due each year by April 15.

Advantages and disadvantages

An advantage over sole proprietorship is that the owners have ownership units or shares. These units or shares can be sold, gifted or passed through an estate as a means of transferring the business over time to the entering generation.

One disadvantage with a partnership, except the LLC, is that the death of a shareholder or willful withdrawal by a partner can seriously disrupt partnership operations. The partnership agreement, if put into place at time of formation of the entity, should clearly describe buy-out provisions or state how the remaining partners are protected, no matter how circumstances change.

Partnership tax laws

Partnership tax laws are similar to individual tax laws. A partnership can generally take over the depreciation schedule of contributed machinery or buildings. A partnership can claim the Section 179 depreciation expense which is passed on pro rata to the partners. Each partner can claim depreciation, which includes his or her portion of the partnership allocation plus any other personal Section 179 depreciation.

Partnership members are self-employed individuals and must pay self-employment tax on their share of earned partnership profits. Partnerships do not receive the favorable tax treatment on fringe benefits (medical, accident and life insurance, housing and meals) as do “C” corporations. However, it generally costs less to form a partnership than a corporation and partnerships can be less formal to operate.

There are two corporation entities available to farm businesses. They are: S corporation and C corporation.

1. S corporation

The S corporation offers a higher level of asset liability protection than a sole proprietorship and some of the partnerships. It must be registered with the Secretary of State in Minnesota. The S corporation is taxed as a pass-through entity with profits allocated to the stock shareholders based upon their ownership percentage. The income then shows up on the shareholders personal income tax. There is no double taxation issue.

Business operating assets can be placed into the S corporation or they can be left out with only the corporate checkbook as part of the corporation operating entity. Placing assets into the corporation is a non-taxable event but getting them out is not. For that reason, it is a general rule of thumb not to place land into the corporation. See your attorney and accountant for advice specific to your situation.

2. C corporation

The C corporation also affords a higher level of asset protection than the sole proprietorship or some of the partnership entities. The C corporation offers longevity to the business because it is technically an entity onto itself with a life of its own. That is, people can enter and leave the C corporation and it continues on without interruption. It also affords many tax advantages regarding deductible expenses.

The C corporation however, can be subject to double taxation. The dividends paid to shareholders are taxed. If the corporation is not growing or acquiring new assets resulting in the corporation retaining earnings, those earnings can be taxed as well. Corporate tax rates are generally higher than other tax rates. Business operating assets can be placed into the C corporation or they can be left out with only the corporate checkbook as part of the corporation operating entity. Placing assets into the corporation is a non-taxable event but getting them out is not. For that reason, it is a general rule of thumb not to place land into the corporation. See your attorney and accountant for advice specific to your situation.

One additional point that applies to both S and C corporations. Shareholders have to maintain an employer-employee relationship with the corporation. If the shareholders maintain personal ownership of what they consider corporate assets, charge corporate business expense against those assets, are audited by the IRS, they may be denied those expense deductions because the assets were owned by the shareholders, not the corporation.

A corporation is established under state law. Each state permits corporations the right to do business. A corporation consists of owners who are called shareholders. The shareholders are the basic decision making group. They elect a board of directors to act for them on most operational decisions. Majority vote governs corporate decisions. Ownership of 51 percent or more of the stock gives you control. Minority shareholders have little if any decision making control unless permitted to do so by the majority shareholders.

Once a corporation is created, it functions much as a self-employed individual might. Corporations must establish their own name and bank accounts. The corporation can become an employer, a lessor or lessee, a buyer or seller, or engage in any other business activity.

Reasons why farms incorporate

It is easy to transfer shares. Shareholders can gift, sell or pass through an estate, shares to others as they see fit. A majority shareholder can transfer up to 49 percent of the outstanding shares without losing control of the business.
A corporation may simplify estate settlement in that it may be easier to value shares than individual farming assets.
Self-employment (SE) tax can sometimes be reduced with a corporate structure. Instead of paying SE tax on all the Schedule F income as a self-employed individual would, the farmer becomes an employee of the corporation and social security taxes are paid only on wages they receive. See your accountant.
A portion of meals and lodging furnished to employees of a C corporation are generally deductible to the corporation, but not taxable income to the employee. If lodging is provided on the farm and is a condition of employment, the home’s depreciation, heat, electricity and interest become deductible to the corporation. Remember the employer-employee relationship issue.
Fringe benefits are deductible by C corporations. Health, accident and up to $50,000 of term life insurance is deductible to the corporation, but not taxable to employees.
The corporation offers perpetual life, some economic efficiencies regarding capital acquisition, and provides income and social security tax flexibility. It can also provide continuation of a farm business through several generations.

Potential concerns related to the corporation

Getting into a corporation is generally a tax-free event. Getting out is a taxable event. Don’t start a corporation unless you plan to continue it for many years.
If the C corporation is profitable but is not growing and acquiring new assets, it can be troubled with retained earnings or excess profits. This can result in a tax obligation.
Corporations have a different set of rules. Corporate meetings, extra record keeping, corporate income tax returns, reporting requirements, and quarterly tax estimates are part of corporate life. Complying with extra legal and regulatory requirements cost time and money each year.
Minority shareholders have no power in directing the corporate business and can be easily “frozen out.” A majority shareholder (farming heir) can direct that no dividends be paid. Minority (non-farm heirs), may own shares that generate no income, and hence have no practical value.
Corporate ownership of a house eliminates the use of the exclusion of gain or a sale of personal residence.
Corporate ownership sometimes reduces independence and individual pride of ownership.
It can be very difficult for a retired shareholder to receive any retirement income from an operating corporation. This is especially true if the retiree has no rental property, discontinues working for the corporation, and the corporation pays no dividends.

The farm corporation can be a valuable tool in tax planning and in the transfer process. However, it is a major commitment and a complex task to start a farm corporation. Before starting a corporation, make sure it fits your goals, objectives and business personality.

Self-employment tax on land, buildings and facility rent regarding entities

The US Eight Circuit Court of Appeals has ruled that if you are a member of any business entity (such as a partnership or corporation explained above); own land, buildings, or facilities that are outside that entity; and rent those items to the entity; the rental income is exempt for self-employment tax IF the rent is fair and reasonable.

This applies only to those states in the eighth circuit which include Arkansas, Iowa, Minnesota, Missouri, Nebraska, North Dakota and South Dakota. With any of these laws, they are subject to change so seek legal advice on this matter.

Discounting business entity assets

An additional strategy that may be useful is the discounting of assets being placed into a business entity, such as any of the partnerships or corporations described earlier.

When you place business assets such as machinery or livestock into the business entity, you can elect to discount those assets. The main reason for discounting assets being placed into the business entity is to reduce the size of an estate in order to get below the federal and perhaps even the state estate applicable exclusion amounts. Doing so will reduce or eliminate any estate tax.

Justification for the discount is based upon lack of marketability of the assets due to a fractional ownership interest.

One disadvantage of discounting is that you have artificially lowered the basis of the assets in the entity. This can be a problem if the entity is discontinued and the assets are sold as a result. This could result in a tax obligation. If the assets are replaced due to use, this is not an issue.

Assets being discounted and placed into an entity should be appraised. If, at a future date, the entity is audited by the IRS, you can document the value of the assets placed into the entity. For machinery and equipment, simply take the depreciation schedule to the local implement or equipment dealer and ask them to put a value on all machinery. Have them put the values in writing on their dealership letterhead along with a signature and date. For livestock you can take a list to a livestock auction facility or someone who deals in livestock and would have a grasp of the values. The values should be put in writing and listed on their letterhead with a signature and date. For land, seek the help of a realtor who deals with ag land. Simply have them do an estimate or appraisal of the land, put it in writing on their letterhead, with a signature and date.

Note: In late 2016, the Internal Revenue Service and the US Treasury Department enacted 2704 rules which drastically changed discounting rules and during which situations they may apply. If assets are transferred and then sold, discounting will definitely not apply. If you are contemplating discounting any assets seek legal and accounting assistance to make sure you are in compliance with 2704 rules.

Business entities and maintaining homestead classification

When using a business entity for ag land ownership, caution must be used in order to maintain eligibility for the Minnesota Qualified Small Business Property Qualified Farm Business Property estate exclusion. In addition, utilizing limited liability companies (LLCs) as a business entity have new rules to comply with due to passage of the Minnesota Revised Uniform Limited Liability Company Act of 2015. The law states the land-owning LLC and its members must be the ones farming the land on behalf of the owner LLC. If the owner LLC rents the land to someone else, even another member of the LLC who then farms it personally, homestead classification is lost and therefore the qualified farm property estate exclusion is also lost. New LLCs must have complied with the new law as of August 1, 2015. Existing LLCs must have complied with the new law by January 1, 2018.

Ag land held in any trust, except a revocable living trust, as well as land in limited partnerships, limited liability limited partnerships, S and C corporations and LLCs must file documentation with the Minnesota Department of Agriculture under the Minnesota Corporate Farm Law in order to be eligible for the qualified farm property exclusion. The application must be done annually and there is a filing fee of $15 per application.

For more details on the Minnesota Homestead Classification requirements see maintaining farm land homestead classification and qualification . This is a complex area and there is a lot at stake regarding the qualified farm property estate exclusion so seek legal advice specific to your situation when establishing any entity that owns ag land.

Farm Service Agency (FSA) payments and business entities

Under the current farm bill, there are some restrictions regarding commodity program payments made to individuals versus entities. Entities that limit member’s liability exposure (all entities except the general partnership) are limited to one maximum payment limit regarding FSA commodity program payments.

This is a complicated issue. If you have any questions or concerns related to your situation, check with your FSA office for details of the program.

Caution: This publication is offered as educational information. It does not offer legal advice. If you have questions on this information, contact an attorney.

Gary Hachfeld, former Extension educator; David Bau, Extension educator and C. Robert Holcomb, Extension educator

Reviewed in 2017

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DairyBeef 500 Ambassador shares 2024 beef breeding plan

On this week’s episode of the Dairy Edge, Stuart Childs is joined by David Gannon, Aurivo Joint Programme Monitor Farmer and DairyBeef 500 Ambassador, and John McCabe, Monitor Farm advisor with the Aurivo Joint Programme, to discuss the beef breeding plan for David’s farm for 2024.

David starts by outlining the background to his herd and then spoke about how he plans to use the beef bull team he has selected along with John and Tommy Cox of the DairyBeef 500 team on his herd this season.

David describes how it’s about making incremental gains in the quality of the beef stock he produces each year. Using data from ICBF, John can confirm that there is an improvement in the quality in the beef calves being generated, but suggests that people can do more.

David has a number of customers for his calves and this is a huge benefit to know that a particular number of calves will leave the farm on particular dates, which frees up housing and labour for him at the busiest time of the year - a very important piece of the jigsaw.

Finally, David says it is his objective to deliver a better animal each year through improving genetics and also to assist the customers he has to get the maximum return from the stock they buy from him, not only through using better genetics but also discussing the health plan that he has for his own replacement calves with his customers so that they can benefit from any improvements he has made in his own calf rearing protocols.

Listen in below:

For more episodes from the Dairy Edge podcast, a co-production with LastCastMedia.com, visit the Dairy Edge show page .

Owners of Ballantyne's 'pick your own' strawberry farm sell up after decades in agritourism

A punnet of ripe red strawberries, and an older couple bent over plants in a strawberry field, smiling.

Every winter morning for the past 30 years, Margaret and Alan Ballantyne have risen in the early hours, pulled on their boots and ventured into the cool air to tend their strawberry fields.

Their farm at Cameron's Pocket in North Queensland, purchased in 1984, has been their pride and joy throughout those years, along with the three children they raised on it.

Now they're walking away from a lifelong love of farming, but hope their agritourism legacy will continue.

Marg and Alan Ballantyne standing on a large, barren property, mountain terrain is visible in the background

A slow start

The couple's "pick your own" farm has become a well-worn stop for tourists travelling through the top end of the Sunshine State, but success didn't come overnight.

"[Early on] we tried a lot of crops, we had citrus, paw paws, oranges, mandarins," Mr Ballantyne said.

Marg Ballantyne checking a paw paw, a tray of other paw paws and rows of packing boxes are visible around her

But they were at a dead-end on what to grow, until they attended a local market and noticed a strawberry seller that had gathered a huge crowd.

"We thought, 'Wow, now there's an opportunity, we should start growing a few strawberries'," Mr Ballantyne said.

In 1995, the couple officially switched to strawberries and began by supplying supermarkets and local businesses, but quickly found themselves frustrated by the lack of returns.

That's when they made the life-changing decision to completely pivot their business model.

A large green plastic tray packed with dozens of ripe red strawberries.

"We thought, 'We're not getting the money that we deserve for the effort we're putting in', so we thought we'd try [selling on] the highway," Mr Ballantyne said.

The duo established a little roadside stall on the side of the Bruce Highway in the nearby tiny town of Calen, about an hour north of Mackay.

It encouraged travellers to make a stop at the town.

Marg Ballantyne and her toddler daughter sit on a strawberry picking cart in a field, rows of strawberry plants run alongside it

The little stall has even garnered an international reputation, according to their son, who had a chance encounter with a fan of the farm in the United States.

"Our son Jack was over in Las Vegas as part of a group of school kids, and they were in a queue lining up for some food when this American lady picked up their accent and figured out they were Australian," Mr Ballantyne said.

"She told them she'd just came back from a trip over there and they got talking."

Somehow the topic of strawberries came up, and the woman told the group about "the best strawberry she'd ever eaten, at this little highway road stall".

Mr Ballantyne said his son soon realised the location of the stall she was referring to and excitedly told her, "Oh, that'd be my mum and dad".

Alan Ballantyne with his daughter on his back and his hands in two buckets, a pram is visible behind

The couple's "pick your own" attraction opened 15 years ago and also draws visitors from across the country.

But despite the farm's widespread acclaim, Ms Ballantyne said the most rewarding part was seeing the return of familiar faces.

"Watching all the people that came out here when they were pregnant and they're still coming now their kids are teenagers," she said.

"We've grown up with them, we're like grandparents to those kids."

Deb McLucas founded the Greater Whitsunday Food Network, an alliance of local growers that ran from 2016 to 2021, with the aim of establishing the region as a culinary destination.

She said the Ballantynes were "early adopters" of agritourism and highlighted its potential in the Greater Whitsunday region.

"It's certainly demonstrated to farmers within the region that there was strong interest for people to get onto farms and have that authentic experience," she said.

"We certainly feel very glad that they were involved with our efforts to raise the profile of food, agribusiness and agritourism in the region."

The legacy lives on

The new owners of the farm, Tim Molloy and Rose Brady, hope to follow in the footsteps of its original owners.

"We plan to continue running it just as Al and Marg did," Mr Molloy said.

The couple, who traded their mining business in Mackay for a life on the land, said they had countless memories of visiting the farm with their own five children.

Tim Molloy and Rose Brady standing on Ballantyne's Strawberry Farm, rows of white plastic are visible in a field behind them

Mr Molloy said the kids "love the change" and have been "out there helping plant".

The Ballantynes have stayed on this year to mentor the operation's new owners.

But they now have have a home with a seaside view.

Mr Ballantyne said he and his wife were looking forward to "settling down", but would always be around to offer advice or a helping hand.

"We just want to see them go ahead in leaps and bounds and they have the potential to do that — they've just got to entice the people that come out here to keep coming."

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Agriculture Farm Business Plan

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Botanical Bounty

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

The health and vitamin industry is growing at a very quick pace. Customers want to have natural and plant alternatives to medication. They are starting to believe the body is a temple. They don’t want to pollute with chemicals. The industry needs botanical plants that are ready to process as well as give to nurseries for the “do it yourselfers”.

Botanical Bounty is working hard to become a leading producer of botanical plants for the natural supplement industry as well as plant nurseries.

Botanical Bounty has three distinct customers: supplement companies, processors of botanicals for supplement companies, and nurseries that resell the plants.

The first two customers purchase the plants for use in their products which they ultimately sell to the end consumer.

The market for natural supplements is quite exciting. Surveys show that over 158 million consumers (over 55% of U.S. population) use dietary supplements. An estimated 115.3 million consumers buy vitamins and minerals for themselves, and 55.8 million purchase them for other members of their family, including children. Consumer surveys consistently find that nearly half of all Americans now use herbs – a statistic that is particularly remarkable when we realize that today’s herbal products industry is just over a quarter century old.`

Competition

Competition takes two forms, farms similar in size and production capacity to Botanical Bounty and megafarms. The similarly sized farms range in size from 5-30 acres. The number of different herbs grown varies from a handful to upwards of 50. The choice of plants grown is based on owner preference as well as location and the ability of the local growing conditions to support the different plants.

It is Botanical Bounty’s mission to become the leading provider of botanical perennials to the health/vitamin industry. This will be accomplished by providing quality plants at fair prices while exceeding customer’s expectations.

Expectations

To finance our growth and full-time production, we need to purchase $35,000 worth of new equipment as long-term assets taking that total up to $53,800. To that end, we are seeking a $100,000 10-year loan. Sales forecasts conservatively indicate that $190,000 revenue will be generated in year two, rising to over 400,000 by year 4.

Financial Highlights by Year

Financing needed.

We need to have a $100,000 10 year loan. We will use our $35,000 of cash from our current operations.

Problem & Solution

Problem worth solving.

There is a growing trend towards plant cures to common diseases or health issues.Consumers care about getting a natural supplement to make them feel better and take care of their body. Because of this the natural market has grown exponentially in the last few years. The market needs high quality botanicals to keep up with demand.

Our Solution

Botanical Bounty has identified three keys that will be instrumental in their success. The first is the implementation of strict financial controls. By having the proper controls, production efficiency will be maximized. The second key will be the never ending pursuit for the industry’s highest concentration levels of botanical ingredients in each plant. The third key is the recognition and implementation of the philosophy that 100% customer satisfaction is required to ensure a profitable business. Profits are a by product of satisfying customers, not the other way around.

Target Market

Market size & segments.

Botanical Bounty has identified three different target market segments:

Supplement Companies This customer group manufactures botanical supplements for their own label products. The companies purchase the plants and extract the active ingredients and transform them into sellable products for their own brand. There are a handful of large companies that operate in this market space. Ten years ago there were many different ones but through consolidation the industry has grown in size but decreased in the number of different players.

Processors These customers purchase the the plants, extract the botanicals and either sell the concentrated botanicals to the end producers or they themselves produce the supplement and sell the final product to other companies for their private label products. In essence they are the subcontractor for the supplement companies. These companies therefore are one layer within the manufacturing system and do not sell to the end consumer. They act as a supplier/processor for the retail brands.

Other Nurseries/Garden Centers This customer group purchases the plants which they in turn sell at retail to the individual end consumer. The typical consumer is a health conscious individual who is interested in either extracting the botanical from the plant immediately or growing the plant in their own garden for future use.

Current Alternatives

As mentioned previously, competition takes two forms, farms similar in size and production capacity to Botanical Bounty and megafarms. The similarly sized farms range in size from 5-30 acres. The number of different herbs grown varies from a handful to upwards of 50. The choice of plants grown is based on owner preference as well as location and the ability of the local growing conditions to support the different plants.

On the other end of spectrum is the megafarm. These farms have a similar range of species cultivated, however they differ greatly in production capacity. These farms are huge, typically not less than 100 acres, peaking at 300 acres. These growers however are few number.

The buying patterns of the different customers are typically based on these variables:

Availability
Ability to deliver consistently on long-term contracts
Significant % of active ingredients
Consistency

Our Advantages

Botanical Bounty has a dual competitive edge:

Healthy Plants The healthier the plant, the faster it will grow, the more botanicals that can be extracted from it. This means an increase in production efficiency due to a larger percentage of plants that are sellable. Other characteristics of healthy plants which are important on the production side is: lower pest counts, more established root structures, and high biomass.

High Concentration of Active Botanicals This is beneficial to the purchaser because they are buying the plants precisely for the active botanicals. High concentration levels are valuable to Botanical Bounty because they increase the amount of botanicals produced per plant or per acre, increasing the production capacity of a given amount of land, thereby increasing their return on investment and increasing the attractiveness of Botanical Bounty’s plants relative to the competition.

Keys to Success

Our keys to success are:

Strict financial controls.
The never ending pursuit of the highest concentration of botanicals in every plant.
Ensuring that all customer’s needs are met and they are satisfied with the purchased products.

Marketing & Sales

Marketing plan.

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Botanical Bounty’s sales strategy efforts will focus on identifying qualified leads and turning them into paying customers. The main sales effort that Botanical Bounty will undertake is the reinforcement of the fact that Botanical Bounty’s plants have the industry’s highest percentage of botanicals. This will be quite appealing to the buyers as this is exactly what they want, more botanicals per plant. In addition to selling the buyers on Botanical Bounty’s competitive edge of potent plants, there will be an emphasis on Botanical Bounty’s ability to perform on long-term contracts.

Botanical Bounty recognizes that the transactions should not be thought of as individual sales, but as long-term relationships. This is a reasonable assumption based on the fact that the customers are in the business of utilizing botanicals, that they will continually have the need for the botanicals, and that it is far less expensive to establish a relationship with one vendor than to continually have to find new vendors that can meet their needs.

Locations & Facilities

Botanical Bounty is a 10 acre farm that concentrates on the growing of botanical medicinals. Botanical Bounty has chosen five plant species that have significant market demand as well being well suited for growth in the Willamette River Valley. Botanical Bounty will feature: Echinacea – an immune system booster; Ginseng – a source of energy; St John’s Wort – for mild depression; Skullcap- for inflammation; and Ginger – a stomach soother.

Milestones & Metrics

Milestones table, key metrics.

Our key metrics are:

Sales, cost of sales, expenses, profits, and cash.
Production cost of goods. We need to keep them low.
Keep current on our competitors botanical concentration and prices.
Measure the number of emails and phone calls.
Measure the Facebook Page views and Twitter re-tweets.
Measure website searches and inquiries.

Ownership & Structure

Botanical Bounty is an Oregon L.L.C. owned by David and Susan Nealon. The L.L.C. business formation has been chosen as a strategic way to shield the Nealons from personal liability.

Company History

Botanical Bounty has been in operation for two years. Initially it was started as a hobby where Susan could use her plant biology skills while covering some of the costs. The Nealon’s were able to achieve this lifestyle due to a windfall that David received as a result of exercised stock options. After the second year, the Nealon’s decided that although they had the money to live on for many years, it would be irresponsible to needlessly spend it so they got serious about the business and made a concerted effort to become profitable.

Botanical Bounty has chosen the Willamette River Valley as an ideal place to grow perennials. Botanical Bounty has 10 acres of land which they use for production. During several of the winter months, production is moved into their green house for propagation. Botanical Bounty employs a drip irrigation system for all of the plants.

Management Team

Botanical Bounty will be lead by the husband and wife team of David and Sue Nealon. David brings a wealth of business and project management skills to the company. While working at Yahoo!, David was responsible for the successful launch and market lead capture of Yahoo!s driving directions section. Utilizing these skills, David will be responsible for the business operations of the farm. Sue, with a background of plant biology will be the driving force of the operation, growing the highest active ingredient content plants in the country. Additionally, because of her wealth of knowledge, she will be the leader of the sales department.

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

Our key assumptions

Our market and customer base are growing and with them the opportunities for sales.
The area has wealthy households that can afford to spend money on non essential vitamins.
Our customers appreciate our dedication to high quality products and price controls.
We will be able to get the 100,000 dollar loan at 8 percent based on our past success and being able to put our property up as collateral. We are a safe investment. If unplanned expenses pop up we have people interested in investing.

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

We will be using the loan to purchase machines and to expand our farm and our personnel to grow the highest quality botanicals and process them so they can be turned into vitamins or other products that give the customer a natural cure.

Sources of Funds

We are leveraging our business to get an $100,000 10-year loan. We will also be using the cash on hand from our current business.

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

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AUTHOR: Cindy Fake, Horticulture and Small Farms Advisor, Nevada & Placer Counties Publication Number -143C (June 2009) Understanding that farming is a business is the first step on the path to success. A business plan is the next step. What goes into a business plan: 1. Executive Summary: a 1-2 paragraph summary of what your business is 2.
Agricultural Business Plan Template [Updated 2024]
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.
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Introduction: Greenhouse Vegetable Example: Preparing a Business Plan: A Guide for Agricultural Producers - BCMAFF Created Date: 11/2/2015 3:35:35 PM ...
Produce Farm Business Plan Example
2.1 Company Ownership. Mixed Greens Salad Gardens will be a sole proprietorship with Heidi Ponic as the founder and owner. Heidi will be funding the business with a $50,000 investment of her own. An additional $10,000 will be invested by family member O.G. Tylthe with exit/repayment initially scheduled for year five.
Resources For Business Planning
The financial section of a farm business plan determines whether your business idea is viable and will most likely be required if you are seeking a loan or other financing. Business Structure. An important aspect of securing the future of your farm business is to establish the right form of business ownership. How you structure your business ...
A Step-by-Step Guide to Creating a Successful Mixed Farming Business Plan
A business plan provides a framework for measuring progress. It helps communicate with stakeholders such as employees and suppliers. Sources of Funding for Mixed Farming Business. Funding sources for a mixed farming business include loans from financial institutions and government and private grants for sustainable and organic farming.
PDF My Farm Business Plan
The Farm Business Resilience Program is supporting farmers to build stronger, more productive agricultural businesses. DJPR_13999_0423 After completing your Farm Business Plan, have a go at prioritising your goals using the Action Plan template. The Action Plan template can be accessed on the Farm Business Resilience Program webpage:
Farming Business Plan PDF: for Poultry, Livestock ...
Horticulture farming business plan. Horticulture farming is a type of agriculture that deals with crops, fruits, and vegetables. It is a viable business option for those looking to enter the agricultural sector. There are various factors to consider when creating a horticulture farming business plan. These include the type of crop you wish to ...
VEGETABLE AND FRUITS PRODUCTION BUSSINES PLAN
Download Free PDF. VEGETABLE AND FRUITS PRODUCTION BUSSINES PLAN 1 fFRUITS AND VEGETABLE PLANTATION LOCATION DODOMA REGION EMAIL ADDRESS, [email protected] PHONE 0714189714/0653385664 PREPARED BY YOUTH FOR BUSINESS 2 f1. BUSINES BACKGROUND Vegetable and Fruit Agriculture is also known as Horticulture Agriculture.
Fund Your Farm Planning with PA's Farm Vitality Grant Program
The Pennsylvania Farm Vitality Grant Program is funded through state funds under the PA Farm Bill, and administered by the Agricultural Business Development Center.The program aims to encourage farmers to plan and prepare for whatever may be next for their farm operation: registering a new farm business; business, financial, or marketing planning; an expansion; a new enterprise; preparing for ...
Farm Business Plan Examples
Agriculture Fruit Farm Business Plan. Farmers Group utilizes innovative agricultural technology to produce organic, tasty, and nutritional vegetables. They work to upgrade current farming setups with more efficient and advanced horticultural practices. Horse Training Business Plan. Ereidi Farm is an ongoing business providing colt training ...
2024-23: Horticulture Exports Program
01 May 2024PurposeThis Industry Advice Notice (IAN) is to advise industry that applications are now open for the accreditation of farms and packhouses for the export of bananas, capsicum, papaya and sweetcorn under the New Zealand Export Plan (Export Plan).Summary of changes and key pointsApplications are now open for the accreditation of farms and packhouses intending to export fresh bananas ...
Using partnerships and corporations to transfer farm assets
Transferring the farm business to the next generation can be a daunting task. However, there are strategies and methods that can help simplify the process.When operating as a sole proprietorship, it can be challenging to establish a transition plan. There are many individual assets that need to be accounted for such as machinery, equipment, livestock and land. It is difficult and time ...
DairyBeef 500 Ambassador shares 2024 beef breeding plan
On this week's episode of the Dairy Edge, Stuart Childs is joined by David Gannon, Aurivo Joint Programme Monitor Farmer and DairyBeef 500 Ambassador, and John McCabe, Monitor Farm advisor with the Aurivo Joint Programme, to discuss the beef breeding plan for David's farm for 2024.
Owners of Ballantyne's 'pick your own' strawberry farm sell up after
The couple's "pick your own" attraction opened 15 years ago and also draws visitors from across the country. But despite the farm's widespread acclaim, Ms Ballantyne said the most rewarding part ...
Agriculture Farm Business Plan Example
Cash at End of Period. $24,463. $29,034. $87,541. Download This Plan. Explore a real-world agriculture farm business plan example and download a free template with this information to start writing your own business plan.
Federal Register :: Improving Protections for Workers in Temporary
Farmworker Justice expressed concern that because the proposed definition is drawn from the definitions of farm labor contractor and farm labor contracting activity under MSPA, and MSPA does not include H-2A workers in its definition for MSFWs at 29 U.S.C. 1802(7), ES staff may mistakenly assume that H-2A workers would be excluded from the NPRM ...

[Pdf Sample] Business Plan For Horticulture Farming Docx

[Pdf Sample] Horticulture Business Proposal Plan Docx

Executive Summary: Painting a Picture of Success

Company Overview: Cultivating a Vision

Market Analysis: Sowing the Seeds of Opportunity

Products and Services: Nurturing Nature’s Bounty

Marketing and Sales Strategy: Growing Your Customer Base

Operational Plan: Tending to Business Operations

Organizational Structure: Building a Strong Foundation

Financial Plan: Harvesting Profitable Growth

Risk Analysis: Preparing for Stormy Weather

Sustainability and Environmental Considerations: Cultivating a Greener Future

Conclusion: Planting the Seeds of Success

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[Pdf Sample] Business Plan For Pig Farming Docx

Starting a Poultry Farm with Limited Resources in Ghana: A Comprehensive Guide for New Farmers

How To Register Agribusiness Company In Kenya (See Full Guide)

Starting a Poultry Farm with Limited Resources in Nigeria: Guide for New Farmers

How to Start a Farm: Plan Your Operation

On This Page

How USDA Can Help

Build a Farm Business Plan

Business History

Mission, Vision, and Goals

Organization and Management

Farm Business Plan Worksheets

Planning for Conservation and Risk Management

Special Considerations

Special Considerations for Individuals

Business Planning

Training Opportunities

How to Start a Farm with USDA

Find Your Local Service Center

Vegetable Farming Business Plan [Sample Template]

Why Start a Vegetable Farming Business?

A Sample Vegetable Farming Business Plan Template

2. Executive Summary

3. Our Products and Services

4. Our Mission and Vision Statement

5. Job Roles and Responsibilities

6. SWOT Analysis

7. MARKET ANALYSIS

8. Our Target Market

Our competitive advantage

9. SALES AND MARKETING STRATEGY

10. Sales Forecast

11. Publicity and Advertising Strategy

12. Our Pricing Strategy

13. Startup Expenditure (Budget)

14. Sustainability and Expansion Strategy

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Vegetable Farming Business Plan for High Yield and Profits

A step by step guide to vegetable farming business plan

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Market Gardening: A Start Up Guide

Introduction

Business plan

Choosing markets

Learning production and marketing techniques

Selecting equipment

Planning and recordkeeping

Food safety

Agricultural insurance

Organic market gardening

Grower profiles

Peregrine Farm , Alex and Betsy Hitt, Graham, N.C.

Beech Grove Farm, Ann and Eric Nordell, Trout Run, Pa.

Harmony Valley Farm , Richard DeWilde and Linda Halley, Viroqua, Wis.