crop and livestock farming business plan

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How to Start a Farm: Plan Your Operation

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

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

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 .

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.

[Pdf Sample] Crop Farming Business Plan Docx

In today’s agricultural landscape, having a well-structured business plan is essential for the success of any crop farming venture. A business plan serves as a roadmap, guiding farmers through various stages of planning, implementation, and growth.

[Pdf Sample] Crop Farming Business Plan Proposal Docx

To write a business plan , here is a breakdown of how it should be structured and what should be in each category. After this instruction, I will provide you with a sample of one I wrote for my farm , let us go:

Executive Summary

Business description.

In this section, you’ll delve deeper into the details of your crop farming business . Discuss the type of crops you plan to cultivate, the size of your farm, and any unique selling propositions that differentiate your farm from others. It is crucial to outline your vision, mission, and core values, showcasing your commitment to sustainable and ethical farming practices .

Market Analysis

Read Also: [Pdf Sample] Poultry Farming Business Plan In South Africa Docx

Products and Services

Marketing strategy.

Read Also: [Pdf Sample] Farm Business Plan Example Docx

Operational Plan

Management and organization.

Read Also: [Pdf Sample] Business Plan For Farming In South Africa Docx

Financial Plan

Risk assessment and mitigation.

Here Is a Download Link to the Crop Farming Business Plan Proposal Prepared By Agrolearner.com

Business Model for Agrolearners.com’s Crop Farming Business:

Key partnerships:.

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Key Activities:

Platform Management: Maintain and update the Agrolearners.com website, ensuring a user-friendly experience and smooth access to educational resources.

Value Proposition:

Comprehensive Agricultural Education: Agrolearners.com offers a wide range of resources, including structured courses, webinars, videos, and articles, covering all aspects of crop farming, from beginner to advanced levels.

Community and Networking: Agrolearners.com creates a community of like-minded individuals, allowing learners to connect, share experiences, and collaborate with other aspiring farmers and industry experts.

Customer Segments:

Agricultural Students: Students pursuing agricultural studies who wish to supplement their formal education with practical insights and hands-on experience in crop farming.

Customer Relationships:

Community Engagement: Foster an online community where learners can connect, share experiences, and learn from each other, fostering a sense of belonging and support.

Revenue Streams:

Advertising and Partnerships: Collaborate with agricultural suppliers and other relevant businesses to offer targeted advertising opportunities on the Agrolearners.com platform.

Cost Structure:

Technological Infrastructure: Invest in website development, hosting, and maintenance, ensuring a seamless user experience.

Key Resources:

Expertise and Knowledge: Engage agricultural experts and educators to develop content and provide guidance.

Marketing and Analytics Tools: Utilize digital marketing tools, analytics platforms, and customer relationship management (CRM) systems to track performance and optimize marketing efforts.

Is it necessary to create a business plan for a crop farming venture?

How can i assess market demand for specific crops.

Conduct market research, analyze consumer trends, and engage with potential buyers or distributors to understand the demand for your chosen crops.

What financial aspects should I consider in my business plan?

How can i mitigate risks in crop farming, can i modify my business plan as my farm grows.

Yes, your business plan should be a dynamic document that evolves with your farm . Regularly review and update it to reflect changes in the market, technology, or your business goals.

Conclusion:

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