lucerne production business plan

Lucerne Farming Business Plan [Sample Template]

By: Author Tony Martins Ajaero

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Do you want to start a lucerne farm and need to write a plan? If YES, here is a sample lucerne farming business plan template & FREE feasibility report.

There are some unique crops that has pretty high nutritional value for cattle that an aspiring entrepreneur who is interested in the commercial hay and crop farming industry can start and make huge returns on his or her investment and one of such businesses is Lucerne farming.

No doubt, starting a Lucerne farming business comes with its own fair share of challenges, but that does not rule out the fact that it is indeed a profitable business venture. An aspiring entrepreneur can either choose to start a Lucerne farm on a small scale or on a large scale depending on their financial status.

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A Sample Lucerne Farming Business Plan Template

1. industry overview.

Lucerne which is also known as Alfalfa and called Medicago sativa in binomial nomenclature, is a perennial flowering plant in the legume family Fabaceae. It is cultivated as an important forage crop in many countries around the world.

It is used for grazing, hay, and silage, as well as a green manure and cover crop. Lucerne usually has the highest feeding value of all common hay crops. It is used less frequently as pasture. In addition to being used as feed, it also has a long history of use as a medicinal herb for humans.

Lucerne farmers are part of the Hay and Crop industry and more than half of the farms in this industry grow hay, while a small number grow sugar beets. A variety of other crops, such as hops and herbs, are included in the industry. Some establishments also gather agave , spices, tea and maple sap.

The Hay and Crop industry displays a low level of concentration. The industry is highly fragmented; no single hay and crop farmer/farm holds a lion share of the available market share in the industry., it is not enough to allow the company to dominate the industry. Lucerne farmers are typically niche farmers, operating on small farm land with no more than a few hundred trees.

The Hay and Crop industry is indeed a very large industry and pretty much thriving in all parts of the world especially in countries such as Spain, Italy, Turkey, Greece, Syria, Morocco, Tunisia and the united states of America.

Statistics has it that in the United States of America alone, there are about 441,166 registered and licensed hay and crop farmers scattered all across the United States responsible for employing about 486,066 and the industry rakes in a whooping sum of $31 billion annually. The industry was projected to enjoy -0.9 percent annual growth between 2014 and 2019.

Studies shows that California is the largest producer of Lucerne in the United States followed by Texas & Montana. California is the largest producer of Lucerne in the United States followed by Texas & Montana. The United States produces over 57.5 million tons of Lucerne. Twenty (20) states produce over 1 million tons of Lucerne.

A recent report published by IBISWorld shows that farmers in the industry produce hay, sugar beets, maple, hops and other crops. In the five years to 2010, industry revenue is expected to grow at an average annual rate of 1.6 percent to $17.0 billion.

Volatile crop prices and unexpected weather patterns are the primary drivers of industry revenue. Varying factors have different effects on the distinct product segments, which ultimately creates high volatility in both revenue and profit for industry participants.

The majority of these are hay farms, reflecting hay’s position as the highest-grossing industry product. In 2010, IBISWorld estimates that hay varieties account for 88.2 percent of total industry revenue, while sugar beets account for 8.8 percent and the rest of the crops account for 3.0 percent.

Lastly, with commercial Lucerne farming business, it will pay you to cultivate both organic and non – organic Lucerne crop. As a matter of fact, consumer preferences will drive demand for organic hay (Lucerne crop) going forward.

2. Executive Summary

Nathan Anderson® Lucerne Farms, Inc. is a world class and registered commercial hay and crop farm that will be based in the outskirt of Wichita Falls, Texas – United States. We have done our detailed market research and feasibility studies and we were able to secure a well – situated and suitable farm land to start our commercial Lucerne farming business.

Our commercial Lucerne farm is a going to be standard commercial Lucerne farm hence will be involved in both commercial Lucerne cultivation and silage, grazed, and fed as green – chop processing and packaging.

We have put plans in place that will help us launch a standard and world – class silage, grazed, and fed as green – chop processing plant within the first three years of officially running Nathan Anderson® Lucerne Farms, Inc. We will process and package silage, grazed, and fed as green – chop that they flood the market both in the United States and in other countries of the world; we want to compete with the best in the industry.

Which is why aside from the fact that we’ve secured the required farming land and most of the farming equipment and machines, we have also hired some key employees who are currently undergoing training so as to be able to fit into the ideal picture of the 21 st century commercial Lucerne farm and silage, grazed, and fed as green – chop production plant workforce that we want to build.

Nathan Anderson® Lucerne Farms, Inc. is well positioned to become one of the leading Lucerne farms in the United States of America, which is why we have been able to source for the best hands and farm machineries to run the farm with.

We have put process and strategies in place that will help us employ best practices when it comes to Lucerne farming processes and silage, grazed, and fed as green – chop processing and packaging as required by the regulating bodies in the United States of America.

Nathan Anderson® Lucerne Farms, Inc. is a family business that is owned by Mr. Nathan Anderson and his immediate family members. The farm cum business will be fully and single handedly financed by Nathan Anderson and his immediate family members.

Before starting Nathan Anderson® Lucerne Farms, Inc., Nathan Anderson has worked with some of the leading commercial hay and crop farms and silage, grazed, and fed as green – chop processing plants in the United States of America; he has a degree (B.Sc.) in Agriculture Science from University of Texas.

3. Our Products and Services

Nathan Anderson® Lucerne Farms, Inc. is a world class commercial hay and crop farm that is committed to cultivating Lucerne crops for both the United States’ market and the global market. We are in business to produce food for cattle and horses et al in commercial quantities. We will also ensure that we operate a standard silage, grazed, and fed as green – chop processing and packaging plant as part of our complimentary business.

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

• Growing Lucerne (organic and non – organic)
• Producing silage, grazed, and fed as green – chop

4. Our Mission and Vision Statement

• Our vision is to established a Lucerne farm that will become the number choice for cattle farmers and horse owners not just in Wichita Falls – Texas but throughout the United States of America.
• Nathan Anderson® Lucerne Farms, Inc. is a world class Lucerne farms that is in business to cultivate Lucerne crop in commercial quantities and processed silage, grazed, and fed as green – chop for both the United States market and the international market.
• We want our well – packaged silage, grazed, and fed as green – chop to flood every nooks and crannies of the United States of America.

Our Business Structure

Nathan Anderson® Lucerne Farms, Inc. is a Lucerne farm that intend starting small in Wichita Falls – Texas, but hope to grow big in order to compete favorably with leading commercial Lucerne farms in the commercial hay and crop 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 Texas.

At Nathan Anderson® Lucerne Farms, Inc., 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 the stake holders (the owners, workforce, and customers).

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

• Chief Operating Officer

General Farm Manager

• Administrator/Accountant
• Lucerne Processing and Packaging Plant Manager
• Sales and Marketing Executive
• Field Employees
• Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
• Supervise other section managers (Lucerne cultivation manager and silage, grazed, and fed as green – chop processing and packaging manager)
• Ensure compliance during project executions
• 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 (Lucerne crop)
• 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 desired result 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.

Administrato/Accountant

• 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
• Handles all financial transactions for the farm
• Serves as internal auditor for the farm

Lucerne crop Cultivation Manager/Supervisor

• Responsible for managing the Lucerne crop cultivation section of the Lucerne farm
• Supervises other workers within the department
• Work closely with the General Manager to achieve the organizations’ goals and objectives

Lucerne Processing and Packaging Manager/Supervisor

• Responsible for managing the silage, grazed, and fed as green – chop processing and packaging section of the commercial hay and crop farm

Sales and Marketing Officer

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

Field Workers/Contract Staff

• Responsible for preparing farm lands for Lucerne crop cultivation
• Responsible for watering the crop
• Weeding or fertilizer and/or pest control application
• Handles farm implements and machines as instructed by the section manager/supervisor
• Assist in handling the harvest of Lucerne crop
• Carries out task in line with the stated job description
• Assist in transport working tools and equipment from the farm and back to the designated store room
• Handles any other duties as assigned by the line manager

Client Service Executive/Front Desk Officer

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

6. SWOT Analysis

Nathan Anderson® Lucerne Farms, Inc. 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 Lucerne farm that will favorably compete with leading commercial Lucerne farms in the United States of America and in the rest part of the world.

We are quite aware that there are several large scale, medium scale and small scale Lucerne farms all over Wichita Falls – Texas 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.

Nathan Anderson® Lucerne Farms, Inc. employed the services of an expert HR and Business Analyst with bias in the commercial hay and crop 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 Nathan Anderson® Lucerne Farms, Inc.;

Our strength as a Lucerne farm is the fact that we have healthy relationships with loads of major players in the commercial cattle farming industry; both suppliers and buyers of Lucerne and silage, grazed, and fed as green – chop within and outside of the United States.

We have some of the latest commercial hay and crop farming machines, tools and silage, grazed, and fed as green – chop processing equipment that will help us cultivate Lucerne crop in commercial quantities with less stress. Aside from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in Wichita Falls – Texas in our payroll.

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

• Opportunities:

The opportunities that are available to us cannot be quantified, we know that there are loads of cattle farmers and horse breeders and owner that rely on the supply of olives from Lucerne farms in the United States of America and other parts of the world. We will ensure that we maximize the opportunities available to commercial Lucerne farmers. As prices increase with increased demand, Lucerne farmers will begin to experience revenue growth.

Livestock farmers regularly purchase hay as feed for their herds. Demand for hay usually increases during adverse weather conditions when the area of natural pastures is lower. Demand from beef cattle production is expected to increase this year; however, the unpredictable nature of demand with respect to consumer preferences and international trade poses a potential threat to the industry.

7. MARKET ANALYSIS

• Market Trends

Despite the fact that Lucerne farming has been in existence since time immemorial, which does not in any way make the industry to be over saturated; Lucerne farmers are exploring new technology to continue to improve the cultivation processes and also silage, grazed, and fed as green – chop preservation and processing processes; mechanized farming has indeed increased the tons of olives produced by farmers.

The fact that there is always a ready market for silage, grazed, and fed as green – chop and Lucerne crop makes the business highly thriving and profitable. Lastly, the diverse composition of the industry creates a mixed bag of trends.

An individual farm is not profitable in any given year, but a farmer is likely to see a profit over the long run as a result of mixed crops and successful rotations. With that in mind, profits have fallen over the past five years as a result of increased input costs, particularly fertilizer, and unprecedented economic conditions.

Hay farming displayed steady revenue growth over the three years to 2008 as an increasing number of cattle farmers turned to hay instead of high-priced corn and soybean feed. However, in 2009, livestock farmers’ efforts to cut input costs turned them away from high-protein Lucerne hay in favor of lower-priced feed mixes.

8. Our Target Market

We will ensure that we position our business to attract consumers of silage, grazed, and fed as green – chops not just in the United States of America alone but also other parts of the world which is why we will be exporting some of our farm produce either in raw form or processed form to other countries of the world.

Below are some of our target market;

• Cattle farmers
• Horse breeders
• Sheep farmers
• Goat farmers
• Horse owners
• Herbal medicine manufacturers

Our Competitive Advantage

Nathan Anderson® Lucerne Farms, Inc.  is fully aware that there are competitions when it comes to selling commercial hay and crop farm produce including Lucerne crop and silage, grazed, and fed as green – chop 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 Lucerne farming processes that can help us sell our produce at competitive prices, robust business and distribution network and excellent relationship management.

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 commercial Lucerne farms that will also include silage, grazed, and fed as green – chop processing plant. With this, we will be able to take advantage of all the available opportunities within the industry.

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

9. SALES AND MARKETING STRATEGY

• Sources of Income

Nathan Anderson® Lucerne Farms, Inc. is in the commercial hay and crop 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 Nathan Anderson® Lucerne Farms, Inc.;

• Sale and supply of freshly harvested Lucerne crops
• Sale and supply of silage, grazed, and fed as green – chop

10. Sales Forecast

We conducted a thorough market survey and feasibility studies and we were able to discover that the sales generated by a commercial hay and crop farm depends on the size of the farm, the nature of the commercial hay and crop farm.

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

We have been able to critically examine the hay and crop farming industry cum Lucerne farm line business and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some workable assumptions as well with respect to the nature of Lucerne farm that we run.

We will be running a standard silage, grazed, and fed as green – chop processing plant with a capacity to export well – branded and packaged silage, grazed, and fed as green – chop to states all across the United States of America Below are the projections that we were able to come up with for the first three years of running Nathan Anderson® Lucerne Farms, Inc.;

• First Fiscal Year (FY1): $200,000
• Second Fiscal Year (FY2): $350,000
• Third Fiscal Year (FY3): $400,000

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 floods), 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 Lucerne farms hardly make good profits is their inability to sell off their Lucerne crops as at when due. In view of that, we decided to set up a standard silage, grazed, and fed as green – chop processing plant to help us maximize profits.

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

In summary, Nathan Anderson® Lucerne Farms, Inc. will adopt the following strategies in marketing our Lucerne farm produce;

• Introduce our business by sending introductory letters alongside our brochure to stake holders in the cattle farming industry, horse breeders, sheep farmers, goat farmers and horse owners et al.
• Advertise our business in agriculture and cattle farmers related magazines and websites
• List our Lucerne farms on yellow pages ads
• Attend related agriculture and animal feed 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 (both 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.

We know that it is important to create strategies that will help us boost our brand awareness and to create a corporate identity for our Lucerne farm business. Below are the platforms you can leverage on to boost our Lucerne 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 Bill Boards on strategic locations all around Wichita Falls – Texas
• Engage in roadshow from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• List our Lucerne farms in local directories/yellow pages
• Advertise our Lucerne 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

Some of the factors that will help you sell your Lucerne crops at the right price that will guarantee that you make profits is dependent on your strategy while some of the factors are beyond your control. For example, if the climatic condition is unfavorable and if there are natural disaster in the location where you have your Lucerne farm, then it will directly affect the harvest of Lucerne and also the prices of your farm produce.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our Lucerne crops and silage, grazed, and fed as green – chop et al are sold a little bit below the average prices in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our soybean farming business

• Payment Options

The payment policy adopted by Nathan Anderson® Lucerne Farms, Inc. 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 Nathan Anderson® Lucerne Farms, Inc. 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 client make payment for farm produces purchase 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 transfer for our Lucerne crops and processed (well – branded and packaged silage, grazed, and fed as green – chop).

13. Startup Expenditure (Budget)

Below are some of the basic areas we will spend our start – up capital in setting up our Lucerne 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) coverage at a total premium – $9,400
• The amount needed to acquire/lease a farm land – $50,000
• The amount required for preparing the farm land – $70,000
• The cost for acquiring the required working tools and equipment/machines/fencing et al – $10,000
• The amount required for purchase of the first set of Lucerne seedlings et al – $50,000
• The amount required to set up a standard silage, grazed, and fed as green – chop 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 two hundred and fifty thousand dollars ($250,000) to start a standard Lucerne farm with silage, grazed, and fed as green – chop processing plant business in the United States of America.

Generating Funds/Startup Capital for Nathan Anderson® Lucerne Farms, Inc.

Nathan Anderson® Lucerne Farms, Inc. is a family business that will be owned and managed by Nathan Anderson and his immediate family members. They are the sole financier of the firm, but may likely welcome other partners later which is why they decided to restrict the sourcing of the start – up capital for the business to just three major sources.

These are the areas where we intend sourcing for fund for Nathan Anderson® Lucerne Farms, Inc.;

• 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 $150,000 from our bank. All the papers and document has 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 numbers of loyal customers that they have, the capacity and competence of the 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 Nathan Anderson® Lucerne Farms, Inc. is to build a business that will survive off its own cash flow without the need for 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 (Lucerne crop and even processed and packaged silage, grazed, and fed as green – chop) a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

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

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more as determined by the management of the organization. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; 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 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 Wichita Falls – Texas and preparing the farm land: 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 fence et al: 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 vendors and key players in the industry (cattle farmers, fertilizer suppliers, herbal medicine manufacturers and transporter / haulage companies et al): Completed

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Lucerne Farming Business Plan Template

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Are you interested in starting your own Lucerne Farming Business?

Introduction

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

• Business Plans can help to articulate and flesh out the business’s goals and objectives. This can be beneficial not only for the business owner, but also for potential investors or partners
• Business Plans can serve as a roadmap for the business, helping to keep it on track and on target. This is especially important for businesses that are growing and evolving, as it can be easy to get sidetracked without a clear plan in place.
• Business plans can be a valuable tool for communicating the business’s vision to employees, customers, and other key stakeholders.
• Business plans are one of the most affordable and straightforward ways of ensuring your business is successful.
• Business plans allow you to understand your competition better to critically analyze your unique business proposition and differentiate yourself from the market.
• Business Plans allow you to better understand your customer. Conductin

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Investing in lucerne pays off for western Free State farmer

Lucerne under irrigation provides free state farmer boeboe louw with an ideal alternative to grain. annelie coleman visited him on his farm in the wesselsbron district to find out how he manages production to gain the most from this valuable export crop..

Boeboe Louw, owner of the farm Bloudrif on the banks of the Vaal River in the Wesselsbron district, has been producing lucerne under irrigation from the river for the past 15 years.

Initially, he planted the crop to provide feed for his dairy herd. But after he stopped milking a few years later, he decided to continue with lucerne, and even increase production. With access to ample water and good soil, he was keen to take advantage of the ever-increasing demand for the crop.

“Despite the fact that I have to spend a relatively large sum to re-establish the lands every five years, lucerne production remains decidedly more profitable for me than crops such as maize and sunflower. The only prerequisite is enough water,” he says.

Lucerne, a perennial summer legume, is well adapted to almost all areas of South Africa, but prefers deep, well-drained soils with a neutral to high pH.

Irrigation requirements On Bloudrif, approximately 180ha are planted to lucerne, irrigated by 10 pivots that each cover between 10ha and 35ha.

“A neighbour of mine recently had the water quality tested and I’m glad to say that it was good,” says Louw.

The lucerne receives about 40mm a week (four days of irrigation followed by a three- day break) for four weeks. Irrigation is then withheld for a week before the lucerne is harvested. Louw harvests seven times a season, resulting in an annual water requirement of between 800mm and 1 200mm, which averages about R7 700/ha/year at present.

Irrigation is adjusted according to the weather. Louw explains that lucerne struggles with extremes: dry weather or an excess of water.

“The plants don’t like to stand with their feet in water,” he says. This makes heavy clay soils and a shallow water table unsuitable for lucerne production.

Another problem with excess moisture is that it can result in a rust outbreak. Rust, caused by the fungus Uromyces striatus var. medicaginis, can cause defoliation and a loss of nutritional value. It can also reduce the nitrogen-fixing capacity of the affected plant.

Soil and seed The sandy loam soil on Bloudrif, which is between 1,2m and 1,5m deep, is ideal for lucerne production, according to Louw. Lucerne seed is sown in well-prepared soil at a density of 25kg/ ha to 30kg/ ha under irrigation. Seeds are inoculated with Rhizobium bacteria before planting.

Lucerne’s success as a cultivated crop is due in large part to the plant’s efficient root system and its symbiosis with the nitrogen-fixing Rhizobium, which reduce the plant’s dependence on soil nitrogen.

High-quality grading Louw uses the SA Standard cultivar, which has an underground crown that forms 4cm to 7cm underground, and side shoots. It produces excellent dry matter with a high grading due to its improved stalk-to-leaf ratio.

South Africa is a global leader in lucerne grading, says Louw, and the National Lucerne Trust’s (NLT) lucerne hay grading system is the most sophisticated available. It has played a crucial role in maintaining consistent and sustainable production of top-quality lucerne.

Most of the lucerne produced on Bloudrif is prime grade.

The grading process starts before the hay is baled. According to NLT requirements, the first step is to verify the origin of the crop. Once the hay is baled, a sample is collected from the bales to determine the grade. If any bale shows signs of water damage, contains harmful plants, has a mouldy odour, or has a moisture of over 16%, it is rejected.

The average yield on Bloudrif is about 20t/ha per season, and the average lifespan of each land is between four and six years.

Establishing the crop The optimal planting window for lucerne in the western Free State ranges from March to June. Soil preparation starts with ploughing, and fertilisation at this stage consists of potassium chloride (KCl) at 150kg/ha and monoammonium phosphate (MAP) (32) at 150kg/ha For a well-established lucerne field, it is important to maintain optimal potassium, phosphate and nitrogen levels.

To that end, Louw applies liquid nitrogen at 300ℓ/ha/year and gypsum at 2t/ha twice a year.

After ploughing, the top soil is compacted as firmly as possible, the seed is sown on the surface, and the soil is compacted again. The seed is watered well until it begins to germinate.

At the time of Farmer’s Weekly’s visit to Bloudrif, lucerne destined for Namibia was being loaded. The price fetched by prime grade lucerne was R3 300/t at that stage. Prices fluctuate between about R2 200/t in summer and R3 300/t in winter. Calculated at an average input cost of R27 000/ha and an average yield of 20t/ha, the break-even point on Bloudrif is 13t/ha.

Haymaking Louw stresses that the haymaking process must be planned meticulously. A delay of just a few days can compromise quality significantly. It could also have an impact on following harvests by inhibiting growth.

The crop is cut early in the morning. Dew keeps the plants relatively moist, preventing leaf losses. The lucerne is turned two days later, also early in the morning to prevent further leaf loss. The cut crop is left for a further two days to dry off properly. Baling takes place in the late afternoon or in the evening when the temperature starts to drop.

Fanie Brunette, general manager of AlphaAlfa, a division of the agribusiness BKB, says lucerne production is expanding from traditional areas such as Vaalharts to areas such as the western Free State.

Local lucerne is sought after worldwide and is exported mainly to the Middle and Far East. South Africa exports about 200 000t a year.

“To accommodate the increase in production on Bloudrif and neighbouring farms, we erected a 6 500t storage facility,” he says.

According to Dirk Stolz, a technical trader at AlphaAlfa, 1 070ha are planted in a 100km radius of Bloudrif and average yield is between 18t/ha and 20t/ha.

“Lucerne is gaining popularity not just due to its sustainability and profitability, but because it’s ideal for rotation with crops such as maize and sunflower,” he says.

Email Boeboe Louw [email protected] .

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