How to write a farm business plan?

The best way to write a farm business plan is to think of it as an introduction to your brand, property, owners, objectives, and strategy. Use a template like this one to ensure you’re covering all of your bases and including all of the necessary items.

What is a farm business plan used for?

A farm business plan can be used to identify the goals of the business and the strategies that will be used to accomplish those goals. It’s a useful tool for planning the business out and representing your business to investors if you ever need to attain funding.

What is the purpose of a farm business plan?

The purpose of a farm business plan is to lay out a blueprint for how the farm will be successful while addressing the who, what, why, when, and how. Besides giving the business owners and operators a playbook to follow, farm business plans are also necessary should you need to procure funding from a bank or other lender.

What should be included in a farm business plan?

An effective farm business plan should start with an executive summary of what your business plan will include. The rest of the business plan should speak to the goals and objectives, company history, the background of the owners and operators, products and services to be offered, target market, industry analysis, and projections for the first few years of operation.

What is a good farm business plan?

A good farm business plan gives your audience a comprehensive overview of where your business is today, the people involved in it, and where the business plans to go in the coming years. It should inform, pique interest, and be easy to understand.

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Farm Business Plan Template

Prepared by:

[Sender.FirstName][Sender.LastName]

[Sender.Title]

[Sender.Phone]

[Sender.Email]

Executive Summary

Operators

[Sender.Company] is owned and operated by [Sender.FirstName][Sender.LastName].

Product

[Sender.Company] produces and sells (product types, e.g., produce, pastured animals, herbs, etc.), and we also provide on-farm services including (service types, e.g., apple picking, events, produce stand, etc.).

Customers

The target audience for [Sender.Company]'s product will be local consumers and businesses whom we will target directly. To market to this audience, we plan to take advantage of public picking events, farmers' markets, and a roadside farm stand.

Future of the Farm

[Sender.Company] plans to turn our XX acres of farmland into a sustainable source of crops, pastured animals, and pollinators. We plan to use regenerative farming practices as much as possible and understand what management techniques work best for our acreage.

Additionally, we will have a large greenhouse and use season extension techniques to get more value out of our farmland.

Objectives

To build a locally well-known brand and eventually expand our presence across the state.
To sell enough of our product to generate a positive cash flow, support the farm owners and staff, and pay back capital plus 15% interest to our investors.
To preserve and enhance our farmland so that it remains sustainable and we can continue to share the fruits of the land with others.

Strategies

Follow a thorough 3-year business plan and reassess every year to ensure we remain on track.
Seek funding from our network of contacts and outside funders for start-up costs.
Execute a creative marketing plan that introduces our brand to our target market.

Company Description

Business Address and Contact

[Sender.StreetAddress], [Sender.City], [Sender.State][Sender.PostalCode]

[Sender.FirstName][Sender.LastName]: [Sender.Phone], [Sender.Email]

Principal Members

Owner

(Owner.FirstName) (Owner.LastName)

Qualifications/Experience

(number) years of experience as a farm hand at (farm name), plus an additional 5 years of experience as the farm manager
(Education)

Operator

(Operator.FirstName) (Operator.LastName)

Qualifications/Experience

(Experience)
(Education)

Legal Structure

[Sender.Company] is a sole proprietorship.

Company Details

Our property is zoned for farm use, and we plan to use the land as follows:

X acres for pastured animals
X acres for produce
X acres for agritourism activities and events

Farm Assets

Barn
Tractor
Manure
Greenhouse and propagation supplies
Farm stand (planned for 20XX)
Tools

Market Research

Industry

The demand for locally raised animals and grown produce is climbing at a rate of XX% per year and is expected to reach a total value of $XX billion by 20XX.

Consumer demand for free-range, pasture-raised animals is evidenced by farms like (name competitors) which have grown into valuations of (approximate company values), respectively.

Regulations

[Sender.Company] is a licensed business in the State of [Sender.State] as of the year 20XX. We are in the process of applying for all of the necessary permits for constructing the farm stand, expanding the barn, and hosting on-site visitors to the farm.

Service Line

Product/Service

Services Include:

Pasture-raised animals
Produce cultivation
Public apple picking
Public hay maze
Farm stand
Special event packages

Marketing & Sales

Customer Communications

[Sender.Company] will communicate with its customers by:

Interacting with customers in-person via farmers markets, the farm stand, and through the leveraging of networking events.
Building an active social media presence on Instagram and TikTok.
Advertising agritourism activities like apple picking, hay mazes, farm trails, and other events.
Creating SEO-friendly blog posts on the company website to increase online presence.
Establishing listings with the local tourism board and activity guides.

Sales Strategy

[Sender.Company]'s product will be sold primarily in the (region). The farm is located on a road with extensive car traffic, so we plan to build a farm stand on the property to capture attention and drive sales.

We also plan to build a social media presence and leverage local advertising to drive awareness of our brand. We will also attend farmers' markets within the region to meet customers face-to-face and build relationships.

Five-year plan

Year One: 20XX

Create a legal business entity
Apply for necessary licenses and permits.
Finalize farm layout.
Procure additional equipment.
Establish social media profiles.
Build a small farm stand.
Attend farmer's markets.

Year Two: 20XX

(List goals for year two)

Year Three: 20XX

(List goals for year two)

Year Four: 20XX

(List goals for year two)

Year Five: 20XX

(List goals for year two)

Signature

MM / DD / YYYY

[Recipient.FirstName][Recipient.LastName]