"Farm Business Plan Template"

A Farm Business Plan is a type of business plan that was adapted for those individuals who would like to start a farming business, and for entities who are conducting farming business. The purpose of the document is to collect information about a farm enterprise, its target customers, products and services can provide, and other aspects.

Generally, individuals compile a business plan when they want to start a farm business and would like to apply for financing either from a bank or from potential investors. When you have a finished business plan in your hands you can also present it to your prospective business partners, consider restructuring your business, or find ways to grow it or run it more efficiently. A Farm Business Plan template can be downloaded below.

ADVERTISEMENT

How to Write a Farm Business Plan?

A small Farm Business Plan should include a lot of information specific to the farming market, which is why the first step in compiling that plan should be extensive research. You should find out how big the demand is for your products and services, who else supplies similar products and services to the market, what will help your enterprise operate, etc. To show all these details your farm business plan can contain parts, which includes the following:

  1. Information About the Farm. In the first part of the document, you can describe the farm. It can include stating its name, specialty, and mission. You can add other details about the farm into this part, as long as it helps investors (or other individuals who will read your business plan) to get a better picture of your farm.
  2. Products and Services. Here you can precisely list all of the goods that your farm will be producing and selling, and if there are any services that will be offered to customers as well. You can also describe marketing and sales strategies that will be applied to them, which can include information on how the products will be distributed, where customers will be able to find and buy them, how to promote your farm goods, etc.
  3. Market and Competitors. One of the most essential aspects of a business plan is market research. It is important to know what is in high demand on the market right now, how large the part of the market that is occupied by your competitors is, what are the development tendencies of the market, and so on.
  4. Management Organization. For a farm business to function properly, it needs to be organized in a fitting manner. Therefore, you should include in your business plan a diagram that will show how your business will be managed and who will lead it.

Haven't found the template you're looking for? Take a look at the related templates below:

ADVERTISEMENT

Download "Farm Business Plan Template"

Download PDF

Fill PDF online

Rate (4.4 / 5) 31 votes
Farm Business Plan
The outline of your Business Plan will be unique to your business. However, there are
some specific ideas that you must include. These specifics could make or break your
Business Plan. If you are specific about critical details you can improve your chances of
success. But remember to be concise in some areas. A good Business Plan has six general
areas. They are:
1. Executive Summary.
2. Business Description.
3. Operations.
4. Marketing Plan.
5. Management.
6. Financials.
You should also present a cover sheet and a table of contents within your Business Plan.
The following descriptions will help guide you into greater detail on these areas.
1. Executive Summary.
The executive summary is a concise overview of your entire Business Plan. Typically it is
the first section within a Business Plan. Its basic function is to inform readers why you
think your business will be successful. Since the executive summary is the first section of
your Business Plan, you should keep the material about your business idea intriguing and
interesting. Show that your idea meets a consumer need. This will encourage readers to
continue through your entire plan while also showing your passion for your business.
If you are starting a new business there are several points you should outline within the
executive summary. First, you should summarize the goals for your potential business.
These goals will become the objectives that the rest of your Business Plan is designed to
meet. Second, you should mention your experience and knowledge within the industry
you would be entering. Make sure you convince the reader that you understand the
services or product your business will be supplying. This will be important when
approaching creditors.
If you have already started your business, you should summarize your business and its
history. Include any goals you have for the future. If you have been successful to this
point within your business, highlight your accomplishments. If you have not been
©
TEMPLATEROLLER.COM
Farm Business Plan
The outline of your Business Plan will be unique to your business. However, there are
some specific ideas that you must include. These specifics could make or break your
Business Plan. If you are specific about critical details you can improve your chances of
success. But remember to be concise in some areas. A good Business Plan has six general
areas. They are:
1. Executive Summary.
2. Business Description.
3. Operations.
4. Marketing Plan.
5. Management.
6. Financials.
You should also present a cover sheet and a table of contents within your Business Plan.
The following descriptions will help guide you into greater detail on these areas.
1. Executive Summary.
The executive summary is a concise overview of your entire Business Plan. Typically it is
the first section within a Business Plan. Its basic function is to inform readers why you
think your business will be successful. Since the executive summary is the first section of
your Business Plan, you should keep the material about your business idea intriguing and
interesting. Show that your idea meets a consumer need. This will encourage readers to
continue through your entire plan while also showing your passion for your business.
If you are starting a new business there are several points you should outline within the
executive summary. First, you should summarize the goals for your potential business.
These goals will become the objectives that the rest of your Business Plan is designed to
meet. Second, you should mention your experience and knowledge within the industry
you would be entering. Make sure you convince the reader that you understand the
services or product your business will be supplying. This will be important when
approaching creditors.
If you have already started your business, you should summarize your business and its
history. Include any goals you have for the future. If you have been successful to this
point within your business, highlight your accomplishments. If you have not been
©
TEMPLATEROLLER.COM
successful yet, provide reasons why and describe how you plan to turn your business
venture around.
Remember, you must provide a clear outline and vision within your executive summary.
But be concise; do not go into much detail. You have the rest of your Business Plan to
cover the details of your business endeavor. There are some smaller elements that will be
needed in your executive summary. These, along with other hints are summarized below:
● Give a brief, focused description of your business and products;
● Describe your history and experience;
● Develop your vision and mission statement;
● Develop goals according to the S.M.A.R.T concept, in which “S” stands for
“specific,” “M” - for “measurable,” “A” - for “attainable,” “R” - for “realistic,”
“T” - for “timely;”
● Include information about your product and services;
● Basic overview of key elements of your Business Plan such as finances,
marketing, and management;
● Clear overview of why your business will be successful.
2. Business Description.
This section focuses on how all the elements of your business fit together. You want to
further expand upon some of the elements mentioned in your executive summary while
also explaining the organization of your business and the structure it will take.
First, you want to establish the nature of your business. In most cases, the business you
are starting would be deemed agricultural. Additionally, include information on the
structure of your business (sole proprietorship, partnership, corporation, LLC, etc).
Whatever the reason or need, you must be able to answer the question, why is this
business a good idea and what need am I satisfying? You will also want to provide an
overview of how your business will work. What kind of product will you be providing?
Will you be delivering your product or will you require pickup?
Understanding how your business will work allows you to review how your product or
service will supply a need. This is important when providing a description of your
business.
● Provide a detailed information on the parts of your business and how they fit
together;
©
TEMPLATEROLLER.COM
● Describes assets needed to operate the business (land, building, equipment)
including any manufacturing or production process;
● Location of business;
● Review of business history and management experience;
● Legal form chosen for the business.
3. Operations.
The operations section of your Business Plan describes how your business will run
smoothly. It focuses on what you will produce, how you will produce it and how much
you will produce. Within this section, you should expand upon what products and
services you will be offering, possible customer service opportunities, inventory
management, licenses, permits and regulations needed, possible patents and trademarks
and environmental issues that could be encountered. Review risk management tools that
will be utilized to manage risk such as crop insurance, other forms of insurance and
enforcement of food and work safety standards. Providing an implementation timeline
will help keep your tasks on track and make your business efficient. Often an overview is
only required for this section, as operations typically involve actually doing the work
required for your business.
4. Marketing Plan.
4.1. Market Analysis.
A key to establishing a successful business is acquiring information about the market in
which you will be selling your product.
Your market analysis should consist of information on the following: industry description
for your product (for example, milk would be in the dairy industry), the consumers that
make up your target market, and the evaluation of your competition through competitive
analysis. Note that this section does not contain the marketing strategy for your new
business. Instead, the market analysis section simply provides information on the market
you are planning to enter.
For your market analysis to be helpful, you must explore each of the areas listed above.
Below is a description of each:
● Industry Description. The industry description gives an overview and outlook of
the industry you would be potentially entering. You would want to include its
current size, historic growth rates, trends and characteristics and its interaction
with the local community, namely businesses, governments and consumers.
©
TEMPLATEROLLER.COM
Researching information about your industry is important so that you can gain an
understanding about the potential positives and negatives of your business.
● Target Market. Another important part of your business is identifying the people
who will buy your products or use your services. It is simply the market or group
of people that you want to target as potential customers. In the early stages of your
business, it is important to make your target market a manageable size. Do not try
to be everything to everybody, which could be the downfall of your business. Start
out small and increase your target market as your business expands.
Part of the process of establishing a target market is gathering information from potential
customers. Understanding some distinguishing characteristics of your customers can be
helpful. You should discover the needs of your customers, the demographics of the target
group, possible seasonal and cyclical trends in purchasing, and the size of your potential
target market. Elaborating on how you will gain consumer trust and how you will reach
your customers is also important. Advertising strategies might be needed for certain
agricultural businesses.
4.2. Competitive Analysis.
Competitive analysis is when you identify your potential competition as well as
determine their share of the market segment. You should also identify their strengths and
weaknesses. When doing your research determine the competition’s target market and
establish whether your business will be fighting for their customers. Two other areas that
should be included in your competitive analysis are possible barriers to entry and
potential regulatory restrictions. Barriers to entry include high investment costs, the time
it takes you to set up your business, technology that may be needed, and lack of a trained
workforce. Regulatory restrictions include the requirements you will need to meet and
how they can affect your Business Plans. For example, if you are planning on starting an
organic vegetable farm, you must research the regulations that determine if you can call
your vegetables “organic.”
● Explain your industry and its environment;
● Understand your potential customer through establishing a target market;
● Find the strengths and weaknesses of your competition;
● Remember this section is about research: establishing your own marketing and
sales strategy comes later.
You want to expand upon the primary factors that will make your business successful.
This entails providing a reason why the marketplace needs your business. For example, if
you are starting an orchard business, a potential reason why this venture might be
©
TEMPLATEROLLER.COM
successful could be due to the poor quality of fruits at a local supermarket. Thus your
business would provide for a need. Your business will not survive unless you have
customers to purchase your goods or services. You also must offer your goods and
services at prices that are both fair to consumers and profitable for your business.
This is why your marketing and sales strategies are so important. In this section you will
want to define these two important strategies that will guide your business.
4.3. Marketing Strategy.
First, your marketing strategy is essential to a strong business. Marketing is the process
of creating customers, and as noted above, customers are the lifeblood of your business.
Defining your marketing strategy focuses on several topics including your market
penetration strategy, your strategy for growing, your channels of distribution and your
communication strategy.
A market penetration strategy is basically how you will enter the market with your
product. There are two likely scenarios:
1. You can gain competitors’ customers, thus acquiring part of their market share.
2. You can attract non-users of your product and convince them that they should start
purchasing it. This is achieved through an advertising campaign.
A strategy for growing your business is simply how you expand your business once you
have entered and adjusted to the market. Typically, you can introduce a new product or
you can introduce your current product to a new market. Channels of distribution refer to
how your customers will receive your product. Finally, your communication strategy
revolves around how you are going to reach your customers. Your communication
strategy is simply how you will advertise to your target market. Will there be product
promotions, media advertising, or personal selling? These are all questions you will have
to ask yourself.
Other factors to think about when composing your marketing strategy are where you will
locate your business and how this affects your target market. Placement of your business
can be a vital key to success in order to draw the potential customers you are seeking.
4.4. Sales Strategy.
Your sales strategy includes how you will select your price. This means you must first
determine your pricing strategy. If your market consists of several competitors, then you
might want to use a competition based pricing strategy.
©
TEMPLATEROLLER.COM
Page of 8