How to write a Farm

Business Plan

Executive Summary

Writing an executive summary for a farm business plan is a very important step. It sets the tone for the entire business plan. 

An executive summary provides a snapshot of your farming business to potential investors, partners, or stakeholders. 

Your executive summary should contain:

1. General information about your farm (its name, location, and primary focus)
2. An overview of your target market
3. The current state of operations (if your farm is already in business)
4. A summary of your farm's financials
5. Your farm's long-term goals and aspirations
6. Funding requirements

Start with some general information about your farm. This can include the type of farm (e.g., dairy, crop, livestock), size, and history.

You can also add a brief overview of the market opportunity you're addressing. This includes your target market and the demand for your products.

If your farm business has already been established, quickly describe the current state of operations.

Devote a short section to your farm's financial overview. Summarise key financial projections. For example, expected revenue, profit margins, and funding requirements. 

Finally, talk about your farm's short and long-term goals. Outline your future growth plans and strategic goals. This might include expansion plans, new product lines, or entering new markets.

Go over each of these sections quickly. The executive summary shouldn't be too long. One page is enough. 

{{subscribe-form}} 

Business Description

In this next section, you will have the opportunity to talk more about your farm. 

It sets the stage for the rest of the business plan by giving readers a clear understanding of what your farm offers. 

When describing your farm in this part of your business plan, make sure to focus on:

• What your farm offers/produces
• Your farm's history
• The unique value proposition (UVP)
• Farm size and layout
• Your farm's legal structure
• Mission statement
• Vision statement

Explain if your farming venture will focus on crop production, raising livestock, or a combination of these two. 

Provide a brief history of your farm. This can include when it was established, major milestones, and any significant changes over time.

Add details about the size of your farm. List the total acreage and the layout of the land. 

You can also mention any significant features. For example, water sources, soil types, and climate conditions.

Describe the legal structure of your farm. Is it a sole proprietorship, partnership, or corporation? 

Make sure to include a mission statement. Define your farm's purpose and primary objectives. Your mission statement should reflect your values and what you aim to achieve. For example:

Our mission is to provide high-quality, organic produce to our local community while promoting sustainable farming practices and contributing to a healthier environment.

You can also add a vision statement. It's a future-oriented declaration of where you want your farm to be and what you aspire to achieve in the long term. 

You can present your vision statement like this:

Market Analysis

Writing a market analysis for a farm business plan involves researching and analysing the market conditions relevant to your farm's products and services. 

This section helps you understand your:

1. Target market
2. Industry trends
3. Competition
4. Potential customer base
5. Market size and growth potential

When starting a farming business, it's especially important to understand the local market demand. 

To do this, you need to analyse the specific needs and preferences of your target market. This might include the demand for organic products, locally sourced food, seasonal produce, or specialty items. 

A thorough market analysis also includes consumer demand and local agricultural conditions.

Make sure to describe the current state of the farming industry. This includes its size, growth trends, and key drivers. 

Mention relevant agricultural sectors (e.g., organic farming, dairy, crop production) and any significant industry changes or trends.

A market analysis also includes competitor research. Identify and analyse your main competitors.

Include both direct competitors (other farms offering similar products) and indirect competitors (supermarkets, online retailers). Assess their strengths and weaknesses, market position, pricing, and customer base.

Estimate the size of your target market and its potential for growth. Use data and statistics to support your analysis. 

This might include market size in terms of revenue, number of potential customers, or production volume.

Organisation and Management

This section of your farming business plan lets you talk about your team in more detail. 

You can add information about:

• The organisational structure
• Management team
• Ownership information
• Staffing plan
• Human resource policies

This section is key for showing potential investors and stakeholders that your farm has a solid leadership team and an effective organisational structure. 

Describe the organisational structure of your farm. Include an organisational chart, if possible, showing the hierarchy and reporting lines within the business.

For example:

Provide detailed profiles of the key management team members, including their roles, responsibilities, qualifications, and experience.

Explain the ownership structure of the farm. Identify the owners and their respective stakes in the business.

Outline your staffing plan, including the number of employees, their roles, and how you plan to recruit, train, and retain them. 

Your staff can include:

• Farm workers
• Seasonal workers
• Administrative staff
• Agricultural consultants
• Financial advisors
• Legal advisors

You can also summarise your human resource policies. This includes hiring practices, employee training programs, compensation, and benefits.

Products or Services

This section should describe your main products or services. Use this part of your business plan to highlight any unique features and explain how they meet the needs of your target market. 

Here are some elements you can include in this part of your agriculture business plan:

1. Product descriptions
2. Production methods
3. Unique selling points
4. Product life cycle
5. Distribution channels
6. Customer benefits

Provide a detailed description of each product or service your farm offers. 

Include information about the types of crops, livestock, or other products and any variations or specialties.

If you already know what plants you will grow, explain your reasoning behind this decision. The same applies to raising livestock. 

Explain the methods you use to produce your products. Highlight any unique techniques, sustainable practices, or certifications that set your farm apart.

Identify what makes your products or services unique. This could include quality, flavour, sustainability, or any other distinctive features.

You can also describe the life cycle of your products, from production to sale. Include information about seasonality and any factors that affect availability.

Detail the channels through which you sell your products. This could include direct sales at farmers' markets, wholesale to retailers, and online sales.

Highlight the benefits your customers receive from your products. Focus on aspects like quality, freshness, health benefits, and environmental impact.

{{subscribe-form}} 

Marketing and Sales Strategies

This section is important for demonstrating how you will generate revenue. It also shows how you plan to grow your customer base. 

It outlines how you promote your products or services and achieve your sales goals.

This is how you can write this part of your farm business plan:

• Write a positioning statement
• Conduct a thorough marketing plan
• List all the marketing channels you will use
• Create a promotional strategy
• List the most important success metrics

Describe your marketing strategy. This includes your approach to promoting your farming products.

Here's an example of a short overview of a farming marketing plan:

At Green Acres Farm, our marketing strategy focuses on promoting our commitment to organic, sustainable farming and the superior quality of our products. We aim to build strong brand recognition and loyalty within our local community and beyond. Our approach includes a mix of digital marketing, community engagement, and direct customer interaction.

A farming business might use different marketing tactics from other types of businesses. That's why you might want to think about hiring an expert.

When it comes to your sales strategy, the goal is to outline how you will sell your products and the sales processes you will use.

Describe the sales channels you will use For example, direct sales, online sales, and partnerships with retailers.

This can include farmers' markets, CSA programs, local retailers, and restaurants.

{{subscribe-form}} 

Operations Plan

The operations plan is especially important for a farming business. Your operations plan should include:

• The production process of crops
• Your farming methods
• Staffing requirements
• Facility and equipment management
• Supply chain management
• Seasonal and operational calendars
• Labour and risk management

The operations plan section of a farm business plan details the day-to-day activities necessary to run your farm. 

It outlines the processes, resources, and strategies you will use to produce your products.

Describe the production processes for your crops or livestock. For instance, planting, growing, harvesting, and post-harvest handling.

You can also talk about the facilities and equipment you use. This includes maintenance and management practices.

Explain how you manage your supply chain. Mention sourcing inputs (seeds, feed, fertilisers), storage, and distribution.

Provide a calendar of key operational activities and milestones throughout the year, including planting and harvesting schedules.

Describe your labour management plan. Make sure to go over your staffing needs, recruitment, training, and employee roles.

You can also explain how you manage risks. For example, weather-related risks, pest and disease management, and financial risks.

Financial Plan

A business plan is key to securing loans or attracting investors. It demonstrates the viability and profitability of your farm. 

This is important for convincing banks or investors to provide the necessary funds.

Your financial plan should focus on the following elements:

• Startup costs
• Income statement (profit and loss statements)
• Cash flow statement
• Balance sheet
• Funding requirements
• Break-even analysis

Make sure to list all the costs associated with starting your farm business. These can include:

1. Land acquisition
2. Building infrastructure and facilities
3. Necessary equipment and machinery
4. Buying seeds, plants, and livestock
5. Labour costs
6. Obtaining licences and permits

You can present your income statement like this:

You can create similar tables for your balance sheet and cash flow statement.

If you are seeking funding, make sure to mention the amount of funding you need to start and run your farm. This includes a breakdown of how you will use the funds. 

Include sources of funding such as personal savings, loans, grants, and investments.

This part of your business plan is very important. Potential investors need to know that you understand the costs associated with starting and running a farming business.

That's why it's a good idea to hire a professional to help you.

Conclusion

Just like your executive summary, the conclusion is very important for your farming business plan.

Use this section to recap your entire farm business plan.

Briefly summarise the unique business opportunity your farm presents. Make sure to explain its potential for success again.

Summarise the main points covered in your business plan. This includes the market opportunity, your unique value proposition, operations plan, and financial projections.

You can also reinforce your farm's vision and mission statements. Highlight your commitment to sustainable practices, quality products, and community engagement.

Another good idea is to add a future milestones section, like in this example:

If you are writing this farming business plan to seek funding, it's a good idea to add a call-to-action (CTA) section in this section. 

Clearly state what you are seeking from the reader. It can be investment, partnership, or another form of support. 

Encourage them to take the next step in engaging with your business.

Appendix

Lastly, you can add an appendix at the end of your farm business plan.

The appendix is where you can add supporting documents, such as:

• Resumes of key management personnel
• Ownership and organisational documents
• Land and property information
• Financial statements and projections
• Market research and analysis
• Legal documents
• Photographs and visuals 

This part is optional, so it's up to you whether you want to include it or not. 

We recommend that you take the time to compile the documents for this section. It will give potential investors all the information they need to make a decision.

{{subscribe-form}}