executive summary business plan agriculture

Free Agriculture Sample Business Plan PDF + How to Write

Elon Glucklich

6 min. read

Updated February 7, 2024

Free Download:  Agriculture Business Plan Template

As a farmer, you’re in the business of putting food on the table. Agriculture is one of the world’s oldest professions.

Today it accounts for over 5% of U.S. Gross Domestic Product, and 1 in 10 American workers are in agriculture, food, and related industries.

But starting a new agriculture business requires intensive planning and upfront preparation. If you’re looking for a free, downloadable agriculture sample business plan PDF to help you create a business plan of your own, look no further.

Keep in mind that you don’t need to find a sample business plan that exactly matches your farm. Whether you’re launching a larger agricultural business outside a bustling city or a smaller organic operation, the details will be different, but the foundation of the plan will be the same. 

Are you writing a business plan for your farm because you’re seeking a loan? Is your primary concern outlining a clear path for sales growth? Either way, you’re going to want to edit and customize it so it fits your particular farm. 

No two agriculture farming businesses are alike.

For example, your strategy will be very different if you’re a dairy operation instead of a soybean farm. So take the time to create your own financial forecasts and do enough market research for your specific type of agriculture so you have a solid plan for success. 

• What should you include in an agriculture farm business plan?

Your agriculture business plan doesn’t need to be hundreds of pages—keep it as short and focused as you can. You’ll probably want to include each of these sections: 

1. Executive summary

An overview of your agriculture business, with a brief description of your products or services, your legal structure, and a snapshot of your future plans. While it’s the first part of the plan, it’s often easier to write your executive summary last.

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2. Business summary and funding needs

Details about your farming operation, including how much capital you will need and the types of funding you’re considering. Include your business history, your current state, and your future projections. It should also cover your business location, the equipment and facilities needed, and the kinds of crops or livestock you plan to raise.

3. Products and services

Provide details on the types of crops, farming methods, and any value-added products you plan to offer, such as finished goods or even  agritourism offerings .

4. Marketing plan

Compile your market research findings, including the demand for your products or services, your target customers , and your competitors. It should also outline your marketing strategy—how you plan to attract and retain customers. 

5. Financial plan

Your revenue projections, cost estimates, and break-even analysis. Your financial plan and forecasts should demonstrate that your business has a path to profitability.

• Building on your farm business plan sample

With a free agriculture business plan template as your starting point, you can start chipping away at the unique elements of your business plan.

As the business owner, only you can speak to aspects of your agriculture operation like your mission and core values.

You’re putting in the long hours to start a thriving farm business, so aspects of your mission – like a commitment to sustainable farming practices – will be best explained in your own words. Authenticity will help you connect with a growing market of consumers who value transparency and environmental stewardship in their food sources.

As for more conventional aspects of business planning , you will want to take on things like your marketing and financial plans one at a time. Here are a few specific areas to focus on when writing your business plan.

Invest time in market research

Starting an agriculture operation requires significant startup costs. When you throw in the unique land use considerations involved, it’s crucial to conduct thorough market research before investing hundreds of thousands – or even millions – of dollars into a farm business.

Start by researching the types of farms operating in your locality and wider region, and the specific crops or livestock they specialize in. You will need to understand seasonal trends, including crop yields and livestock productivity.

Note the demographics of the local community to understand their buying habits and preference for local produce. Also, be aware of the competitive landscape and how your farm can differentiate itself from others. All of this information will inform your service, pricing, marketing, and partnership strategy.

From there, you can outline how you plan to reach your target market and promote your farm’s offerings.

Craft your agriculture go-to-market strategy

One of the things that makes an agriculture farm business plan different from some service-based business plans is that you might decide to work only with one or two businesses that purchase your goods.  

You may offer different tiers of products to different types of buyers, such as produce for an organic farmers market, and corn for another farm’s animal feed. If that’s the case, make sure you include ideas like setting aside land for organic growth and maintenance.

Discuss your advertising and promotional strategies, emphasizing channels relevant to your target market. Also, consider how partnerships with local businesses, farmers’ markets, and other industry stakeholders can enhance your visibility.

Include your pricing strategy and any special promotions or loyalty programs. Also, consider public relations and media outreach efforts that can raise awareness about your farm and its sustainable practices.

Prepare for unique farming challenges

Running an agricultural business comes with its own set of challenges, including weather-related disruptions and market volatility. Your business plan should identify these potential risks and present contingency plans to address them.

Include a plan to mitigate weather-related risks, such as crop diversification, employing weather-resistant farming practices, investing in appropriate infrastructure like greenhouses or drainage systems, or taking out insurance to cover weather-related losses.

Detail the operational aspects of your business , including land ownership, employee status, farm maintenance, and safety requirements. Also, illustrate your strategies for managing crop production, livestock care, land stewardship, and regulatory compliance.

Plan for the future

Contingency planning is important in all businesses.

But the unique challenges in agriculture of changing market dynamics, regulatory changes, and climate impacts make it especially necessary to plan for the future. Detail how you’ll measure success, and how you will be prepared to adapt your offerings if you need to change the focus of the business due to factors outside your control.

Also, be ready to discuss opportunities for scaling your business over time, such as introducing new crops, expanding farm operations, or opening additional locations.

• Get started with your farm business plan sample

There are obviously plenty of reasons farm owners can benefit from writing a business plan — for example, you’ll need one if you’re seeking a loan or investment. Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.

Download this  agriculture farm sample business plan PDF  for free right now, or visit  Bplans’ gallery of more than 550 sample business plans  if you’re looking for more options.

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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Farm Business Plan: Essential Steps for Success

Company overview

Setting short-term and long-term goals, competitive analysis, pricing strategy and promotion, regulatory compliance, creating financial statements, exploring angel investors and other funding sources, mentorship and training opportunities, step-by-step: create your farm’s ecommerce site on 10web, value-added products, vegetable farm business plan example.

Starting a farm is an exciting and a complex undertaking. One of the most important aspects is developing a detailed farm business plan. A well-structured plan helps you set goals, manage resources, and prepare for long-term success by covering financial projections, market analysis, and growth strategies.

Farming offers immense opportunities for profitability and growth, especially when utilizing sustainable practices and diversifying through value-added products and agritourism, which add excitement to the journey.

This article explores key steps to creating an effective agricultural business plan, from writing a mission statement and conducting SWOT analyses to exploring marketing and operational strategies.

How do you write a farm business plan?

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Farm business plan structure

A good agricultural business plan covers several important aspects. It should include financial projections, market research, and strategies for growth. Using resources from experts can provide valuable insights and help you navigate the complexities of farming .

Executive summary

The executive summary gives potential partners and investors a snapshot of what your farm business stands for, along with the essential components that make it thrive. You’ll provide insight into your motivations and an overview of your company’s operations, helping others understand what makes your business unique.

Mission statement

Your mission statement is the heart of your farm business. It’s a brief yet impactful description of why your farm exists. This statement should capture your values, the goals you’re striving for, and the unique edge that sets your farm apart.

Think about what drives you and your farm. Whether it’s supplying organic produce to local communities, advancing sustainable farming practices, or delivering top-quality crops, highlight these points clearly.

By stating your mission thoughtfully, you give others a clear vision of the path your business is on. This can inspire trust in stakeholders and motivate your team to align with these core values.

The company overview provides a detailed look into your farm’s operations and setup. Here, you’ll outline key aspects like your farm’s location, size, and the type of agriculture you focus on. You should discuss the kinds of products or services your farm offers and any notable achievements or partnerships.

It’s also important to highlight your target market. Are you catering to local grocery stores , participating in farmer’s markets, or supplying to major retailers? Clarifying your market helps readers see your business’s reach.

Discuss key competitors and what makes your approach or offerings distinct. This adds context to your market position and offers insights into potential growth strategies.

Business planning process

Understanding the business planning process is key to running a successful farm. By evaluating your strengths and weaknesses and setting clear goals , you create a roadmap for your farm’s future. This approach helps maximize opportunities and address potential challenges effectively.

Analyzing strengths, weaknesses, opportunities, and threats

To start, identify the strengths and weaknesses within your farm. Strengths could include abundant resources or skilled workers, while weaknesses might be limited equipment or a lack of market knowledge. Listing these can help in focusing on what works well and what needs improvement.

Next, consider the opportunities that can benefit your farm. These might include emerging market trends or new technology that can enhance production. Equally important are the threats which could impact your operation. Threats might be economic shifts or regulatory changes. Conducting a SWOT analysis is a practical method to evaluate these factors and strategize accordingly.

Begin by outlining short-term goals that are attainable within a year. These might include increasing crop yield or improving farm management practices. Short-term goals should be specific and measurable to track progress effectively.

For long-term goals , think about where you want your farm to be in five years or more. Long-term objectives might involve expanding your farm’s size, introducing new crops, or entering new markets. Setting these goals requires planning and investment in resources. Clearly defining both short-term and long-term goals helps in maintaining focus and guiding the growth of your farm business.

Market analysis

To develop a strong farm business plan, you need to conduct a market analysis . This includes understanding the industry, identifying who your customers are, and knowing who your competitors are.

Industry analysis

The farming industry is diverse and can vary widely depending on your location and type of farm. You need to research trends in agriculture, such as the demand for organic produce or locally sourced ingredients. Look into technology advancements that might impact farming practices, like automation or new farming techniques. Understanding the regulatory environment is also key, as it affects crop choices and farming methods.

Stay informed about economic factors influencing farming, like commodity prices, which can affect profitability. Feed this information into your business plan to ensure you’re positioning your farm effectively within the market.

Customer segments analysis

You should also assess their price sensitivity and purchasing power. Knowing your customer segments allows you to tailor marketing strategies, product offerings, and pricing accordingly, as recommended by Growthink .

Understanding your competitors is essential for carving out a niche in the market. Identify direct and indirect competitors. Direct competitors include similar farms in your area producing the same goods. Indirect competitors might be those offering alternative products that can substitute yours.

Analyze their strengths and weaknesses. Look at their pricing, customer service, and marketing strategies. Determine what sets your farm apart, whether it’s product quality, unique farming practices, or superior customer service. Use this information to develop strategies that give you a competitive edge.

Marketing plan

A marketing plan for your farm outlines strategies to reach your audience, attract more customers, and boost sales. You need to identify your target market, choose effective marketing strategies, and decide on pricing and promotions to appeal to your audience.

Target market identification

Identifying your target market is the first step. This involves understanding who your customers are and what they need. You should consider factors like age, location, and lifestyle. This helps in determining which groups are more likely to buy your farm products .

Survey your community and current customers to learn more about their preferences. Identifying your ideal customers lets you tailor your marketing efforts. For example, if your farm specializes in organic produce, you may aim to attract health-conscious consumers in nearby urban areas.

Marketing strategies and tactics

Marketing strategies are essential for promoting your farm. Social media platforms like Instagram and Facebook are great for reaching potential customers. Sharing stories and updates about your farm can engage and attract followers.

Another tactic is organizing on-farm events or tours, allowing people to see where their food comes from. Community-supported agriculture (CSA) programs can also expand your customer base by offering subscription-based produce deliveries.

Using a marketing calendar to schedule promotions and content releases ensures you stay consistent. Regular communication with your audience builds relationships and encourages repeat business.

A good pricing strategy is important for attracting customers while maintaining profitability. You need to compare prices with similar farms to find a competitive edge. Offering seasonal discounts or bulk purchase deals can draw more interest.

Promotions, such as buy-one-get-one-free deals or loyalty programs, can incentivize buyers. These strategies encourage customers to try your products and stay loyal. Highlighting any unique features, like pesticide-free goods, can justify premium pricing and inspire customer trust.

Deciding on the right price and promotions affects how your products are perceived in the marketplace. It’s important to balance affordability with quality, ensuring both customer satisfaction and financial sustainability.

Operational plan

An effective farm business focuses on day-to-day operations, ensuring efficient farm management, logistics, and compliance with regulations. This plan provides a detailed look at how you will manage your farm, coordinate supply chains, and meet regulatory requirements.

Farm management structures

Communication is also critical. Regular meetings keep everyone aligned with goals and responsibilities. You can use scheduling tools for task assignments and tracking progress. In larger setups, you may need specialized managers for different areas like crops or livestock. These roles streamline operations and allow you to tackle issues more proactively.

Supply chain and logistics

The supply chain starts with sourcing materials and ends with delivering products to the market. Understanding your supply chains helps in maintaining efficiency and reducing costs. Whether you require seeds, fertilizers, or equipment, sourcing the best quality materials can impact production.

Logistics involves planning how to transport products from the farm to buyers. This requires reliable vehicles and storage facilities. Timely transportation ensures freshness, especially for perishable goods. Consider investing in cold storage and refrigerated transport if you deal with such products.

A key element is maintaining good relationships with suppliers and buyers. Regular communication can help negotiate better terms and faster delivery times. Digital logistics platforms can assist in tracking shipments and managing inventory levels effectively.

Compliance with regulations is important for the uninterrupted operation of your farm. Different types of farms will have unique rules to follow, so familiarize yourself with the ones applicable to your business. Health and safety standards often vary whether you’re dealing with crops or livestock.

Record-keeping is essential for audits and inspections. Keep detailed records of pesticide usage, livestock health, and worker safety training. You can use digital tools to store and organize these records for easier access.

Make sure to stay updated with changes in laws that may affect your farm. Subscribing to industry newsletters or joining local farming associations can provide timely updates. Keeping your certifications and licenses up-to-date can prevent legal issues and promote trust with customers.

Financial planning

To succeed in farming, you need a solid financial plan covering start-up costs, forecasting, and financial statements. These elements form the backbone of a strong farm business strategy.

Projecting start-up costs

Start-up costs are the initial expenses you’ll face when launching your farm. You need to consider land acquisition, equipment purchases, seeds, and livestock. Understanding these costs upfront helps in creating a realistic budget.

Key expenses may include:

• Land purchase or lease
• Machinery and equipment
• Seeds, plants, or animals
• Infrastructure like barns or fences

Knowing these costs helps in finding financial support through loans or grants.

Financial forecasting and projections

Financial forecasting involves predicting future revenues and costs. You need to look at past data and market trends to estimate sales and expenditures over time. Creating a plan for the next few years helps you prepare for potential challenges and opportunities.

Consider various scenarios:

• Best-case (high yields and prices)
• Worst-case (low market prices)

These forecasts guide your strategy and help in securing funding .

Financial statements are detailed records of your farm’s financial health. Essential documents include the balance sheet, income statement, and cash flow statement. These documents provide insights into your assets, liabilities, and income.

A balance sheet offers a snapshot of your assets and debt. Income statements reveal profitability by showing revenues minus expenses. Cash flow statements detail cash entering and leaving the farm.

Use tools like Form FSA-2037 for organized and accurate financial documentation, helping you make informed decisions and attract investors.

Funding strategies

Getting the right funding for your farm business is important. It can involve tapping into personal savings, seeking bank loans , or looking for support from angel investors. Each option comes with its own benefits and challenges, which can influence how you finance your farm operations.

Personal savings and contributions

Using personal savings is often a common starting point for farmers. It shows commitment and can reduce dependency on external funding. Leveraging your own funds gives you control over your business without incurring debt. Involving family or friends might also support this initial stage.

Starting with your own money can be risky if you don’t carefully plan your expenses. So, it’s crucial to develop a detailed budget. Consider how much you can afford to invest without sacrificing your personal financial stability. If you are involving family or friends, establish clear terms to avoid misunderstandings later. This approach can illustrate a personal belief in the business idea and might be a good foundation for further investment from external sources.

Bank loans and credit options

Bank loans are another traditional method for funding your farm. These loans give access to larger sums of money to cover significant expenses like purchasing land or equipment. Banks often offer various types of loans, such as microloans for smaller amounts or conventional loans for larger needs. When seeking a bank loan, prepare a solid business plan that outlines how funds will be used and repaid.

Interest rates and repayment terms should be carefully reviewed to ensure they fit your business plan. Building a good relationship with your banker can help in understanding the products they offer. Ensure you have a good credit score as it’s crucial in securing favorable terms. Prepare necessary documents including financial statements, a business plan, and any relevant experience in farming or business management.

Angel investors can provide a beneficial alternative for some farm businesses. Unlike banks, these investors often look for innovative farming methods or unique business opportunities. They can bring not just money, but also valuable experience and connections.

To attract angel investors, present a clear and detailed business plan that highlights what makes your farm unique. Demonstrating potential growth and return on investment can be key in swaying potential investors. You might also consider exploring grants or programs specifically supporting agricultural endeavors. Be prepared for thorough scrutiny, as investors will want assurances of profit and sustainability.

Agricultural practices

In agriculture, adopting sustainable methods and choosing a specialization can guide your farm’s success. Sustainable practices focus on resources, while specialization helps tailor farming activities to specific needs.

Integrating sustainable farming

• Cover crops: Planting cover crops can improve soil health, reduce erosion, and retain moisture.
• Crop rotation: By rotating crops, you can prevent pests and diseases from becoming a problem. This also helps maintain soil fertility.
• Integrated pest management (IPM): IPM uses natural pest controls and reduces the need for chemical pesticides. This method benefits both crops and the local ecosystem.

Taking these steps not only improves your farm’s sustainability but also contributes to the agricultural industry’s shift toward more environmentally-friendly practices.

Specializing in types of farms

Choosing a specific farm type allows you to focus efforts on fewer crops or livestock, which often results in better quality and increased efficiency.

• Vegetable farms: If you focus on vegetables, you’ll concentrate on optimizing soil health and planting schedules. Water management becomes key here to ensure a good crop yield.
• Fruit farms: Specializing in fruit requires attention to pest management and soil quality. Techniques like pruning and grafting often make a big difference in fruit size and taste.
• Dairy farms: In dairy farming, you might look at improving animal health and milk production. Proper nutrition and housing for livestock are central to achieving the best results.

Specializing can help you meet specific market demands and contribute to a robust local food supply.

Community involvement and networking

Active participation in the agricultural community is key for business growth and industry connections. Agricultural fairs and networking events provide platforms to showcase products and exchange ideas.

Joining farmers’ associations and engaging in collaborative projects fosters partnerships and innovation. Community outreach programs and workshops educate the public and build community support , while cooperative marketing enhances market presence through shared resources.

Building local partnerships with businesses and retailers strengthens local food systems , ensuring steady demand and economic resilience. Mentorship opportunities help beginning farmers navigate challenges and develop effective strategies. By leveraging these networking opportunities, farmers can create a supportive network that drives growth and sustainability.

Conservation and risk management planning

Incorporating conservation and risk management into business plans ensures farm sustainability and resilience. A comprehensive conservation plan protects natural resources and promotes soil health through practices like crop rotation and water conservation. Identifying resource needs minimizes environmental impact and maintains productivity.

Risk management strategies, including crop insurance and whole farm revenue protection , provide financial security against pests, diseases, and adverse weather. Developing a disaster recovery plan prepares farms for quick recovery from natural disasters . Efficiently managing costs and schedules allows for proactive responses to market changes and operational challenges. These strategies enhance farm stability and promote sustainable practices.

Access to mentorship and training is vital for farmers to enhance their skills and manage their businesses effectively. Cooperative extension services and the USDA offer formal education programs and workshops tailored to both beginning farmers and those with agribusiness experience . Field days organized by local and regional agricultural organizations provide hands-on learning and exposure to new techniques.

Connecting with subject matter experts through these events offers specialized advice on crop management, livestock care, and financial planning. Mentorship opportunities pair experienced farmers with newcomers, providing personalized guidance and support. Utilizing these training resources helps farmers adopt best practices, stay updated on industry advancements, and foster overall agricultural growth and innovation.

Building an online presence

Creating a strong online presence for your farm business is important in the digital age. Start by setting up a website . This is your main hub where customers can learn about your products, services, and values. Make sure it’s easy to navigate and mobile-friendly.

Utilize social media platforms to reach a wider audience. Platforms like Facebook, Instagram, and Twitter can help you engage with customers. Share photos, updates, and stories about your farm activities. This builds a connection with your audience and provides a personal touch.

Consider setting up an email newsletter to communicate directly with your customers. Keep them informed about new products, upcoming events, and special promotions. This method keeps customers engaged and interested in what your farm has to offer.

Local businesses can benefit from a well-maintained Google My Business profile. It’s crucial for being visible in local searches. Keep your information updated and encourage satisfied customers to leave positive reviews.

Utilize online marketplaces to sell your products. Websites like 10Web , Etsy or specialized farming platforms can expand your reach. They offer new opportunities to market and sell directly to consumers who are looking for fresh, local products.

Lastly, invest in online advertising to target specific audiences. Tools like Google Ads or Facebook Ads allow you to reach potential customers based on their interests and location. This helps drive traffic to your website and increases your business’s visibility.

Creating your farm website with 10Web

10Web provides powerful tools to help you create a professional and fully functional farm website. With 10Web’s AI Ecommerce Website Builder, you can quickly set up a site that showcases your farm, manages orders, and sells products like fresh produce, dairy, or farm experiences. Here’s how 10Web can help a farm business:

• AI Ecommerce Website Builder : Create a unique website section by section without relying on pre-made templates. Customize the site to reflect your farm’s offerings, whether it’s farm-to-table produce, subscriptions, or tours.
• WooCommerce integration : Sell your farm products directly online, manage orders, inventory, and customers seamlessly. WooCommerce provides a flexible backend for running your store.
• Website Booster : Automatically enhance website performance with fast hosting on Google Cloud and built-in optimization tools for quicker load times and better conversion rates.
• Sign up for 10Web : Visit the 10Web website and create a free account. You can start by describing your farm, including the products or services you want to offer online.
• Describe your business : When prompted, provide details about your farm, such as whether you sell fresh produce, organic products, or offer experiences like farm tours. The AI will use this information to generate the website outline.
• Generate an outline : 10Web’s AI builder will create a structured outline for your site, with sections like “Farm Products,” “Our Story,” “Visit Us,” or “Shop Online.” You can customize or rearrange these sections to match your vision.
• Customize the design : Select fonts, colors, and styles that fit your farm’s branding. Use the Ultimate UI Kit to fine-tune your website’s look.
• Add products and set up the store : Using the WooCommerce integration, add the products you want to sell online. Manage your inventory, set shipping zones, and integrate various payment methods like PayPal or Stripe.
• Optimize performance with Website Booster : Ensure that your farm’s website loads quickly and performs well on all devices by enabling 10Web’s PageSpeed Booster. This helps attract more customers and increases your sales.

Diversification strategies

Farm diversification can provide new revenue streams and reduce risks. It often involves branching out into agritourism and creating value-added products that use farm resources in creative ways.

Agritourism

Agritourism involves inviting visitors to experience farm life, which can become a significant income source. Activities like farm tours, hayrides, or seasonal events attract families and school groups. Providing hands-on experiences, like fruit picking or animal feeding, can enhance visitors’ experience. For a successful agritourism venture, you need to ensure proper safety measures and obtain any necessary permits. Promoting your activities using social media and local partnerships can increase visibility and attract more visitors.

Creating value-added products involves using your farm goods to create items with a higher market value. This could mean turning fruits into jams or vegetables into pickles. These products can be sold at farm stands, farmers’ markets, or even online. Labeling and packaging play an important role in appealing to consumers and setting your products apart. It’s also important to understand local regulations regarding food processing and sales. Offering samples can be a great way to attract customers and boost sales while also creating brand loyalty.

Sample plans and templates

When you’re planning to start a farm, having access to the right business plan templates can make all the difference. These tools offer guidance and examples to help structure your strategy effectively.

Small farm business plan template

For small farm operators, using a dedicated business plan template can be incredibly beneficial. These templates typically focus on key areas such as budget planning, marketing strategies, and management structures. A great example is the Small Farm Business Plan Template , which helps organize everything from the types of crops or livestock to financial projections. You’ll find sections for your company history, owner backgrounds, and the specific goals you have for your farm. These templates can also include parts on identifying customers and competitors, making it easier to plan for future growth.

Having a well-organized template keeps you on track and helps attract potential investors or lenders by providing a clear view of your farm’s business model. It’s like a roadmap guiding you through the complexities of running a farm, detailing your plans for success.

A vegetable farm business plan focuses on the details specific to growing crops. These focus areas include planting cycles, crop selection, and market analysis. An example such as the Vegetable Farm Business Plan Example typically covers these elements in depth. You might find helpful budget tables listing the initial investments in seeds, machinery, and labor costs needed for starting and maintaining your vegetable farm.

These examples often feature sections that encourage you to plan your sales strategy. They help identify your target market and outline marketing plans for selling your produce. This approach ensures that you can deliver fresh products timely and build a loyal customer base around your farm. By consulting these examples, you can adapt tried-and-true methods for your venture, minimizing risks and maximizing the chances of a successful yield each season.

In this blog we looked at the essential steps to creating a successful farm business plan. The blog covered everything from writing a mission statement and conducting SWOT analyses to developing marketing strategies and operational plans. We also explored the financial planning process, sustainable farming practices, and diversification strategies like agritourism.

Understanding these elements is central for managing resources, maximizing profitability, and ensuring long-term success. With this knowledge, you can navigate the complexities of farming, set clear goals, and position your farm for growth and sustainability.

Develop and launch your store with 10Web AI Ecommerce Website Builder.

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Agriculture Business Plan Template

Written by Dave Lavinsky

Agriculture Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and farm owners create business plans to start and grow their agricultural companies.

If you’re unfamiliar with creating an agriculture or farm business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a good business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an agriculture business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Agriculture Business Plan?

A business plan provides a snapshot of your agricultural business as it stands today, and lays out your growth plan for the next five years. It is a valuable tool that explains your business goals and your strategies for reaching them. It also includes market research to support your plans.  

Why You Need a Business Plan for an Agriculture Business

If you’re looking to start an agricultural business or grow your existing agricultural company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your farm to improve your chances of success. Your agricultural business plan is a living document that should be updated annually as your company grows and changes.  

Sources of Funding for Agricultural Businesses

With regard to funding, the main sources of funding for an agricultural business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review a comprehensive business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for agricultural companies.

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How to Write a Business Plan for an Agricultural Business

If you want to start an agricultural business or expand your current one, you need a business plan. A good farm business plan should include 10 sections as follows:

Executive Summary

Company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan. The goal of your executive summary is to quickly engage the reader. Explain to them the kind of farm business you are running and the status. For example, are you a startup, do you have an agricultural business that you would like to grow, or do you have a farming operation that you would like to sell? Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the agricultural industry.
• Discuss the type of farm you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

In your company overview, you will detail the type of agricultural production you are operating.

For example, you might specialize in one of the following types of agricultural businesses:

• Animal feed manufacturing : the production and sale of food formulas for farm animals.
• Agrichemical and seed manufacturing : the production and sale of agrichemicals (e.g., fertilizers, pesticides, and fungicides) and seeds to farmers that support the growth of their crops.
• Agricultural engineering : development, testing, and implementation of new agriculture tools and machinery to improve the process for farmers.
• Biofuel manufacturing : the production of energy from biomass.
• Crop production : the process of growing and harvesting a variety of crops such as fruits, vegetables, and grains.

In addition, the company overview needs to provide information about the business history.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include reaching X number of harvests per year, the number of customers served, or reaching $X amount in revenue.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

In your industry or market analysis, you need to provide an overview of the agricultural industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the agricultural industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies industry trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in this section:

• How big is the agricultural industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your agricultural business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of agricultural business you operate. Clearly, schools would respond to different marketing promotions than corporations, for example.

Try to break out your target market into segments in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target audience. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other farms and agricultural producers.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of farmers, wholesalers, and distributors.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What type of agricultural business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for your customers to engage with you?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an agriculture business, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of agricultural company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you produce fruit, soy, or vegetable products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your agricultural company. Document where your company is situated and mention how the site will impact your success. For example, is your agricultural business located on a small or large farm near your customer base? And, will you operate one or multiple locations? Discuss how your site might be the ideal location for your customers.

Promotions : The final part is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Attend farmers markets
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your farm business, including scheduling employees, tracking inventory, accepting orders and payments, and meeting with customers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to reach your Xth harvest, or when you hope to generate $X in revenue. It could also be when you expect to expand your farm business to a new region.

To demonstrate your potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing agricultural businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an agriculture business, or owning their own farm.

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, how many pounds of each crop do you plan to yield each season? And what is your sales strategy to grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your farm business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a farm business:

• Cost of farm equipment and supplies
• Operating expenses
• Payroll or salaries paid to staff
• Business insurance
• Other start-up costs (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your farm’s location lease or a list of agricultural equipment and machinery used on your farm.  

Free Business Plan Template for a Farm or Agriculture Business

You can download our farm business plan PDF template here.  

Agriculture Business Plan Summary

Putting together a business plan for your agriculture business will improve your company’s chances of success. The process of developing your plan will help you better understand your target market, your competition, and your customers. You will also gain a marketing plan to better attract and serve customers, an operations plan to focus your efforts, and financial projections that give you goals to strive for and keep your company focused.

Growthink’s Ultimate Business Plan Template allows you to quickly and easily write your business plan.  

Additional Resources for Starting an Agriculture Business

• How To Start a Farm
• Sample Farm Business Plan
• Starting a New Agricultural Business
• Small and Mid-Sized Farmer Resources
• Starting a Sustainable Agriculture Business
• Beginning Farmers and Ranchers Loans
• Business Resources for Those Starting to Farm or for an Existing Farm

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

See how Growthink’s business plan professional services can help you create a winning business.  

Other Helpful Business Plan Articles & Templates

Farm Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Farm Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Farm Business Plan

You’ve come to the right place to create your farm business plan.

We have helped over 5,000 entrepreneurs and business owners create business plans and many have used them to start or grow their farms.

Below are links to each section of a small farm business plan template. It can be used to create a vegetable farm business plan, fruit farm business plan, agriculture farm business plans or many other types of rural businesses.

Sample Business Plan For Farms & Agricultural Businesses

• Executive Summary – The Executive Summary is the most important part of your business plan. It is a brief description of your farm, its products and services, potential market opportunity, and competitive advantage.
• Company Overview – Also called the Company Analysis, here, you will provide a detailed description of your agriculture business history, its products and other services, and business structure.
• Industry Analysis – In the Industry Analysis, you will provide an in-depth analysis of the industry in which your farm operates including industry trends, market size and growth, and government regulations.
• Customer Analysis – In the Customer Analysis, you will identify your target market and provide insights into their purchasing habits. You will also create customer segments and discuss your marketing strategy for reaching them.
• Competitive Analysis – In the Competitive Analysis, you will identify your direct competition and provide insights into their strengths and weaknesses. You will also discuss your competitive advantage and how you plan to stay ahead of the competition.
• Marketing Plan – The Marketing Plan includes a discussion of your marketing strategy and tactics along with your pricing strategy. You will also provide a budget for your marketing activities including attending farmers’ markets or advertising a farm stand.
• Operations Plan – In the Operations Plan, you will discuss your farm’s day-to-day operations. You will also provide your business goals that you plan to achieve and a budget for your operating expenses.
• Management Team – In this section, you will provide a brief overview of the farm owners and farm management team, their experience in the agricultural industry, and the organizational chart.
• Financial Plan – In this section, you will provide three-year financial statements for your farm. This will include your income statements, projected balance sheets, and cash flow statements.

Next Section: Executive Summary >

Farm Business Plan FAQs

What is a farm business plan.

A farm business plan is a plan to start and/or grow your farm business. Among other things, a good agriculture farm business plan outlines your business concept, identifies your target audience , presents your marketing plan and details your financial projections.

You can  easily complete your farm business plan using our Farm Business Plan Template here .

What Are the Main Types of Farms?

There are many types of farms. Some have commercial farms that produce crops and agricultural products for sale. Others have cooperative farms owned by people who pool their resources together and share profits among themselves. There are also vegetable farms, dairy, micro, organic, poultry, subsistence, or urban farms.

What Are the Main Sources of Revenues and Expenses for a Farm?

The primary source of revenue for a farm is the sale of its farmed goods such as rice, corn, milk, beef, chicken, depending on the kind of farm a business is.

Some key expenses for a farm are labor expenses, production costs like irrigation, fertilizer, water, and machinery maintenance.

How Do You Get Funding for Your Agriculture Business?

Farm business plans often receive funding from bank loans. Financing is also typically available from grants offered by local and state governments. Personal savings, credit card financing and angel investors are other funding options. This is true for starting any agricultural business.

What are the Steps To Start a Farm Business?

Starting a farming business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

• Develop An Agricultural Business Plan - The first step in starting a business is to create a detailed agriculture business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  It should also include your business goals and mission statement. You can quickly complete your farm business plan using our Farm Business Plan Template here .
• Choose Your Legal Structure - It's important to select an appropriate legal entity for your farm business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your farm business is in compliance with local laws.
• Register Your Agriculture Business - Once you have chosen a legal structure, the next step is to register your farm business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 
• Identify Financing Options - It’s likely that you’ll need some capital to start your farm business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 
• Choose a Business Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 
• Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 
• Acquire Necessary Farm Equipment & Supplies - In order to start your agricultural business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 
• Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your farm business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful farm business and agribusiness planning:

• How to Start a Farm Business

Where Can I Get a Farm Business Plan PDF?

You can download our free farm business plan template PDF here . This is a good farm business plan template you can use in PDF format.