Agri Farming Business Plan – A Beginners Guide

Introduction: Hello friends we are back with information of agri farming business plan. Agricultural business is also known as agribusiness, is the farming, management, production, and marketing of agricultural commodities, such as livestock and crops. The agricultural business field contains resource management, farming, conservation, ranching, and sales. The Agribusiness plan is a road map for a business. It describes the main functions of business operations, finance, management, and marketing. It must support the mission statement, objectives and goals set by the owners.

A step by step guide to Agri farming business plan

A good business plan will help farm or food production businesses succeed. Before you start a business plan, take a look at some sample business plans for farms, food production facilities, and other agriculture-related businesses. Business plans have more direct benefits for the business owner. The business process also helps to define business goals and to assess the impact that uncertainty may have on future business outcomes. Perhaps most importantly, the written plan gives a well-defined direction for the business. So, it can be used to keep all employees moving toward the common goals established within it.

A guide to Agri Farming Business Plan.
A guide to Agri Farming Business Plan.

Completing the Agribusiness plan can be a time-consuming activity, but well worth the effort. Agribusinesses operate in an ever-changing environment, the plan must be revisited periodically to be sure that the business is headed in a good direction. Again, the systematic review of the agribusiness plan forces the owner, and potentially others, to look at the business as a whole and make better-informed decisions. In this article we can also cover the below sections;

  • Agribusiness plan purposes
  • Drafting an agri-business plan
  • Different agriculture business plans
  • Mistakes in the drafting of business plans
  • Common errors while making a business plan
  • Steps for running the agriculture business
  • Advantages of agribusiness plan

Purpose of a agri farming business plan

A business plan has mainly two purposes;

  • To help the business management team create decisions to meet the specified objectives and goals; and
  • To help sell the feasibility of the business to bankers and other potential investors when requesting required capital.

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Agri Farming Business Plan.
Agri Farming Business Plan.

The business plan must be tailored to the preferences and concerns of those who will use it (either the management team or lenders). The content of an agribusiness plan depends on factors such as the type of business and the way they plan will be used.

Innovations in agriculture business

The medicinal plants, such as Aloe Vera and also Neem are targeted by the medical and pharmaceutical industries for mass production

The plants want high inputs at the initial stage but have a promising sustainable revenue generation capability and growth rate.

The important requirement or decision is the place. There are many options obtainable, such as backyard, renting an open space, large balconies or even the terraces.

Once the place and varieties of produce are decided, whether it is the seasonal vegetables or the medicinal plants the next step is to take the help of an expert to make a financial plan for the whole Agri farm business plan.

Crop production of agri farming business plan

The production plan conveys the type and quantity of commodities to be formed, projected for 3 years into the future. The production plan must be easy for the reader to follow. Crop production plans must include the estimated acreage for each crop each year (crop rotation) and an estimated yield for each crop.

Estimated production levels can then be combined with estimated prices to generate some of the figures required for the financial component. Livestock operations will contain more variables, such as the size of the herd, cull rates, weaning rates, weaning weights, rates of gain, purchase prices, and sales prices, etc. The production plan must be defined for a minimum of 3 years. Although changes will occur, these projections show where the business plan is going and whether it can reach its goals and objectives.

Agriculture business categories

Agriculture Business can be divided into three categories and they are as follows;

  • Productive Resources such as feed, seed, fertilizer, equipment, energy, machinery, etc.
  • Agricultural Commodities like raw and processed commodities of food and fiber.
  • Facilitative Services such as credit, insurance, marketing, storage, processing, transportation, packing, etc. 

Establish an agriculture business

The best way to start a farm business plan or activity is to conduct market research on obtainable resources and technology.

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Establishment of Agriculture Business.
Establishment of Agriculture Business.

Farming is a technically intense procedure and requires the help of qualified and experienced professionals. The important thing in the business is the quality and trust of the business partners and individual customers. The hybrid seeds obtainable in the market and the knowledge of fertilizers and other inputs are essential. The most important step is to decide what to grow and where to grow along with the amount of the produce. The agriculture farm business plan itself has several divisions and varieties.

The step-by-step approach in drafting an agri-business plan

Secure the identified land proof of ownership or lease agreement and obtain a farm map of the farm that includes farm boundaries or watering points.

Identify potential markets and the requirements for entrance into the market. Identify resources obtainable for utilization to develop potential commodities.

Take into consideration your ability, knowledge, and access to support before deciding on the commodity to be business plan.

Calculate viability and economic feasibility on potential commodity and probable opportunities for value-adding. Source information on the different forms of agribusinesses.

Decide on what agribusiness form will be the best for the situation. If the agribusiness form needs to be registered to proceed with the process.

Different agricultural business ideas

Urban agriculture

Urban agriculture refers to agricultural practices in urban areas and their surrounding regions and is a centralized operation involving horticulture, animal husbandry, aquaculture, and other practices for farming food or other agricultural products. You don’t want a huge space to get into the agriculture business. If you have a city or suburban home, you can still plant some crops in small or vertical containers to obtain the most out of your space.

Herb growing

Herbs such as basil, parsley, and mint can make for great agriculture products. So you can grow it at home or farm and sell it.

Vegetable farming

You can also plant a variety of different vegetable plants and harvest them to sell or make them into different products.

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Floriculture

It wants a retail space and a connection with the flower growers. It is one of the profitable retail agriculture business ideas that can be done online by providing customers with doorstep delivery of flowers.

Frozen Chicken Production 

The demand for this product is growing globally and one can start this business by living in a metro or a suburban city.

Botanical Pesticide Production

It is essential and mandatory for organic farming. As the demand for this product is high, it is considered as one of the profitable agriculture business ideas.

Fruit Growing

Growing fruit plants is harder than most folks first think. Fruits want continuous care from spring to fall. Or you could grow and harvest different types of fruit to sell or make into other fruit-based products.

Organic Gardening

You could specialize in organic gardening practices so you can market your products to health and eco-conscious consumers.

Field Crop Farming

Soybeans, cloves and other types of crops want a fair amount of field space to grow. But if you have the land, you can harvest different crops to sell to food producers.

Fertilizer Distribution Business 

One can start this fertilizer business with moderate capital investment. And it is mostly controlled by the government.

Organic Farm Greenhouse

The increased demand for organically grown farm products has led to the growth of this organic agricultural business. As there are many health risks in the foods grown with fertilizers, people are growing organic food. 

Dairy Farming

If you have space and the ability to care for cows or dairy animals, you could start dairy farms where you produce milk, cheese, and similar products.

Poultry Farming

Poultry farming is the ‘raising different types of domestic birds commercially for meat, eggs and feather production’. Poultry farming in India is a profitable business.

Fish Farming

Fish farming is a growing sector of the agriculture industry. The procedure requires raising fish in large tanks or enclosures. This farming business can be done at any time of the year. It wants modern techniques and moderate capital investment.

Mushroom Farming Business

By doing this mushroom business you can make good profits in just a few weeks. It wants a low start-up capital investment. Mushroom cultivation can give additional income to farmers who wish to take up this activity especially in their lean season. The greatest benefit of this venture is the fact that mushrooms can convert nutritionally valueless substances like wheat or paddy straw into nutritious delicacies.

Making a business plan for your agriculture business

The financial plan will contain all the initial and running costs along with the revenue generation calculations.

The correct calculation of the growth curve and breakeven point is necessary for futuristic sustainable growth and positive aggressive expansion. Then, develop a marketing strategy.

There are a lot of options that want to be explored, such as grocery delivery giants, large retail stores and various restaurants around the region.

Nowadays, the trend is also considering hiring a self-business team and trucks for selling the make in urban societies to avail the correct value for the produce.

The owner of the Agri farm business plan can create its startup and sell its products in the open market to create sustainable income and reduce dependability.

Common mistakes in the drafting of business plans

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Cash flow

Most prospective entrepreneurs focus mostly on the infrastructure that is required and ignore the cash flow which is critical to the daily operations of the business. Cash flow assists in managing financial resources, i.e. debtors and creditors’ control.

A vague business plan

Prospective entrepreneurs or writers of business plans assume that the reader, funding institution, and investor know what the business venture is all about. So, it is important to provide as much detail as possible and elaborate wherever necessary to clarify the needs of the business.

Unrealistic assumptions

Almost all writers of business plans assume that the business will succeed, they make unrealistic assumptions. It is advisable to benchmark against existing or similar agribusinesses in the industry for acceptable standards. The goals of the business should be realistic and achievable. Rather start small and then expand.

Risks

Many business plans ignore the risks or do not create provisions for the risks. The business plan must include all risks and provide information on how some of those risks can be mitigated.

Important facts for running the agriculture business

  • The agriculture farm business plan and implementation mainly involve a huge amount of risks and vulnerabilities, such as failure of crops drop in quality and non-seasonal rains along with the different pests and crop-destroying insects.
  • The owner should calculate all the available risks and take all the appropriate and necessary measures to protect the business and crop in all circumstances.
  • The rise of IT and digitalization has led to the growth of home delivery start-up enterprises and the e-commerce sector.
  • The owner should research upon and consider of investing heavily on technology to ensure sustainable growth by implication of house delivery system, and online selling platform, etc

Benefits of having a business plan

  • The evolution from agriculture to agribusiness has brought with it numerous advantages. These contain reduced drudgery for laborers; the release of workers for nonagricultural endeavors; a better quality of food; a greater variety of products; improved nutrition; and increased mobility of people.
  • Helping you to clarify vision and deciding whether or not to forge ahead with the idea.
  • Determining if your product and service have a sufficient market to support it and whether or not it will be profitable.
  • Providing an estimate of start-up costs and how much you’ll need to invest or finance.
  • Convincing investors and lenders to fund business.
  • Defining corporate objectives and programs to achieve those types of objectives.

That’s all future farmers about agri farming business plan, ideas. You may be interested in Organic Agriculture Information.

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