Organic Farming Business Plan, Profitability, Schemes

Business plan for organic farming: Organic farming mainly involves the cultivation of plants and rearing of animals in natural ways. Organic farming relies on ecologically balanced agricultural principles such as crop rotation, green manure, organic waste, biological pest control, organic fertilizers, and rock additives. A successful organic farming business always includes a good business plan. It is the system of production that is capable of avoiding or majorly block the use of pesticide, synthetically compounded fertilizers, livestock feed additives, and growth regulators. The flexible organic farming system relies upon crop residues, green manure, weeds, crop rotations, legumes, aspects of biological pest control, animal manures, and etc. Methods of organic farming are used in developing countries, majorly because of economics and fewer resource of chemicals.

A guide to organic farming business plan

Different organic farming methods

Organic farming is to release nutrients to the crops for increased sustainability in a pollution-free environment. It aims to produce a crop with nutritional value. There are different methods by which organic farming is practiced are as follows;

Fertilizers

Applying organic fertilizers without prior knowledge of their properties may cause crop yield decline under low application or pollute the environment. The application of organic fertilizers to ponds mainly depends on the fertilizer form and moisture content. Organic matter could be applied through the application of manure, compost, and animal by-products, such as feather meal or blood meal.

Crop diversity

Crop diversity is an aim of organic agriculture system, and a number of advantages can be obtained by the use of crop diversity such as improved crop yield, and reduced weed, diseases, and pests. However, a legal and logistic problem counteracts the diversification of crops.

Soil management

After the cultivation of crops, the soil loses its nutrients and quality depletes. Organic agriculture initiates the use of natural methods to increase the health of the soil. Soil management focuses on the use of bacteria that is present in animal waste helps in making the soil nutrients more productive to enhance the soil.

Pest control

Organic pesticides are derived from naturally occurring sources. These contain living organisms such as the bacteria Bacillus thuringiensis, used to control caterpillar pests or plant derivatives such as pyrethrins or neem oil. Mineral-based inorganic pesticides such as sulfur and copper are allowed.

In addition to pesticides, organic pest control integrates biological, cultural, and also genetic controls to minimize pest damage. Biological control utilizes the natural enemies of pests, that are predatory insects (e.g., ladybugs) or parasitoids (e.g., certain wasps) to attack insect pests. Pest cycles can be disrupted with cultural controls, of which crop rotation is widely used. The use of such varieties and the planting of genetically diverse crops provide genetic control against pests and plant diseases.

Crop rotation

In this organic farming, farmers do not grow the same crops on the same section of land year after year. If you are thinking about why there are numerous advantages associated with this practice, this technique naturally replenishes the soil as diverse plants donate nutrients to the soil. And, disrupting the habitat of weeds and insect pests helps control them.

Weed management

Weed is the unwanted plant and that grows in agricultural fields.  Organic agriculture farming focuses on lowering weed and not removing it completely. The most widely used weed management techniques are;

Mulching – Mulching is a process where we use plastic films or plant residue on the surface of the soil to block the growth of weed.

Mowing or Cutting – Mowing is the removal of weeds’ top growth.

Importance of organic farming

• The environment benefits as natural habitat sources are less threatened.
• And it provides healthier food for people.

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The site is a key factor for business plan for organic farming

The site plays an essential role in any venture to be successful. An organic farm’s location generally determines how the venture will turn out.

The organic farm site must be near a clean water source – water is a non-negotiable resource for crop growth and health. If the water source is far, it is more difficult to manage the irrigation process. This is a tedious consideration to make but is crucial for the success of the venture.

The proximity of the farm to the marketplace plays a big role in the sustainability of the farm. The farm’s closeness to the market allows for the easy transport of creating for selling. And, this helps save costs when transporting materials to the farm. However, site selection should be aligned with the purpose of the organic farm. The purpose of the farm determines its size.

Organic farm industry overview

The organic farm industry includes farms that mainly cultivate organic fruit, vegetables, grains, and other crops or livestock. It is very important to categorically state that organic farming does not involve the use of artificial chemicals, pesticides, and fertilizers, or genetically modified organisms.

The organic farming industry provides a variety of farm produce including beef, fruit, vegetables and also poultry. These farm products are free from artificial chemicals, pesticides, fertilizers, or genetically modified organisms. The organic farming business has been one of the economy’s best performing industries over the last half a decade. Global demand for the organic farm is rising due to increasing health concerns about food.

Government schemes for promoting organic farming

The Indian government will offer capital investment subsidy for organic farmers. It is offered through the National Centre of Organic Farming (NCOF) under the Department of Agriculture and Cooperation with the National Bank for Agriculture & Rural Development (NABARD). The prime objective is to readily obtainable organic resources for improving farm productivity without letting soil health.

Incentives are obtainable for reducing dependence on chemical aids and promote the conversion of organic wastes into nutrition sources for plants. Credit linked and back-ended subsidies are obtainable.

Opportunities in organic farming business

Under organic farming, there are a number of categories and you can select any one of them and specialize in that particular category.

If you have a proper financial background that can withstand loss at times, you can concentrate on the production of organic fruits and organic vegetables. The term loss was indicated due to the perishable nature of fruits and also vegetables. In this business category, its either success or loss.

Organic medicines are another group of products that will create more income. The shift is not to organic food alone, medicines are taken when it is organically produced.

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Organic farming is a newly emerging concept with huge success and used to increase your profits. In an organic business view, the demand for these products increases when the supply is less. So, prices can be higher than the normal prices and this will not affect your sales. From reports, it is said that there are fewer outlets for buying organic products and there is a mismatch in supply and demand.

Organic farming market analysis business plan

Market trends

One of the regular trends in the commercial organic farming line of business is that most players in the industry are no longer concentrating only on organic crop farming. They now find it easier to run organic crop cultivation and organic livestock farming. The fact those organic foods are expensive, the sale for organic food is on the increase and it is indeed profitable.

Organic farmers are known to pay attention to one or more organic products depending on farm location and types of farms suitable to the local climate. Market trends can influence farmers’ choices of more profitable crops or produce. Organic vegetables and organic fruits are the most established products provided by the industry. They have the highest demand as they are considered susceptible to chemical residues. Lastly, with the recent advancement in technology, organic farmers can now comfortably produce a variety of crops in a country where such crops can hardly survive and in places where there are few farmlands.

Organic agriculture business ideas

Organic Produce Farm – One of the popular ways you can get into the organic agriculture business is to grow organic produce. This is similar to regular produce farming, just without the chemical pesticides and fertilizers mainly used by conventional farms.

Organic Dairy Farming – You can start a dairy farm where you use natural processes and organic feed for the cows.

Organic Livestock Farming – Or you could start a livestock farm where you use natural materials and processes to raise your livestock. Organic livestock farmers want to use organic animal feed.

Organic Fish Farming – There is some debate about how organic farmed fish can really be.

Organic Market – You could open up own organic food market where you sell organic items directly to consumers.

Farmers Market Vending – There are plenty of farmers’ markets around the country that you can rent space from to sell your organic foods.

Organic Farmers Market – Or you could actually organize very own farmers market and just work with organic farmers.

Orgnic Herb Growing – If you have a smaller space, then you can grow herbs to package for sale to consumers or retail outlets.

Financing your organic farming business

There are not several companies that have sufficient working capital on their own to completely finance their business by themselves.

A producer organization will need capital for the below purposes;

• Investments such as buildings, trucks, motorbikes, furniture, computers, and processing equipment, etc.
• Working capital such as payment of personnel, running cost of the business, and inputs
• Trade finance for buying of harvest
• Capital to overcome start-up losses

The profitability of organic farming in India

If the right market can be accessed then organic farming in India is profitable. Profit increases in mostly two ways;

• The cost of farm input reduces by using crop and also animal residue, organic waste as bio-fertilizer.
• Market value and demand for an organic product is high compared to traditionally developed farm produces.

There is a very good export potential of organic produces but organic farming methods should be strictly followed and along with organic certification from the authorizing body.

Advantages of organic farming

• Farmers can reduce their production costs as they do not need to buy expensive chemicals and also fertilizers.
• In the long term, organic farms save energy and also protect the environment.
• And the pollution of groundwater is stopped.
• Organic crops are structurally and also metabolically superior to other crops. Such crops are less vulnerable to rotting or molding and stored for a protracted period.
• Input costs are considerably lower compared to conventional farming.
• Organic plants can tolerate drought better and can grow even in areas with meager irrigation system facilities.
• Organic produces are tastier as the sugar content in them is richer due to better quality nutrients absorbed by crops.
• Plant diseases, weeds, and pests are naturally repelled through scientific crop rotation and other methods.
• Yields from the same piece of land are higher.
• Security of income and rich returns on investment assured.

Key characteristics of the organic farming business

The key characteristics of organic farming include;

• Providing crop nutrients indirectly using relatively insoluble nutrient sources which are made obtainable to the plant by the action of soil micro-organisms.
• Nitrogen self-sufficiency through the use of biological nitrogen fixation and efficient recycling of organic materials.
• Protecting soil quality using organic material and also encouraging biological activity.
• Indirect provision of plant nutrients using soil microorganisms.
• Nitrogen fixation in soils using legumes.
• Rearing of livestock, taking care of housing management, nutrition, health, rearing, and breeding.
• Care for the larger environment and also the conservation of natural habitats and wildlife.

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