AGRICULTURE BUSINESS PLAN
Are you searching for a business plan that can aid you in writing one for your agriculture business?
In this article, you will be presented with an agriculture business plan sample that can assist you in carving one for your agriculture business.
This article has highlighted the key things that must be given attention to in a good business plan.
Are you thinking of starting an agricultural business in your city, community, or state? Do you know that you can become that millionaire that you have been dreaming about by venturing into the agricultural business?
In major countries of the world, especially the underdeveloped or the third world countries, the agricultural sector is now the hot spot as the oil and gas business is now going with time, due to the discovery of solar and hydro cars and electronics.
The agricultural sector which was abandoned when oil was discovered is now being resorted to. This sector is the right path for any unemployed person who wishes to go into entrepreneurship.
Therefore, any businessman or entrepreneur who desires to make more than enough income needs to invest in the agricultural business today.
However, starting an agricultural business can be quite daunting but with adequate and proper preparation, idea, and requisite knowledge it will be an easy pass.
For prospective investors looking to invest in agriculture, the following must be taken into adequate consideration if you want to start an agriculture business.
STEP BY STEP GUIDE TO STARTING AN AGRIBUSINESS
- Identifying the Branch of Agriculture
The first action to take before you can start an agriculture business is to first identify the branch of the agriculture business you want to focus on. A prospective agricultural investor needs to know the area of agriculture that interests him or her. Agriculture is very wide and an entrepreneur wanting to venture into the sector must know his or her area of focus or specialization.
An investor should know whether he wants to go into crop production (which entails the cultivation of land, planting, management, and harvesting) or Animal husbandry which deals with the rearing of animals which includes birds, domestic animals, and other aquatic animals.
He or she needs to engage in a lot of research to know more than enough about his or her choice of area.
- Lease A Portion of Land
Irrespective of which branch of agriculture is chosen, a place is still needed for agricultural activities. Therefore, a prospective investor or an entrepreneur after identifying which area of agriculture to go with needs to get some acres or plots of land based on his financial capacity, for either farming (crop production) or animal husbandry.
It will save cost if he can get an unoccupied piece of land which he possesses. If he doesn’t possess any space where his agricultural activities could be carried out, the best option is to lease land. This location could serve both as an office and farm depending on the taste and choice of the business owner.
- Procure Relevant Machines
Gone are those days when farmers physically engage themselves in almost all aspects of agricultural processes. The advent of technology and machines specifically is a blessing, especially to crop and animal farmers. Now, ridges, crop plantation, and animal feeding could all be made by a press of a button.
Therefore, anyone who desires to go into the agriculture sector should be ready to get various machines involved at different levels of agricultural processes. These machines could however be too expensive and not affordable for fresh agro-preneur but instead of procuring new machines for use, it is advisable to get them on the hire agreement.
There are quite many people around who have those machines and hire them out. Hiring some of these machines for a start is better.
Another important factor when needed to start an agriculture business is competent hands to carry out manual labor on the farmland. Though machines have come to assist, manpower is still needed for support. What is needed is to get people who will do the work and supervise.
The entrepreneur has to agree with the workers on the number of their wages or salaries. With the advent of machines, the manpower needed will be less because most of the processes would be done by machines if available.
Any business no matter how lucrative and profitable it could be, that lacks management is bound to fail and crash. At this stage, the business needs thorough management which could be done directly by the business owner or he could hire a qualified manager to do the work.
However, if he chooses to hire a qualified manager, supervision is nevertheless needed.
One mistake most ‘agro-preneurs’ make is that they wait till they start to harvest before they start marketing. It is economically wrong to do this. Awareness needs to be created very early even before crops are harvested or animals (or their products) are ready for sale.
Another thing entrepreneurs should also look at, especially for those who produce on a large scale, is the area of exporting their outputs to neighboring states and countries. This will further boost the scope and awareness of such an entrepreneur.
In conclusion, starting an agricultural business is not a direct or sure ticket to riches or fortune. However, with the right mindset, dedication, hard work, and proper management the proverbial fortune in agriculture will come.
AGRICULTURE BUSINESS PLAN EXAMPLE
Here is a sample business plan for starting an agribusiness.
The agriculture industry is very wide and comprises various subsets. It encompasses all agricultural activities that have to do with the growing of crops and the rearing of animals.
- Palm oil processing business plan
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- Greenhouse farming business plan
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- Plantain farming business plan
- Dairy farm business plan
- Cattle farming business plan
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- Hydroponics farming business plan
- Horse breeding business plan
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- Pet business plan
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- Livestock farming business plan
The activities that you will be engaged in will however depend on the area of the agriculture industry you have decided to focus on.
BUSINESS NAME: Grant Botanical Agriculture farms LLC.
- Executive Summary
- Business Objectives
- Mission Statement
- Business Structure
- Our Products and Services
- Market Analysis
- Sales and Marketing Strategy
- Financial Plan
- Sales Forecast
Grant Botanical Agriculture farm LLC is registered and licensed with the authorities in Ohio, and the United States. The business will be located in Ohio, United States, and it will be owned and managed by the Grants, Mr. Jeffery Grant, and his wife Mrs. Lucy Grant.
The business is committed to actualizing its goal of becoming the number one botanical plant provider to the health and vitamin companies in the whole of the United States. We will be concerned with growing and providing only five distinct therapeutic plant species which include Ginger, Skullcap, Ginseng, St John’s Wort, and Echinacea.
For us to achieve our business goals for the Grant Botanical Agricultural farm, we have identified the objectives we must undertake. They are as follows:
- We will ensure we are among the leading botanical agricultural farms in the industry in the whole of the United States, not just Ohio.
- Attain the point where we can considerably sustain our profits.
- We will ensure we enjoy our work as much as possible while making returns in sales.
Our mission at Grant Botanical Agricultural farm is to become the number one botanical plant provider to all the health and vitamin industries in the United States.
We will do well to accomplish this mission by providing nothing short of the very best and quality products and services to our customers, and also at affordable prices as well.
The Grant Botanical Agricultural farm is an agriculture farm that will do all that is possible and permissible within the laws of Ohio and the United States is running the business.
Given this, we will make sure we set up a solid business foundation that can place our agriculture farm business in the same league as the top agriculture farm businesses in the United States.
Also, our business structure will be such that will facilitate the speedy progress of getting to our desired business goal.
The Grant Botanical Agricultural farm will be owned by the Grants. Mr. Jeffery Grant will be responsible for the smooth and steady business operation of the farm. He will bring in his wealth of 20 years of experience working as a project manager.
Mrs. Lucy Grant will be handling the sales department. Her knowledge of plant biology will be of immense benefit to the growth of plant species.
OUR PRODUCTS AND SERVICES
Grant Botanical Agricultural farm is an agricultural farm that will be concerned with the growth of several botanical therapeutic plants to make profits. We will be entirely focused on just five (5) special plant species that are highly demanded in the market, and which will also flourish in the soil of our chosen location in Ohio. We will be concerned with growing the following five (5) plant species:
- Ginseng: Energy Booster.
- Echinacea: Boosts the immune system.
- Ginger: Soothes the stomach.
- St John’s Wort: Fights against mild depression.
- Skullcap: Fights against general inflammation.
The natural supplement market in the agriculture industry is quite an intriguing one. Statistical data proves that more than 50% of the United States population directly makes use of dietary supplements.
Also, it is now a growing trend that the American population use herb in one form or another.
Three discrete groups make up our target market, they are:
- Supplement companies.
- Companies that process botanicals for the supplement companies.
- Nurseries that resell plants.
SALES AND MARKETING STRATEGY
For us to accomplish our business vision and objectives, we have ensured we collaborate with market experts to help us establish the best sales and marketing strategies for our agriculture farm business. The following are the sales and marketing strategies we were able to come up with:
- We will first start by sending our business introductory letter to the relevant companies that need the products we have to offer. These companies include supplement companies, botanical processors, and nurseries that resell plants.
- We will list our agriculture farm business in relevant business directories.
- We will do well to advertise our agriculture farm business on television & radio stations, business magazines & newspapers, social media, etc.
- We will also make use of word-of-mouth advertisement.
We are so enthusiastic about starting this agricultural farm. It had been our dream for more than five years now. We have been able to save a lot for startup capital. We have also sold a lot of our other investments to generate the needed startup capital.
From our estimate, the startup capital we will require is $150,000, which will cover the purchase of a host of new equipment, and the leasing fee as well. We will generate half of the capital from our savings and sales of investments.
The other half will be sourced as a 5-year loan from our bank.
The sales projection below shows the sales forecast of Grant Botanical Agriculture farm business for the next three years after startup
First Year $90,500
Second Year $200,000
Third Year $250,000
The sales forecast above suggests that the growth will be slow yet steady in the three years under consideration.
The business plan above has used the business name “Grant Botanical Agriculture farm”. The Grant Botanical Agriculture farm business will be owned and managed by Mr. and Mrs. Grant. They both have had the needed experience to manage the agriculture farm and take it to the desired level.
The agriculture farm will be located in Ohio, United States. $150,000 will be required as the startup capital investment to startup the agriculture farm in Ohio, United States, of which half of it will be sourced from the bank as a loan, and the other half will be generated by the owners.
The agriculture farm business will be strictly concerned with the growing and selling of only five distinct plant species which will be offered for sales to the relevant industries anywhere in the United States.