COMMERCIAL VEGETABLE FARMING BUSINESS PLAN SAMPLE TEMPLATE
Do you have interest to start a vegetable farm in your community? Vegetables are consumed by so many people on a daily basis because of it nutritious value. Because of this, vegetable farming is one very lucrative agricultural business that any wise entrepreneur should consider venturing into.
If you have not consider the thought of starting a dry season vegetable farming business before, in this post I will be sharing with you how to start a vegetable farm business and become successful in it.
To bring clarity to this discussion, I want to first share with you what a vegetable farm is.
What Is a Vegetable Farm?
A vegetable farm is a type of farm or land where vegetables are cultivated for the consumption of man, either for commercial or private use.
Back then, vegetable cultivation by man was not as easy as it is now. Farmers had to go through manual labor in order to grow their vegetables. But as time went on, Animals were used to reduce the hard work of this vegetable cultivators e.g. using those animals to plough the farm for cultivation.
Now, farming processes are fast with the introduction of mechanized equipment, and the usefulness of those animals have reduced greatly.
Types of Commercially Consumable Vegetables
There are lots and lots of vegetables worldwide, if I should start mentioning them one by one, I don’t think this post will have an end. And again, not all of this vegetables are recognized and widely consumed, so starting a farm with such vegetables may not be profitable.
So, with that said, let us check out some of the vegetables known and highly demanded for in any market:
I am starting with tomato because it is one of the most consumable vegetables. Cultivating Tomatoes can be very amazing and profitable, as it requires just 8 hours of sunlight with a warm clear weather. And did I forget to say that it is harvested 3-4 months? Making it awesome for cultivation.
- Fluted Pumpkin
This is another most consumed vegetable in any community as it is used to prepare lots of dishes. Fluted pumpkin is highly valued because of its high nutrient contents when cooked, and also good in blood volume increase when taken raw.
This vegetable is easier to cultivate no matter where you reside because of its tolerance to drought, and also performs well even on poor soils.
This type of vegetable is often consumed raw. It is also used by cosmetic companies to combat skin problems, due to the fact that it has the same level of hydrogen content with the human skin. So the high demand of cucumber by this cosmetic companies makes cultivating it profitable.
Cultivation of cucumbers should be in a rich soil with enough organic matter and a steady sunlight.
- Water Melon
Water melons are also regarded as fruits which is consumed by people very well. Water melons should be cultivated on a warm soil to enhance the growth of the seeds. And water melons do not take a long time to be harvested, it takes just 3 months to be harvested.
You can’t start a vegetable farm without thinking of planting cabbage in your farm. Yes! Cabbage is a popular vegetable used in the preparation of Salads, and that makes it popular. People also use it in various ways, some like taking it raw, while others love adding it to dishes etc.
The only downside about this vegetable is that it is expensive compared to other vegetables. This is because more effort is required to cultivate it. Cabbage performs well in cold climates, well drained, and on a fertile soil.
Okra is an edible green-pod vegetable with a high nutrient content. It contains vitamin A, vitamin K, vitamin C and vitamin B complex. In as much as it could be grown on any kind of soil, it does not do well in tight, water logged soils.
After going through that list above, you may start thinking of how to kick-start your own vegetable farm. But before starting your own vegetable farm, there are some factors you need to consider.
Vegetable Market Development
We all know that vegetables are perishable crops, so after knowing that these vegetables are perishable crops, you need to plan on how to avoid losing them by identifying where you will market this vegetables, before there are finally ready for the market.
Considering the site location of the farm includes knowing the topography of the soil you intend to use, the soil type and also find out the availability of water, because these vegetables needs water to help them grow well. And also find out how close your farm is to the market.
As it is known, vegetables are always attacked by pests and seasonal diseases. So, you need to put things in place on how you are going to combat any disease or pest when it comes.
Startup Capital for a Vegetable Farm
You can’t start a vegetable farm without capital. You may want ask how much it will cost you to start your vegetable farm.
The fact is, there is no written rule as to how much you need to start up a vegetable production business as this greatly depends on how large you want your vegetable farm to be.
Cultivating a 1-2 hectares of land varies in cost depending on the location, and also the type of vegetable intended for cultivation. And that should include seedlings, manure, labor and pesticides.
Here is a sample business plan for starting a vegetable farm.
VEGETABLE FARMING BUSINESS PLAN EXAMPLE
There are several aspects to agriculture that range from crop farming to livestock farming. Each of these requires systematic method and planning to achieve desired results.
Proper planning is an indispensable requirement of doing business which must not be overlooked, as doing so will be to your own peril. We will focus on an important aspect of agriculture which is crop production with special focus on the vegetable farming business plan.
As an economic activity, there is need for proper coordination of all aspects of crop production. Without the necessary planning, such a venture will hit the rocks, resulting in huge losses of resources as well as time. Let’s get to the details of the vegetable farming business plan shall we?
Anyone taking going through your business plan should be able to have a general understanding of your vegetable farming business without having to go through the entire document. Your executive summary section provides a highly summarized picture of your plan.
Investors as well as money lenders are most interested in this section of your business plan. If it is compelling enough, they will like to get into the details to find further information. If you must attract the attention of your readers, then you need to be very specific as well as concise in your presentations.
It is necessary to give details on use of funds as lenders will be very interested in knowing the specifics of what the funds will be spent on.
Here, there should also be a clear definition of the loan repayment process as anyone investing in a business will need to know how his/her money will be recouped. By doing this, you are clearly demonstrating to the investor your capacity to repay any loans as well as interests. The executive summary section is where you pitch your business to investors.
Therefore you need to do a good job here as will also have a telling effect on the general plan.
The Legal Structure
Starting a vegetable farming business requires you to choose the legal structure that best suits your business. Different types of business structures exist to meet specific needs.
Therefore, you should carefully consider your preferred structure, some of which include Sole Proprietorships, Partnerships, Limited Liability Partnerships LLP, Limited Liability Companies LLC and many more.
After selecting your preferred business structure, you should be able to explain clearly why you chose that particular structure as well as how best it suits your business needs.
After making your choice of a suitable legal structure, all supporting documents should be included in the supporting documents section.
For partnerships, it is necessary to create an exit provision as well as another for business dissolution if the need arises. This helps in significantly reducing unnecessary conflicts that may arise. There should also be provisions for changing the legal structure of the business whenever the need arises in future.
If you plan on changing the structure of your business at any point in the future, you should clearly state why such change is necessary as well as also providing the timeline when such a change will come into effect.
This is where anyone reading your business plan will get to have a clear picture about your services and products.
Here, you will need to also clearly highlight your business assets, inventory, value as well as marketability and turnover. You need to also provide information on industry trends as well as how your products will be beneficial to the consumer or customers. There should be some form of projection under this section of where your business should be after some years.
Your Business Location
Where you locate your farm business is important to how your products (in this case vegetable) and other services which may be provided by you will be distributed. This is largely determined by your target market.
Because this is a food crop which is consumed by almost every family, your target market will be very wide. You will need to state the reasons for selecting such location as well as how it helps/contributes to the growth of your business.
Marketing is very crucial to the success of your vegetable farming business. Your marketing plan should be such that clearly identifies your target market, as well as providing clear-cut strategies of distributing your agro-products to these targeted customers in the most effective and efficient ways possible.
You need to be clear about the size of your target market as well as how effective your strategies will be towards attracting increased patronage from clients. Carefully developing a sound marketing plan will go a long way in setting up your business for success.
Your methods of advertising as well as the pricing of your products are important considerations to make when writing your business plan. Pricing requires having knowledge on customer behaviour which you can use to your advantage in arriving at a fair price where a win-win situation is achieved.
Here, a business plan requires sound financial planning. Important sections that must be included here include a summary of all financial needs such as application for loans, the budget or cash flow, break-even analysis, a three year growth projection, as well as actual performance statements among others. These are very vital towards obtaining loans for your vegetable farming business.
These are some of the necessary requirements for writing your vegetable farming business plan. Without these sections, your business plan is incomplete and will hardly make any meaningful impact at all.
When writing your plan, you should not rush the process as it needs every aspect of the business to be carefully researched if the business is to make a meaningful impact.