Do you need help starting a wheat farm? If YES, here is a sample wheat farming business plan template.
Do you want to go into grain farming business? If you do, one of the most important things you need is having a plan. This wheat farming business plan sample is provided to serve as a guide.
To obtain funding for your business, the plan is necessary and a requirement demanded by most lenders. You will also need your plan to guide your business during its different stages of development.
Here is a sample business plan for starting a wheat farm.
This sample highlights important areas necessary for actualizing your goals.
WHEAT FARMING BUSINESS PLAN GUIDE
Patchwork Farms Inc. is a wheat farm located in Kansas. It has witnessed steady growth in recent years as well as a growing demand for our products. While there has been a lot of progress, we plan on expanding our production in a bid to take advantage of the international market. The Asian market presents vast opportunities for our business.
Our 200 acre farmland is solely dedicated to the cultivation of wheat. While the international market is our main focus, 30% of such our products will be sold in the domestic market.
Products and Services
The cultivation of wheat is where our focus lies. These include several varieties which are classified into 6 major classes. These include the Hard Red Spring, the Soft White, Durum, Hard White, the Hard Red Winter and the Soft Red Winter. Although we cultivate all the above-mentioned varieties, the Hard Red Winter variety will constitute over 70% of our production.
These products are produced using both health and environmentally friendly techniques. Our products are among the best in the market as we offer fair and highly competitive prices.
At Patchwork Farms Inc., we seek to build upon our relationship with major/bulk purchasers who mop up our products. Also, we are strategizing to take advantage of the major international distribution channels. This will enable us to realize our objective of being a major global player in the international wheat market within the space of 5 years.
We also anticipate a sharp rise in our income within the same time frame. This will come mainly from increased output from our farms.
Our Vision for Patchwork Farms is to be among the 20 biggest global wheat producers within a decade. We will expand our processing capacities to ensure we compete favorably with major players in the industry. We will be injecting the required funding in 3 installments to realize this vision.
Cost Implications and Equipment
Wheat farming business is capital intensive. We have invested over $21,200,000.00 to attain our present production capacity. This is not enough as we will be committing more resources to enable us realize our objectives.
Hence, we will apply for loans to the tune of $30,000,000.00 to boost our present capacity. This will be used in purchasing more equipment as well as storage facilities such as silos.
These will include 4 units of Tine Tillers, 3 units of Seed Cleaner Graders, 6 Wheat Threshers, 4 units of Fertilizer Spreader, Chisel Ploughs (3 units) and 3 units of Reaper machines. Also 2 tractors and a combine harvester will be purchased to add to those on ground.
With the expansion and enhancement of our production capacity, we will be increasing our profit potential significantly. In view of this, we have arrived at a rough estimate of projected profits over a period of 3 years. Based on available data, it has shown impressive growth potentials. This is summarized in the chart below;
- First Year $22,000,000
- Second Year $38,500,000
- Third Year $59,800,000
The agricultural industry is huge and wheat farmers are adopting a variety of strategies to consolidate their presence in the market. We are no spectators as we have set in place a variety of strategies to give us an edge. One of such is hiring only the best hands in the industry. We understand the value an experienced hand adds to the business.
Hence we are leaving no stone unturned in ensuring that we hire only the best.
Their wealth of experience has contributed tremendously over the years. We also have an attractive welfare package that takes good care of our employees. This has served as an incentive in stimulating them to contribute their best.
Sales and Marketing Strategy
We understand that it is not enough to have a good product. Having an effective channel of distribution is essential.
Hence, we have networked extensively with bulk purchasers while also improving our processing and storage capacity. This reduces wastage significantly and maintains our profit potential significantly.
We have also established a world class marketing department. The marketing team designs effective sales strategies that attract multiple buyers. This allows us to attract a better bargain for our products.
To significantly minimize the chances for failure, we have conducted a Strength, Weakness, Opportunities and Threat analysis for our wheat farming business. The findings from this analysis reveal the following;
With over 3 years of experience, our strengths as a wheat farm business include the strategic partnerships and relationships entered into with a wide range of different partners which include buyers and suppliers. Also, dealers in farm equipment and machinery enhance our position as a strong emerging player in the wheat farming industry.
In addition to these, our staffs are a great asset to our business. Their years of experience have been strategic to the growth of the business in no small measure.
Our weakness stems mainly from our years in the industry. We are a business which is almost 4 years in operation.
Although this is the case, our experienced workforce is up to the task in steering the business through the rough terrain or tough times.
The opportunities available to us are boundless! There is much ground to cover both in the domestic market and the international market. Most of our focus is fixed on the international market with developing countries as our target.
There are a host of threats that are likely to affect us negatively. These include unpredictable weather conditions, economic recession, adverse trade policies (both domestic and international) among a host of others. We realize the challenges these situation pose. However we remain optimistic that such things are not a frequent occurrence.
This wheat farming business plan sample has provided details you will find quite helpful when writing your plan. It covers some of the most essential parts/sections all business plans should have. While this is of great help, you should seek the help of an expert such as a business consultant or seek legal advice if you can.