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How to Start a Farm: Plan Your Operation

Think about your operation from the ground up and start planning for your business.  A good farm business plan is your roadmap to start-up, profitability, and growth, and provides the foundation for your conversation with USDA about how our programs can complement your operation. 

Keep reading about planning your business below, get an overview of the beginning farmer's journey , or jump to a different section of the farmer's journey.

On This Page

Why you need a farm business plan.

A comprehensive business plan is an important first step for any size business, no matter how simple or complex. You should create a strong business plan because it:

• Will help you get organized . It will help you to remember all of the details and make sure you are taking all of the necessary steps.
• Will act as your guide . It will help you to think carefully about why you want to farm or ranch and what you want to achieve in the future. Over time, you can look back at your business plan and determine whether you are achieving your goals.
• Is required to get a loan . In order to get an FSA loan, a guarantee on a loan made by a commercial lender, or a land contract, you need to create a detailed business plan . Lenders look closely at business plans to determine if you can afford to repay the loan.

How USDA Can Help

Whether you need a good get-started guide, have a plan that you would like to verify, or have a plan you’re looking to update for your next growth phase, USDA can help connect you to resources to help your decisions.

Your state's beginning farmer and rancher coordinator  can connect you to local resources in your community to help you establish a successful business plan. Reach out to your state's coordinator for one-on-one technical assistance and guidance. They can also connect you with organizations that specifically serve beginning farmers and ranchers.

It is important to know that no single solution fits everyone, and you should research, seek guidance, and make the best decision for your operation according to your own individual priorities.

Build a Farm Business Plan

There are many different styles of business plans. Some are written documents; others may be a set of worksheets that you complete. No matter what format you choose, several key aspects of your operation are important to consider.

Use the guidelines below to draft your business plan. Answering these kinds of questions in detail will help you create and develop your final business plan. Once you have a business plan for your operation, prepare for your visit to a USDA service center. During your visit, we can help you with the necessary steps to register your business and get access to key USDA programs.

Business History

Are you starting a new farm or ranch, or are you already in business? If you are already in business:

• What products do you produce?
• What is the size of your operation?
• What agricultural production and financial management training or experience do you, your family members, or your business partners have?
• How long have you been in business?

Mission, Vision, and Goals

This is your business. Defining your mission, vision and goals is crucial to the success of your business. These questions will help provide a basis for developing other aspects of your business plan.

• What values are important to you and the operation as a whole?
• What short- and long-term goals do you have for your operation?
• How do you plan to start, expand, or change your operation?
• What plans do you have to make your operation efficient or more profitable ?
• What type of farm or ranch model (conventional, sustainable, organic, or alternative agricultural practices) do you plan to use?

Organization and Management

Starting your own business is no small feat. You will need to determine how your business will be structured and organized, and who will manage (or help manage) your business. You will need to be able to convey this to others who are involved as well.

• What is the legal structure of your business? Will it be a sole proprietorship, partnership, corporation, trust, limited liability company, or other type of entity?
• What help will you need in operating and managing your farm or ranch?
• What other resources, such as a mentor or community-based organization , do you plan to use?

Marketing is a valuable tool for businesses. It can help your businesses increase brand awareness, engagement and sales. It is important to narrow down your target audience and think about what you are providing that others cannot.

• What are you going to produce ?
• Who is your target consumer ?
• Is there demand for what you are planning to produce?
• What is the cost of production?
• How much will you sell it for and when do you expect to see profit ?
• How will you get your product to consumers ? What are the transportation costs and requirements?
• How will you market your products?
• Do you know the relevant federal, state, and local food safety regulations? What licensing do you need for your operation?

Today there are many types of land, tools, and resources to choose from. You will need to think about what you currently have and what you will need to obtain to achieve your goals.

• What resources do you have or will you need for your business?
• Do you already have access to farmland ? If not, do you plan to lease, rent, or purchase land?
• What equipment do you need?
• Is the equipment and real estate that you own or rent adequate to conduct your operation? If not, how do you plan to address those needs?
• Will you be implementing any conservation practices to sustain your operation?
• What types of workers will you need to operate the farm?
• What additional resources do you need?

Now that you have an idea of what you are going to provide and what you will need to run your operation you will need to consider the finances of your operation.

• How will you finance the business?
• What are your current assets (property or investments you own) and liabilities (debts, loans, or payments you owe)?
• Will the income you generate be sufficient to pay your operating expenses, living expenses, and loan payments?
• What other sources of income are available to supplement your business income?
• What business expenses will you incur?
• What family living expenses do you pay?
• What are some potential risks or challenges you foresee for your operation? How will you manage those risks?
• How will you measure the success of your business?

Farm Business Plan Worksheets

The Farm Business Plan Balance Sheet can help gather information for the financial and operational aspects of your plan.

Form FSA-2037 is a template that gathers information on your assets and liabilities like farm equipment, vehicles and existing loans.

• FSA-2037 - Farm Business Plan - Balance Sheet
• FSA-2037 Instructions

Planning for Conservation and Risk Management

Another key tool is a conservation plan, which determines how you want to improve the health of your land. A conservation plan can help you lay out your plan to address resource needs, costs and schedules.

USDA’s Natural Resources Conservation Service (NRCS) staff are available at your local USDA Service Center to help you develop a conservation plan for your land based on your goals. NRCS staff can also help you explore conservation programs and initiatives, such as the Environmental Quality Incentives Program (EQIP) .

Conservation in Agriculture

Crop insurance, whole farm revenue protection and other resources can help you prepare for unforeseen challenges like natural disasters.

Disaster Recovery

Special Considerations

Special considerations for businesses.

There are different types of farm businesses each with their own unique considerations. Determine what applies to your operation.

• Organic Farming  has unique considerations. Learn about organic agriculture , organic certification , and the  Organic Certification Cost Share Program  to see if an organic business is an option for you. NRCS also has resources for organic producers and offers assistance to develop a conservation plan.
• Urban Farming  has special opportunities and restrictions. Learn how USDA can help farmers in urban spaces .
• Value-Added Products . The Agricultural Marketing Resource Center (AgMRC) is a national virtual resource center for value-added agricultural groups.
• Cooperative.  If you are interested in starting a cooperative, USDA’s Rural Development Agency (RD) has helpful resources to help you begin . State-based  Cooperative Development Centers , partially funded by RD, provide technical assistance and education on starting a cooperative.

Special Considerations for Individuals

Historically Underserved Farmers and Ranchers: We offer help for the unique concerns of producers who meet the USDA definition of "historically underserved,"  which includes farmers who are:

• socially disadvantaged
• limited resource
• military veterans

Women: Learn about specific incentives, priorities, and set asides for  women in agriculture within USDA programs.

Heirs' Property Landowners: If you inherited land without a clear title or documented legal ownership, learn how USDA can help Heirs’ Property Landowners gain access to a variety of programs and services

Business Planning

Creating a good business plan takes time and effort. The following are some key resources for planning your business.

• Farm Answers from the University of Minnesota features a library of how-to resources and guidance, a directory of beginning farmer training programs, and other sources of information in agriculture. The library includes business planning guides such as a Guide to Developing a Business Plan for Farms and Rural Businesses and an Example Business Plan .
• The Small Business Administration (SBA) offers information about starting, managing, and transitioning a business.

SCORE is a nonprofit organization with a network of volunteers who have experience in running and managing businesses. The Score Mentorship Program partners with USDA to provide:

• Free, local support and resources, including business planning help, financial guidance, growth strategies.
• Mentorship through one-on-one business coaching -- in-person, online, and by phone.
• Training from subject matter experts with agribusiness experience.
• Online resources and step-by-step outlines for business strategies.
• Learn more about the program through the Score FAQ .

Training Opportunities

Attend field days, workshops, courses, or formal education programs to build necessary skills to ensure you can successfully produce your selected farm products and/or services. Many local and regional agricultural organizations, including USDA and Cooperative Extension, offer training to beginning farmers.

• Cooperative Extension  offices address common issues faced by agricultural producers, and conduct workshops and educational events for the agricultural community.
• extension.org  is an online community for the Cooperative Extension program where you can find publications and ask experts for advice.

Now that you have a basic plan for your farm operation, prepare for your visit to a USDA service center.

2. Visit Your USDA Service Center

How to Start a Farm with USDA

Get an  overview of the beginning farmer's journey  or jump to a specific page below.

Find Your Local Service Center

USDA Service Centers are locations where you can connect with Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees for your business needs. Enter your state and county below to find your local service center and agency offices. If this locator does not work in your browser, please visit offices.usda.gov.

Learn more about our Urban Service Centers . Visit the Risk Management Agency website to find a regional or compliance office  or to find an insurance agent near you.

Details of a Small Farm Business Plan

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Writing a farm business plan can be a tool for you to plan your farming business. It can also be a requirement of securing grants and loans for your farm business. The process of writing a farm business plan may seem overwhelming and intimidating at first, but if you break it down into its component steps, it becomes much more manageable.

What Is a Business Plan?

A business plan is a roadmap for your small farm . It is both process and product. During the writing of a farm business plan, you'll develop an overall vision and mission for your business. You will think about your short- and long-term goals. You'll define the steps needed to achieve those goals. You'll set the direction for your business to develop over the next five years.

If you're already an established business, your new business plan will show where you're going next. A good business plan should be:

Mission Statement

Your farm’s mission statement is your overarching purpose for your business:

• Why does your farm exist?
• What purpose does your farm serve?
• Where is your farm headed?

This is beyond “make money.” This mission statement is based on your values and your core identity as a small farm.

The goals in your business plan are the specific, measurable “things” you will achieve with your small farm. Short-term goals are defined as those that you will complete within one year. Long-term goals are those that take longer than one year to complete.

SMART Goals are:

• Rewarding, and have a

Background Information

In this section of your business plan, take inventory of what you have right now:

• Where are you located?
• How many acres of land are you farming?
• When did you begin farming?
• How are you currently operating?
• What general practices do you use for such things as conservation, tillage, environmental impact, and marketing?

Farm Strategy

This is where your business plan gets to looking forward. You are going to formulate your farm strategy from now into the next five years or so.

• Gather information and research markets. Make sure that your farm plan fits into the general market in terms of supply and demand. Investigate and analyze industry trends, identify competitors, and define buyers.
• SWOT Analysis. This is an analytical tool that can be used in making decisions. SWOT stands for: strengths, weaknesses, opportunities, and threats. As a business, analyze your internal strengths and weaknesses. Then look externally at what opportunities and threats exist - competitors, new markets, government regulations, economic conditions, and so forth.
• Create alternative strategies. Looking at the information you've gleaned and the analysis you just did, think through options for your farm strategy. Don't rely on price alone; economies of scale are challenging on the small farm level.
• Don't jump to one conclusion immediately. Really spend some time fleshing out the specifics of some of the strategies and looking at their advantages and disadvantages. Try to find options that combine your internal strengths with opportunities in the external environment.
• Look at all your strategies, then reread your mission statement. The ideal farm plan will fit your mission best.
• Write an implementation plan. This is where you write a plan that will make your new strategy happen.

Marketing Strategy and Plan

In the next part of your farm business plan, you develop and outline a marketing strategy for your products and services. This can build on the research you did in the previous step. For each product, include ​the price, placement, and promotion ideas. Consider how you will convey real and perceived value to your customers.

Management Summary

This part of your business plan details your farm business’ structure. Everyone who is involved in the management of the business should be listed here. External resources are listed here as well.

Financial Analysis

In this section, you will need to detail the financial aspect of your farming operation. List your current finances in detail, including all income and operating expenses. Referring to your new strategy, you will forecast what is needed for future growth and to meet the goals you have outlined in terms of capital. Include what your future operating expenses will be.

Pulling It All Together

Writing a farm business plan is a big project. Don’t let that put you off. Your plan can be as simple as it needs to be for right now. Begin with your mission statement and goals. Do your homework by analyzing markets and researching competitors and trends. Have fun brainstorming alternative strategies and let them marinate a while. Take it one step at a time.

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Farm Business Plan Template

Written by Dave Lavinsky

Business Plan Outline

• Farm Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Farm Business Plan

You’ve come to the right place to create your farm business plan.

We have helped over 5,000 entrepreneurs and business owners create business plans and many have used them to start or grow their farms.

Below are links to each section of a small farm business plan template. It can be used to create a vegetable farm business plan, fruit farm business plan, agriculture farm business plans or many other types of rural businesses.

Sample Business Plan For Farms & Agricultural Businesses

• Executive Summary – The Executive Summary is the most important part of your business plan. It is a brief description of your farm, its products and services, potential market opportunity, and competitive advantage.
• Company Overview – Also called the Company Analysis, here, you will provide a detailed description of your agriculture business history, its products and other services, and business structure.
• Industry Analysis – In the Industry Analysis, you will provide an in-depth analysis of the industry in which your farm operates including industry trends, market size and growth, and government regulations.
• Customer Analysis – In the Customer Analysis, you will identify your target market and provide insights into their purchasing habits. You will also create customer segments and discuss your marketing strategy for reaching them.
• Competitive Analysis – In the Competitive Analysis, you will identify your direct competition and provide insights into their strengths and weaknesses. You will also discuss your competitive advantage and how you plan to stay ahead of the competition.
• Marketing Plan – The Marketing Plan includes a discussion of your marketing strategy and tactics along with your pricing strategy. You will also provide a budget for your marketing activities including attending farmers’ markets or advertising a farm stand.
• Operations Plan – In the Operations Plan, you will discuss your farm’s day-to-day operations. You will also provide your business goals that you plan to achieve and a budget for your operating expenses.
• Management Team – In this section, you will provide a brief overview of the farm owners and farm management team, their experience in the agricultural industry, and the organizational chart.
• Financial Plan – In this section, you will provide three-year financial statements for your farm. This will include your income statements, projected balance sheets, and cash flow statements.

Next Section: Executive Summary >

Farm Business Plan FAQs

What is a farm business plan.

A farm business plan is a plan to start and/or grow your farm business. Among other things, a good agriculture farm business plan outlines your business concept, identifies your target audience , presents your marketing plan and details your financial projections.

You can  easily complete your farm business plan using our Farm Business Plan Template here .

What Are the Main Types of Farms?

There are many types of farms. Some have commercial farms that produce crops and agricultural products for sale. Others have cooperative farms owned by people who pool their resources together and share profits among themselves. There are also vegetable farms, dairy, micro, organic, poultry, subsistence, or urban farms.

What Are the Main Sources of Revenues and Expenses for a Farm?

The primary source of revenue for a farm is the sale of its farmed goods such as rice, corn, milk, beef, chicken, depending on the kind of farm a business is.

Some key expenses for a farm are labor expenses, production costs like irrigation, fertilizer, water, and machinery maintenance.

How Do You Get Funding for Your Agriculture Business?

Farm business plans often receive funding from bank loans. Financing is also typically available from grants offered by local and state governments. Personal savings, credit card financing and angel investors are other funding options. This is true for starting any agricultural business.

What are the Steps To Start a Farm Business?

Starting a farming business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

• Develop An Agricultural Business Plan - The first step in starting a business is to create a detailed agriculture business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  It should also include your business goals and mission statement. You can quickly complete your farm business plan using our Farm Business Plan Template here .
• Choose Your Legal Structure - It's important to select an appropriate legal entity for your farm business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your farm business is in compliance with local laws.
• Register Your Agriculture Business - Once you have chosen a legal structure, the next step is to register your farm business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 
• Identify Financing Options - It’s likely that you’ll need some capital to start your farm business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 
• Choose a Business Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 
• Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 
• Acquire Necessary Farm Equipment & Supplies - In order to start your agricultural business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 
• Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your farm business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful farm business and agribusiness planning:

• How to Start a Farm Business

Where Can I Get a Farm Business Plan PDF?

You can download our free farm business plan template PDF here . This is a good farm business plan template you can use in PDF format.

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11 Steps to a Whole-Farm Plan

A broad-based operating plan helps your family stay on course.

It's no insurance against setbacks, but having a whole-farm plan in place can help your family stay on course when difficulties unfold.

"It's often tough to communicate as a family because you tend to focus so much on the day-to-day business operations of producing a commodity," says David Marrison, Ohio State University agriculture-natural resources Extension educator.

"Having a whole-farm business plan in place helps you stay true to your vision and the mission of the operation," he says. "It helps you stay on course and not get lost in the weeds of not having a plan, especially when you're facing big stressors like crop failures or tractor engines going down."

A whole-farm plan encompasses the breadth and width of your farm family's business. "You might say it gives a perspective of the operation from a distance of 30,000 feet, as opposed to a view from 10 feet away," says Marrison.

A whole-farm plan addresses a broad spectrum of components, such as family values and goals, a business analysis and business goals, a business plan, retirement plan, transition plan, estate plan, and investment plan.

"The parts of the whole-farm plan are like spokes in a wheel. All need to work together in harmony for the long-term success of the operation, and all play a role in keeping it operating into the future," he says.

The writing of a broad-based plan begins, of course, with the holding of family business meetings. Before the actual writing of the plan begins, the topics of the meetings might facilitate a process of taking stock of the family, individual assets and goals, and resources and goals of the business.

Marrison suggests taking the following 11 steps to write a whole-farm plan.

1. Take stock of the family.

Look at the history of your family and its farm, and identify family values and family goals.

"It is valuable for the business to begin the planning process by reflecting on family and farm history," he says. "Valuable lessons can be learned by all the generations involved by examining past successes and disappointments. The underlying values and goals of the family unit should also be determined. While these values and goals often remain unspoken, they have a large impact on how family members treat each other and employees, and how they make business decisions."

2. Assess individuals' goals, strengths, and also weaknesses.

"Each member of the farm business should conduct a self-assessment of his or her communication, financial, production, marketing, and management skills," says Marrison. "This is particularly important when bringing generations back to the farm."

This process helps your family determine the areas of responsibility to be allocated to each person. A lack of skill or experience in certain areas could suggest outsourcing some jobs. Or, it could suggest a need for additional education or training.

"You should always be looking at ways to help family members and employees improve their skills and strengths," says Marrison.

3. Analyze the business and set business goals.

A business analysis takes stock of available land, labor, capital, management resources, profitability, business structure, operating procedures, and employee management.

"After taking a snapshot of where the farm business is currently, the family business team should develop key goals for the future," says Marrison. "It is important that each individual share his or her individual goals and skill-set assessments with the other members of the business during this process. Members can then work together to determine the responsibilities of each team member and to develop goals."

4. Write a mission statement.

"A mission statement is a short statement describing the fundamental reason for the business to exist," he says. "It identifies the underlying values that are going to push your family and the business forward."

5. Write a business plan.

The previous steps comprise an internal analysis that can be used to develop plans encompassing the diverse areas of your farm's operation.

"A business plan helps your family develop a plan of action for production and operation practices," says Marrison. "It also helps develop plans for the financial, marketing, personnel, and risk-management sectors of the business."

This analysis could also examine the strengths, weaknesses, opportunities, and threats in each of these areas.

6. Plan for retirement.

This plan identifies retirees' needs and the role the farm plays in meeting these. "Retirement plans should be established early for all members of the business," says Marrison. "The profitability of your farm should be such that a family member can retire and not adversely affect the financial position of the business."

7. Plan a transition strategy.

This describes how your farm will be transferred to the next generation. It encompasses both the transfer of assets and the transfer of managerial control. It describes how the retiring generation will transfer their knowledge to the younger generation, and how and when managerial responsibilities will be transferred.

8. Make an estate plan.

"Farm estate planning determines how your farm's assets will be distributed upon the death of the principal operators," he says.

9. Outline an investment plan.

Investments vary widely by family and farm, typically comprising land, machinery, and livestock. Others have off-farm investments also. Determine how these investments affect future needs.

10. Set goals in all areas.

"Setting goals establishes a plan of action for each area of business activity," says Marrison. "Set measurable goals that are short, mid, and long term. At monthly family meetings, you can look back at the goals you set in each major area of planning. Reviewing goals keeps them in focus, even though you might not be able to act on them until a future date."

11. Plan for the unexpected.

In each planning area, work into the plan a what-if scenario. "Look at what unexpected things could happen," he says. "Having conversations about those what-if circumstances no one wants to think about could help you stay on target and not get stressed when bad things happen."

In sum, says Marrison, "By implementing a whole-farm approach to business planning, your farm family can be ready to face the future with confidence."

David Marrison | 440/576-9008 [email protected]

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How to Write a Farming Business Plan: Template and Guide

americanfarmfi

May 22, 2023

Starting and running a successful farming business requires careful planning and strategic decision-making. One essential tool that every farmer should have is a well-crafted farming business plan. A comprehensive business plan serves as a roadmap for your agricultural venture, guiding you through the various stages of development and ensuring that you stay focused on your goals. We will provide you with a step-by-step guide on how to write an effective farming business plan and start you off with a template. 

Overview of a Farming Business Plan

Before diving into the specifics, let’s take a moment to understand what a farming & agriculture business plan entails. Essentially, a farm business plan is a written document that outlines your farming objectives, strategies, and financial forecasts. It serves as a blueprint for your farm’s operations, helping you make informed decisions and communicate your vision to potential investors, lenders, or partners.

The Purpose of a Farming Business Plan

The farming business plan is going to define and communicate your farm’s mission and goals. It helps provide a clear direction for your operations, resources, and ensures that everyone involved in the business is on the same page. Additionally, a well-crafted business plan is often required when seeking financing or partnerships. Lenders and investors use it to evaluate the viability and profitability of your farming venture.  

Key Elements of a Farming Business Plan

Let’s explore the elements that make up the Farming Business Plan. 

Executive Summary

The executive summary is a brief overview of your entire plan. It should summarize your farm’s mission, goals, target market, and competitive advantage. While it appears at the beginning of your plan, it is often written last to ensure that it accurately reflects the content of the document.

Market Analysis

A thorough market analysis is crucial for understanding your target market, identifying potential customers, and evaluating your competition. This section should provide detailed information about market trends, customer demographics, and demand for your products or services. Conducting market research and gathering data from reliable sources will strengthen the credibility of your analysis.

Products and Services

In this section, describe the specific products or services your new farm will offer. Provide details about their features, benefits, and how they meet the needs of your target market. Discuss any unique selling points or competitive advantages that set your offerings apart from others in the industry.

Marketing and Sales

Outline the strategies for promoting and selling farm products. Explain how you plan to promote your farm and reach your target market. Include information about your pricing strategy, distribution channels, and any partnerships or collaborations that may enhance your marketing efforts. Developing a comprehensive marketing plan will help you attract customers and generate sales. 

Describe the operational processes and workflows involved in running the farm, including land preparation, planting, harvesting, livestock care, and post-harvest handling. Highlight the management structure, key personnel, and their roles and responsibilities.

Financial Plan

The financial plans are a critical component of your farming business plan as it demonstrates the financial viability and sustainability of your farm. It should include projected income statements, cash flow statements, and balance sheets for the next three to five years. Additionally, outline your funding requirements and any existing or potential sources of financing. 

American Farm Financing offers many financing options to fit your needs: operating loans, cash rent loans, farm mortgages, refinances, and equipment loans. See all AFF loan options .

Setting Financial Goals

Forecasting expenses is critical when starting a farming operation. List out the main buckets of expenses (inputs, machinery, labor, land, interest, and consulting services). Where possible, get pricing quotes to formalize your expenses as much as possible for what you would like to grow.

After you’ve forecasted expenses, you can set a goal for how much profit, or margin, you intend to make. Use futures sales prices to project what you can sell your crop for. The difference between your sales price and your expenses will become your profit. Ensure that this income matches your expectations and can cover any personal expenses you hope the money will be used for.

While a one-year operating plan is critical to get started, remember that farming is a long-term pursuit. Depending on how many upfront expenses you need to make, it may take multiple farming seasons to turn a significant profit. 

Conducting Market Research

Before you can develop a solid business plan for a farm, it is essential to conduct detailed market research. Conduct an analysis of the target market, including its size, growth potential, and trends. Identify the target customers, their needs, preferences, and buying behavior. This assessment will allow you to be an expert on the market and differentiate you from the rest of the competition. 

Writing a Farming Business Plan

Now that we have covered the key elements of a farming business plan, let’s dive into the process of writing one.

Creating a Timeline for Implementation

This timeline can be as specific to your needs as possible. You want to make sure that every necessary box is checked before launching your farming operation. This is a suggested timeline for implementing your plan, but coordinate as you see fit and adapt to things that may pop up:

Preparation: 1-6 Months 

• Complete all sections of the farming business plan, including market analysis, financial projections, and operational strategies.
• Seek funding options, such as loans, grants, or investors, and secure the necessary financing for your farming venture.
• Identify suitable land for your farm and negotiate the purchase or lease agreement.
• Conduct necessary soil testing and prepare the land for farming activities.
• Source and purchase farming equipment, machinery, and inputs (seeds, fertilizers, livestock, etc.) required for your chosen agricultural activities.
• Hire key personnel, such as farm managers, laborers, and administrative staff, as per your business plan’s organizational structure.
• Establish relationships with suppliers and vendors to ensure a steady supply of inputs.

Operations: 6-12 Months

• Initiate planting or livestock management based on the farming plan.
• Implement appropriate cultivation techniques, crop rotation, or livestock management practices.
• Monitor and adjust farming operations to optimize production.
• Develop marketing strategies to promote farm products to target customers.
• Implement sales channels, such as direct sales, farmers’ markets, online platforms, or partnerships with retailers or small restaurants.

Below is a helpful template from fsa.usda.gov to get you started. Download your farming business plan template here.

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How to Start a Farm in 2024: Detailed Steps, Costs, and Considerations

Published: January 22, 2024

If you've ever wondered how to start a farm, you're not alone. In this article, we show you an opportunity to stake your claim, embracing a life rooted in the sweat of your brow and the fertility of the land.

You are about to embark on a new farming journey, and we're here to provide substantial insights into the key pieces of starting a farming business. After all, this isn't just a hobby or passing fascination. Now, let's roll up our sleeves and get down to earth.

Step-by-Step Guide to Starting Your Farm

Learn about farming goals and why they are important for success.

Selecting the right type of farm based on your ambition and your goals

Discover how to secure land and resources vital for starting a farm.

Understand the significance of a comprehensive farm business plan and its key components.

Gain knowledge on executing your plan and tips for initiating operations effectively.

Step 1: Identifying Your Farming Business Goals

Drafting clear goals is important before venturing into any business ; farming is no exception. Goals serve as your GPS, guiding your actions and decisions from inception to operation and beyond. For instance, you may aim to start a crop farm to provide organic produce for the local market.

Alternatively, you may dream of starting an animal farm, focusing on dairy or meat production. Regardless of your chosen direction, an articulated path clears ambiguities and enhances focus.

Importance of Setting Clear Goals

Clear aims provide guidelines that shape your farming operations. Outlining SMART (Specific, Measurable, Achievable, Relevant, Time-bound) farming objectives provides a strategic pathway to making informed decisions. It is this specificity that allows one to select the most suitable type of farm, choose the appropriate land, and manage resources meticulously.

Examples of Farming Business Goals

For instance, if your goal is to start an off-the-grid permaculture farm, decision-making will pivot to eco-friendly operations. If the aim is to start an urban rooftop farm, the focus may be on optimizing limited space for maximum yield.

Step 2: Choosing the Right Type of Farm

Each type of agribusiness requires unique considerations, from the soil's quality and climate conditions to market potential. Data suggests that understanding your intended farm helps narrow your options and ensures that you invest wisely.

Different Types of Farms and Their Requirements

Each has unique money-making requirements , whether a crop farm, dairy farm , poultry farm, horticultural operation, or mixed farm. For instance, dairy farms demand significant attention to livestock health and handling, while a crop farming business needs precise knowledge of soil management and plant diseases.

How to Choose the Right Farm Based on Your Goals

In determining the right farm type, you should consider your personal interests and skillset, market demand, available resources, and farming location. Doing this aligns your venture with your core objectives, making progression smoother and more fulfilling.

Step 3: Developing a Farm Business Plan

A well-crafted farm business plan is important for securing funding from lenders or investors and serves as your farming business blueprint.

Importance of a Business Plan

A business plan outlines the specifics of your farm operations, the marketing tactics, financial projections, and resource management strategies. It allows you to anticipate possible challenges and plan for them in advance.

Key Elements of a Farm Business Plan

Essential components of the plan should include an executive summary, your farming business goals, method of operations, marketing strategies, financial forecasts, and risk management plans.

Step 4: Securing Land and Resources

Once you've defined your farming business goals and the most suitable type of agribusiness, the next step is securing land and requisite resources. According to the USDA's Farmers.gov , you'll need to consider factors like creating a plan, assessing the land, find funding, among other steps, before selecting the right farmland for your venture.

How to Find and Purchase Suitable Land

Identifying the right land entails comprehensive research to ensure it meets your farming requirements. We recommend hiring an expert to perform soil tests and environmental assessments before finalizing a purchase.

Necessary Resources for Starting a Farm

Apart from land, other resources are crucial for a farm: capital, farming equipment, seeds or animals, and labor. Having a checklist of everything you need to have a successful farming operation and calculate comprehensive startup costs is important.

Step 5: Implementing Your Plan and Starting Operations

Having a successful farm business isn't just about planning. The next phase is implementation.

Steps to Implement Your Business Plan

These steps range from acquiring the necessary permits and purchasing resources listed in the plan to hiring employees and initiating operations. It's important to revisit and adjust the plan regularly as circumstances change.

Tips for Starting Operations Smoothly

Successful operation commencement hinges on planning. Develop an operation checklist, delegate responsibilities to your team, and ensure all necessary regulations are adhered to for a smooth start. A great emphasis should always be put on quality assurance.

Incorporating these steps provides a roadmap for avoiding common pitfalls and moving toward a successful venture when starting a farm. As always, make sure you conduct market research before starting your venture.

The table below shows the issuing agency for permits based on the business activity you plan on pursuing (source: sba.gov )

Next, gain a clear understanding of the costs associated with starting a farm.

Understanding the Costs of Starting a Farm

Get a clear picture of the initial and ongoing operational costs of the farming business

Learn strategies to manage these costs effectively

Initial Investment Costs

You can start a small farm for as little as $600 to over $10,000 because it depends on various decisions and factors like the type of equipment and whether you're hiring people to help. Before dipping your toes into the farming industry, it's crucial to comprehend the initial investment costs. The foundational pillars involve expenses related to land acquisition, purchasing necessary farming equipment, and introducing the desired crops or livestock to your property.

You can also see if you qualify for loan programs if you're a beginner farmer.

The land cost can vary dramatically based on the location, fertility, and size. Typically, more fertile land boasting a good location tags a steeper price. Important to note – the calculation must also include the cost of relevant insurance coverage (liability, property and crop insurance etc.).

Farming equipment follows next. Tractors, planters, plows, and irrigation systems have substantial price tags. Acquiring livestock requires immediate financial attention if you're planning on animal farming.

Less apparent costs include seed, buildings, and site improvements like fencing or driveways. Now the question becomes, how do you manage these initial costs?

One common approach is to start small and scale over time. At first, consider leasing the land or buying used equipment. Government grants and loans to support farmers can also help ease the financial burden.

Remember, it's not about cutting corners but smart investing and growing steadily.

Ongoing Operational Costs

Even after overcoming the hurdle of initial costs, farms have ongoing operational expenses that need frequent attention. These costs mostly include maintenance of your equipment, seeds for new crops, animal feed, irrigation, and labor costs.

It might surprise you, but labor, including salaries, benefits, and insurance for your employees, often represents one of the highest ongoing costs you'll face. Regular maintenance to keep your machinery in optimal condition and replacing worn-out parts are necessary.

Alongside, insurance can become a hefty annual expense. You will need to include it as a necessary expenditure that safeguards you against major losses.

As we get into the rhythm of regular farm operation, let's dive into strategies for a cost-effective farming business. Streamlined operational practices are the name of the game here.

Precision farming – using technology and data to optimize yields and efficiency – is one way to get more for your money. Properly maintaining your equipment can reduce the frequency and cost of breakdowns. Choosing the right crop or livestock based on markets and your particular farm's strengths could also lead to better profitability.

Effective cost management in farming isn't about cost-cutting; it's about value-maximizing, ensuring every dollar spent returns the best yield or benefit possible. As with most business ventures, this might involve a steep learning curve and plenty of trial-and-error, but with persistence and careful planning, a sustainable and financially stable farm is well within reach.

To help you get started, here is a list of items to consider when starting a farm.

Equipment, Machinery & Tools :

General farming tools and equipment

Primary farm housing structures

Fencing materials

Storage facilities

Harvesting equipment

Fuel for machinery

Greenhouse structure

Irrigation system

Cooling equipment

Packaging material if you're selling on farmers markets

Crop Preparation :

Soil and Fertilizers

Crop protection materials

Pest control supplies

Raising Livestock (if applicable)

Cost per animal type ( cows , chickens , horses) multiplied by the number of animals

Preventative care costs

Additional :

Marketing budget (if applicable)

Utilities (water, electricity)

Transportation (for products)

Labor (if not self-operated)

Training and Education for yourself or your staff

Legal and regulatory compliance fees

Emergency fund

Overcoming Challenges in Starting a Farming Business

Anticipate and prepare for financial obstacles common among new farmers.

Understand and navigate the maze of regulatory requirements.

Tackle environmental and climate-related risks with sustainable, resilient farming strategies.

Dealing with Financial Challenges

Many aspiring farmers often encounter a series of financial obstacles before they can even plant their first seed. It's important to familiarize yourself with these challenges and employ strategic financial management resources. A little extra research can turn up additional financial assistance just when you need it.

Common financial hurdles for new farmers

Capital investment is a critical component of starting a farm, including the procurement of land, essential farming equipment, and seeds. Additional costs include labor, packaging, transportation, marketing, and, potentially, organic certification fees. These costs can be daunting, especially for those without deep pockets or a rich agricultural heritage.

Resources and strategies for financial management

However, confronting these financial challenges requires a strategic approach. Creating a detailed, realistic financial plan is indispensable. Be sure to understand your break-even point and buffer any unexpected expenses. Crowdfunding and agricultural grants can also supplement initial capital needs.

Navigating Regulatory Requirements

Starting a farm business isn't just about tilling the land and harvesting crops. It is also about compliance with farming regulations protecting the farmer and consumer. It can feel overwhelming, but understanding these requirements can help prevent hefty penalties and maintain a farm's success.

Overview of farming business regulations

From business licenses, zoning, and water rights to safety inspections, various governmental bodies regulate different aspects of farming. These regulations can vary by geography, crop type, and farming practices. Checking with local, state, and national bodies for applicable regulations is important.

Tips for compliance and avoiding penalties

Ensuring compliance with these regulations requires comprehensive record-keeping, regular audits, and proactively keeping updated on law changes. When in doubt, get legal help to guide you through the maze of regulations.

Managing Environmental and Climate Risks

Climate change presents unique challenges to a farming business. A sustainable and resilient approach is essential for prolonged success.

Impact of climate change on farming business

Climate change can affect farming by altering rainfall patterns, inducing higher temperatures, and increasing the frequency of extreme weather events. All these factors create uncertain conditions for crop growth and livestock health, fundamentally affecting farming viability.

Strategies for sustainable and resilient farming

Successful adaptation to climate change necessitates strategic planning. Diversify your crops , use water-saving techniques, and employ climate-smart agricultural practices. Use data to understand potential climate risks, anticipate changes, and make informed decisions. Resilience is built one day at a time; it is a marathon, not a sprint. Being adaptable is key in navigating this challenge.

Overcoming challenges in starting a farm requires diligence and adaptability. But with careful planning and proactive management, you'll conquer these hurdles and ensure a thriving farm operation.

Essential Resources for New Farmers

Navigate red tape with government and nonprofit programs

Forge valuable connections within farming communities and local markets

Harness the power of the digital world with online tools specifically catered to farmers

Government and Nonprofit Programs for Beginning Farmers

Long-standing government support and fresh initiatives from nonprofit organizations provide a tailwind for those starting a farming journey. These entities offer many resources, including loans, grants, and educational programs. Brand new farmers, in particular, are incentivized towards benefits that can ease their entry into the industry.

Overview of Available Programs

A wide spectrum of programs is available, from seed funding to extensive land conservation efforts. Several departments under the U.S. Department of Agriculture (USDA), such as the Farm Service Agency and Conservation Service, offer schemes targeting budding farmers. Simultaneously, nonprofit organizations like the National Young Farmers Coalition provide the necessary advocacy and direct assistance. A thorough exploration of both can yield lucrative opportunities for new farmers.

How to Apply and Make the Most of These Resources

Applying for these programs typically involves an online application process, documentation, and patience. Detailed guidelines provided by the issuing authority ensure a smooth process. Most importantly, don’t view these resources merely as financial aid. Instead, consider them an invaluable opportunity to learn more about the industry, network with veterans, and potentially shape local farming policies.

Farming Communities and Networks

Even with modern technology, farming remains a community-centric practice. Networking within these communities can be a game-changer for those new to the field, providing rich insights from generations of farming.

Importance of Community Supported Agriculture

Farming isn't just about tilling soil and growing crops. It involves intricate knowledge about local ecosystems, market demand, and financial management. All of which can be readily provided by a robust farming community. These communities can potentially speed up your learning, mitigate common beginner's mistakes, and even offer emotional support during tough times.

How to Connect with Other Farmers and Learn from Their Experiences

Consider attending local farming exhibitions and workshops or joining farming cooperatives to meet experienced farmers. Even during family gatherings, farmers markets offer a convenient place to meet several farmers in the same area. Social media platforms also offer virtual farming communities where you can easily connect with and learn from farmers worldwide.

Online Resources and Tools

The digital revolution hasn't bypassed farming. Several online resources and applications are available to help farmers stay updated, forecast weather conditions, manage their farms, and interact with a global community.

Useful Websites, Apps, and Tools for New Farmers

Online services such as Ranchr offer a much-needed cattle management service for farmers. Using these resources optimally can keep you at the forefront of industry advancements, helping streamline farm management and supporting critical financial decision-making.

How These Resources Help in Starting and Managing a Farm

These digital tools offer multifaceted benefits. Beyond the logistics of farming, they enhance your understanding of market trends, equip you with skills to analyze data for better decision-making, and connect you with an extensive network of farmers. Coupling these digital resources with insights from local farming communities can provide an optimal blend of traditional knowledge and modern efficiency. But remember, nothing beats connecting with your fellow farmer face to face. Don't hesitate to pick up the phone.

Planting the Seeds for Your Future

Venturing into farming this year could signify a step towards sustainability and entrepreneurship. It involves careful planning, budgeting, and navigating the potential challenges of crop failure, pests, and changing market conditions.

The value of this endeavor lies in improving food security, growing a sustainable business, fostering a deeper connection with nature, and offering value to your community.

Now, armed with this roadmap, your journey begins. Consider your starting capital, scout locations, select your crops, and engage with local farming communities for mentorship.

We hope these steps and strategies have illustrated and given you inspiration on how to start a farm.

Remember, the earth beneath us is teeming with possibilities - it's time to dig in and cultivate your own!

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Keep track of all your cattle with the #1 Cattle Management Software

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New and Beginning Farmer Series: Writing a Farm Business Plan

Marcus Coleman

A farm business plan can fulfill several purposes for a farm owner, including:

• Serve as an internal organizing tool used to communicate farm plans to individuals outside of the farm business.
• Serve as an internal planning tool to assist in ongoing problem-solving related to farm challenges and opportunities.
• Assist in making annual or seasonal marketing, operations, production and financial decisions.

There is no right or wrong format to use in writing a farm business plan. The primary objective is to effectively communicate what the farm business is about and the goals and strategy for business success. The plan must also convey the long-term feasibility of the farm business, supported with the vision of the farm owner as well as research related to the farm business and market environment that the farm owner seeks to participate in.

In writing a farm business plan, these steps can assist in constructing the plan:

Step 1: Write out the farm mission statement. The mission statement defines the farm business in the context of its primary business function, its products and how it seeks to produce them, its customers, and what unmet customer need it seeks to fill.

Step 2: Write out the farm vision statement. The vision statement states what the farm owner aspires the farm business to be in the future.

Step 3: Write out the farm values. Values explain how the farm business is going to conduct itself in the context of what and who it values.

Step 4: Provide an overview of the farm business. The overview will assist in assessing the farm business and provide a synopsis of what the farm business seeks to do and how it plans to achieve its goals. This overview should consist of the following:

• The purpose of the farm business.
• How the farm business can be managed into a successful operation.
• The key farm business activities.
• The important business and marketing opportunities as well as potential challenges to farm business success.
• The funding that is required to start or expand the farm business. The farm owner should also prepare a budget that provides further detail.

Step 5: Write out the farm goals and include an action plan for each. Including goals and action plans in the farm business plan is necessary as they allow the farm owner to (a) clarify ideas, (b) focus efforts, (c) have a plan to use those time and resources productively, and (d) increase the chances of achieving those goals. Including goals also allows others to understand how the farm business plans to achieve success. There is no right or wrong number of goals to include, but the goals that are included must be attainable within the scope of the farm business.

Every goal must have an action plan that explains (a) who is responsible for the goal, (b) the tasks necessary to complete the goal and (c) when the goal should be completed. The farm owner should also develop a more detailed, step-by-step action plan for their farm goals for personal use. A simple format to highlight farm goals and associated action plans in the farm business plan is show in Tables 1-3.

Table 1. Short-Term Goals (1-3 years)

Table 2. Intermediate Goals (4-6 years)

Table 3. Long-Term Goals (7 or more years)

Step 6: Provide an overview of the target customers and planned marketing strategy. The marketing planning process identifies the farm business’s target customers and the unmet customer need the farm business seeks to serve. The market planning process is summed into three questions:

• Who is the target customer and why should the customer buy from the farm?
• What are the farm business’s primary products?
• What is the plan to promote the farm business to customers?

When defining who the target customer is, the farm owner must consider the following questions:

• What types of customers are expected to buy the farm’s products?
• When and how often might customers buy the products?
• What benefits will the farm products offer customers?
• Where will customers buy the products?

When developing a market strategy, the farm owner must also consider the following questions:

• Why do people want/need the farm’s products?
• What is the plan to attract customers and keep them coming back?
• What are some marketing challenges that could be faced?

Table 4 highlights a format that can be used to present the marketing plan in the farm business plan.

Table 4. Marketing Plan

For more information:

DiGiacomo, Gigi, Robert King and Dale Nordquist. 2003. Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses. College Park, MD: Sustainable Agriculture Research and Education (SARE).

Hunger, J. David and Wheelen, Thomas L. 2007. Essentials of Strategic Management. 4th Edition. Prentice Hall. Upper Saddle River, New Jersey.

Author Information:

Marcus A. Coleman is the program director of the Grow Louisiana Beginning Farmer Training Program, Louisiana State University, LSU AgCenter.

Contact person for more details on this publication: [email protected].

Acknowledgement:

This publication was developed as a part of the Grow Louisiana Beginning Farmer Training Program and supported by a U.S. Department of Agriculture National Institute of Food and Agriculture grant (Award # 2018-70017-28597).

Visit our website: www.LSUAgCenter.com

Luke Laborde, Interim LSU Vice President for Agriculture

Louisiana State University Agricultural Center

Louisiana Agricultural Experiment Station

Louisiana Cooperative Extension Service

LSU College of Agriculture

Pub. 3800 (online) 04/22 rev.

The LSU AgCenter and LSU provide equal opportunities in programs and employment.

Have a question or comment about the information on this page?

Email marcus coleman, innovate . educate . improve lives.

The LSU AgCenter and the LSU College of Agriculture

Sample Farm Business Plan

Writing a business plan is a crucial step in starting a farm. Not only does it provide structure and guidance for the future, but it also helps to create funding opportunities and attract potential investors. For aspiring farm business owners, having access to a sample farm business plan can be especially helpful in providing direction and gaining insight into how to draft their own farm business plan.

Download our Ultimate Farm Business Plan Template

Having a thorough business plan in place is critical for any successful farm venture. It will serve as the foundation for your operations, setting out the goals and objectives that will help guide your decisions and actions. A well-written business plan can give you clarity on realistic financial projections and help you secure financing from lenders or investors. A farm business plan example can be a great resource to draw upon when creating your own plan, making sure that all the key components are included in your document.

The farm business plan sample below will give you an idea of what one should look like. It is not as comprehensive and successful in raising capital for your farm as Growthink’s Ultimate Farm Business Plan Template , but it can help you write a farm business plan of your own.

Farm Business Plan Example – GreenAcres Harmony

Table of contents, executive summary, company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

At GreenAcres Harmony, we are embarking on an ambitious journey to revolutionize the way Bostonians experience farm products. Based in the heart of Boston, our mission is to provide the community with fresh, sustainably grown produce that not only nourishes the body but also supports the environment. By harnessing innovative farming techniques and a commitment to sustainability, we aim to establish a strong connection with our customers, offering them a taste of what truly fresh, quality produce can be. Our farm is not just a place of business; it’s a beacon for environmental stewardship and a testament to the power of community engagement in fostering a healthier, greener future.

Our journey to date has been marked by significant accomplishments and a clear set of success factors that underscore our potential for growth. Our dedication to sustainable farming practices has not only set us apart in the industry but has also fostered a deep sense of trust and loyalty among our customers. Our strategic location in Boston provides us with direct access to a vibrant and growing market of health-conscious consumers. Furthermore, our team’s expertise in both agriculture and business management has been instrumental in navigating the complexities of the market and positioning GreenAcres Harmony as a leader in the sustainable agriculture space. These factors, combined with our commitment to quality and sustainability, lay a solid foundation for our future success.

The agricultural industry, particularly the segment focusing on sustainable and locally grown produce, is experiencing a significant surge in demand. This trend is driven by an increasing awareness of environmental issues and a growing commitment among consumers to support practices that are beneficial to the planet. In Boston, this shift is particularly evident, with more individuals seeking out farm-to-table experiences and prioritizing the freshness and sustainability of their food. This evolving market landscape presents an opportune moment for GreenAcres Harmony, as our core values and business model align perfectly with the current consumer trends. Our focus on sustainability, coupled with the high quality of our produce, positions us to capture a substantial share of this growing market.

Our target customers are health-conscious individuals and families residing in Boston who prioritize quality, freshness, and sustainability in their food choices. These consumers are typically well-informed about the benefits of locally grown produce and are willing to invest in products that support their health and environmental values. Additionally, we cater to local businesses, such as restaurants and cafes, looking to enhance their menus with fresh, high-quality ingredients. Understanding the preferences and values of our target customers enables us to tailor our offerings and marketing strategies to meet their specific needs, fostering a loyal customer base committed to supporting local, sustainable agriculture.

Top Competitors: – Local Organic Farms: Offering a similar range of fresh, organic produce. – Big Agriculture: Competing on price and scale but lacking in local and sustainable practices.

Competitive Advantages: Our competitive edge lies in our unwavering commitment to sustainability and the quality of our produce. Unlike big agricultural companies, we focus on local, sustainable farming practices that resonate with our target market. Additionally, our direct engagement with the community through farm-to-table events and partnerships with local businesses sets us apart, creating a unique brand experience that cannot be replicated by our competitors.

Our marketing strategy emphasizes the exceptional quality, sustainability, and community focus of our products and services. By leveraging a robust online presence, including social media and a user-friendly website, we aim to connect with our customers on a deeper level, sharing our story and the benefits of sustainable farming. Our promotional efforts extend beyond the digital realm, with community engagement initiatives, participation in local farmers’ markets, and partnerships with local restaurants and cafes playing a crucial role in building our brand and expanding our reach. These efforts are complemented by public relations campaigns and sponsorships of community events, all designed to enhance our visibility and reputation in the market. Through a combination of online marketing, community engagement, and strategic partnerships, we aim to position GreenAcres Harmony as the go-to source for fresh, locally grown produce in Boston.

Our operations are centered around ensuring the highest quality and sustainability of our farm products. Key operational processes include sustainable farming practices, efficient supply chain management, and effective quality control measures. Milestones to be accomplished involve expanding our product range, increasing our market reach through partnerships, and achieving specific sustainability certifications that further validate our commitment to environmental stewardship. These operational strategies and milestones are designed to optimize our farm’s productivity and impact, ensuring that we not only meet but exceed our customers’ expectations.

Our management team comprises seasoned professionals with extensive experience in agriculture, business management, and sustainability. This diverse skill set ensures a holistic approach to running GreenAcres Harmony, from the day-to-day farm operations to strategic business planning and sustainability initiatives. Our team’s passion for sustainable agriculture and commitment to our community’s well-being are the driving forces behind our farm’s mission, guiding us towards achieving our goal of becoming a leader in sustainable farming in Boston.

Welcome to GreenAcres Harmony, a novel agricultural endeavor situated in the heart of Boston, MA. As a newly established farm, we pride ourselves on being a local source of high-quality produce and farm products. Recognizing the scarcity of premium local farms in our area, we have stepped up to fill this vital gap, aiming to serve the residents of Boston with the freshest and finest agricultural goods.

At GreenAcres Harmony, our offerings are diverse and cater to a wide range of dietary and culinary needs. Our product line includes a variety of fresh produce, ensuring that our customers have access to vegetables and fruits that are not only local but also surpass conventional quality standards. In addition to produce, we provide an assortment of dairy products, eggs, and meat products, all sourced from our farm where ethical and sustainable farming practices are paramount. Our apiary also allows us to supply honey, a natural sweetener and a kitchen staple for many of our customers. Our commitment to quality and freshness sets us apart and ensures that every item we sell is of the highest standard.

Located in the bustling city of Boston, MA, GreenAcres Harmony is strategically positioned to serve the local community efficiently. Our presence in Boston enables us to maintain close relationships with our customers, ensuring that we remain attuned to their needs and preferences. This proximity to our customer base is not just a logistical advantage but also fosters a sense of community and mutual support, which is central to our ethos.

Our confidence in the success of GreenAcres Harmony is grounded in several key factors. Firstly, our founder brings invaluable experience from previously running a successful farm, equipping us with the knowledge and skills necessary for our venture. Moreover, we stand out from our competitors by offering fresher and superior quality produce, dairy, eggs, meat, and honey. This commitment to excellence is what we believe will endear us to our customers and ensure our longevity in the market.

Since our inception on January 4, 2024, as a S Corporation, we have achieved several milestones that underscore our potential for success. Notably, we have developed a distinctive logo and company name that reflect our brand’s ethos and values. Additionally, we have secured an ideal location that not only facilitates our farming operations but also enhances our accessibility to customers. These accomplishments, while early in our journey, are indicative of our strategic approach and our dedication to establishing GreenAcres Harmony as a cornerstone of the Boston community.

The Farm industry in the United States is a significant sector of the economy, with a market size of over $400 billion. This industry includes a wide range of activities such as crop production, livestock farming, and agricultural services. The market size of the Farm industry is expected to continue growing steadily in the coming years, driven by increasing demand for food products, technological advancements in agriculture, and government support for the sector.

One of the key trends in the Farm industry is the growing popularity of organic and sustainable farming practices. Consumers are becoming more conscious of where their food comes from and are increasingly seeking out products that are produced in an environmentally friendly and socially responsible manner. This trend bodes well for GreenAcres Harmony, as a new Farm serving customers in Boston, MA, that focuses on sustainable farming methods and offers organic produce to its customers.

Another trend in the Farm industry is the increasing focus on local food production and distribution. Consumers are showing a preference for locally grown and sourced products, as they are perceived to be fresher, healthier, and better for the environment. GreenAcres Harmony, being located in Boston, MA, is well-positioned to take advantage of this trend by providing locally grown produce to its customers and establishing strong relationships with local restaurants, markets, and consumers.

Below is a description of our target customers and their core needs.

Target Customers

GreenAcres Harmony will target local residents in Boston, MA, who are increasingly seeking fresh, locally-sourced produce for their daily nutrition needs. This customer segment values sustainability and is willing to pay a premium for food that is grown in an environmentally friendly manner. By offering a range of organic fruits, vegetables, and other farm products, GreenAcres Harmony will cater to this growing demand among health-conscious consumers.

The farm will also attract families looking for fresh, high-quality ingredients to prepare their meals. Parents concerned with the nutritional value of their children’s diet will find GreenAcres Harmony’s offerings particularly appealing. The farm will tailor its product range to include kid-friendly options, making it easier for families to incorporate healthy eating habits into their routines.

In addition to serving individual consumers, GreenAcres Harmony will target local restaurants and small grocery stores seeking to differentiate themselves by offering locally-sourced, organic produce. Establishing partnerships with these businesses will not only expand the farm’s market reach but also strengthen the local food ecosystem in Boston, MA. This strategy will enable GreenAcres Harmony to become a key player in the community’s sustainable food movement.

Customer Needs

GreenAcres Harmony caters to the growing demand for high-quality fresh produce among Boston residents. Customers can expect a range of farm-fresh vegetables and fruits, harvested at the peak of their ripeness, ensuring maximum flavor and nutritional value. This emphasis on quality meets the desires of health-conscious consumers looking for nutritious food options.

In addition to fresh produce, GreenAcres Harmony provides a variety of dairy products, eggs, meat products, and honey, satisfying a broad spectrum of dietary preferences and needs. Customers appreciate the convenience of accessing a wide array of farm-to-table essentials under one roof. This variety ensures that households can enjoy fresh, wholesome meals, contributing to a healthier lifestyle.

Furthermore, GreenAcres Harmony understands the importance of ethical and sustainable farming practices in today’s environmentally aware society. Customers can trust that the products they purchase are produced with respect for the environment and animal welfare. This commitment not only fulfills the need for responsible consumption but also aligns with the values of many Boston residents, making GreenAcres Harmony a preferred choice for discerning shoppers.

GreenAcres Harmony’s competitors include the following companies:

Wilson Farm is known for its wide range of produce, including fresh fruits, vegetables, meats, and bakery items. They operate on a large scale and their products are available at competitive price points, making them accessible to a broad customer base. Wilson Farm is located in Lexington, MA, and serves the Greater Boston area, attracting customers looking for high-quality, locally-sourced food products. One of their key strengths is their reputation for quality and freshness, as well as their ability to offer a wide variety of products year-round. However, their size and focus on a broad market can sometimes lead to a less personalized shopping experience for customers seeking niche or artisanal products.

Meadow Mist Farm specializes in grass-fed meats, free-range eggs, and a selection of dairy products, including artisanal cheeses. They are based in Lexington, MA, and cater to customers prioritizing ethically raised and organic products. Their products are priced at a premium, reflecting the quality and sustainable farming practices used. Meadow Mist Farm serves a niche market of health-conscious consumers and those interested in supporting local, sustainable agriculture. Their key strength is their commitment to environmental stewardship and animal welfare, which resonates well with their target customer segment. However, their focus on a specific range of products and higher price points may limit their appeal to a broader audience.

Pakeen Farm, located in Canton, MA, offers a unique blend of products and services, including a pick-your-own operation for fruits like apples and pumpkins, a Christmas tree farm, and a farm stand selling a variety of local produce and goods. They serve customers in the Greater Boston area looking for family-friendly agricultural experiences as well as high-quality, locally-grown produce. Pakeen Farm’s pricing is competitive, especially for activities and experiences, which attracts a diverse customer base. Their strength lies in their ability to provide a multifaceted farm experience that combines retail with agri-tourism. However, their seasonal operations and dependence on weather conditions can be seen as a weakness, as it may affect their revenue and customer flow outside of peak seasons.

Competitive Advantages

At GreenAcres Harmony, we take pride in offering fresher and better quality fresh produce, dairy products, eggs, meat products, and honey compared to our competitors. Our commitment to sustainability and eco-friendly farming practices not only ensures the health and safety of our customers but also contributes to the preservation of our planet. We utilize organic farming techniques that enhance the nutritional value and taste of our products, making them superior in every aspect. Our close proximity to Boston allows us to deliver our products fresh, ensuring that our customers enjoy the full flavor and benefits of our offerings. This direct farm-to-table approach minimizes the time between harvest and consumption, which is a key factor in maintaining the freshness and quality of our products.

In addition to our premium product offerings, our innovative business model incorporates a customer-centric approach that sets us apart. We engage with our customers through community-supported agriculture (CSA) programs, farm tours, and educational workshops that foster a deeper understanding and appreciation for sustainable farming practices. By doing so, we not only build a strong, loyal customer base but also create a sense of community around our brand. Our dedication to transparency and ethical farming practices resonates with consumers who are increasingly conscious of the environmental and social impact of their purchasing decisions. Furthermore, our use of technology and data analytics allows us to optimize our operations and tailor our offerings to meet the specific needs and preferences of our customers, providing us with a significant competitive advantage in the Boston market.

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products and Services

At the heart of GreenAcres Harmony’s offerings is a wide range of fresh produce, encompassing everything from leafy greens to succulent fruits and crisp vegetables. This diverse selection caters to the needs of health-conscious consumers seeking nutrient-rich options. Prices for their fresh produce generally range from $2 to $4 per pound, reflecting both the quality and freshness that the farm prides itself on.

In addition to fresh produce, GreenAcres Harmony provides a variety of dairy products. Their range includes fresh milk, cheese, and yogurt, all produced from cows and goats raised in a natural and healthy environment. The prices for their dairy products are competitive, with milk selling for around $4 per half gallon, cheese priced at $6-$10 per pound depending on the variety, and yogurt at $5 per quart. These products are not only a testament to the farm’s commitment to quality but also to their dedication to sustainable farming practices.

Eggs are another staple at GreenAcres Harmony, offering consumers the choice of purchasing eggs sourced from chickens that roam freely in pastures. This free-range approach ensures that the eggs are not only fresher but also richer in nutrients compared to those from caged birds. The average price for a dozen eggs is set at $5, which is a reflection of their quality and the ethical farming practices employed by GreenAcres Harmony.

For those interested in meat products, GreenAcres Harmony offers a selection of beef, pork, and poultry. All their livestock are raised in a stress-free environment, allowing them to grow at a natural pace without the use of growth hormones or antibiotics. This results in meat that is not only healthier but also more flavorful. The prices for their meat products vary, with beef priced at around $10 per pound, pork at $8 per pound, and poultry at $6 per pound. These prices are indicative of the farm’s commitment to providing high-quality, sustainable, and ethically raised meat to the community.

Finally, GreenAcres Harmony produces honey, a sweet addition to their product lineup. Their honey comes from bees that pollinate the very crops and flowers on the farm, ensuring a product that is pure and of high quality. A 12-ounce jar of honey is priced at approximately $8, offering a natural sweetener option that supports local agriculture and promotes the health of the local ecosystem.

Overall, GreenAcres Harmony’s range of products and services is designed to meet the growing demand for locally sourced, sustainable, and ethical food choices. Their pricing strategy reflects their commitment to quality, sustainability, and the support of local agriculture, making them a valued addition to the Boston community.

Promotions Plan

GreenAcres Harmony embarks on an ambitious journey to captivate the hearts and palates of Bostonians with its array of fresh, sustainably grown farm products. Recognizing the vast potential and the competitive nature of the market, the farm employs a multifaceted promotional strategy designed to create a strong brand presence, foster community engagement, and drive sales. At the core of these efforts lies a robust online marketing strategy, complemented by a variety of other innovative promotional tactics.

Online marketing emerges as a pivotal component of GreenAcres Harmony’s promotional arsenal. The farm will leverage the power of social media platforms like Instagram, Facebook, and Twitter to connect with potential customers, share the farm’s story, and showcase its products through visually appealing content and engaging stories. Email marketing campaigns will serve as a direct channel to communicate with subscribers, offering them exclusive insights, promotions, and updates on the farm’s offerings. Furthermore, a user-friendly website will act as the digital storefront for GreenAcres Harmony, featuring an online shop where customers can conveniently purchase products, learn about sustainable farming practices, and stay informed about upcoming events and workshops.

Yet, online marketing is just the beginning. GreenAcres Harmony will also invest in community engagement initiatives to build meaningful relationships with local residents and businesses. Hosting farm-to-table events, workshops, and tours on-site will invite the community to experience the farm’s operations firsthand, fostering a deeper connection with the brand. Partnerships with local restaurants and cafes to supply fresh produce will not only expand the farm’s reach but also underscore its commitment to supporting local economies and sustainability.

To further amplify its visibility, GreenAcres Harmony will participate in local farmers’ markets and food festivals. These events offer invaluable opportunities to engage directly with customers, receive immediate feedback, and increase brand recognition through face-to-face interactions. Offering product samples and showcasing the quality and freshness of its produce will help GreenAcres Harmony stand out in a crowded marketplace.

Additionally, public relations efforts will play a crucial role in boosting the farm’s profile. Crafting press releases and working with local media outlets to feature stories about GreenAcres Harmony’s initiatives, achievements, and contributions to the community will enhance its reputation and credibility among consumers. Sponsoring local community events and initiatives will further demonstrate the farm’s commitment to giving back and supporting the well-being of its community.

In conclusion, GreenAcres Harmony’s promotional strategy is a comprehensive blend of online marketing, community engagement, participation in local events, and public relations efforts. By effectively implementing these tactics, GreenAcres Harmony expects to attract a loyal customer base, increase its market share, and contribute positively to the sustainability and health of the Boston community.

Our Operations Plan details:

• The key day-to-day processes that our business performs to serve our customers
• The key business milestones that our company expects to accomplish as we grow

Key Operational Processes

To ensure the success of GreenAcres Harmony, there are several key day-to-day operational processes that we will perform.

• Monitoring and Adjusting Crop Health: We continuously monitor the health of our crops, using both traditional methods and modern technology. This includes checking for pests, diseases, and ensuring optimal soil conditions. Any issues are addressed immediately to prevent crop loss.
• Harvesting and Post-Harvest Handling: Daily assessments determine which crops are ready for harvest. We then follow strict post-harvest handling protocols to ensure the produce remains fresh and high-quality until it reaches the customer.
• Order Fulfillment and Delivery: We process customer orders promptly, organizing and packing produce for delivery. Our delivery system is optimized for efficiency, ensuring customers in Boston, MA, receive their orders in a timely manner.
• Customer Service and Feedback: We maintain open lines of communication with our customers for inquiries and feedback. This helps us improve our services and resolve any issues swiftly.
• Inventory Management: We manage our inventory closely, tracking produce availability and supply levels to meet customer demand without overproducing. This process includes forecasting demand based on historical data and current trends.
• Quality Control: Every batch of produce undergoes quality control checks to ensure it meets our high standards. This includes visual inspections and, if necessary, taste tests.
• Financial Management: Daily financial transactions are recorded and analyzed. This includes tracking income from sales and managing expenses such as labor, seeds, and equipment maintenance.
• Equipment and Infrastructure Maintenance: Regular maintenance checks and repairs of our farming equipment and infrastructure ensure that operations run smoothly and efficiently without unexpected disruptions.
• Marketing and Promotions: We engage in daily marketing activities to promote our farm and its products. This includes social media updates, email newsletters, and participation in local food markets.
• Compliance and Sustainability Practices: We ensure all farming practices comply with local regulations and strive for sustainability. This involves water conservation, using organic farming methods, and reducing waste.

GreenAcres Harmony expects to complete the following milestones in the coming months in order to ensure its success:

• Secure the Farm Location: Finalize the acquisition or lease of agricultural land within a reasonable distance from Boston, MA, ensuring that the land is fertile and suitable for the types of crops and livestock GreenAcres Harmony intends to produce.
• Obtain Necessary Permits and Licenses: Navigate through local, state, and federal regulations to acquire all necessary permits and licenses required for farming operations, including but not limited to environmental, health, and business operating permits.
• Build and Prepare Farm Infrastructure: Develop the necessary farm infrastructure, including irrigation systems, greenhouses, livestock enclosures, and storage facilities, ensuring that all structures are built to meet or exceed industry standards for sustainability and efficiency.
• Launch Our Farm: Officially start farming operations by planting the first crops and/or acquiring the first batch of livestock. This launch includes initiating marketing efforts to build brand awareness within the target market of Boston, MA.
• Establish Distribution Channels: Forge relationships with local markets, restaurants, and food distributors in the Boston area, as well as setting up an online sales platform, to ensure that GreenAcres Harmony has multiple avenues for selling its products directly to consumers and through B2B sales.
• Implement Sustainable Practices: Fully integrate sustainable and eco-friendly farming practices into daily operations, such as composting, organic farming, water conservation techniques, and renewable energy use, to not only mitigate environmental impact but also to appeal to eco-conscious consumers.
• Reach $15,000/Month in Revenue: Achieve the financial milestone of generating at least $15,000 in monthly sales from the sale of produce and livestock. This goal is critical for demonstrating the farm’s viability and supporting further growth and investment.
• Develop a Loyal Customer Base: Through quality products, excellent customer service, and community engagement, build a loyal customer base that not only regularly purchases GreenAcres Harmony products but also advocates for the brand within their networks.
• Evaluate and Expand Product Lines: Based on customer feedback and market demand, periodically evaluate the farm’s product offerings and consider expanding into new crops, livestock, or value-added products such as jams, cheeses, or meats to diversify income sources and meet market needs. Completing these milestones will position GreenAcres Harmony for long-term success by ensuring operational efficiency, regulatory compliance, market presence, and financial stability.

GreenAcres Harmony management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Chloe King, President

Chloe King, President, brings a wealth of experience to GreenAcres Harmony, backed by a proven track record of success in the agricultural sector. Having successfully managed a farm previously, Chloe possesses a deep understanding of the operational, financial, and strategic facets of running a sustainable agricultural business. Her leadership skills, combined with her hands-on experience in farm management, position her perfectly to steer GreenAcres Harmony toward achieving its mission of sustainable farming and community engagement. Chloe’s ability to navigate the challenges of agricultural business, from crop production to market strategies, makes her an invaluable asset to the team and a key player in ensuring the long-term success of GreenAcres Harmony.

To reach our growth goals, GreenAcres Harmony requires significant financial investment. This funding will be allocated towards expanding our farming operations, enhancing our marketing efforts, and further developing our sustainability initiatives. Our financial plan outlines the need for capital investment to support these areas, ensuring that we can continue to provide our customers with high-quality, sustainable produce while also expanding our reach and impact within the community.

Financial Statements

Balance sheet.

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Income Statement

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Cash Flow Statement

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Farm Business Plan Example PDF

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20 Tips You Should Consider When Creating Your AG Business Plan

by FCSC | May 28, 2024 | FCSC Blog , Industry Insights

Embarking on an agricultural venture, whether it’s running a beef ranch out East or managing a large produce business, is both thrilling and daunting at the same time. Creating an effective, sustainable, and profitable business plan from which to run your entire company appears overwhelming at first glance. However, our Farm Credit of Southern Colorado team is here to help you create a solid business plan or recreate one you already have in place to improve upon. We fully understand the myriad considerations of starting or enhancing your agricultural enterprise. From navigating legal structures to defining your goals and objectives, establishing governance strategies, and making crucial decisions, we’ve got you covered every step of the way.

Let us make the development of this critical document easier for you! We’ve put together a guide that walks you through all the intricacies of organizing a new plan and ensures your journey toward viability is smooth sailing.

How to Create a Helpful Business Plan for Your Farm

A well-crafted business plan is one of the most important foundational pieces of planning for success in the agricultural realm. Whether you’re drafting your very first business plan or revamping an existing one, it’s essential to cover all your bases to be well-prepared for all situations. Here are some key points to consider covering within your plan:

1. Operational Plan: Map out your vision, your mission, and the strategies you will use to achieve your goals. A clear roadmap will guide your actions and keep you focused on your goals.

3. Set Goals and Budgets: Creating a business growth strategy can be more manageable when you start from where you would like your business. Goals give you focus, create budgets, and help you understand if your plan is reasonable. They can also validate whether you’re on the right growth path.

4. Licenses and Certifications: While every farming operation’s certification and license will differ depending on the type of product they produce, it’s crucial to complete your research and ensure you are fully certified and licensed where you need to be. Ensure there is a yearly check-in for reestablishments of all documentation as well.

5. Company History: Record all the pivotal moments in your business from its origins to the present day to organize milestones, accomplishments, and the work of influential figures into a cohesive narrative. It is helpful to record your farm’s progress and story.

6. Inventory: Markup a consistent monthly or quarterly game plan to check in and count your farming inventory. Make sure to include physical count, spot checking, cycle counting, and new product ordering, amongst any other item nuances you may have in your operation.

7. Establish Sales and Distribution Channels: Identify the most suitable sales and distribution channels for your agricultural products to calculate your potential net profit. Explore options such as direct business-to-consumer, partnerships and networks with distributors, and growth paths to get into larger markets and supply chains.

8. Financing Opportunities: Find ways to obtain financing, grants, or loans to further your growth and expansion. Identify potential sources of income and create a comprehensive budget to support your business goals, including forward acquisitions and other growth options.

9. Emergency Protocols: A guide that includes roles, responsibilities, relevant contact information, and resources available in the case of emergency. This plan should consist of assessing damage, protecting property, minimizing damage or business disruptions, and determining the appropriate actions after the incident.

10. File Records: Keep proper records of finances, transactions, inventories, and other vital information to track progress and make informed decisions. Accurate recordkeeping is critical for compliance, financial analysis, and strategic planning.

11. Risk Management: Identify potential risks and develop strategies to mitigate them, protecting your business from unexpected challenges. Engaging and managing risks will help protect your assets and business continuity.

13. Mental Health: Prioritize self-care and well-being to ensure resilience and sustainability. Farm work can be demanding, and maintaining mental and emotional well-being is essential to long-term success.

14. Field Transition Plan: Define follow-up procedures and plans to ensure a smooth transition of ownership and operations. Succession planning is essential to preserve the legacy of your business and ensure its continuity across generations.

15. Environmental Stewardship: Create a map to implement sustainable farming practices, conserve natural resources, and promote biodiversity. A solid hold on your business’ sustainable operations is crucial to appeal to the current customer market in this greener age.

16. Environmental Preparedness: Due to weather and environmental factors like droughts, freezing temperatures, hail, pests, and diseases, you must be prepared to plan and react to each. Adapting to climate change and reducing environmental risks requires careful planning and adaptation that fits your personal business needs.

17. Knowledge Expansion: Ensure you have a game plan encouraging you and your employees to expand their knowledge bases and improve their expertise constantly. Focusing on further education is the steppingstone to sustainability and diversification within your organization.

18. Growth Strategy: Conduct a detailed outline that lists your actions to expand operations, increase revenue, and boost market reach. You’ll want to evaluate the financial, market, and industry positions to establish clear objectives to help your business develop over time.

19. Labor and Workload: Farming can be physically demanding and labor intensive, requiring long hours, especially during critical periods such as planting or harvesting. Managing and coordinating workers’ energy can be difficult, especially in large operations.

20. Marketing: Create a comprehensive marketing strategy to promote your product or service, reach your target audience, and generate sales. Effective marketing strategies will help you build brand awareness, attract customers, and generate revenue. Utilize social media platforms to target your audience directly.

With Farm Credit of Southern Colorado by your side, you’ll be equipped with the knowledge, resources, and support you need to thrive in the competitive agricultural landscape. Our team is here to help not only with the ag financial and ag insurance side of things but also with your farm’s business planning and operational logistics. We take pride in also being an educational resource for our customer-owners, so never hesitate to ask for assistance ! Let’s embark on this journey together and pave the way for your local agricultural venture’s success.

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Cultivating Success with a Comprehensive Farm Business Plan

Farm business planning involves outlining the goals, strategies, and financial projections for an agricultural operation. It serves as a roadmap that guides farmers in making informed decisions, managing resources effectively, and adapting to changing market conditions. A well-crafted farm business plan provides a clear direction for the farm’s future, enabling farmers to identify potential risks, capitalize on opportunities, and secure financing from lenders or investors.

Importance of a Farm Business Plan

Executive summary, description of the farm, market analysis, products and services, marketing and sales strategy, operational plan, financial projections, risk management, 1. define your goals and objectives, 2. conduct market research, 3. assess resources and infrastructure, 4. develop marketing strategies, 5. outline operational processes, 6. create financial projections, 7. evaluate and refine the plan, benefits of a well-developed farm business plan, uncertain market conditions, climate and environmental factors, access to capital and funding, examples of successful farm business plans, why is a farm business plan necessary, how long does it take to create a farm business plan, can i use a template for my farm business plan, what should be included in the financial projections, how often should a farm business plan be updated, how do i start a farm business plan and find a farm business plan sample.

Having a farm business plan is crucial for several reasons. Firstly, it helps farmers clarify their vision and set realistic goals for their agricultural enterprise. By clearly defining their objectives, farmers can focus their efforts on areas that contribute to their long-term success. Secondly, a farm business plan facilitates effective communication and collaboration with stakeholders such as partners, employees, and financial institutions . It ensures that everyone involved understands the farm’s mission, strategies, and financial expectations.

Furthermore, a business plan for farms enables farmers to identify potential risks and develop strategies to mitigate them. By conducting a thorough market analysis, farmers can anticipate market trends, assess consumer demands, and identify potential competitors. This information allows them to tailor their products and marketing strategies to meet the needs of their target audience effectively. Additionally, a farm business plan helps farmers plan their operational processes, including production schedules, supply chain management, and quality control, ensuring efficiency and productivity.

Key Components of a Comprehensive Farm Business Plan

Break down the essential sections that make up a comprehensive farm business plan. Provide an overview of each component and explain their significance in convincing investors.

The executive summary is a concise overview of the entire farm business plan. It provides a snapshot of the farm’s mission, goals, strategies, and financial projections. This section should be compelling enough to capture the reader’s attention and generate interest in the rest of the plan.

In this section, you will provide detailed information about your farm, including its location, size, infrastructure, and history. Describe the type of farming you engage in (crop cultivation, livestock production, organic farming, etc.) and highlight any unique selling points or competitive advantages your farm possesses.

Conducting a thorough market analysis is crucial to understanding the demand and competition in your target market. Identify your target customers, analyze their preferences and purchasing power, and evaluate the market trends that may affect your farm’s operations.

Detail the range of products and services your farm offers. Include information about the specific crops or livestock you produce, their quality, and any value-added products or services you provide, such as organic certification or agritourism activities.

Outline your marketing and sales strategies for promoting and selling your farm products. Identify the channels you will use to reach your target customers, such as direct sales, farmers’ markets, online platforms, or partnerships with local restaurants or grocery stores.

In this section, explain how you will manage the day-to-day operations of your farm. Outline the production processes, equipment and machinery required, labor needs, and any other relevant operational considerations.

Develop comprehensive financial projections for your farm business. Include information on the initial investment required, projected revenue and expenses, cash flow statements, and profitability forecasts. This section will help you assess the financial viability of your farm and attract potential investors or lenders.

Identify the potential risks and challenges your farm may face, such as weather-related events, disease outbreaks, or market fluctuations. Describe the strategies and contingency plans you will put in place to mitigate these risks and ensure the continuity of your farm’s operations.

Steps to Create a Farm Business Plan

Creating a farm business plan may seem overwhelming, but breaking it down into manageable steps can simplify the process. Follow these steps to develop a comprehensive and effective farm business plan:

Start by clarifying your long-term goals and objectives for your farm. What do you want to achieve in terms of profitability, sustainability, and growth? Having a clear vision will guide your decision-making throughout the planning process.

Thoroughly research your target market to identify consumer demands, market trends, and potential competitors. This information will help you tailor your products and marketing strategies to meet the needs of your customers effectively.

Evaluate the resources and infrastructure available on your farm. Consider factors such as land availability, water sources, equipment, storage facilities, and labor availability. Assessing these resources will help you determine the scale and type of farming practices you can undertake.

Based on your market research, develop a comprehensive marketing strategy that outlines how you will promote and sell your farm products. Consider different marketing channels, such as online platforms, farmers’ markets, community-supported agriculture (CSA) programs, or direct sales to local businesses.

Describe the day-to-day operational processes required to run your farm. Include details about cultivation techniques, livestock management practices, quality control measures, and supply chain management. Consider any necessary certifications or licenses required for your specific farming practices.

Develop realistic financial projections for your farm business. Calculate the initial investment required, projected revenue streams, and anticipated expenses. Consider factors such as production costs, marketing expenses, equipment maintenance, and labor costs. Regularly monitor and update these projections to track your farm’s financial performance.

Review and refine your farm business plan regularly. Seek feedback from trusted advisors, industry experts, or experienced farmers. Continuously monitor market trends and make adjustments to your strategies and projections accordingly.

A well-developed farm business plan offers several benefits:

Guidance and Direction : A farm business plan provides a roadmap for your farm’s operations, helping you make informed decisions and stay focused on your goals.

Effective Communication : It facilitates communication and collaboration with stakeholders, including partners, employees, lenders, and investors, ensuring everyone is aligned with the farm’s vision and objectives.

Risk Mitigation : By identifying potential risks and developing contingency plans, a farm business plan helps you proactively manage risks and navigate unforeseen challenges.

Opportunity Identification : A thorough market analysis and competitive assessment enable you to identify emerging trends and opportunities in your target market, allowing you to adapt and seize new business prospects.

Financial Planning and Investment : A well-crafted financial projection helps you understand the financial feasibility of your farm business, attract potential investors or lenders, and secure the necessary funding for your operations.

Operational Efficiency : By outlining your operational processes, a farm business plan enables you to streamline your operations, improve productivity, and optimize resource allocation.

Long-Term Sustainability : A farm business plan encourages sustainable farming practices, ensuring the long-term viability of your agricultural enterprise while minimizing environmental impact.

Challenges in Farm Business Planning

While developing a farm business plan, farmers may encounter several challenges. It’s important to be aware of these challenges and develop strategies to overcome them:

Agricultural markets can be volatile, with unpredictable price fluctuations and changing consumer preferences. Farmers must stay updated on market trends, consumer demands, and potential disruptions to make informed decisions and adjust their strategies accordingly.

Farmers are highly dependent on weather conditions and environmental factors, such as rainfall, temperature, and soil quality. Climate change and extreme weather events can significantly impact crop yields, livestock health, and overall farm productivity. It’s important to incorporate climate resilience strategies into your farm business plan.

Securing adequate financing for farm operations can be challenging, especially for small-scale or new farmers. Limited access to capital and funding sources may restrict the implementation of growth strategies or necessary investments in equipment, infrastructure, or technology. Exploring alternative funding options, such as grants, loans, or partnerships, can help overcome this challenge.

Looking at examples of successful farm business plans can provide valuable insights and inspiration for your own planning process. Take the time to study the approaches and strategies adopted by established farmers in your industry or region. Understand their marketing tactics, operational processes, and financial management techniques, and adapt them to suit your own farm’s unique circumstances and goals.

Ready to Create a Solid Farm Business Plan? Get Started Today!

Creating a well-crafted farm business plan is crucial for the success and sustainability of your agricultural venture. Whether you’re a small-scale farmer, a family-run farm, or an aspiring agribusiness entrepreneur, our team at Easy Capraise is here to help. We specialize in assisting businesses like yours in finding investors and securing the capital raising you need to bring your farm business to new heights.

Don’t miss out on the opportunity to maximize your farm’s potential. Contact us today and let our experts guide you through the process of creating a comprehensive farm business plan that will attract investors and set you on the path to success.

A farm business plan provides a roadmap for your farm’s operations, helping you set goals, make informed decisions, secure funding, and adapt to market conditions.

The time required to create a farm business plan depends on various factors, such as the farm’s complexity and your familiarity with the planning process. It can range from several weeks to a few months.

Using a template as a starting point can be helpful, but ensure that you customize it to reflect your specific farm’s goals, strategies, and financial projections.

Financial projections should include initial investment requirements, projected revenue streams, anticipated expenses, and cash flow statements. It’s crucial to regularly monitor and update these projections to track your farm’s financial performance.

A farm business plan should be regularly reviewed and updated, at least annually or whenever significant changes occur in your farm’s operations, market conditions, or financial situation.

Here’s a guide on how to start a farm business and where to find a sample farm business plan: Identify your farm’s purpose and goals: Determine the type of farming you want to engage in and the specific goals you wish to achieve. This could include crop farming, livestock production, organic farming, or specialized farming practices. Conduct thorough market research: Understand the demand and market potential for your chosen farming niche. Identify your target market, competitors, pricing trends, and any regulatory requirements specific to your area. Determine your farm’s resources: Assess the resources you have available, such as land, capital, equipment, and labor. Determine if you need to acquire additional resources or secure financing for your farm business. Develop a farm business plan: Create a comprehensive business plan that outlines your farm’s mission, vision, and strategies. Include sections on market analysis, production methods, operational plans, marketing and sales strategies, financial projections, and risk management. Seek out sample farm business plans: There are various resources where you can find sample farm business plans to use as templates or references. Consider the following options: a. Online resources: Many agricultural organizations, government agencies, and agricultural universities provide sample farm business plans on their websites. Search for “sample farm business plan” and explore the available resources. b. Local agricultural extension offices: Visit your local agricultural extension office or cooperative extension service. They often have resources, workshops, and sample farm business plans tailored to your specific region.

Seek professional advice: If you need guidance in developing your farm business plan or need assistance customizing a sample plan, consider reaching out to Easycapraise.com.

Developing a comprehensive farm business plan is a vital step toward the success and sustainability of your agricultural venture. By outlining your goals, conducting thorough market research, assessing resources, and creating financial projections, you can create a roadmap that guides your farm’s operations and positions you for long-term success. Remember to regularly review and update your plan to adapt to changing market conditions and seize new opportunities. With a well-developed farm business plan in hand, you can navigate the challenges of the agricultural industry and achieve your desired outcomes.

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Whole Farm > Other > Strategic Planning

Updated May, 2016 File C6-41

Strategic planning for farm businesses.

Strategic planning involves the development of long-term strategies to increase the profitability and competitiveness of your farm business. This may involve developing new enterprises for your farm such as organic production, on-farm processing, direct marketing of your products to consumers, or the efficient production of traditional farm commodities.

The purpose of the strategic planning process is to design a farm business that allows the individuals involved in the business to achieve their personal goals. You can do this by using the strengths of your business to take advantage of opportunities in the industry.

Strategic planning involves developing plans for your business and implementing and evaluating these plans. Below is a discussion of a process you can use to develop a strategic plan for your individual farm business. This process is shown in Figure 1.

Phase 1: Factor Analysis

Phase 1 of strategic planning involves assessing and analyzing four factors that are needed for successful strategic planning. These four factors constitute the top half of Figure 1 and provide the ingredients for strategic planning. This first phase of strategic planning requires you to 

Identify Personal Goals

Determine Business Goals

Scan the External Environment

Scan the Internal Environment

1) Personal Goals

One purpose of the business is to achieve the personal goals of the individuals involved in the business. So each person involved in the business should develop personal goals. A personal goal is something that you, as an individual, want to achieve. We often think of making money as our primary personal goal. However, people are complex individuals. Personal goals may include finishing a college degree, spending more time with family, creating a college fund for children, buying a vacation home, getting involved in an organization, doing charitable work, etc. Personal goals may also focus on business activities such as producing safe and nutritious products for consumers, providing employment for the entire family, providing an opportunity for the next generation to farm, etc.

Once your personal goals have been identified, they should be shared with others in the farm business so that inconsistencies among individuals can be identified. Next you need to decide which personal goals will be achieved through the activities of the business. These personal goals will form the basis for developing business goals.

2) Business Goals

Personal goals provide the foundation for the business goals . This is how the family imposes its wishes on the business. The business goals must be designed to achieve the goals of the individuals and family involved in the business. If business goals are not designed for this purpose, they must be reevaluated.

For example, if the personal goal is to buy a vacation home, the funds may need to come from business profits. So business profitability may be an important business goal. However, if the personal goal is to finish a college degree, the business needs to be structured to provide the time for completing this goal. So the business goal may be to minimize the labor needs of the business or to find an outside labor source.

3) External Scanning

Scanning is the process of assessing what is going on around you. External scanning involves looking past the farm gate and examining and assessing the economic, business and social environment surrounding your business. It is based on the premise that the environment in which you live and work is not static, but dynamic and constantly changing. External scanning should focus on the following three specific areas.

a) Industry Trends Identify changes and trends in each of the industries you are competing within. These typically correspond to your business enterprises and may include the corn industry, soybean industry, pork industry, beef industry, etc. However, for value-added farm operations, you may examine market segments or niches of these industries such as organic pork or specialty soybeans. b) Competition Identify and analyze the competition for each of your enterprises. First, divide the competitors into major groupings by size, structure, etc. Next, identify the threat each group poses to your farm business. For example, if you are producing a food product for local consumption, you may be competing against local farmers similar to you. If you are producing for a regional or national market, your competition may include larger food companies.

c) Economy/Business/Social Identify changes in the economy, society and the business climate. These would typically include changes such as interest rates, business regulations, inflation, consumer preferences, government programs, demographic distributions, etc. You should examine all changes that will affect your business.

4) Internal Scanning

Internal scanning involves looking inside of your farm business and identifying its strengths and weaknesses. Business strengths are those things that you do better than your competitors and provides the basis for a competitive advantage. You build a successful business on your strengths. Weaknesses are areas where you are vulnerable to competitors. You look for ways to minimize the impact of weaknesses on your farm business.

Usually the most important assets in the farm business are you and the other individuals in the business. The strengths and weaknesses of a farm business often involve the skills and talents of the people involved in the business. For example, if you are good at networking and working with others, you should try to take advantage of this talent. Conversely, if record-keeping is not your thing, you may want to outsource this function so it doesn’t become a weakness of your business.

Scanning should also be conducted for each individual enterprise in the farm business. Traditionally these enterprises have been corn, soybeans, hogs, etc. However, new enterprises are entering farm businesses. Agriculture's traditional broad commodity markets are breaking down into segmented markets of precisely defined agricultural products. For example, you may have a grass-fed beef enterprise or an organic dairy enterprise. Your grass-fed beef enterprise may just involve production or it may include marketing the beef product directly to consumers. The organic dairy enterprise may also include on-farm or jointly-owned processing. This collection of enterprises is what comprises your farm business. So you need to identify and describe each enterprise in your farm business.

Phase 2: Strategy Analysis

After the ingredients for strategic planning have been identified and assessed in Phase 1, Phase 2 involves using these ingredients to strategize alternative ways of organizing the farm business to achieve the business goals. Phase 2 involves the bottom half of Figure 1.

A strategy is the means by which the business uses its strengths (a product of internal scanning) to take advantage of environmental opportunities (a product of external scanning) so the goals identified for the business can be achieved. Because business goals are based on the desires of the individuals in the business, achieving business goals provides an opportunity for achieving personal and family goals.

Strategy development involves identifying a strategic fit between what the business and social environment wants (opportunities) and what your business has to offer (strengths). From this strategic fit, you develop a competitive advantage . A competitive advantage is something that your business can do better than its competitors. For the most value, the competitive advantage should be sustainable over the long-term. This process of using internal and external scanning to identify a strategic fit and develop a sustainable competitive advantage is part of the strategy process identified in Figure 1.

A strategy is developed by first identifying two or more alternatives for your business. This may involve different enterprises or various ways of using resources. From these strategic alternatives, the alternative that best achieves your business goals is chosen.

1) Business Strategies

The first step in strategy development is to answer two basic questions of the business. What is the planning horizon of the business and what direction is the business going in. You need to consider both a planning horizon strategy and a direction strategy. The planning horizon strategy will often affect the type of directional strategy you choose.

a) Planning horizon - The planning horizon question asks, how long will the firm exist? Will the business exist for five more years or 25 more years? This is often closely tied to the life cycle of the operator. If you are a young person who recently entered farming, your planning horizon may be quite long and you may be considering an aggressive growth strategy by adding a new enterprise. However, if the business will end in the near future because of your retirement, the planning horizon will be quite short and the strategy may focus on terminating the business. But if the next generation will take over the business, a much longer planning horizon is once again available.

b) Direction - The direction question asks, where is the business going? Will it grow or stay the same size as it is? If it grows, how will it grow? Will you add one or more new enterprises or will you expand your existing enterprises?  If you add a new enterprise, will you drop an existing enterprise? Developing a direction strategy should be done in combination with portfolio analysis and enterprise strategy development (below).

Remember, growth strategies don’t necessarily mean more acres or more head of livestock. Growth strategies can involve more intensive use of your acres by changing your crop and/or livestock enterprises, or it may involve the further processing and/or marketing of your farm products. After you have answered these questions you can begin designing the Farm Business Strategy (AgDM File C4-46) for your farm. The primary farm business strategies are:

• Growth - expanding the size of the business.
• Stability - maintaining the size of the business.
• Retrenchment - refocusing the business for improved performance.
• Succession - transferring the business to younger generation.
• Exit - ending and leaving the business.

If you plan to grow the business you may want to review the Growth Strategy by type of Farm Business (AgDM File C6-47).

2) Enterprise Strategy Development

Enterprise strategies, often called competitive strategies , identify how each individual enterprise will compete within its respective market and industry. Enterprise strategies, especially for primary enterprises, are imperative to the success of the business because they link the business and its markets. So enterprise strategies form the foundation for a successful business.

• Importance of each enterprise - You defined your business enterprises (above) when you defined your business. Each enterprise should be identified as a profit center, cost center or investment center. Also, each enterprise needs to stand on its own as to its contribution to the business’s goals.
• Enterprise interactions - In addition, enterprise interactions should be examined. What synergies exist among enterprises due to shared resources or management skills that make enterprises complementary? Conversely, are there situations where enterprises compete for resources or management skills?

2) Portfolio Analysis

Portfolio analysis is part of developing a business strategy. A farm business is made up of one or more enterprises (i.e. corn, soybeans dairy, etc.). Portfolio analysis examines the mix of enterprises in the business and asks the question, what is the best combination and relative size of enterprises for the business. The external scanning exercise should provide you with business and market opportunities. For example, is there demand in your community for locally grown vegetables? How about the expanding demand for organic products?  Is their need to start a marketing organization to market farm products directly to consumers?

Next, compare these opportunities to the strengths of the business. Do you have good organization skills?  Do you prefer working alone or with others? Are your farm resources suited to producing a new crop enterprise?  This exercise involves matching your skills and business resources with business opportunities.

The purpose of this exercise is to develop the type of farming operation that meets the goals of the individuals involved in the farm business. For example, the decision by one of the spouses to pursue off-farm employment may greatly affect how you organize the farm business.

3) Enterprise Strategy Development

4) reality testing.

In a sense, the business and enterprise strategies represent what is possible and the business goals represent what is desired. These strategies can be used to test the reality of the business goals. Reality testing involves examining your business goals in light of the environmental opportunities and business strengths. It addresses the question, can the farm business be organized in a way to achieve the business and personal goals?

Implementation and Control

Once your strategy has been selected, action plans or business plans need to be developed of how the strategy will be implemented. Also, a system of evaluation and control needs to be developed to monitor the business and the progress of the strategic plan in achieving the business goals.

Strategic management is more than a planning, implementation and control process.  It is also a state of mind and an attitude. Strategic management forces you to be forward thinking, proactive, and focused on where you are going and how you will get there.

Don Hofstrand, retired extension value added agriculture specialist, [email protected]

Don Hofstrand

Retired extension value added agriculture specialist view more from this author.

Guidelines for Effective Farm Business Planning

Strategic planning is a process that managers must do to keep a business going long term. Why is strategic planning important for farming businesses? Strategic planning looks outward and inward at the business, considers all available resources, and evaluates past performances. It focuses on managing interactions with competitors, neighbors, government agencies, suppliers, customers, special interest groups, and others. The primary purpose of strategic planning is to keep the business in step with a changing environment. It anticipates the future and considers the future but does not attempt to predict it.

Objectives:

• To establish guidelines that will assist producers in building a business plan.
• To bring together all the individuals to establish this business plan,
• To establish both short and long range business and personal goals.
• To establish benchmarks that will measure performance and progress.

Strategic planning is long-range planning, as farming is a long term venture, and it looks at least five years, short and long term goals, records and benchmarks reviewed at least yearly. In order to be useful, a long-range farming plan needs to be flexible, and be a family project whose vision is shared by all. Characteristics of this strategic plan are:

• It is a framework for responding effectively to your changing environment
• It accesses long range business opportunities
• It has a strong understanding of the business today
• It organizes your thoughts
• It focuses on the correct issues It is a Communication Vehicle
• It concentrates on “Making Decisions”
• It is “Action Oriented”

Strategic Planning will not “Guarantee Success” but it will greatly improve your chances at succeeding.

Why Do Few Producers Plan?

Although strategic planning can greatly improve communication and vision of a farm business and helps emphasize efforts in areas of importance or need, many producers do not plan. These reasons may include, but are not limited to:

• Resources are limited
• Future is uncertain and risky
• Planning is not easy
• May aggravate conflicts within family
• Who should make decisions
• Which goals should have priority
• May make producers feel vulnerable
• No one has all the answers
• May not be able to gather or interpret all the information

The primary reason for not setting up a plan is probably the ability to set aside time. Some may say they can not afford to take the time, but successful business will say you can not afford not to take the time. It is a question of prioritizing what one feels is important and will help move the farm operation forward in the future.

Producers must remember that these plans are not carved in stone, but that they are a vehicle for calculated change. Strategic plans are crucial to every producer’s future. Knowing the strengths and weaknesses of your business allows you to match your strengths to available opportunities. This planning may not have a clear starting or stopping point. You should look 5, 10, 20 or more years into the future. As you do this formalize the process where you do the following in an organized manner.

• Examine the current situation
• Specify both farm and family goals
• Identify and Implement Alternatives
• Establish a record and analysis system
• Monitor progress

Strategic planning, if implemented properly, involves a mechanism to adjust to changes while working towards defined goals. The plan anticipates that the farm operation will be modified as necessary to accomplish both farm and family goals. Simply discussing the future and potential changes in the business environment is not enough – making strategic planning an effective contributor to your overall business strategy involves putting it on paper.

Forming and Implementing the Farm Business Plan

To form a strategic plan, one needs to create the following:

A) Executive Summary

• This will be the first page to read, but will also be the last page to write.
• It serves as an abbreviated map of the future.
• What would I like my farm to be like in the future?

B) Mission Statement

• This section describes what you and your business are about.
• Make the Mission Statement concise and memorable, relaying your personal and business philosophy.
• Attitude toward risk and any other concerns should also be addressed.

C) Set Goals – Statement of what you intend to achieve

• These include both business and family goals. When all key members (family and employees) share common goals, success rate is much higher.

D) Establish Specific Objectives

• Objectives relate to how you are going to accomplish your goals.

E) Develop Performance Reports

F) Establish benchmarks that measure progress

G) Develop sound records

As you form your plan, remember the only thing for sure is change, so flexibility is key. Information management is paramount: ensure you gather it all, screen it, analyze it, use it, and store it for future retrieval and application.

Having a plan will increase the viability of the business by providing guidance for planning activities, keeping stakeholders well informed, helping when attempting to obtain financing, and improving overall communications. If a business is going to expand or go through a transition without a plan, the process will inevitably involve:

Wonder — Blunder — Thunder — Under

This fact sheet outlines a very simple approach to use to get started in preparing a business plan. The people that need to be involved in doing the planning, the goal setting, records and benchmarks all need to be completed is such a way that all stake holders have buy into the plan.

A more structured and detailed planning form may be obtained from the Center for Farm Financial Management 249 Classroom Office Building 1994 Buford Avenue University of Minnesota St. Paul, MN 55108 612-625-1964 800-234-1111 [email protected]

References : Teaching Strategic Farm Business Planning, Lamberton, MN. June 22 and 23, 2004, U of M Extension Service – Center for Farm Financial Management   Smith, T. R. Developing a Farm Business Plan. Dairy Strategies, LLC   Farm Transfer Options. Wealth Preservation, Inc.   Bauernfeind, J. Midwest Estate and Business Planning   Transferring the Farm Business: Beginning the Process. U of M Extension Service, Minnesota State Colleges & Universities   Building a Sustainable Business: A Guide to Developing a Business Plan for Farms & Rural Businesses. Developed by the Minnesota Institute for Sustainable Agriculture St. Paul, MN   Farm Business Planning. North Dakota State University. Department of Agricultural Economics   Gustafson, C. R., D. Saxowsky, L. Crane, and J. Samonson. Business Planning for your Farm. Ag Econ Department, North Dakota State University   The Sustainable Agriculture Network Beltsville, MO   Introduction to the Farm Business Planning and Analysis Program and Teaching Units Agricultural Education Service, State Department of Education and Department of Agricultural Education The Ohio State University

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Farm Business Plan

Most entrepreneurs are terrified of planning. But this can be a different scenario for you.  A farming business can be more successful if you will develop a farm  business plan . Not only will you set the steps that you need to follow to achieve your goals, but you can also become more prepared with the risks. More so, your  strategic plans  will help you develop a mission statement that will guide you through. So, are you ready for this? Below,we provide you a farm business plan examples that you can look into as a guide.

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What Is a Farm Business Plan?

A farm business plan is an excellent organizational and business material that you can use for a variety of purposes. All you must do is to be familiar with  business plan guidelines  and the basics of farm business management so you can already identify the specific business plan document that you need.

Importance of a Farm Business Plan

Have you ever been to a hotel where you can see each process’s organization from the welcoming of guests up to their check-out procedures? One of the planning documents that provide a contribution to that organization is a  hotel operational business plan . This can be compared to the usage of a farm business plan if you want to ensure that the operations of your farm business are laid out properly. According to a gathered  analysis  published by Noble Research Institute,  the advantages of a farm business plan  includes an easy application to loans. It can also promote solidarity within the farm business’s stakeholders. This is relatively substantial, especially for every small business in the agricultural industry.

How To Create a Farm Business Plan

Creating your farm business plan can be easier if you will refer to helpful agriculture business plan examples. But aside from the items mentioned above, there are still some items that can make it more efficient for you to develop an outstanding, complete, and organized farm business  plan . Some of these tips and guidelines are all listed below.

1. Begin with a Realistic Plan

To begin with, always start by visualizing your ideas. After that, you can now proceed with outlining your goals and objectives. Remember to make it as realistic as possible. Come up with measurable and obtainable plans. This should include  proposals ,  marketing , and budget . Truly, there is no easy business. So, plan long-term, and everything else will follow.

2. Provide an Executive Summary

Next, you have to learn how to write an  executive summary  for your business plan. Especially for farm business startups, an executive summary is one of the parts of the farm business plan that will be first seen by your target audience. Make it as appealing and as presentable as possible so you can already get positive responses and impressions. But remember, don’t make it too long and invite confusion from readers. Make it precise as much as possible.

3. Set an Action Plan

What could be the necessary steps to do in achieving your goals? Here, you have to outline your  action plans . It should be relevant to your objectives. Therefore, they must align. You can also set a  schedule  to follow. This helps you cope with your daily tasks while keeping it on time. Another thing to remember is to make it attainable for everyone in the organization.

4. Present the Values and Benefits

make sure that your farm business plan can present your business values. It should be a reflection of your identity, brand,  mission statement , and image as a business. These characteristics can set you apart from your competition. It can promote memory retention, which is an excellent way for you to remain relevant and memorable in the marketplace where the farm business belongs.

5. Proofread the Plan

Don’t propose it right away. But make sure that you check your content from the cover page down to the last pages. Is your budget for the business plan considerable? Can your members achieve success in no time? It is essential to check it first before using it for actual scenarios. This helps you come up with an excellent  report  later on.

FAQ’s

How much is a typical business plan.

The price of a business plan depends on the agency that creates it. But in most cases, it reaches up to $15,000 for a complete plan.

Is a business plan necessary?

A business plan is a necessity if you take a look at the bigger picture when it comes to finances and projects. This helps you accomplish more than what you imagine for your business.

What are the two primary elements of a business plan?

Among the various elements of a business plan, the executive summary and market analysis are standard.

Again, feeling overwhelmed with everything that you need to consider when developing a farm business plan is normal. However, you should make sure that you will not be carried away so you can focus on the items that can help you give the farm business a boost in productivity, efficiency, sales, visibility, and leads. Be mindful of how you will develop farm planning strategies. Also, see how an effective one can improve your farm business’s overall operations . So, get ready with your  document  and follow the list of steps above.

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11 Steps to a Fool-Proof Farm Business Plan: How to Stay True to Your Vision

A farm business plan helps you stay true to your vision and the mission of the operation. Learn why planning is so important in today's agricultural landscape.

A farm business plan is a comprehensive strategy that helps you stay true to your farm's vision and mission. It also enables you to determine what needs to be done for the farm to grow, whether it is expanding or diversifying. But before you can put together a farm business plan, there are some steps you need to take so that everyone on the farm is on the same page. Some steps will make your farm business plan fool-proof, so you don't get lost along the way:

1. Define Your Farm Business

When you start from the farm business, you're defining your farm's mission and vision. This is a great way to ensure that everyone on the farm knows what they are working for and why they are doing it.

At this stage, you need the answers to these questions:

· What will your farm produce- is it vegetables, poultry, livestock, or corn?

· How much of each product do you want to produce?

· For how long do you plan to operate your farm?

Once you have this information outlined in your plan, it is easier for everyone on the farm to focus on what needs to be accomplished.

2. Identify the Resources You Will Need

Farming is an intensive venture, and you need to make sure you have the right people, equipment, and farmland to make it work. Perhaps you need farm implements like tractors or need to bring in livestock. Knowing what you need is crucial if you want to have a farm business plan that works.

3. Develop Your Short and Long Term Goals

Identifying your short-term and long-term goals gives you a roadmap to success. You don't want your farm business plan to be just for this year-you also need it, so that farm management will know what they are working towards years down the line.

Short-term goals might include establishing fields of crops or installing equipment on the farm, while long-term goals might include expanding operations and diversifying into value addition.

4. Make a Plan to achieve the goals you set

Coming up with a plan is one thing, but how do you ensure it will work?

You should map out a plan to achieve the farm's goals. This is what you'll be following so that, even when there are unexpected obstacles in your way or things you weren't planning for, you know how to move forward. For instance, if you want to sell 1000 eggs daily, your farm business plan should outline a step-by-step process for achieving that goal.

5. Be Clear About Finances

You should also know your financial needs, so this is another part of the farm business plan where you need to be specific about how much capital investment you need. Your finances should allow for an operation that can grow and change as required in response to market demands or consumer trends.

6. Research and Compare Different Farms

There is a lot to learn from other farms, and it only takes a few hours a day to make farm comparisons on the internet. You can also plan to visit other farmers and see how they go about their business. The farm comparisons you find will point out areas where your farm is strong or can improve for the future, which may be helpful in terms of setting goals and making decisions about how much capital investment might be needed.

7. Develop a Marketing Plan for Your Farm

The farm business will not grow unless you have a marketing strategy , so this is a crucial step. You don't want to get a bountiful harvest only to find that you have nowhere to sell it. A farm business plan needs a marketing strategy so the farm can thrive and grow in today's competitive marketplace.

When planning your farm's marketing, you need to determine who is already selling what you want to produce and any distribution chains or associations for products like yours. Then you can decide on the most profitable way to market.

8. Create an Organizational Chart for Farm Processes

Many processes go into farm management, and you need to know what each one is for work to flow seamlessly. This includes everything from crop production to harvesting and marketing. If you're working on your farm's organizational chart, it should cover these areas and any other processes that are crucial for success.

9. Define Roles for Each Position on The Farm

Farm management is more likely to succeed when everyone knows their role because there will be less confusion and fewer misunderstandings.

A farm business plan should have a clear job description for each position on the farm so you can make sure that everyone knows what they are expected to do and how it contributes to the farm's success.

10 Keep Accurate Records

At the end of it all, you cannot evaluate your farm's performance accurately when you don't have complete and accurate farm records. Note down all expenses and revenues to understand how well the farm is doing, which will help with decisions about future investments.

11. Plan for the Unexpected

Your farm business plan should also cover contingencies so that even when something goes wrong, you know how to keep moving forward. This is especially important if there are emergencies such as natural disasters or pests on your farm because they can do a lot of damage and diminish your returns.

Now that you've learned to develop a sound farm business plan, let Cotton Grave manage your farm . We specialize in turning dreams into reality and are committed to helping farmers make the most of their land for generations to come. We will help you achieve sustainable farming practices while meeting your individual farmer goals when you partner with us.

With our expertise, thoughtful planning strategies, and established network within the industry, we can work together on all aspects of your operation from conception through retirement—ensuring success today and well beyond tomorrow. Have any questions about developing a successful whole-farm plan? Contact us for expert guidance.

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Farm Management

Division of Extension

Establishing Your Values and Purpose – Strategic Thinking for the Farm Business

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Farmers track and plan for evolving market conditions only to have a something like a global pandemic further disrupt markets and raise concerns of worker safety. Wisconsin farm leaders have adapted, and they continue to make decisions amid increasingly complex circumstances making it necessary to lead from a well-constructed strategy.

Most farm leaders stay on top of economic, social, environmental, and political happenings. They also get caught up in the day-to-day demands of an operation. When a strategic plan is in place, however, leaders can quickly assess operations and make decisions consistent with the plan. That’s because the strategic plan provides a clear sense of direction that makes the decision-making process less complex. It becomes their North Star.

Strategic planning is proactive. It prepares for the future before it arrives.

Strategic plans account for past experiences and current conditions to document a course of operation that will remain viable in whatever future happens. It is composed of several sections, like setting goals, inventorying resources, and implementing change. The most important part of a strategic plan, however, is the foundation that it’s built on—your organization’s values, vision, and mission.

Values: What you believe, reflected in how you act. The core principles you live by.

Vision: What you want your future to look like. The ideal future your organization is aspiring to reach.

Mission: How your organization acts and behaves in the present as it strives toward its vision.

Purpose: Why your organization exists.

Values Are Your Farm’s Fingerprint

Our values shape how we make the day-to-day and long-term decisions that affect our business and our future. Being able to define exactly what our personal, family, and business values are, allows us to understand more clearly our WHY—or what’s behind what motivates us and drives us to make decisions, accomplish goals, and be successful. Values establish our purpose and vision for the future.

“Values are like fingerprints. Nobody’s are the same, but you leave them all over everything you do.” Elvis Presley

Your vision and mission are strongly influenced by your organization’s core values. If any one of them does not match your values, your organization will be less resilient. For this reason, identifying your organization’s values is a first step in strategic planning.  

Values are the core principles we live by.

  Values represent our closely held beliefs. Someone who values health will undoubtedly prioritize exercising, while someone who values community more than health might find it difficult to stick to an exercise regimen when others in their community need help. Whether we know it or not, our actions can often be traced back to our values. What’s more, when we make choices that conflict with our values, we experience distress. This conflict tends to be felt as dissatisfaction or anxiety and interferes with our motivation to achieve goals. It’s one reason so few of us stick to New Year’s resolutions. While we have the best intentions, they are often a mismatch with our values, which we tend to prioritize in our daily choices.

Values are who you are and what you believe.

Your values reflect the past that made you who you are and what you believe. They provide clues to help you understand why you are doing something. Do you value innovation or tradition? Do you value community or autonomy? Knowing why you choose one path over another is a key motivator for yourself and those you lead.

A business built on a foundation of commonly held values has a compass to guide it on the path toward its vision. Leading from your values has the power to inspire action toward a purpose, which in the case of strategic planning is your mission.

Discover your top values.

Because our values are so much of who we are and what we choose to do, they exert incredible influence on our decisions surrounding farm operations. A leader who values tradition may lean on time-tested techniques whereas a leader who values continuous improvement may regularly try new farming practices. So knowing your values and those of your business partners is a vital first step in developing a strategic plan.

Once your farm’s leadership team has identified your organization’s top three to five values, make sure to recall stories that demonstrate your commitment to those values. Values tend not to change much, so if you don’t already have stories that demonstrate a value, question if it’s a held value or a desired future value. Core values build up over time from important past experiences and life lessons. They are what you already believe. So it’s important your organization works toward its vision from currently held values.

Vision: The Ultimate Why

A vision statement is your main tool for inspiring yourself and others to contribute to your organization’s success. It sets a long-term direction that motivates internal partners and employees over time. Think of it as your organization’s point of destination over the next 5 to 10 years.

Vision statements don’t include specific milestones, revenue goals, or strategies for achieving these goals. They capture your passion for an ideal that your organization would work toward whether it took 10, 20, or 50 years to achieve. This ideal, your vision, inspires people because it embodies your hopes and dreams for a superior future.  

Notice that a vision statement is just that—a short and simple statement that is easy to remember. It is future-oriented, ambitious, inspirational, and aligns with your core values.

To create your vision statement, tap into your imagination to capture your passion for what you are trying to do, not your odds of achieving it. Think of the General Motor’s Vision Statement: “A world with zero crashes, zero emissions, and zero congestion.” It’s simple, memorable, and a future that we can all get behind. Your vision does not have to change the world, but maybe it can better your piece of the world, like the Thornton Coffee Family Roasters example: “To become the leading premium specialty coffee roaster . . . in Southwest and West Portland and the West Portland suburban areas.”

Mission: The Here and Now. The How.

While a vision is your dream of the future, a mission is present-day reality. A mission statement, often synonymous with a purpose, highlights the main activities of a business, here and now, and how it plans to operate. Then, conduct that aligns with your mission statement shows that your organization is committed to working toward your vision.

Mission statements share what you do—and do not do—and how you do it. Think of mission control for space flights. Every mission specialist must know the core function (e.g., land a rover on Mars) and how the mission will be achieved. To be successful, everything that mission specialists do must work toward achieving that mission. If even one mission specialist deviates, it could be costly.

Your mission statement is just as important. It needs to capture your organization’s purpose and describe its core function, unique offerings, and intentions toward clients. The combination of these components describes your values in action and become the basis for decisions large and small. Consider these examples of mission statements. As you do, make note of the values they mention or infer.

  To include all the core components, mission statements tend to be longer than vision statements. While a mission statement can be entirely business-oriented, it can also incorporate a family’s goals and reflect on social values. Including personal and societal goals can trigger emotions that help inspire partners and workers to be mission-oriented.

Remember that your mission statement needs to align with your vision and your values. How you behave day-to-day and the actions you take either move you a step closer to your vision or further away from it.

Communicate Your Values, Vision, and Mission

It’s important to continuously communicate your values, vision, and mission. Lead by example. Remind yourself and others to make decisions that align with your organization’s values. Embed them into regular internal communications whether that be through emails, meetings, or employee training and then highlight behavior that reflects your core values. Finally, share your values and mission with clients and the public. They reflect who you are and what you believe and inspire others to share in your unique vision of the future.

The author confirms contributions to the article as follows: draft manuscript preparation and interactive media design and development–Connie Gill, Natural Resources Institute.

Author: Stephanie Plaster

More from Stephanie

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• Best for customer satisfaction
• Best for older adults
• Best for long-term care
• Best for high returns
• Best for agent support
• Best for term life
• Why you should trust us

Best Life Insurance of June 2024

Affiliate links for the products on this page are from partners that compensate us (see our advertiser disclosure with our list of partners for more details). However, our opinions are our own. See how we rate insurance products to write unbiased product reviews.

Life insurance is as complicated as the policyholders and beneficiaries who use it. That means there's no single "best" life insurance company. Instead, you can find the best option based on what you want or what you prioritize.

Summary of the Best Life Insurance Companies

• Best for customer satisfaction: State Farm Life Insurance
• Best for older adults: Prudential Life Insurance
• Best for agent support: New York Life Insurance
• Best for long-term care: Columbus Life
• Best for high returns: Allianz Life
• Best for term life: North American Company

Best Life Insurance Companies of 2024

While there is no such thing as the objective best life insurance policy, you will be able to find the best insurance policy for your specific needs. Here are our picks for the best life insurance companies, whether you want to use your life insurance policy to build wealth through cash value or you're just looking for a term life insurance policy .

Best Life Insurance for Customer Satisfaction

State farm life insurance.

State Farm Life Insurance gets the best life insurance ranking in J.D Power's Individual Life Insurance Study, with a score of 843/1,000. The company is also ranked A++ with AM Best for its financial stability with term, universal, and whole life insurance options. 

All State Farm policies have to be purchased through a State Farm agent. Your agent can help you bundle and save or buy one policy. State Farm is also among the companies offering "survivorship universal life insurance ," which means the policy covers two people, and it kicks in after the second person dies. Couples looking to maximize their death benefit for beneficiaries with one premium payment each month may enjoy lower overall costs.

State Farm agents can run quotes and compare options to find the right plans for each applicant. The range of options, discounts, and familiar name all contribute to the popularity of State Farm's life insurance.

Read our State Farm Life Insurance review .

Bundling is standard, and agents often quote with multiple discounts.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Best in JD Power customer service ratings
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Company offers a range of different insurance products to meet buyer needs
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Agents are knowledgeable about its products
• con icon Two crossed lines that form an 'X'. Life insurance products are conservative and limited
• con icon Two crossed lines that form an 'X'. Buyers may be subject to multi-year waiting periods before they qualify for full payouts on life insurance policies
• con icon Two crossed lines that form an 'X'. State Farm agents cannot offer alternative options if State Farm is unable to bind a life insurance policy

State Farm is one of the insurance industry's most prominent insurers offering auto, home, and other insurance. Bundling is standard, and agents often quote with multiple discounts. Its term, universal, and whole life insurance products are no exception.

• Life insurance products include term and permanent life
• Ranks highly for customer satisfaction

Best Life Insurance for Older Adults

Prudential vul protector life insurance.

Prudential Life Insurance is available in all states except New York. New York residents can buy the Pruco Life of New Jersey VUL Protector plan. This plan allows buyers to pull money out of their plan to pay for nursing home expenses. Cash value policy premiums are fixed, so you won't have to worry about extra costs later on. Internal costs are low, which minimizes risk. Due to age, many older adults want a safe investment option for their money. Prudential VUL Protector invests to avoid loss. That also means you're not as likely to see big increases in your available funds outside of what you deposit.

Read our Prudential Life Insurance review .

Offers aggressive financial plans.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Available in all 50 states (New York residents may have different plans)
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Buyers can withdraw money to pay for nursing home bills due to severe illness or disability
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Knowledgeable agents who can walk you through your options
• con icon Two crossed lines that form an 'X'. Financial returns are limited
• con icon Two crossed lines that form an 'X'. Limited policy options for seniors and other groups who might struggle to find life insurance

The aggressive financial plans offered by Prudential may appeal to many younger buyers and those with a stable income. However, those with lower income or buyers who aren't sure about the financial system may be more hesitant to engage with Prudential. Like many other industry giants, Prudential is working to change this perception.

Best Life Insurance for Long-Term Care

Columbus life insurance.

Columbus Life offers a wide range of riders to customize your policy with affordable premiums. The company also allows you to convert term policies to whole life insurance policies until the end of your term (generally around age 70). For this and many other reasons, customer satisfaction is high.

When using living health benefits (otherwise known as accelerated death benefits), buyers are allowed to pull money from policies early to pay for medical bills, living costs, etc. under certain circumstances. Most companies use a discounted death benefit, which reduces your final payout using two models. Columbus uses the lien method, which makes it easier to calculate the financial impact of pulling money out early.

Offers lien method to makes it easier to calculate the financial impact of pulling money out early.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Buyers can pull money out for medical and other bills in the event of disease or disability
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Columbus uses lien method to simplify accelerated death payments
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Company offers a wide range of riders to customize policies
• con icon Two crossed lines that form an 'X'. Premiums may be higher than competitors
• con icon Two crossed lines that form an 'X'. Term policies are not guaranteed to be converted to whole

Best for long-term care and accelerated death benefits.

Best Life Insurance for High Returns on Income

Allianz life insurance.

Allianz Life plans are geared towards high-income adults looking for more tax-free income. Allianz offers a 40% multiplier bonus with a 1% annual assets charge. In short, the professionals managing your investments take 10%. Overall, your investments would pull in an extra 14%-1% asset charge. This means you end up with 3% more than what you deposit every year your life policy is active. This plan offers strong returns when using a life policy to supplement your retirement savings. Allianz also offers specialized plans to grow your income by as much as 20% according to some estimates.

Of note: Allianz also offers plans for foreign nationals, including those with H-1B visas.

Offers life insurance policies for foreign nationals with H-1B visas.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Plans offer high returns on investment
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Great for investment and long-term retirement planning
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. May increase your income by as much as 20%
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Allianz offers plans for foreign nationals including H-1B visas
• con icon Two crossed lines that form an 'X'. Plans are meant specifically for high-income adults, alternatives may not be offered

Best for investing and high returns on income.

Best Life Insurance for Agent Support

New york life insurance.

New York Life Insurance agents go through extensive training before they ever hit the sales floor. What does this get you? Policies vary widely, and New York Life offers both large and small payouts. Some policies have significant penalties for early withdrawal, but taking a loan offers more options. Whatever your questions, New York Life agents are trained to offer comprehensive support giving you accurate information about its policies every time. The company comes in at position eight in J.D. Power's latest life insurance customer satisfaction study.

Read our New York Life Insurance review here.

Offers aggressive financial products and extensively trained agents.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Strong life insurance options for financial planning and wealth building
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Policies available nationwide
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Knowledgeable life insurance agents
• con icon Two crossed lines that form an 'X'. May require a medical exam
• con icon Two crossed lines that form an 'X'. Buyers looking for more modest policies may not find the most competitive pricing

If you're preparing for a comfortable retirement or looking to build generational wealth, New York Life is one of the strongest options. If you have questions or genuinely want to understand your life insurance options, New York Life agents are among the most qualified professionals in the business.

• Life insurance provider with policies available across the US

Best Life Insurance for Term Life

North american life insurance.

North American Company offers term policies alongside accelerated death benefits for critical, chronic, and terminal illnesses and more. The company allows one conversion on a 20-year policy at 15 years or 70 years old (whichever is earlier). The conversion cannot happen later than the five-year marker regardless of which policy you choose or the length. North American Company also offers a term policy with a lower premium renewable up to the age of 95 for qualifying insureds.

Offers term policies alongside accelerated death benefits for critical, chronic, and terminal illnesses and more.

• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Offers accelerated death benefits for critical, chronic, and terminal illnesses
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Offers conversion for life policies up to 70 years old
• Check mark icon A check mark. It indicates a confirmation of your intended interaction. Term policies can be renewed up to age 95 for qualifying applicants
• con icon Two crossed lines that form an 'X'. Not all term policies qualify for renewal or conversion

Best Term Policy.

Types of Life Insurance

While there's many different types of life insurance policies , broadly speaking, there are two types of life insurance: temporary and permanent. Let's go over each in detail.

Temporary life insurance

Temporary life insurance is often called term life insurance. This type of policy covers you for a set amount of time before expiring, usually between 10-30 years. If you pass away after your policy expires, your family won't receive any benefits. Additionally, your policy won't accrue cash value like a permanent policy. That said, some term life insurance policies offer a conversion from term to whole life insurance, so you can extend your coverage. 

Because its benefits aren't guaranteed, term life policies are generally cheaper than permanent life insurance. That said, the vast majority of term life insurance policies never pay out. on

Permanent life insurance

Permanent life insurance is an umbrella term for a variety of life insurance policies that will insure you indefinitely and guarantee a payout as long as you maintain your policy. Policy types that fall under permanent life insurance includes:

• Whole life insurance
• Universal life insurance
• Variable life insurance
• Variable universal life insurance
• Simplified life insurance
• Guaranteed issue life insurance

These policies vary widely in purpose and intended buyers, but all guarantee death benefits to your loved ones. Some permanent life insurance policies, like whole, universal, and variable have a cash value component , which you can use as a savings tool or to leave your heirs a larger death benefit.

How to Pick the Best Life Insurance Policy for You

Finding the right fit in life insurance starts with finding a trusted insurance agent. Because there are so many state regulations, shopping for homeowners or auto insurance can be easily done online. Life insurance is not required. So it's a voluntary purchase. Many buyers don't know what they need or when they need it. Before making your selection, consider a few things:

Some companies will sell you a policy for your child as soon as they're born. While this may seem morbid, early sign-up means lower rates for a policy your child could enjoy in the future. Regardless, early sign-up equates to more policy for lower premiums and a higher likelihood of acceptance. At 20, you may be healthier and be able to pay into the policy for a longer period compared to when you're 50 with more age-related conditions.

As a general rule, never agree to more than you can afford. For the average life insurance agent, their job is to sell you a large policy with a large commission. Consider not only how much you make now, but how likely your current income is to continue. If you work on a project basis and your project is scheduled to end in 12 months, you may want to reconsider a policy premium outside your monthly savings.

How much are you prepared to buy? Some people only want a small policy to cover funerals and other end-of-life expenses. Others build a life policy into their retirement plan. Whatever direction you're going, involving a financial planner could help you make the right decisions. Depending on the carrier, customers can also compare set limits with index universal life policies, which set no limit. These policies never expire, and the value builds over the entirety of your life.

Living Benefits

Life happens unexpectedly. You could be healthy one day and in the hospital the next. Many life policies offer living benefits. These allow you to draw a limited amount out of your policy to cover medical and other bills you cannot pay while sick.

Much like a 401(k), many life insurance policies have penalties for early withdrawal. No matter what policy you want, this question is critical to an informed decision. It's a question of how early you can withdraw and how much you'll lose from the total to have the money in 10 years instead of 30 or after death.

Some policies require insured parties to pay premiums for at least one year before any significant payout would be available. Suicide exclusions are common. Even with no medical exam policies, the company may still do a check for known conditions. An insurance company has to mitigate its risk.

Flexibility

Once you've been denied a life insurance policy, a mark goes on your record. No matter the reasons, other insurance companies may deny you coverage based on the first denial. So consider your whole situation and choose your policy carefully before you submit any applications. Some policies have greater flexibility if you lose your job or otherwise can't make payments. Others will lapse if you miss even one payment.

Payment Type

Even within whole life or term life insurance policies, customers have the option to choose guaranteed fixed or variable rates. Some have guaranteed payouts, but you'll need to ask your agent for details.

What is your intended use? Why are you shopping for a life insurance policy in the first place, and what are your goals? Many successful financial planners also have a background in life insurance. So while they may not be able to find you a specific life insurance policy, financial planners can help you set out a blueprint for your purchase.

Why You Should Trust Us: How We Reviewed the Best Life Insurance Companies

In life insurance, it's easy to get "sold a bill of goods." Many life insurance agents pass a state test to be thrown into the deep end. Agents sell the company product, but not all know the products. In this vein, we look at the products each company offers. We also look at agent training.

A good life insurance agent may not volunteer all facts upfront. But a company's agents should answer questions about its products accurately and in a way the average consumer can digest. Agents should be able to inform you about the long-term benefits and limitations. This will help customers find the right policy for their long-term plan.

We consider affordability, policy sizes available, and performance for a comprehensive assessment in our life insurance rating methodology . If you can, we recommend also working with a financial advisor to make a plan for your future with life insurance.

Our Expert Panel for The Best Life Insurance Companies

To inform our choices for the best life insurance companies, we spoke with the following experts:

• Paul LaPiana , head of product at MassMutual
• Barbara Pietrangelo , CFP, CLU, and chair of the nonprofit Life Happens
• Wykeeta Peel , Corporate Vice President and Market Manager, African American Market Unit at New York Life

The Experts' Advice on Choosing The Best Life Insurance for You

How much life insurance coverage do you believe the average buyer should have.

Paul LaPiana, Head of Product at MassMutual

"There are different approaches to determining how much life insurance you need. One is the 'human life' approach, which estimates the current value of your future earning potential. Another is securing specific coverage to pay off debts such as a mortgage or provide for the education of children. A comprehensive protection plan should provide the right amount of coverage over the course of your working life and into retirement."

Barbara A. Pietrangelo, Chair of Life Happens

"There is no one-size-fits-all life insurance policy because everyone is different. One way to get a rough estimate is to multiply your income by 10 to 15; another is adding $100,00 to that amount, should you have a child and anticipate college education expenses.

Your best bet is to talk to a financial professional or use the Life Insurance Needs Calculator on LifeHappens.org to analyze what's right for you."

Wykeeta Peel, Corporate Vice President & Market Manager African American Market Unit at New York Life

"As you consider what policy best meets your needs, it can help to answer four key questions: First, how much death benefit do you need? Second, how long will you need that coverage? Third, what is your budget (or how much monthly premium can you afford to pay?), and finally, what is your investment risk tolerance?

To determine how much death benefit makes sense, it's helpful to think beyond using life insurance to cover funeral expenses and consider whether anyone is relying on the policy owner's income to maintain a lifestyle, pay rent or a mortgage, or fund a child's education and for how long.

There are various rules of thumb regarding the right amount of Life insurance coverage. Some tips can be found online, but they only provide an estimate and don't necessarily factor in an individual's specific needs. In my opinion, human guidance, powered by technology, is required. Basically, it comes down to how much money your loved ones would need to remain on firm financial ground if your earnings were no longer in the picture and that is different for everyone."

What is the biggest opportunity you see for improvement in the life insurance industry?

"Increased accessibility through digital and other channels as well as through underwriting enhancements. Increased tailoring of products and features. And an increased emphasis on health and wellness programs."

"Having enough qualified insurance professionals to walk potential buyers through the multiple benefits of life insurance will be pivotal to the growth of the industry. Education is a key factor here, as professional agents also need to be able to explain life insurance and its benefits in an easy, digestible way, especially when there are so many misconceptions about life insurance."

"The need for life insurance is greater than ever. In fact, a recent New York Life Wealth Watch survey found that 37% of adults have been thinking about life insurance more often these days – and half of adults report that financial products that provide protection (50%) and reliability (50%) are more important now compared to last year. This may be especially true for middle-market and Cultural Market families.

Our organizational structure of having Cultural Market agents embedded in the communities where we live and work allows us to understand the needs of diverse communities and develop solutions that resonate with them."

What advice would you give to buyers who are debating whether or not to buy life insurance?

"It is difficult to say with any certainty how healthy you will be years from now. That's why securing life insurance, and insuring your insurability, today, when you are the youngest you'll ever be again, and perhaps your healthiest is a wise decision."

"Do you love someone? If the answer is yes, then life insurance is certainly something you should consider. Many buy gifts and experiences to express their love, but haven't considered that life insurance is just another way to say I love you. Nothing says support like ensuring your family's financial security and peace of mind."

"If you have someone depending on your income, you should consider purchasing life insurance. A death benefit from a life insurance policy can replace income from the loss of a breadwinner, ensure a family can stay in their home, fund educational or retirement expenses, address debt and so much more.

A life insurance policy can also help you grow your family's wealth over time. Once the risk of an unexpected loss has been managed, you can begin to think more broadly about your family's financial future. Life insurance can enable your mindset to shift from death to growth."

What's the most important thing buyers should look for when choosing a life insurance agent/company to buy from?

"With life insurance, you are securing a future commitment that may be decades away. Research the company behind the policy to ensure it has high financial strength ratings, longevity, and an excellent track record of paying claims."

"When looking for an insurance agent or company, be sure to do your research. When comparing companies, be sure to remember that the policy features that fit you and your loved ones best is the most important factor. Don't automatically assume you should buy from the higher-rated company.

If the policy from the other company has more of what you're looking for, it might be the better choice. If you're unsure where to start, try the Life Happens Agent Locator to find an insurance professional in your area."

• "The insurers' track record: At its core, life insurance is protection - a hedge against the unexpected - and you are paying premiums in exchange for the promise that the insurer will be there when you need them, so the financial strength and track record of the company backing your policy is critical.
• Customer service: Are service professionals available by phone and digital channels? Is there is an online dashboard where you can manage your policy? Beyond ensuring assistance is available after you purchase a policy, it's also critical to ensure you have access to trusted advice and guidance before you buy.
• Flexibility in conversion: How easy is it to change? Life can be unpredictable and while term insurance can cover your loved ones through a critical period of time, you may decide that access to cash value is an important piece of your strategy.
• Accelerated online applications : Online applications are convenient but don't replace human guidance. Keep in mind that accelerated online applications may have a maximum coverage amount, meaning that you may not be able to get all the coverage you may need exclusively through an online process.
• A range of payment options: It's important to understand how often you're required to make premium payments and whether and how often you can change the frequency of payments."

Best Life Insurance FAQs

According to JD Power's 2023 life insurance study, State Farm is the highest-rated life insurance company when it comes to overall customer satisfaction. However, you still may want to shop around for quotes from various insurers if you're looking to purchase a new policy.

There isn't one best life insurance company, because the best option for you will depend on the type of policy you're looking for. It's best to work with a qualified insurance agent to help you find the best coverage. If you're deciding between multiple similar options, it's also worth consulting J.D. Power's life insurance customer satisfaction study . The latest study ranks State Farm as the top pick for individual life insurance, outpacing Nationwide by three points.

The best type of life insurance policy for you will differ from someone else's, as your policy should be tailored to your needs. The best policy for you will be affordable and will offer the benefits best suited to your situation. For example, some policies are only meant to cover end-of-life expenses such as burial and funeral arrangements, whereas others include living benefits like a cash value insurance plan , which you can borrow against during your lifetime.

Some life insurance policies are advertised as "no medical exam." This doesn't mean the insurer won't ask you about known conditions or look at medical records. Policies with no medical exam also tend to offer lower benefits with higher premiums. Most companies have a network of medical examiners, some of whom can come to your home. You can find our guide on the best no exam life insurance here.

Each situation is different and requires a knowledgeable life insurance agent to assess your best options. Bring all your questions and the coverage you're looking for to an insurance agent near you to explore your options.

• Main content

• National Politics

Juneteenth 2024: Here's what will be open and closed on the holiday

The nation's newest federal holiday - Juneteenth - lands in the middle of the workweek next week. Here's everything you need to know about the holiday, including what day it takes place, what will be closed and why we celebrate.

When is Juneteenth 2024?

Juneteenth always falls on June 19. In 2024, the holiday is on a Wednesday.

Are banks open on Juneteenth?

Like most federal holidays, expect your local banks and credit unions to be closed in observance of Juneteenth. Plan ahead if you think you will need anything from your bank on June 19.

Are government offices open on Juneteenth?

No. All non-essential federal, state and city government offices are closed Wednesday, June 19, for the holiday.

Government closures would include high-traffic spots including the Monroe County Department of Motor Vehicles . and the Monroe County Clerk's Office.

Will you get mail on Juneteenth?

Your regular mail will not be delivered on June 19 because the  United States Postal Service  also recognizes the Juneteenth holiday.

However, you may still receive deliveries:  FedEx  and  UPS  will be open and offering their usual services.

Are schools closed for Juneteenth?

Yes, public schools will be closed for the federal holiday, even with the holiday landing during the last week of school in the Rochester region.

Regarding private schools and universities, check the academic calendar to see if it is closed.

Will stores, restaurants close for Juneteenth?

Even though it is a federally recognized holiday, individual businesses decide whether or not they would like to be open on Juneteenth. You may want to call any local stores or restaurants you're planning on going to and ask if they'll be open.

Why do we celebrate Juneteenth?

Juneteenth is a holiday marking slaves in Texas learning in 1865 that they had been freed by President Abraham Lincoln's  Emancipation Proclamation . The executive order outlawed slavery in Confederate states beginning Jan. 1, 1863, the midpoint of the Civil War. The holiday rose to prominence in 2020 amid the nationwide protests about racial inequality after the deaths of Ahmaud Arbery in Georgia, Breonna Taylor in Kentucky and George Floyd in Minnesota. President Joe Biden made Juneteenth a federal holiday in 2021.

Farm to Fork strategy

for a fair, healthy and environmentally-friendly food system

About the Strategy

The Farm to Fork Strategy is at the heart of the European Green Deal aiming to make food systems fair, healthy and environmentally-friendly.

Food systems cannot be resilient to crises such as the COVID-19 pandemic if they are not sustainable. We need to redesign our food systems which today account for nearly one-third of global GHG emissions, consume large amounts of natural resources, result in biodiversity loss and negative health impacts (due to both under- and over-nutrition) and do not allow fair economic returns and livelihoods for all actors, in particular for primary producers.

Putting our food systems on a sustainable path also brings new opportunities for operators in the food value chain. New technologies and scientific discoveries, combined with increasing public awareness and demand for sustainable food, will benefit all stakeholders.

The Farm to Fork Strategy aims to accelerate our transition to a sustainable food system that should:

• have a neutral or positive environmental impact
• help to mitigate climate change and adapt to its impacts
• reverse the loss of biodiversity
• ensure food security, nutrition and public health, making sure that everyone has access to sufficient, safe, nutritious, sustainable food
• preserve affordability of food while generating fairer economic returns, fostering competitiveness of the EU supply sector and promoting fair trade

The strategy sets out both regulatory and non-regulatory initiatives, with the common agricultural and fisheries policies as key tools to support a just transition.

A proposal for a legislative framework for sustainable food systems will be put forward to support implementation of the strategy and development of sustainable food policy. Taking stock of learning from the COVID-19 pandemic, the Commission will also develop a contingency plan for ensuring food supply and food security . The EU will support the global transition to sustainable agri-food systems through its trade policies and international cooperation instruments.

To enable and accelerate the transition to a fair, healthy and environmentally-friendly food system, advisory services , financial instruments , but also research and innovation are instrumental as they can help resolve tensions, develop and test solutions, overcome barriers and uncover new market opportunities.

Publications

• Communication - A Farm to Fork strategy for a fair, healthy and environmentally-friendly food system (+Annex)
• The Farm to Fork Strategy - Publication
• Press Release: Reinforcing Europe's resilience: halting biodiversity loss and building a healthy and sustainable food system
• Questions and answers on Farm to Fork Strategy
• Factsheet on Farm to Fork Strategy
• Timeline of Farm to Fork actions

Documents accompanying the Farm to Fork Strategy

• Roadmap for the Fitness check of the animal welfare legislation
• Staff working document
• Report on front-of-pack nutrition labelling
• List of Appendices to the Commission Staff Working Document
• Executive Summary of the evaluation of the Nutrition and Health Claims Regulation
• Staff Working Document on the link between the CAP reform and the Green Deal

Farm2Fork: Do you have the appetite for change?

Related links.

• European Green Deal
• Sustainable Development Goals
• Communication on the EU Biodiversity Strategy for 2030
• SAM work on sustainable food systems
• Factsheet on SAM work on sustainable food
• Eurobarometer October 2020: Making our food fit for the future – new trends and challenges
• Factsheet on The business case for biodiversity
• Factsheet on benefits for farmers
• Factsheet on the Common Agriculture Policy’s contribution to the European Green Deal
• Farm to Fork episodes

Latest news

• Progress on Farm to Fork pesticide targets
• View on Twitter
• View on Facebook
• View on Instagram

Further information

Legislative framework for sustainable food systems The legislative framework for sustainable food systems (FSFS) aims to accelerate and facilitate the transition to sustainable food systems.

Sustainable food consumption Sustainable food consumption and facilitating the shift towards healthy, sustainable diets

Food loss and waste prevention Reducing food waste has enormous potential for reducing the resources we use to produce the food we eat.Fighting food waste is a triple win: it saves.

• EU - Latin America and the Caribbean (LAC) Dialogues
• EU-Canada Dialogue
• EU-Japan Dialogues
• EU Code of Conduct on Responsible Food Business and Marketing Practices

Sustainable food production The Farm to Fork Strategy aims to reduce the environmental and climate impact of primary production whilst ensuring fair economic returns for farmers...

Farm to Fork conference - Building sustainable food systems together Helping to shape the EU's path towards a fair, healthy and environmentally-friendly food system

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M.T.A.’s Goal Now: Make Sure ‘System Doesn’t Fall Apart’

Janno Lieber said the Metropolitan Transportation Authority was reining in its ambitions after Gov. Kathy Hochul moved to halt congestion pricing.

By Ana Ley and Ed Shanahan

The chief executive of the state agency that runs New York City’s subway and bus network said on Monday that the agency’s priority would be keeping the aging transit system operating safely now that an ambitious plan to improve it confronts a $15 billion shortfall.

The chief executive, Janno Lieber, said the agency, the Metropolitan Transportation Authority, would emphasize “basic stuff to make sure the system doesn’t fall apart” after Gov. Kathy Hochul’s abrupt move last week to halt a congestion-pricing plan that was to finance capital projects.

The reason, Mr. Lieber said, was simple: “For New Yorkers, mass transit is like air and water. We need it to survive. New York City and our 23-million-population region only works because we can move millions of people.”

Mr. Lieber, speaking at a news conference where he was joined by a group of grim-faced authority executives, said Ms. Hochul’s decision would force the M.T.A. to shrink its current capital budget, and could potentially affect its next budget and even ripple into day-to-day operations.

Mr. Lieber, who is also the chairman of the authority’s board, said he had asked Thomas Prendergast, who led the M.T.A. from 2013 to 2017, to help ensure the system is operating safely.

Among the future projects at risk was the next phase of the Second Avenue Subway line, he said. The authority will now have to scramble to hold onto a $3.4 billion federal grant it had secured to help pay for extending the line.

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