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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 .

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.

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Free Agriculture Sample Business Plan PDF + How to Write

Elon Glucklich

6 min. read

Updated February 7, 2024

Free Download:  Agriculture Business Plan Template

As a farmer, you’re in the business of putting food on the table. Agriculture is one of the world’s oldest professions.

Today it accounts for over 5% of U.S. Gross Domestic Product, and 1 in 10 American workers are in agriculture, food, and related industries.

But starting a new agriculture business requires intensive planning and upfront preparation. If you’re looking for a free, downloadable agriculture sample business plan PDF to help you create a business plan of your own, look no further.

Keep in mind that you don’t need to find a sample business plan that exactly matches your farm. Whether you’re launching a larger agricultural business outside a bustling city or a smaller organic operation, the details will be different, but the foundation of the plan will be the same. 

Are you writing a business plan for your farm because you’re seeking a loan? Is your primary concern outlining a clear path for sales growth? Either way, you’re going to want to edit and customize it so it fits your particular farm. 

No two agriculture farming businesses are alike.

For example, your strategy will be very different if you’re a dairy operation instead of a soybean farm. So take the time to create your own financial forecasts and do enough market research for your specific type of agriculture so you have a solid plan for success. 

• What should you include in an agriculture farm business plan?

Your agriculture business plan doesn’t need to be hundreds of pages—keep it as short and focused as you can. You’ll probably want to include each of these sections: 

1. Executive summary

An overview of your agriculture business, with a brief description of your products or services, your legal structure, and a snapshot of your future plans. While it’s the first part of the plan, it’s often easier to write your executive summary last.

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2. Business summary and funding needs

Details about your farming operation, including how much capital you will need and the types of funding you’re considering. Include your business history, your current state, and your future projections. It should also cover your business location, the equipment and facilities needed, and the kinds of crops or livestock you plan to raise.

3. Products and services

Provide details on the types of crops, farming methods, and any value-added products you plan to offer, such as finished goods or even  agritourism offerings .

4. Marketing plan

Compile your market research findings, including the demand for your products or services, your target customers , and your competitors. It should also outline your marketing strategy—how you plan to attract and retain customers. 

5. Financial plan

Your revenue projections, cost estimates, and break-even analysis. Your financial plan and forecasts should demonstrate that your business has a path to profitability.

• Building on your farm business plan sample

With a free agriculture business plan template as your starting point, you can start chipping away at the unique elements of your business plan.

As the business owner, only you can speak to aspects of your agriculture operation like your mission and core values.

You’re putting in the long hours to start a thriving farm business, so aspects of your mission – like a commitment to sustainable farming practices – will be best explained in your own words. Authenticity will help you connect with a growing market of consumers who value transparency and environmental stewardship in their food sources.

As for more conventional aspects of business planning , you will want to take on things like your marketing and financial plans one at a time. Here are a few specific areas to focus on when writing your business plan.

Invest time in market research

Starting an agriculture operation requires significant startup costs. When you throw in the unique land use considerations involved, it’s crucial to conduct thorough market research before investing hundreds of thousands – or even millions – of dollars into a farm business.

Start by researching the types of farms operating in your locality and wider region, and the specific crops or livestock they specialize in. You will need to understand seasonal trends, including crop yields and livestock productivity.

Note the demographics of the local community to understand their buying habits and preference for local produce. Also, be aware of the competitive landscape and how your farm can differentiate itself from others. All of this information will inform your service, pricing, marketing, and partnership strategy.

From there, you can outline how you plan to reach your target market and promote your farm’s offerings.

Craft your agriculture go-to-market strategy

One of the things that makes an agriculture farm business plan different from some service-based business plans is that you might decide to work only with one or two businesses that purchase your goods.  

You may offer different tiers of products to different types of buyers, such as produce for an organic farmers market, and corn for another farm’s animal feed. If that’s the case, make sure you include ideas like setting aside land for organic growth and maintenance.

Discuss your advertising and promotional strategies, emphasizing channels relevant to your target market. Also, consider how partnerships with local businesses, farmers’ markets, and other industry stakeholders can enhance your visibility.

Include your pricing strategy and any special promotions or loyalty programs. Also, consider public relations and media outreach efforts that can raise awareness about your farm and its sustainable practices.

Prepare for unique farming challenges

Running an agricultural business comes with its own set of challenges, including weather-related disruptions and market volatility. Your business plan should identify these potential risks and present contingency plans to address them.

Include a plan to mitigate weather-related risks, such as crop diversification, employing weather-resistant farming practices, investing in appropriate infrastructure like greenhouses or drainage systems, or taking out insurance to cover weather-related losses.

Detail the operational aspects of your business , including land ownership, employee status, farm maintenance, and safety requirements. Also, illustrate your strategies for managing crop production, livestock care, land stewardship, and regulatory compliance.

Plan for the future

Contingency planning is important in all businesses.

But the unique challenges in agriculture of changing market dynamics, regulatory changes, and climate impacts make it especially necessary to plan for the future. Detail how you’ll measure success, and how you will be prepared to adapt your offerings if you need to change the focus of the business due to factors outside your control.

Also, be ready to discuss opportunities for scaling your business over time, such as introducing new crops, expanding farm operations, or opening additional locations.

• Get started with your farm business plan sample

There are obviously plenty of reasons farm owners can benefit from writing a business plan — for example, you’ll need one if you’re seeking a loan or investment. Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.

Download this  agriculture farm sample business plan PDF  for free right now, or visit  Bplans’ gallery of more than 550 sample business plans  if you’re looking for more options.

Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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How to Write a Farming Business Plan: Template and Guide

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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Farm Business Plan Template

Written by Dave Lavinsky

Farm Business Plan

Whether you’re starting a small organic farm or planning a large-scale agricultural operation, this sample farm business plan, created by the seasoned professionals at PlanBuildr.com, is the perfect place to start. With over 20 years of experience helping entrepreneurs grow their ideas into thriving businesses, our team knows exactly what it takes to turn your farming aspirations into a reality.

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

Below is a farm business plan example to help you create each section of your own farm business plan:

Executive Summary

Business overview.

Veggie Good Vegetable Farm is a certified organic vegetable farm located in Northfield, Vermont. It is owned by Joe and Amanda Green, a local couple who have made it their lifelong goal to own and operate a vegetable farm. Joe and Amanda perfectly complement each other, as Joe is experienced and knowledgeable in operating a farm and Amanda has made her career as an accounting, tax, and finance professional. Joe will oversee all operations of the vegetable farm and Amanda will manage the farm’s accounting, accounts payable, tax payments, licenses and permits, as well as all marketing functions.

Veggie Good Vegetable Farm will offer the freshest, organic, and responsibly sourced and farmed vegetables using the most technologically advanced farming equipment. Veggie Good will be the only Vermont farm utilizing these techniques and Joe and Amanda will market this to their advantage. The advanced technological practices ensure less waste for the soil and environment, and it will produce a more robust and fresh vegetable.

Veggie Good Vegetable Farm will sell their products by offering Community Supported Agriculture (CSA) membership subscriptions, where a customer can pay a monthly subscription to receive a weekly vegetable box. We will also participate in local farmers markets to receive maximum exposure from the Northfield community. Lastly, Veggie Good will target local restaurants to offer wholesale pricing for it to receive their vegetables and be able to offer their local produce on the restaurant’s menu.

Product Offering

The following are the products that Veggie Good Vegetable Farm will provide:

• Specialty greens

Customer Focus

Veggie Good Vegetable Farm will target all residents of Northfield, Vermont. We will also target local restaurants to offer wholesale pricing to, and consumers of local farmers markets.

Management Team

Veggie Good Vegetable Farm will be owned and operated by Joe and Amanda Green. The team has over 15 years of experience working at farms and researching professional and effective farming techniques.

Joe Green has had a 15 year career working at a local dairy farm as a farm operator. During his tenure with the dairy farm, he has worked in all aspects of operating the farm and became the lead farmer for the owner. Joe has amassed a wealth of knowledge in the operation and business of a farm and is ready to put his knowledge to work with his own vegetable farm.

Amanda Green has worked as an accountant for over 10 years at a local CPA firm. She is extremely knowledgeable and certified in all accounting functions, tax regulations, licensing, and permitting. Amanda is also knowledgeable with marketing efforts, website design, and social media management. Her organization, skills, and business competence will ensure the success and profitability of Veggie Good Vegetable Farm.

Success Factors

Veggie Good Vegetable Farm will be able to achieve success by offering the following competitive advantages:

• Friendly, knowledgeable, and highly qualified team of farmers who share the same sustainability and environmentally-friendly mindset of its customers.
• Certified organic vegetable farm that utilizes the latest technology in horticulture and farming practices.
• Cost-effective CSA membership pricing and the ability to customize subscription vegetable boxes.

Financial Highlights

Veggie Good Vegetable Farm is seeking $300,000 in debt financing to launch its vegetable farm. The funding will be dedicated towards securing 10 acres of farmland and purchasing farm equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the website development, and working capital. The breakout of the funding is below:

• Farmland and facility build-out: $100,000
• Farm equipment, supplies, and materials:  $100,000
• Three months of overhead expenses (payroll, rent, utilities):  $75,000
• Marketing costs: $10,000
• Working capital:  $15,000

The following graph below outlines the pro forma financial projections for Veggie Good Vegetable Farm.

Company Overview

Who is veggie good vegetable farm.

Veggie Good Vegetable Farm is a newly-established organic vegetable farm owned and operated by Joe and Amanda Green. Joe and Amanda will be leasing 10 acres of farmland in Northfield, Vermont to begin and establish their vegetable farming business. The farm will grow beets, carrots, turnips, peppers, specialty greens, and tomatoes. Their goal is to be able to provide weekly vegetable subscription boxes by selling memberships and also sell their vegetables wholesale to nearby restaurants and cafeterias.

Veggie Good Vegetable Farm will utilize the latest technological farming equipment in order to ensure quality, taste, and responsible farming practices. Joe and Amanda see this as a marketing advantage as their competition do not currently utilize the latest technological standards.

Veggie Good Vegetable Farm History

Veggie Good Vegetable Farm is the startup venture of Joe and Amanda Green, a local Vermont couple who has spent years studying agriculture and farming techniques. Joe has worked at a nearby dairy farm for over 15 years and Amanda has worked as an accountant at a local CPA firm for 10 years. Joe and Amanda are graduates of the University of Vermont where Joe received his Bachelor’s Degree in Farm Business Management and Amanda received her Bachelor’s Degree in Accounting. Now that both have spent years in farming and learning how to run a farm business, they are ready to make their dream of owning and operating a successful farm into reality.

Since incorporation, Veggie Good Vegetable Farm has achieved the following milestones:

• Located and signed a lease for 10 acres of farmland in Northfield, Vermont.
• Researched and developed a plan to purchase the appropriate fertility and agricultural equipment, capital investments required, researched market potential, and laid out a 5-10 year plan.
• Began recruiting staff to work at the farm.
• Developed a comprehensive membership program that it will begin marketing to the local community.

Veggie Good Vegetable Farm Products

The following will be the products Veggie Good Vegetable Farm will provide:

Industry Analysis

With vegetable consumption expected to expand 25.0% to reach US Department of Agriculture (USDA)-recommended levels, the industry is expected to reach $20 billion in the next five years.

This, along with increasing health awareness, could lead to a surge in demand for vegetable farmers. Also, amid steady demand from wholesalers and full-service single-location restaurants, the price of vegetables is expected to increase an annualized 0.5% over the five year period.  Steady demand and expected product price appreciation, coupled with the value industry exports increasing during the period, are expected to drive industry revenue.

Further, the USDA projects total US vegetable and melon output to rise over the next five years. Improvements in yield and dedicated acreage will likely drive this increase; larger farms are increasingly using genetically modified seeds and farming machinery to increase yields per acre. Steady demand, high vegetable prices and increased productivity are expected to help drive industry revenue growth over the next five years.

Customer Analysis

Demographic profile of target market.

Veggie Good Vegetable Farm will target all residents and households that live in Northfield, Vermont. They will also target local restaurants and schools to sell their vegetables wholesale to.

The precise demographics for Northfield, Vermont are:

Customer Segmentation

Veggie Good Vegetable Farm will primarily target the following customer profiles:

• Residents of Northfield, Vermont
• Locally owned restaurants who could order their vegetable produce from Veggie Good
• Local schools who serve daily breakfasts and/or lunches to its students

Competitive Analysis

Direct and indirect competitors.

Veggie Good Vegetable Farm will face competition from other companies with similar business profiles. A description of each competitor company is below.

Mighty Food Farm

Mighty Food Farm is a certified organic vegetable farm located in Shaftsbury, Vermont. They have been in business for 15 years and are able to provide their customers with fresh vegetables year-round. Mighty Food Farm offers a CSA program where there is a mutual partnership between the farmer and the community of supporters who buy shares of the farm’s harvest each year. The CSA shares are typically paid for in the late winter and early spring. The CSA for Mighty Food Farm is 50-60% of the farms annual revenue. The Mighty Food Farm’s CSA program allows members to choose what is in their box every week. Mighty Food offers flowers, strawberries, peas, beans, potatoes, parsnips, eggplants, squash, cabbage, kale, tomatoes, carrots, cauliflowers, etc. Customers are also able to purchase from Mighty Food Farm at the local farmers markets in town. Businesses are also able to purchase from Mighty Food Farm through their wholesale program.

Berry Creek Farm

Berry Creek Farm is a 158-acre organic family farm in Vermont that has been in business for over 28 years. Owned by Gerard and Rosemary Croizet, they have made it their mission to pursue sustainable organic agricultural enterprises linking local food to the community. Berry Creek Farm will provide agricultural educational opportunities, a living for farmers, and ensure the viability of the farming operation for the next generation. Berry Creek Farm offers strawberries, vegetables, honey, CSA shares, beeswax candles, beef, jams, cut flowers, annuals, herbs, perennials, hanging flower baskets, patio tomatoes, and vegetable plants. Not all of their products are certified organic. Berry Creek Farm also carries a number of products from other producers. They also offer two different CSA programs; one where the customer can choose to pick up a prepared box of produce each week, or they can choose to use their share to purchase items whenever the customer likes at their farm during the hours of operation.

Root 5 Farm

Root 5 Farm is a certified organic vegetable farm located on 38 acres in Fairlee, Vermont along the Connecticut River. Owned by Benner Dana and Danielle Allen, the fertile river bottom soils provide a rich environment for growing over 100 different types of vegetables. The farm has been certified organic by Vermont Organic Farmers (VOF) since 2006. They utilize growing practices that use a holistic approach to soil fertility, pest control, and plant and animal health. They build their soil through crop rotation, cover cropping, and minimal tillage. Root 5 Farm sells their products through local farmers markets, CSA memberships, local restaurants, and local coop food stores. Their CSA membership offers weekly vegetable box deliveries May through December. Members can choose between three different sizes of boxes, three season options, 11 upper valley pick up sites, add on products from other local farms, and a pay as you go subscription.

Competitive Advantage

Veggie Good Vegetable Farm will be able to offer the following advantages over their competition:

Marketing Plan

Brand & value proposition.

Veggie Good Vegetable Farm will offer the unique value proposition to its clientele:

• Friendly and knowledgeable farming staff that believes in sustainability and environmentally-friendly farming practices.
• Certified organic fresh vegetables sourced from the most technological farming practices.

Promotions Strategy

The promotions strategy for Veggie Good Vegetable Farm is as follows:

CSA Memberships

Veggie Good Vegetable Farm will focus on selling memberships to the community for vegetable box subscriptions. By obtaining a handful of CSA memberships, the revenue obtained will be able to financially support the farm’s financial requirements.

Farmers Markets

Veggie Good Vegetable Farm will attend all local farmers markets in Northfield, Vermont. By participating in the farmers markets, Veggie Good will receive exposure to the population of Northfield who are most likely to participate in their CSA membership program.

Website/SEO Marketing

Veggie Good Vegetable Farm will develop and maintain a professionally-designed website to list their products, CSA membership information, and information regarding their advanced technological farming practices.  The website will also list their contact information and address so that visitors to the site know where to find them. Amanda Green will also manage Veggie Good’s website presence with SEO marketing tactics so that anytime someone types in the Google or Bing search engine “organic Vermont vegetable farm” or “vegetable farm near me”, Veggie Good Vegetable Farm will be listed at the top of the search results.

Social Media

Veggie Good Vegetable Farm will also maintain a strong social media presence through Facebook and Instagram. Amanda Green will frequently post appetizing pictures of their fruits and the CSA membership program.

Wholesale to Restaurants

Veggie Good Vegetable Farm will also target local restaurants to offer wholesale pricing to the establishment. Veggie Good will treat it as a partnership where each business could advertise on behalf of the other.

The pricing of Veggie Good Vegetable Farm will be moderate and on par with competitors, so customers feel they receive value when purchasing their products.  

Operations Plan

The following will be the operations plan for Veggie Good Vegetable Farm.

Operation Functions:

• Joe Green – Owner and Head Farmer who will manage crops, supplies, equipment, and staff.
• Amanda Green – Owner and Farm Accountant who will oversee all accounting, finance, tax, and payroll functions. Amanda will also manage marketing efforts, CSA membership dues and collections, and farm licenses and permits.
• Joe and Amanda will employ a staff of four employees to start with to assist Joe with all farming duties.

Milestones:

Veggie Good Vegetable Farm will have the following milestones complete in the next six months.

5/1/202X – Finalize contract to lease 10 acres of farmland

5/15/202X – Purchase farm equipment and supplies

6/1/202X – Begin planting seeds for future vegetable crops

6/15/202X – Start hiring staff to assist in farming duties

6/22/202X – Begin marketing program to begin to get the word out of Veggie Good’s CSA membership program

7/1/202X – Begin approaching local restaurants to offer and sell their vegetables at wholesale price

9/1/202X – Begin participating in farmers markets with the first batch of crops that have harvested; also sell CSA memberships at farmers markets.  

Veggie Good Vegetable Farm will be owned and operated by Joe and Amanda Dunn, a local Vermont couple who have made it their lifelong goal of eventually owning and operating a vegetable farm. They have spent the last fifteen years studying farming practices and responsible farming practices. They have attended workshops and seminars of the latest technology advancements available in farming equipment and practices and have received certifications of how to operate the equipment.

Joe Green received a Bachelor’s degree from the University of Vermont in farm business management. After graduation, he found employment at a local dairy farm and has apprenticed under the owners and managers of the farm. Joe has spent the last fifteen years studying the operations of a farm. Because Joe is widely respected at the dairy farm, the owners are wanting to partner with Veggie Good and offer some of the vegetable products to their frequent customers.

Amanda Green received a Bachelor’s degree from the University of Vermont in Accounting and has spent the last ten years working as an accountant at a local CPA firm. Amanda is well versed in tax accounting, accounts payable, and profit and loss statements. She is the perfect complement to Joe, as she will handle all administrative, accounting, and marketing duties. Amanda has researched extensively how to manage a farm and make it profitable. She, along with Joe, are ready to embark on their own vegetable farm.

Financial Plan

Key revenue & costs.

The revenue drivers for Veggie Good Vegetable Farm are the CSA membership subscriptions, sales from the farmers markets, and revenue obtained from selling vegetables to local restaurants at the wholesale price.

The cost drivers will be the overhead costs required in order to staff the team of four support farmers, farming equipment, supplies, seeds, tools, boxes, and packaging goods. Other expenses will be the payroll cost, rent for the leased farmland, utilities, and marketing materials.

Funding Requirements and Use of Funds

Veggie Good Vegetable Farm is seeking $300,000 in debt financing to launch its vegetable farm. The funding will be dedicated towards securing the 10 acres of farmland and purchasing farm equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the website development, and working capital. The breakout of the funding is below:

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Initial CSA Membership Subscriptions Per Month: 25
• Average Fees per Month: $50,000
• Farmland Lease per Year: $300,000

Financial Projections

Income statement, balance sheet, cash flow statement, 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.