Creating a business plan for obtaining a KFH grant is a rather laborious process. First you need to study in great detail the Regulations on Grant Support for Agriculture that are in force in your region. For information on how to do this, read the article: » Business plan for obtaining a grant in agriculture «.
The structure of the business plan for obtaining a grant from the KFH
So, let’s take a closer look at the structure of a business plan. It includes the following sections:
- General information about the economy;
- General information about the project;
- Purpose and objectives of the project;
- Description of the project;
- Own resources of an individual entrepreneur of the Head of a peasant farm, used to create a production base for a peasant (farm) economy;
- Need for workers (creation of jobs);
- The need for production facilities, agricultural machinery, farm animals, seeds, mineral fertilizers, etc.;
- Plan of sales and proceeds from the sale of products in the prices of the current year;
- Plan of income and expenses;
- Payback of the project;
- Strengths and weaknesses of the project;
- Main risks.
Here is the indicative structure of the KFH business plan.
In each region, the structure and content of the business plan is established by the Regulation on State Support for Agriculture (or other document similar in essence).
In addition to the business plan itself, it is also necessary to submit annexes to it, revealing individual sections in more detail.
Annexes to the business plan for obtaining a grant from the KFH
Two annexes must be provided as annexes to the business plan:
- Plan of expenses for the creation of the production base of the peasant (farm) economy;
- Household expenses plan for a novice farmer
The cost plan for creating a production base reveals the amount of costs that are necessary to create the peasant farm itself. An indicative list of these costs is provided below.
The plan of expenses for the creation of the production base of a peasant (farm) economy may include financing of the following items:
- Purchase of agricultural land;
- Development of design documentation for the construction (reconstruction) of industrial and warehouse buildings, premises;
- Purchase of industrial and warehouse buildings, premises, outbuildings, engineering networks, barriers, structures;
- Construction of industrial and warehouse buildings, premises, outbuildings, engineering networks, barriers, structures;
- Repair and reconstruction of industrial and warehouse buildings, premises, outbuildings, engineering networks, barriers, structures;
- Registration of production facilities;
- Construction of roads and entrances to production and storage facilities;
- Connection to engineering networks — electrical, water, gas and heat networks, road infrastructure;
- Purchase of farm animals;
- Purchase of agricultural machinery and equipment, trucks, equipment for the production and processing of agricultural products;
- Purchase of seeds and planting material for laying perennial plantings;
- Purchase of fertilizers and pesticides
The plan of expenses for household arrangement is an estimate of expenses for the primary arrangement of the life of the Head of the KFH himself, in the case when he is planned to move to a new place of residence in connection with the creation of the KFH.
A home improvement plan for a novice farmer may include funding for the following items:
- Acquisition, construction and repair of their own single housing;
- Acquisition of a cargo-passenger vehicle;
- Purchase and delivery of home furniture, household appliances, computers, communications equipment, electric and gas stoves, engineering equipment, water filtration plants, domestic water, heat and gas installations, septic tanks, water supply and sanitation devices;
- Connecting housing to gas and electric networks, communication networks and the Internet information and telecommunication network, water supply and sewerage
Criteria for evaluating PFH projects by the competition commission
The decision to issue a grant is made by the competition commission. Members of the competition commission are guided by certain criteria when evaluating competitive projects. An indicative list of project evaluation criteria is presented below. It should be understood that this list may not be exhaustive.
- The direction of activity of the peasant (farm) economy, determined by the business plan;
- Availability of professional education;
- The presence of work experience in agriculture and experience in running a personal subsidiary plot;
- The share of own participation in the project in relation to the amount of the received grant and one-time assistance;
- Availability of land or fish-breeding property or long-term lease;
- The presence of farm animals;
- Possession of agricultural machinery;
- Membership in an agricultural consumer cooperative
Preparing a business plan for receiving a KFH grant is a responsible matter. To achieve the result — to receive the grant amount — it is necessary to know and understand the intricacies of the preparation of documents, mechanisms and reasons for making decisions by the members of the competition committee. In order to guarantee the result, it is better to contact the experts: