Farm Marketing Research

Marketing research

Marketing research of a farm is necessary, first of all, to draw up a business plan, without which it is impossible to receive state support.
The state program for supporting farms provides for the allocation of significant funds, with the help of which a skilled owner can really build an effective and quite profitable business.
A business plan will be required in cases where it will be necessary to obtain additional financing in the form of bank loans.
Marketing research of farming should be carried out not only at the beginning of the activity, but also later, periodically, to adjust the business.
The information obtained as a result of the study will help not only to avoid unnecessary expenses, but also to determine the most profitable and effective areas of farming.
The beginning of marketing research should be to determine the possibility of creating a farm on the plot of land that is intended for this. It is no secret that good land for farming, located near cities, is sometimes quite difficult to obtain.
That is why it is not worth sparing neither effort nor time to select a site for the future farm. It should be taken into account that you are not buying an estate for a future cloudless existence, but a source of income to provide for your family.
When choosing a site for a future farm, it is necessary to take into account the availability of transport routes and the proximity of cities as sales markets. It is desirable to take into account many other parameters, for example, the ecological state of the land, the availability of water sources, the absence of industrial enterprises located nearby, as well as the specifics of the future activities of the farm.
For example, in order to engage in animal husbandry, it is necessary to have sufficient areas within the farm for grazing and growing fodder, as well as the availability of open sources of water.
If the entrepreneur intends to create in the future an integrated farm and related lines for processing agricultural products, then it is necessary to provide for the possibility of connecting sufficient capacities to power sources.

When conducting marketing research, it is extremely important to determine in advance the distribution channels for finished products. To do this, it is necessary to study the demand for agricultural products in nearby settlements.
It often happens that farmers simply cannot sell the products grown with such labor at decent prices. And this, in turn, leads to the profitability of the business, at best, to zero.
It should also be taken into account that the funds allocated by the state to support farms must be used within 12 months from the moment they are received. This means that by the time state support is received, it is necessary not only to have a ready action plan, but also to clearly define where, by whom, how and in what timeframe the necessary equipment will be purchased, and the initial work to create a farm will be carried out.

Farms are also subject to supervision by state authorities, especially in the case of financial support from the state. Therefore, when preparing a business plan and its implementation, it is necessary to take into account the costs of meeting the requirements of sanitary authorities, fire supervision, as well as the territorial property management authority.

The initial investment in the creation of a farm will consist of the cost of acquiring or renting land, constructing the necessary buildings and structures, purchasing equipment and machinery, livestock, seeds, seedlings, fertilizers, and so on. When planning the initial costs, one must also take into account the costs of registering a farm and obtaining various permits.

The current costs of the farm are made up of the costs of working on the cultivation of the land and finished products, fertilization, veterinary work, wages for members of the farm, payment for fuel, electricity, water, gas, and so on.

In order to receive state support, it is also necessary to provide for the presence on the current account of the farm at least one tenth of the amount of the grant received.

Preparation for the creation of a farm requires a careful calculation of all possible costs and a preliminary determination of the profitability of the future farm.

You can order the necessary calculations, as well as a ready-made business plan for the farm, in relation to your conditions, on our website.