In conditions of poor ecology, the spread of genetically modified organisms and the desire of the majority of the population to eat natural products, interest in farming is returning.
Therefore, many entrepreneurs are interested in investing in agricultural production: vacant land and abandoned farms are bought up in large quantities to organize their business.
The concept of farming
Farming is a fairly broad concept. It can develop in several directions:
- Crop production:
- growing vegetables;
- cultivation of grain crops;
- picking berries and fruits;
- growing greens.
- poultry farming;
- pig breeding;
- fish farming, etc.
In order to open your own business in this area, you need to decide on the type of occupation and calculate whether the chosen direction will be profitable in the conditions of your territory and climate zone.
Before you take the first steps, you need to draw up a business plan for the farm. This will help to calculate the costs and estimate the time when the invested funds can pay off.
Farming Business Plan: Key Benefits of Farming
Having drawn up a business plan, an entrepreneur will immediately see the clear advantages (or disadvantages) of the chosen business idea . The main advantages of farming:
- there will always be people, which means that the demand for products will also be provided;
- farming is supported by the state — there are many programs to support agriculture;
- there is relatively little competition in this niche, because it is not popular among entrepreneurs.
In addition to the main business idea, you can further develop in related areas and, accordingly, receive additional profit:
- For example, if you decide to start breeding cows or pigs, then why not make sausages, smoked meats, stew and dairy products (butter, milk, cheeses, yogurts) for sale.
- The cultivation of fruits and vegetables can develop into the production of frozen, dried or cured foods. It is also the basis for opening a small trading shop selling pickles and pickled vegetables.
- And in the case of growing cereals or sunflowers, it is possible to produce sunflower oil or flour.
Growing any crops can contribute to the further development of animal husbandry, because the farmer will have feed that will cost him much less than he would buy them on the market.
Farm business plan: main cost items
A farming business plan should take into account the main costs of implementing this business.
For example, let’s take the breeding of pigs (we will calculate the number of 300-350 heads):
- arrangement of the territory, erection of the necessary buildings: from 1 million dollars;
- purchase of sows and boars: $400,000;
- staff salaries: a pig farm — from 10 thousand rubles, a veterinarian — from 20 thousand dollars a month;
- feed costs: 30-35 tons of grain and 300 kg of feed additives (this will cost 1.5-2 million).
The pig farm will be able to pay for itself in 3-4 years. Its profitability is about 25%.
Farming business plan: main risks
The main risk of farming is animal diseases (and their mortality), as well as poor crop yields or unforeseen natural disasters (drought, fire, flood).
Also, the demand for products may decrease, the price may fall, or competition may appear (read about how to look for customers here ).
Farming business plan: first steps
For example, you decide to do the same pig breeding. What needs to be done?
- First you need to decide on the farm site, its arrangement. When there is an understanding of where you can implement your project, half the work is already done.
- Next, you will need equipped pigsties. Study the literature and familiarize yourself with the construction of a pigsty in order to correctly distribute the animals for maximum offspring.
- Find proven and profitable feed suppliers.
- Select qualified personnel.
- Find investors, manage to get them interested in your business idea.
- It’s time to buy pigs — don’t rush to get all the animals in one place. Try to diversify the sows and boars as much as possible in order to avoid mixing blood and getting weak offspring.
Farm business plan