small farm business plans

An official website of the United States government Here’s how you know

• Translated Resources |
• Service Centers |
• Local Dashboard

Farmers.gov is not optimized for this browser. Please use the latest versions of Chrome, Edge, or Safari for the best experience. Dismiss

Find your state/county's agriculture data and USDA resources on your farmers.gov Local Dashboard !

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.

12: Business Plans

What is a business plan.

A business plan is a document that helps you to organize and succinctly summarize the vision you have for your business. The plan contains the operational and financial objectives of a business, the detailed plans and budgets showing how the objectives are to be realized.

A good business plan will contain the following:

• Your business vision, mission statement, key values, and goals
• Description of the product(s) you intend to produce
• Strengths, Weaknesses, Opportunities and Threats the business may experience are described
• Production plans
• Marketing plans
• Estimated start-up costs
• Information on your legal structure and management team
• Current financial statements or projected financial statements.
• Resume or brief explanation of your background and relevant experience
• Less than 10 total pages so that people actually read it

Helpful Publications for Writing a Business Plan

General Business Resource Publications:

• Starting an Ag-Business? A Pre-Planning Guide http://publications.dyson.cornell.edu/outreach/extensionpdf/2004/Cornell_AEM_eb0408.pdf
• Business Transfer Guide: Junior Generation http://publications.dyson.cornell.edu/outreach/extensionpdf/2016/Cornell-Dyson-eb1605.pdf
• Producing a Business Plan for Value-Added Agriculture http://publications.dyson.cornell.edu/outreach/extensionpdf/2007/Cornell_AEM_eb0708.pdf
• Business Planning for the Agriculture Sector: A Guide to Business Plan Development for Start-up to Mid-size Operations http://publications.dyson.cornell.edu/outreach/extensionpdf/2010/Cornell_ pdf
• Building a Sustainable Business (Sustainable Agricultural Research Education (SARE)Publications) sare.org/publications/business.htm 280 pages of education and practical exercises to guide you through the financial, management, and interpersonal skills needed to start a successful farm business. Order hard copy for $17 or download PDF online for free.

Cornell Cooperative Extension Publications for Specific Commodities:

• Landscape Business Planning Guide http://publications.dyson.cornell.edu/outreach/extensionpdf/2003/Cornell_AEM_eb0313.pdf
• Writing a Business Plan: A Guide for Small Premium Wineries http://publications.dyson.cornell.edu/outreach/extensionpdf/2002/Cornell_AEM_eb0206.pdf
• Writing a Business Plan: An Example for a Small Premium Winery https://ageconsearch.umn.edu/bitstream/122203/2/Cornell_AEM_eb0207.pdf

Getting Help Writing a Business Plan

• Español ( Spanish )

• Home & Garden
• Urban Farms

Details of a Small Farm Business Plan

• Swarthmore College

• Ohio Wesleyan University
• Brandeis University
• Northeastern University
• Planting Guides
• Indoor Gardening

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.

• How to Start a Small Farm Business
• How to Start a Small Farm
• Small Farm Grants and Financial Assistance
• How to Start a Hobby Farm
• Starting Your Small Farm from Scratch
• How to Keep Farm Records
• How to Sell Farm Products to Food Distributors
• Should You Raise Turkeys?
• How to Start an Egg Business
• How to Raise Goat Breeding Stock
• How to Raise Dairy Goats for Milk
• Seed Suppliers and Seed Catalogs for Small Farming
• How to Buy Land for a Homestead or Small Farm
• How to Buy Goats for Your Small Farm
• How to Feed and Tend Goats on Small Farms
• What Is a Hobby Farm?

Farm Business Planning

Farm Business Planning is key to beginning farmer success.

It helps beginning farmers :

• Plan for the economic sustainability of a new farm enterprise.
• Obtain funding to purchase land, equipment and other resources from lending institutions, investors and/or grant making agencies.
• Articulate what their farm will look like.

On this page, we compiled free farm business planning resources to help you understand what a formal business plan is, and how to start planning your farm business. Sections include:

• Developing a Farm Business Plan
• Enterprise Budgeting

Enterprise budget resources are included on the farm business planning page because such tools are usually essential in helping you to develop your business plan.

Planning your farm business involves more than is outlined on this page alone. You’ll probably also be interested in funding (loans/grants) , farm incorporation , and risk management . Our  starting a farm page is worth visiting first. Also, you might find the following article helpful, because it touches on many farm business planning topics: Farm Products, What to Charge: Marketing, Price, Calculating Costs, Strategy and Much More .

1. Developing a Farm Business Plan

A  business plan  is a decision making tool that takes the form of a formal document. It states your business goals, why you think you can achieve them, and lays out your plan for doing so. Farm business planning is also a process, not an end product. A business plan is a work in progress, which farm business owners or operators will want to revisit regularly. 

Planning and Funding Your Farm Business  from the Cornell University Small Farms Project has lots of important and useful farm business planning resources.

Rural Businesses  is a web and print publication from the Minnesota institute for Sustainable Agriculture (MISA).

Building a Business Plan for Your Farm: Important First Steps  is a 20 page farm business planning publication that discusses the initial steps to help you move toward writing a formal business plan.

The Center for Agroecology has a Small Farm Business Planning publication that goes over many of the basics in a step by step format.

Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses is a farm business planning publication available from SARE.

Do I need a Business Plan for my Farm? is a web resource from the New England Small Farm Institute. It’s a great place to get started.

AgPlan  from the University of Minnesota helps rural business owners develop a business plan for free, while also offering sample business plans for ideas, and a way to print or download your plan.

Developing a Farm Business Plan includes several helpful resources from the USDA National Agricultural Library’s Rural Information Center.

Organic Farm Business Planning Page  from North Carolina State University features a number of publications and links related to financial planing for organic farmers.

Agricultural Business Planning Templates and Resources   is an ATTRA publication most relevant to smaller-scale or alternative agricultural entrepreneurs.

Beginning Farmer and Rancher Resources offers comprehensive resources on Bookkeeping and Other Basics ; Cash Flow Budgeting and Managing Debt ; Small Farm and Ranch Income Taxes , and more.

Purdue University’s Center for Food and Agricultural Business  has educational resources to explore, such as the New Ventures in Food and Agriculture in Indiana , which offers business planning assistance.

Purdue University Cooperative Extension offers strategic farm business planning tools for commercial farm producers.

Penn State University College of Agricultural Sciences has many Business Planning tools and information.  Penn State Cooperative Extension has a Developing a Business Plan page. Penn State also has a Farm Business Plan Template that allows you to plug in your information and create a basic business plan.

The U.S. Small Business Administration  works with local partners to counsel, mentor and train small businesses. It is worth getting to know their programs and connect with your local office.

The Martindale Center Reference Desk has an extensive  compilation of links to calculators, applets, spreadsheets, courses, manuals, handbooks, simulations, animations, videos and more. Martindale’s Agriculture Center can be of great use to farmers making business plans.

2. Enterprise Budgets

Enterprise budgets project costs and returns for a particular farm production practice. You can use enterprise budgets to make smart business management decisions, and to help you develop a viable business plan.

Enterprise Budgeting Tools of all sorts from the Agricultural Marketing Resource Center, including organic crop budgeting tools, many vegetable budgeting tools, the crop conversion tool for side-by-side crop comparisons, specialty crop and livestock budgets, hydroponics budgets, wind calculators, composting calculators, manure calculators, distillers grain budgets, biomass calculators and specialty foods calculators.

Introduction to Farm Planning Budgets for New and Beginning Farmers (Virginia Tech)

Importance and Use of Enterprise Budgets in Agriculture   (University of Nevada)

Enterprise Budgeting (Kerr Center)

Organic Specific Enterprise Budgets

• Enterprise Budgets and Production Costs for Organic Production (ATTRA)
• Organic Crop Production Enterprise Budgets and Information   (Iowa State)
• Organic Enterprise Budget (Kansas Rural Center)

More Enterprise Budget Pages and Information

• Enterprise Budgets List (Virginia Cooperative Extension)
• Dairy Sheep Enterprise Budget (Center for Integrated Ag Systems, UW-Madison)
• Crop Budgets (University of Maryland)
• Farm Management Enterprise Budgets (Ohio State)
• Alabama Enterprise Budget Summaries (Alabama A&M and Auburn) 
• Start developing your business plan with the resources at   https://www.beginningfarmers.org/farm-business-planning/
• You can find more gr eat farming resources at   https://www.beginningfarmers.org/additional-farming-resources/

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.