Every successful farm or ranch starts with a strong business plan. Whether you’re securing financing, applying for a grant, or simply mapping out your future, a well-thought-out business plan sets you up for long-term stability and profits.

What Do You Need for an Agriculture Business Plan

But what exactly should your business plan include? There can be a lot to include, but here are the key components that make up a great agriculture business plan.

Executive Summary: What is your operation’s story?

Start by sharing your operation’s story, including things like:

• Who you are
• What you do/the products you sell
• Where you’re located
• Your mission & vision
• Goals for the future

This snapshot of your business will help stakeholders appreciate your farm’s potential and explain your main enterprises or products, whether you grow row crops, raise livestock, or produce specialty foods. It’s also important to highlight your team’s expertise, your financial needs, and your plans for expansion or improving profits.

Market Analysis: Who will buy your product?

A strong business plan shows you know your market and your customer base. In your business plan, it’s essential to explain who your customers are (processors, grocery stores, restaurants, or consumers directly) and describe industry trends you’re seeing like pricing, policy impacts, and consumer preferences. Market Analysis also includes doing research on your competitions and noting what sets you apart from them, as well as your marketing strategy to reach your consumers and grow their loyalty to you over the competition. In the market analysis section of your business plan, you’ll show that you're realistic, adaptable, and forward-thinking, letting stakeholders know you're prepared for whatever may come your way.

Operations Plan: How will you get the work done?

This is where you walk through the day-to-day workings of your operation, whatever that may look like for your farm or ranch. Be sure to explain your production practices like seeding routines, fertilizer applications, irrigation methods, or breeding programs. Describe your facilities and the equipment your business relies on. In your operations plan, it’s important to consider labor needs, whether it be help from family members, or full-time/seasonal workers, as well as your key suppliers for feed, fertilizer, seed, veterinary care, or other inputs. This is also a good place to highlight your strategies for managing risk and complying with regulations related to food safety, environmental standards, or biosecurity. Showing a clear operational framework lets stakeholders know you’re realistic and prepared for the many tasks that come up during production.

Financial Projections: What do the numbers look like?

Words are needed for a business plan, but numbers are what will bring your business plan to life. Be sure to provide realistic financial projections, including:

• Start-up costs or expansion funding are needed
• Cash flow projections, including both money in and out each year
• Income statements, balance sheets, and break-even analyses
• Repayment schedules for financing, including principal and interest payments
• Profit margins and financial goals for future years

This financial picture lets you and potential investors gauge whether your plans are viable and profitable.

Final Thoughts: How will you take your plan into action?

Your business plan isn’t meant to sit gathering dust once it’s made. It’s a working document and tool you can use to guide your decisions and track your progress towards your goals. Whether you’re borrowing for expansion, applying for a USDA loan, or simply thinking through your enterprise, a well-prepared business plan sets you up for a strong future.

At Agri Business Finance, we’re here to help you make your agricultural venture a success. From financing guidance to industry expertise, we’re a longstanding partner you can count on. Contact us today with any questions on how to be prepared with your business plan when it comes to applying for a loan.