This article covers a sample business plan template for an agricultural business based in the United States, Farmers Association. You can read more on how to write an effective business plan.
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Executive Summary
Problem and Solution
People want and need vegetables and similar foods that taste good and have good nutrition. Our national food is a disgrace. We have a serious obesity problem.
Our solution
We use current and future agricultural technologies to produce organic, tasty, and nutritious vegetables. We start from an existing farm with new bespoke equipment. In this case, we add horticultural technology to the production of strawberries that will allow double use of the cold air of the above.
Target market
Competition
Alabama is one of the major agricultural regions of the eastern United States. This creates a highly competitive environment with a large number of industry participants. Since almost all the products are considered commodities and the big consumers are more integrated than the farmers themselves, the overall rate is low, but competition for vendor contracts is high.
Competitive threats come from three main categories:
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Imported vegetables are cheap.
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Vegetables grown in Mississippi pounds.
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Alabama Vegetable Growers.
Direct competition in the consumer market comes from three neighboring farms, including Anniston Farm, Organics-To-You Farm, and Terrance Livingston Vegetable Farm. Each of these competitors has a store that sells at the farmer's market. However, except for Organics-To-You Farm, there are no others that focus on niche markets and are completely dependent on federal subsidies.
Our benefits
The Farmers Union plans to profitably and efficiently use current and future agricultural technologies in vegetable production. The company, by having a profitable vegetable farm with all the necessary and new bespoke equipment, will get a lot of profit in the company. Another application in the use of horticultural technology in the production of strawberries will help to double the amount of cold air that acts on the surface. The farmers' group hopes to make good on the goodwill that has been created by making the choice not to place another high-end factory in the current supply and demand situation.
The company's goals in the first year are:
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Prepare the site in the future.
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Relocate and expand the Green Acres vegetable system and make it work. Add green culture into the process.
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Have full composting production by early spring of the second year. The company's long-term strategy is to eliminate useless products and replace them with better and cheaper ones.
Marketing Plan
Farmers must first market and introduce their products to target customers. The company is exploring more opportunities for online shopping. To this extent, the company will need to create a website to sell its products. The company will use an aggressive advertising strategy to gain more sales of its products. These measures include product promotion through the sponsorship of spots at food shows and exhibitions, as well as bringing in famous chefs to help promote this growing industry.
Sales strategy
In the farmers' union, the marketing process is the same for vegetables as it is for compost products because both products will be sold wholesale. As in the past, the carriers will transport lifeboats and special oxygen tanks carrying 8,000 or more vegetables and will continue as needed. Farmers' food products will be bagged and unloaded in large quantities by pallet.
Smaller, more local orders will increase the overall market when the food transportation system is 300-450 live in late 2000 or early 2001. The company's average cycle time, from initial contact to closing the sale, is approximately 3-12 days for plant-based products. Farmers intend to shorten this process. Additionally, the company estimates that from first contact to closing the tongue, the fresh strawberry cycle will take 3 days or less. The sales period for composted products should last from 3 to 12 days.
Location and equipment
This farm is located in Calhoun County, about 4.5 miles outside of Jasper.
The following will be used:
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A large greenhouse, surrounded by vegetable gardens.
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Horticultural greenhouse.
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Filters, water treatment devices.
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Outdoor vegetable garden.
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Corporate office.
Another part of the project will be a food production facility. Dairy farms in the region have problems with sewage, and the company is hoping to get a contract to remove the sewage. A group of farmers will turn this into a marketable product. The company plans to provide nursery schools in the area with high-quality products for gardening and soil improvement for gardening in the area.
Products
Spinach
The first production line of farmers will be green vegetables and red vegetables. During the summer months, a group of farmers will plant carrots, romaine lettuce, leeks, red onions, summer squash, and green vegetables. In the fall, production will focus on pumpkins, winter squash, globe beets, and winter squash. With the growth of the popular organic food niche and the federal government's organic approval policy, Farmers will focus on its products with the central organic label. This means that approximately 70% of the food production process will be organic and all food produced by farmers will qualify for the 'nutritious' label. The company's farm will have enough capacity to produce more than 200,000 books. of vegetables every year.
Strawberries
The other technical horticultural part of the business includes efforts to use traditional and other high plant technologies to produce new cultivars of crops such as strawberries and lima beans and highly characteristic of the country to adapt to the Gulf to grow. Sweetness, disease resistance, adaptability to greenhouse cultivation, and production of fall and winter are the combined factors that grow high to enter the $2.99 berry market.
Future products
In the meantime, the company would like to explore the possibility of producing crayfish. Farmers believe it is a very lucrative business with commercial prices exceeding $15.00 per pound in many areas. The company also believes that if crayfish production is successful, it can become the first effort of the Farmers Group.
Nature of Company Ownership
The members of the Farmers Association are Mr. James Jackson, the business director and current director of Mobile Farmers Vegetable Farm, who has extensive knowledge of the industry and has been monitoring food systems for 30 years. The company's management philosophy is based on responsibility and respect. Farmers have an environment and organization that supports productivity and respect from customers and colleagues.
Raising Funds
The company is looking to raise $800,000 to pay for the acquisition of Green Acres Vegetable Farm and Mobile Farmers Vegetable Farm, structural changes, equipment, and operating expenses. Another $1,000,000 will be invested in the business by the four owners. The total is $1,800,000. Here is a breakdown of how the money will be used:
Availability:
Property $1,300,000
$400,000 infrastructure
Total $1,700,000
Cost of service:
Salary $80,000
Sales and Promotion $10,000
Additional $10,000 in fees
Total $100,000
Total $1,800,000
Part of the $1,830,000 is the start-up expense of $684,600 listed as net cost as of December 2016. Other details are:
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Command $19,000
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Replacement of equipment $300,000
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Seed $600
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Organic Herbicides/Pesticides $5,000
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Consultants $25,000
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Insurance $10,000
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Research and development $25,000
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Equipment used $250,000
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Another $50,000
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Total startup cost $684,600
Source of finance
We will have four investors. Each investor has pledged to give us $250,000, making a total of $1,000,000. And we'll have $400,000 of long-term debt, we'll have $400,000 of short-term debt, and $30,000 of payables.
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