Trying to design a business plan for agriculture or get a farming concept funded through a bank loan or private investment? The agricultural space is an intriguing one. Changing commodities prices and the increasingly value of tax incentives and subsidies from the government for certain types of agricultural outputs have made this business model favorable from California to South Carolina. Business plans for agricultural concepts need to describe the type of seeds you will sow and the average rates for the grown crops. The business plan also needs to cover the following concepts in depth:
• Who are your off-takers?
• Do you have established chains of business to sell the products?
• What competition do you face from other farms or corporations?
• Do you need to do any marketing?
• How many farm hands or other staff will you need and at what pay rates?
• How much capital are you seeking up front?
The request for funding needs to be coupled with either an offer of percentage share (equity for investment) or a defined payback scenario that your cash flow will support. These components can be part of your overall financial model which should show revenue forecast, profit and loss statements, a balance sheet, your break-even point, and a sensitivity analysis. A month by month look at how the first year post-funding is likely to shake out is also important to include, especially for the bank. The team at MasterPlans has worked on a wide variety of agricultural projects for clients from coast to coast and throughout the Midwest. Call us today to learn more about the business plans we write and the way we can help you. Toll-free: (877) 453-2011.
