A sustainable farm business plan may be able to take advantage of some incentives from the government (federal or municipal), so make sure you've researched the subsidies you could reap by incorporating in the area. Also provide a complete description of the crops you imagine cultivating and a definition of what makes the operation sustainable. If sustainability is a big part of your ethos, you should emphasize this part of your platform in the business plan and provide diagrams, accounts, and statistics of what goes into a sustainable farm and why it will give you an edge. The business plan for a sustainable farm should also answer:
• What cash crops will the farm offer to consumers?
• Who are the target buyers and where do they come from?
• What distribution or sales channels do you envision?
• When do you think you can reach break-even on the loan?
• Are there other farms in the region that you'll be positioned against, competitively?
Ultimately it is important to assess not just the market conditions for your farm (need, customers, competition etc.) but the market potential it has. How quickly can your revenues grow and what is a realistic net profit percentage to obtain after three years of sales? The business plan should show the break-even point but also a list of assumptions you're using in the financial modeling. Factoring in risks like weather-related impacts, seasonality swings, and external threats to crops and livestock is also important as it will show potential funders that you have thought through some contingency planning. A sensitivity and SWOT analysis could both be good additions to your plan. Need more help here? The business planning experts at MasterPlans have been working on plans since 2002 and have made more than 50 business plans for farming operations similar to yours. Call 877-453-2011 now!
