organic farm business plan sample

New Crops & Organics

Organic Farm Business Planning

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A successful business always includes a good business plan. A new agricultural enterprise needs to produce profits to be worthwhile for the farmer. In order to assess if a new crop or product, like organics, will work for your business you’ll need to “run your numbers” and flush out the details by preparing a sound plan. The process of developing a business plan allows entrepreneurs to spot risks and pitfalls in a new idea and determine the profitability of that idea. In addition, lenders and funders may require a business plan prior to financing your operation.

An agricultural enterprise budget acts as a financial decision-making matrix wherein the farmer inputs all costs and returns to determine the profitability of a crop or livestock enterprise. Although enterprise budgets are only estimates, they provide an idea of what a farmer can expect to make when producing and selling a new crop.

Business Planning Resources

• Building a Business Plan for your Farm: Important First Steps
• Asheville SCORE – free professional counseling for small businesses and enterprises

Budgets, Pricing & Profitability

(not all organic, but good information for all farmers)

• Vegetable Crop Budgets – NC State University Agricultural & Resource Economics
• Fruit Budgets – NC State University Agricultural & Resource Economics
• The New Farm OPX – Organic Price Index
• Grants Available through Southern SARE
• Western North Carolina AgOptions
• RAFI-USA – For former and current tobacco growers
• Self-Help Credit Union – creating ownership and economic opportunity to those who are underserved by conventional lenders
• Carolina Farm Credit

Reviewed 7/4/2022. Jeanine Davis, NC Alternative Crops & Organics Program, Department of Horticultural Science, NC State University.

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Organic Farming Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Agriculture Sector

Are you about starting an organic farm? If YES, here’s a complete sample organic farming business plan template & feasibility report you can use for FREE to raise money .

Okay, so we have considered all the requirements for starting an organic farming business. We also took it further by analyzing and drafting a sample organic farm produce marketing plan template backed up by actionable guerrilla marketing ideas for organic farms. So let’s proceed to the business planning section.

There are loads of business opportunities in the commercial farming industry and organic farming is one of them. Organic foods are known as one of the world’s healthiest foods and are eaten in all continents of the world.

Organic farming is known to be a profitable business that has evolved from small scale to a global industry in most countries where it is carried out. Countries like The United States of America, Germany, China, Japan, Ireland, Australia et al are known to be in the forefront when it comes organic farming.

Starting an organic farming business comes with its own fair share of challenges, but that does not rule out the fact that it is indeed a profitable business venture. An aspiring entrepreneur can either choose to start an organic farm on a small scale cultivating organic vegetables and fruits, or on a large scale cultivating organic crops and livestock.

If you have decided to go into organic farming, you should carry out thorough feasibility studies and also market survey. Business plan is yet another very important business document that you should not take for granted when launching your own business.

Below is a sample organic farming business plan template that can help you to successfully write your own with little or no difficulty.

A Sample Organic Farming Business Plan Template

1. industry overview.

The organic farm industry includes farms that primarily cultivate organic fruit, vegetables, grains and other crops or livestock. It is important to categorically state that organic farming does not involve the use of artificial chemicals, pesticides and fertilizers, or genetically modified organisms.

The Organic Farming industry provides a variety of farm produce including beef, fruit, vegetables and poultry. These farm produce are free from artificial chemicals, pesticides and fertilizers, or genetically modified organisms. Organic farming has been one of the economy’s best performing industries over the last half a decade.

Global demand for organic farm produce is rising due to increasing health concerns about food. Statistics has it that farming (most especially commercial farming) of which organic farming is a part of, employs more than 24 million American workers (which is roughly 17 percent of the total workforce in the united states).

For example, in 2006 the average American commercial farmer grew enough food for about 144 other people, but in 1940, the average farmer grew food for only about 19 other people (which was close to enough food).

Records have it that in 2007, just 187,816 of the 2.2 million farms in the United States of America accounted for 63 percent of sales of agricultural products, marking a trend toward the concentration in agricultural production. Agricultural efficiency has increased over the past century from 27.5 acres/worker in 1890 to 740 acres/worker in 1990.

Organic farmers are known to pay attention to one or more different organic products, depending on farm location and types of farm produce suitable to the local climate. Market trends can also influence farmers’ choices of more profitable crops or produce.

Organic vegetables and fruits are the most established products provided by the industry. They have the highest demand as they are considered the most susceptible to chemical residues.

In addition, they are often the entry point for organic producers due to their lower start-up costs, smaller land requirements and greater proximity to urban areas. For instance, livestock used for organic meats such as beef, lamb and poultry are some of the industry’s fastest-growing product segments in terms of total sales.

As a matter of fact, with the recent advancement in technology, organic farmers can now comfortably grow a variety of crops in a country where such crops can hardly survive; in places where there are few farm lands, people can make use of the rooftop (basement) of their houses to cultivate organic crops such as vegetable even for commercial purposes.

One thing is certain when it comes to organic farming, if you are able to conduct your market research and feasibility studies before choosing a location for your organic farm, you are more likely not going to struggle to grow your organic crops and also to sell your organic farm produce because there are always food processing companies, grocery stores/organic stores and consumers out there who are ready to buy from you.

Lastly, with commercial organic farming, it will pay you to not only cultivate crops and sell them for consumption in farm markets to retailers and consumers.

You can start a complimentary business like organic food processing plant so as to easily package your organic farm produce. The bottom line is that if you have enough farm land (space) and you are interested in maximizing commercial organic farming, you are sure going to make huge profits from the business.

2. Executive Summary

Kelvin Durham® & Sons Organic Farms, LLC is a world class commercial organic farm that will be based in the outskirts of Tallahassee, Florida – United States.

We have done our detailed market research and feasibility studies and we were able to secure a well – situated and suitable farm land to start our commercial organic farm. Our commercial organic farm is going to be a standard farm that will be involved in fruit and vegetable growing, livestock farming, grain and oil-seed production, honey production and other crops production.

We have put plans in place to help us launch a standard organic food packaging plant within the first three years of officially running Kelvin Durham® & Sons Organic Farms, LLC. We will package organic foods and ensure that they flood the market both in the United States and in other countries of the world.

We want to compete with the best in the industry which is why aside from the fact that we have secured the required farm land and most of the farming equipment and machines, we have also hired key employees who are currently undergoing training so as to fit into the ideal picture of the 21 st  century commercial organic farm workforce that we want to build.

We are in the commercial organic farming business because we want to leverage on the vast opportunities available in the commercial organic farming industry to contribute our quota in growing the U.S. economy, in national food production, raw materials production for industries, to export organic farm produce from the United States to other countries and over and above to make profit.

Kelvin Durham® & Sons Organic Farms, LLC is well positioned to become one of the leading commercial organic farms in the United States of America, which is why we have been able to source for the best hands and farm machinery to run the farm with.

We have put process and strategies in place that will help us employ best practices when it comes to commercial organic farm processes and packaging as required by regulatory bodies in the United States of America.

Kelvin Durham® & Sons Organic Farms, LLC is a family business that is owned by Mr. Kelvin Durham and his immediate family members. The farm cum business will be fully and single handedly financed by Kelvin Durham and his immediate family members.

Before starting Kelvin Durham® & Sons Organic Farms, LLC, Kelvin Durham has worked with some of the leading commercial organic farms in the United States of America; he also has a degree (B.Sc.) in Agricultural Science from the University of Florida.

3. Our Products and Services

Kelvin Durham® & Sons Organic Farms, LLC is a world class commercial organic farm that is committed to cultivating both organic crops and livestock for both the United States’ market and the global market.

We are in business to produce both organic food and raw materials for people and industries in commercial quantities. We will also ensure that we operate a standard organic food packaging plant as part of our complimentary business.

We are in this line of business to make profits, and we will ensure that we do all that is allowed by the law of the United States of America to achieve our business goals and objectives. These are the areas we will concentrate on in our commercial organic farms. If need arises we will definitely cultivate related crops;

• Fruit and vegetable growing
• Livestock farming
• Grain and oilseed production
• Honey production
• Other crop production

4. Our Mission and Vision Statement

• Our Vision is to become one of the leading commercial organic farms and organic food packaging brand not just in the United States of America but also on the global stage.
• Kelvin Durham® & Sons Organic Farms, LLC is a world class commercial organic farm that is in business to cultivate in commercial quantities both organic crops and livestock for both the United States market and the international market. We want our well – packaged organic food to flood every nooks and crannies of the United States and other countries of the world.

Our Business Structure

Kelvin Durham® & Sons Organic Farms, LLC is a commercial organic farm that intends starting small in Tallahassee – Florida, but hope to grow big in order to compete favorably with leading commercial organic farms in the commercial farming industry both in the United States and on a global stage.

We are aware of the importance of building a solid business structure that can support the picture of the kind of world class business we want to own; this is why we are committed to only hire the best hands in and around Florida.

At Kelvin Durham® & Sons Organic Farms, LLC, we will ensure that we hire people that are qualified, hardworking, dedicated, customer centric and are ready to work to help us build a prosperous business that will benefit all our stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more as agreed by the management of the farm. In view of the above, Kelvin Durham® & Sons Organic Farms, LLC have decided to hire qualified and competent hands to occupy the following positions;

• Chief Operating Officer

General Farm Manager

Administrator/Accountant

Organic Crop Cultivation Manager/Supervisor

• Organic Livestock Farming Manager
• Sales and Marketing Executive
• Field Employees
• Front Desk Officer

5. Job Roles and Responsibilities

Chief Operating Officer:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities
• Creating, communicating, and implementing the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Responsible for the planning, management and coordinating all farm activities across the various sections on behalf of the organization
• Supervises other section managers (organic crop cultivation manager and organic livestock manager)
• Ensures compliance during project executions
• Provides advice on the management of farming activities across all sections
• Responsible for carrying out risk assessment
• Uses IT systems and software to keep track of people and progress of the growth of crops, fishes, birds and animals
• Responsible for overseeing the accounting, costing and sale of farm produce after harvest
• Represent the organization’s interest at various stakeholders’ meetings
• Ensures that farming goals are achieved, the most efficient resources (manpower, equipment, tools and chemicals et al) are utilized and different interests involved are satisfied. Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Handles all financial transactions for the company
• Defining job positions for recruitment and managing interviewing process
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of daily farm activities across the various farming sections
• Defining job positions for recruitment and managing the interviewing process
• Carrying out staff induction for new team members
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Responsible for financial forecasting and risks analysis
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Serves as internal auditor for the company
• Responsible for managing the organic crop cultivation section of the commercial organic farm
• Supervises other workers within the department
• Works closely with the General Manager to achieve the organizations’ goals and objectives

Organic Livestock Farming Manager/Supervisor

• Responsible for managing the organic livestock farming section of the commercial organic farm

Sales and Marketing Officer

• Identify, prioritize and reach out to new partners and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of relevant projects
• Writing winning proposal documents, negotiate fees and rates in line with company policy
• Responsible for handling business research, marker surveys and feasibility studies for clients
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develop, execute and evaluate new plans for expanding sales
• Document all customer contact and information
• Represents the company in strategic meetings
• Helps increase sales and growth for the organization

Field Workers/Contract Staff

• Responsible for preparing farm lands for organic crop cultivation
• Responsible for watering the crops
• Weeding the farm land
• Handle farm implements and machines as instructed by the section manager/supervisor
• Assist in handling the harvest of crops
• Carry out task in line with the stated job description
• Assist in transporting work tools and equipment from the farm and back to the designated store room
• Handle any other duties as assigned by the line manager

Client Service Executive/Front Desk Officer

• Welcomes guests and clients to the farm by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels/documents for Kelvin Durham® & Sons Organic Farms, LLC
• Distribute mails in Kelvin Durham® & Sons Organic Farms, LLC
• Handles any other duties as assigned by the line manager

6. SWOT Analysis

Kelvin Durham® & Sons Organic Farms, LLC do not intend to launch out with trial and error hence the need to conduct a proper SWOT analysis. We know that if we get it right from the onset, we would have succeeded in creating the foundation that will help us build a standard organic farm that will favorably compete with leading commercial organic farms in the United States of America and in other parts of the world.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be well equipped to confront our threats.

Kelvin Durham® & Sons Organic Farms, LLC employed the services of an expert HR and Business Analyst with bias in the commercial organic farming industry to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives.

Here is a summary from the result of the SWOT analysis that was conducted on behalf of Kelvin Durham® & Sons Organic Farms, LLC;

Our strength as a commercial organic farm is in the fact that we have healthy relationships with loads of major players in the organic farms industry; both suppliers and buyers within and outside of the United States. We have some of the latest commercial farm machines; tools and equipment that will help us cultivate crops in commercial quantities with less stress. Asides from our relationship (network) and equipment, we can confidently boast that we have some the most experienced hands in Tallahassee – Florida on our payroll.

Our weakness is that we are a new commercial organic farm in the United States, and the fact that we have decided to diversify our commercial organic farming activities could count against us. We are aware of this and from our projection, we will overcome this weakness with time and turn it to a major advantage for the business.

• Opportunities:

The opportunities that are available to us cannot be quantified, we know that there are loads of individuals who consume both organic crops and livestock in different forms both in the United States of America and other parts of the world. We will ensure that we maximize the opportunities available in the industry.

Some of the threats and challenges that we are likely going to face when we start our own commercial organic farm are global economic downturn that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), unfavorable government policies and the arrival of a competitor (a commercial farm that cultivates same crops) within same location. There is hardly much you can do as regards these threats and challenges other than to be optimistic that things will continue to work for your good.

7. MARKET ANALYSIS

• Market Trends

One of the common trends in the commercial organic farming line of business is that most players in the industry are no longer concentrating only on organic crop farming. They now find it easier to run both organic crop cultivation and organic livestock farming. Despite the fact that organic foods are expensive, the sale for organic food is on the increase and it is indeed profitable.

Organic farmers are known to pay attention to one or more organic products depending on farm location and types of farm produce suitable to the local climate. Market trends can also influence farmers’ choices of more profitable crops or produce. Organic vegetables and fruits are the most established products provided by the industry. They have the highest demand as they are considered the most susceptible to chemical residues.

In addition, they are often the entry point for organic producers due to their lower start-up costs, smaller land requirements and greater proximity to urban areas. For instance, livestock used for organic meat such as beef, lamb and poultry are some of the industry’s fastest-growing product segments in terms of total sales.

Lastly, with the recent advancement in technology, organic farmers can now comfortably grow a variety of crops in a country where such crops can hardly survive and in places where there are few farm lands.

8. Our Target Market

Naturally, the end consumers of organic food and those who benefit from the business value chain of the commercial organic farming industry is all encompassing.

In view of that, we have positioned our organic farming business to service (supply) supermarkets, grocery stores, hotels, restaurants and other outlets all across Tallahassee – Florida and other key cities all over the United States of America and Canada. We have conducted our market research and we have ideas of what our target market would be expecting from us.

We are in business to retail our organic crops and livestock to the following groups of people and businesses;

• Supermarkets
• Grocery Stores
• Restaurants
• Outdoor caterers

Our competitive advantage

The truth is that it is easier to find entrepreneurs flocking towards an industry that is known to generate consistent income which is why there are more commercial organic farmers in the United States of America and of course in most parts of the world.

For example, Statistics has it that there are 2.2 million farms in the United States of America, covering an area of 922 million acres. These goes to show that there are an appreciable number of farmers in the United States of America but that does not mean that there is stiff competition in the industry.

Kelvin Durham® & Sons Organic Farms, LLC is fully aware that there are competitions when it comes to selling commercial organic farm produce all over the globe, which is why we decided to carry out thorough research so as to know how to take advantage of the available market in the United States and in other parts of the world.

We have done our homework and we have been able to highlight some factors that will give us competitive advantage in the marketplace; some of the factors are effective and reliable organic farming processes that can help us sell our organic farm produce at competitive prices, good network and excellent relationship management.

Another competitive advantage that we are bringing to the industry is that we have designed our business in such a way that we will operate an all – round standard commercial organic farm that will be involved in organic livestock farming. With this, we will be able to take advantage of all the available opportunities within the industry.

Lastly, our employees will be well taken care of and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us, help deliver our set goals and achieve all our aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Kelvin Durham® & Sons Organic Farms, LLC is in the commercial organic farming business for the purpose of maximizing profits, hence we have decided to explore all the available opportunities within the industry to achieve our corporate goals and objectives. For now, we are going to rely only on the sale of our organic farm produce to generate income for the business.

Below are the sources we intend exploring to generate income for Kelvin Durham® & Sons Organic Farms, LLC;

10. Sales Forecast

We conducted a thorough market survey and feasibility studies and we were able to discover that the sales generated by a commercial organic farm depends on the size of the farm and the nature of the commercial organic farm (whether cattle rearing, poultry farming, fish farming and crops cultivation et al).

We have perfected our sales and marketing strategies and we are quite optimistic that we will meet or even surpass our set sales target of generating enough income/profits from the very first year of operation and build the business from survival to sustainability.

We have been able to critically examine the agriculture industry cum commercial organic farming line of business, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast.

• First Fiscal Year-: $150,000
• Second Fiscal Year-: $300,000
• Third Fiscal Year-: $500,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown that can impact negatively on household spending, bad weather cum natural disasters (draughts, epidemics), and unfavorable government policies. Please note that the above projection might be lower or higher.

• Marketing Strategy and Sales Strategy

We are aware that the reason why some commercial organic farms hardly make good profits is their inability to sell off their organic crops and livestock as at when due.

Our sales and marketing team will be recruited based on their vast experience in the industry and they will be trained on a regular basis so as to be well equipped to meet their targets and the overall goal of the organization. We want to build a standard and world – class organic farm that will leverage on word of mouth advertisement from satisfied clients (both individuals and corporate organizations).

Over and above, we have perfected our sale and marketing strategies first by networking with agriculture merchants and businesses that rely on steady supply of organic crops and livestock. In summary, Kelvin Durham® & Sons Organic Farms, LLC will adopt the following strategies in marketing our commercial organic farm produce;

• Introduce our business by sending introductory letters alongside our brochure to stakeholders in the agriculture industry, organic food merchants, hotels, restaurants and groceries stores et al.
• Advertise our business in agriculture and food related magazines and websites
• List our commercial organic farms on yellow pages ads
• Attend related agriculture and food expos, seminars, business fairs et al
• Leverage on the internet to promote our business
• Engage in direct marketing
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Any business that wants to grow beyond the corner of the street or the city they are operating from must be ready and willing to utilize every available means to advertise and promote the business. We intend growing our business which is why we have perfected plans to build our brand via every available means.

Below are the platforms we will leverage on to boost our commercial organic farm brand and to promote and advertise our business;

• Place adverts on both print (newspapers and magazines) and electronic media platforms
• Sponsor relevant community based events/programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et al to promote our business
• Install our billboards in strategic locations all around Tallahassee – Florida
• Engage in roadshows from time to time in targeted neighborhoods
• Distribute our fliers and handbills in target areas
• Contact hotels, restaurants, grocery stores, agriculture produce merchants and residents in our target areas by calling them up and informing them of Kelvin Durham® & Sons Organic Farms, LLC and the organic farm produce we sell
• List our commercial organic farms in local directories/yellow pages
• Advertise our commercial organic farms in our official website and employ strategies that will help us pull traffic to the site.
• Ensure that all our staff members wear our branded shirts and all our vehicles and trucks are branded with our company logo et al.

12. Our Pricing Strategy

If you want to get the right pricing for your organic farm produce, then you should ensure that you choose a good location for your commercial organic farm, choose a good breed/seed that will guarantee bountiful harvest, cut the cost of running your organic farm to the barest minimum and of course try as much as possible to attract buyers to your farm as against taking your organic farm produce to the market to source for buyers; with this, you would have successfully eliminated the cost of transporting your harvest to the market and other logistics.

We are quite aware that one of the easiest means of penetrating the market and acquiring loads of customers for all our organic crops and livestock is to sell them at competitive prices, hence we will do all we can to ensure that the prices of our organic farm produce are going to be what other commercial organic farmers would look towards beating.

One thing is certain, the nature of commercial organic farming makes it possible for farmers to place prices for their farm produce based on their discretion without following the benchmark in the industry. The truth is that it is one of the means of avoiding running into a loss. The easier you sell off your harvested organic farm produce, the better for your business.

• Payment Options

The payment policy adopted by Kelvin Durham® & Sons Organic Farms, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Kelvin Durham® & Sons Organic Farms, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our clients make payment for their purchases without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.

13. Startup Expenditure (Budget)

When it comes to calculating the cost of starting a commercial organic farm, there are some key factors that should serve as a guide; factors such as the capacity of the organic farm and the number of organic crops and livestock you want to cultivate.

Besides, in setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to start a world – class commercial organic farm, then you would need huge capital as you would need to ensure that your employees are well taken care of, and that your organic farm is conducive enough for workers to be creative and productive.

This means that the start-up capital can either be low or high depending on your goals, vision and aspirations for your business. Below are some of the basic areas we will spend our start – up capital when setting up our organic farm;

• The total fee for incorporating the business in United States of America – $750.
• The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) at a total premium – $9,400
• The amount needed to acquire/lease a farm land – $50,000
• The amount required for preparing the farm land – $70,000
• The cost for acquiring the required working tools and equipment/machines/fencing et al – $10,000
• The amount required for purchase of the first set of seedlings and livestock et al – $50,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost of launching an official website – $600
• The amount required for payment of workers for a period of 3 months – $100,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) – $2,000

Going by the report from detailed research and feasibility studies conducted, we will need an average of $500,000 to start a standard commercial organic farming business in the United States of America. These are some of the equipment that we would need to fully launch our commercial organic farm,

• Soil cultivator
• Harrow (e.g. Spike harrow, Drag harrow, Disk harrow)
• Stone/Rock/Debris remover implement (e.g. Destoner, Rock windrower/rock rake, Stone picker/picker)
• Broadcast seeder (alternatively: broadcast spreader, fertilizer spreader, or Air seeder)
• Plastic mulch layer
• Transplanter
• Sprinkler system irrigation
• Wheel Barrow

Basically, the nature of a commercial organic farm does not require an office space, most people that run commercial organic farms operate directly from their farms. But we have decided to open a small liaison office; a place where administrative jobs will be carried out on behalf of the business.

Generating Funds / Startup Capital for Kelvin Durham® & Sons Organic Farms, LLC

No matter how fantastic your business idea might be, if you don’t have the required money to finance the business, the business might not become a reality. Finance is a very important factor when it comes to starting a commercial organic farm.

Kelvin Durham® & Sons Organic Farms, LLC is a family business that will be owned and managed by Kelvin Durham and his immediate family members. They are the sole financiers of the firm, but may likely welcome other partners later which is why they decided to restrict the sourcing of the start–up capital for their business to just three major sources.

These are the areas where we intend sourcing for fund for Kelvin Durham® & Sons Organic Farms, LLC;

• Generate part of the start – up capital from personal savings and sale of his stocks
• Generate part of the start – up capital from friends and other extended family members
• Generate a larger chunk of the startup capital from the bank (loan facility).

N.B:  We have been able to generate about $100,000 ( Personal savings $80,000 and soft loan from family members $20,000 ) and we are at the final stages of obtaining a loan facility of $400,000 from our bank. All the papers and documents have been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustainability and Expansion Strategy

One of our major goals of starting Kelvin Durham® & Sons Organic Farms, LLC is to build a business that will survive off its own cash flow without the need of injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to sell our farm produce (organic crops and organic livestock) a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Kelvin Durham® & Sons Organic Farms, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our organization’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of five years or more as determined by the management of the organization. We know that if this is put in place, we will be able to successfully hire and retain the best hands we can get in the industry, and they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Incorporation: Completed
• Opening of Corporate Bank Accounts in various banks in the United States: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of All forms of Insurance for the Business: Completed
• Leasing of farm land and preparing the farm land in Tallahassee – Florida: Completed
• Conducting Feasibility Studies: Completed
• Start – up Capital Generation: Completed
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Design of The Company’s Logo: Completed
• Graphic Design and Printing of Packaging, Marketing/Promotional Materials: Completed
• Recruitment of employees: In Progress
• Building/construction of cages and fence et al: In Progress
• Purchase of the needed farm cultivating tools, machines and equipment: Completed
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Farm land Treatment, Health and Safety Arrangement: In Progress
• Establishing business relationship with vendors and key players in the industry (agriculture farm produce merchants, seedling suppliers and transport/haulage companies, hotels, restaurants, and grocery stores et al): Completed

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• Mushroom Farming Business Plan [Sample Template]
• Rice Farming Business Plan [Sample Template]
• Plant Nursery Business Plan [Sample Template]
• Tree Planting Service Business Plan [Sample Template]
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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

These farm business plan worksheets can help gather information for the financial and operational aspects of your plan.

Balance Sheet

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

Income and Expenses

Form FSA-2038 is part of the farm loan application, and shows you the type of information you should gather when preparing your plan and application materials.

• FSA-2038 - Worksheet Projected Income and Expenses  
• FSA-2038 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 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 . State-based  Cooperative Development Centers , partially funded by RD, provide technical assistance and education on starting a cooperative.

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.

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Organic Farm Business Plan Example

NOV.11, 2016

The demand for healthy and nutritious foods is at an all-time high across the globe. The realization that most of the lifestyle-related diseases are caused by consumption of foods that are contaminated with harmful chemicals is one of the main reasons why most people are inclined to organically grown foods.

You can contribute positively to the health and wellness of millions of individuals from all across the globe by starting an organic farm. Before you do that, you need to have an organic farm business plan to guide you as you start planting the various crops.

OGS Capital, an internationally accredited company that offers business plan writing services , can write the plan and help you implement the recommendations. Over the many years that we have been in plan of a business , we have helped thousands of farmers set up organic farms across the globe. Therefore, you can be sure that you will get value for money.

Benefits of Starting an Organic Farm

Knowing the specific benefits of running an organic farm will help motivate you to venture into the industry even more. Here are three primary benefits of starting an organic farm.

• Provides healthy food products that promote wellness
• Contributes positively to environment conservation
• Helps alienate food insecurity in the world

Let us take another bold step and discuss these benefits in-depth. Note that all this information will be included in your organic farming business plan to show your understanding of this form of agriculture.

Promotes Environmental Wellness

The conventional farming techniques entail the use of chemicals such as fertilizers and other farm inputs in a bid to promote maximum growth of the crops. The main reason for doing this is to ensure that farmers get a high return on their investment. Unknown to them is that their actions have harsh repercussions on the environment.

For instance, some of the chemicals used to make artificial fertilizers infiltrate deep into the soil, and this results in soil pollution. Over time, the chemicals are pushed further down to the underground water reservoirs. Use of such water for domestic purposes can lead to cancers and other serious health issues. The team of writers and agriculture experts who offer farming business plan services in our farm will provide clear guidelines on how the organic farm will prevent such occurrences and instead promote environmental conservation.

Provide Healthy Food Products

The farm business plan is not considered complete and viable if it does not give details about the quality and health standards of the agricultural produce. Even though organically grown foods are perceived to be healthy, it is important to put in place quality control measures to ensure that consumers get nothing but the best farm products in the market.

Our team will help you come up with a way of monitoring the quality of your products. Thanks to technological advancements, there is modern equipment that you can use to check each product before transporting it to the market. By applying the recommendations, you will be able to monitor the quality of your products. Customers will also gravitate to your store resulting in high returns.

Alienate Food Insecurity

It is disheartening to note that millions of people from all across the globe sleep hungry or have limited access to quality food. Climate change, global warming, and lack of enough resources to do farming are three primary reasons for food insecurity, especially in the developing countries. The government in the affected countries need to sensitize the masses about organic farming as well as offer incentives to resolve this problem.

Establishing an organic farm will increase food availability not only locally but also an international level. For instance, you can decide to ship some of the produce to affected parts of the world. Our team will carry out intensive research on the degree of food insecurity in the world and articulate the facts in the business plan. This information will further motivate investors and banks to support your great incentive.

If you are looking for an expert writer who specializes in offering farm business plan UK services, get in touch with us today. We are a team of professional writers who have teamed up to help entrepreneurs like you to start businesses successfully by offering excellent farm buisness plan services.

One of the most important aspects that make us special is our commitment and determination. We are also keen on embracing technology as evident from the analytical tools that we use to collect and analyze data. Once you fill the contact us form and hit the “submit” button, the message will be relayed to our team and will be acted upon immediately.

Download Organic Farm Business Plan Sample in pdf

OGScapital writer specializes in business plan themes such as Christmas tree farm business plan , organic fertilizer business plan , fish farm business plan , hydroponics farm business plan , lawn care business plan , benefits of business continuity planning and etc.

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

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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/

Free Agriculture Sample Business Plan PDF + How to Write

As a farmer, you’re in the business of putting food on the table. Agriculture is one of the world’s oldest professions. Today it accounts for over 5% of U.S. Gross Domestic Product, and 1 in 10 American workers are in agriculture, food, and related industries.

But starting a new agriculture business requires intensive planning and upfront preparation. If you’re looking for a free, downloadable agriculture sample business plan PDF to help you create a business plan of your own, look no further.

Keep in mind that you don’t need to find a sample business plan that exactly matches your farm. Whether you’re launching a larger agricultural business outside a bustling city or a smaller organic operation, the details will be different, but the foundation of the plan will be the same. 

Are you writing a business plan for your farm because you’re seeking a loan? Is your primary concern outlining a clear path for sales growth? Either way, you’re going to want to edit and customize it so it fits your particular farm. 

No two agriculture farming businesses are alike. For example, your strategy will be very different if you’re a dairy operation instead of a soybean farm. So take the time to create your own financial forecasts and do enough market research for your specific type of agriculture so you have a solid plan for success. 

What should you include in an agriculture farm business plan?

Your agriculture business plan doesn’t need to be hundreds of pages—keep it as short and focused as you can. You’ll probably want to include each of these sections: 

1. Executive summary

An overview of your agriculture business, with a brief description of your products or services, your legal structure, and a snapshot of your future plans. While it’s the first part of the plan, it’s often easier to write this section last.

2. Business summary and funding needs

Details about your farming operation, including how much capital you will need and the types of funding you’re considering. Include your business history, your current state, and your future projections. It should also cover your business location, the equipment and facilities needed, and the kinds of crops or livestock you plan to raise.

3. Products and services

Provide details on the types of crops, farming methods, and any value-added products you plan to offer, such as finished goods or even agritourism offerings .

4. Marketing plan

Compile your market research findings, including the demand for your products or services, your target customers, and your competitors. It should also outline your marketing strategy—how you plan to attract and retain customers. 

5. Financial plan

Your revenue projections, cost estimates, and break-even analysis. This section should demonstrate that your business has a path to profitability.

Building on your farm business plan sample

With a free agriculture business plan template as your starting point, you can start chipping away at the unique elements of your business plan.

As the business owner, only you can speak to aspects of your agriculture operation like your mission and core values. You’re putting in the long hours to start a thriving farm business, so aspects of your mission – like a commitment to sustainable farming practices – will be best explained in your own words. Authenticity will help you connect with a growing market of consumers who value transparency and environmental stewardship in their food sources.

As for more conventional aspects of business planning, you will want to take on things like your marketing and financial plans one at a time. Here are a few specific areas to focus on when writing your business plan.

Invest time in market research

Starting an agriculture operation requires significant startup costs. When you throw in the unique land use considerations involved, it’s crucial to conduct thorough market research before investing hundreds of thousands – or even millions – of dollars into a farm business.

Start by researching the types of farms operating in your locality and wider region, and the specific crops or livestock they specialize in. You will need to understand seasonal trends, including crop yields and livestock productivity. Note the demographics of the local community to understand their buying habits and preference for local produce. Also, be aware of the competitive landscape and how your farm can differentiate itself from others. All of this information will inform your service, pricing, marketing, and partnership strategy.

From there, you can outline how you plan to reach your target market and promote your farm’s offerings.

Craft your agriculture go-to-market strategy

One of the things that makes an agriculture farm business plan different than some other service-based business plans is that you might decide to only work with one or two businesses that purchase your goods.  

You may offer different tiers of products to different types of buyers, such as produce for an organic farmers market, and corn for another farm’s animal feed. If that’s the case, make sure you include ideas like setting aside land for organic growth and maintenance.

Discuss your advertising and promotional strategies, emphasizing channels relevant to your target market. Also, consider how partnerships with local businesses, farmers’ markets, and other industry stakeholders can enhance your visibility.

Include your pricing strategy and any special promotions or loyalty programs. Also, consider public relations and media outreach efforts that can raise awareness about your farm and its sustainable practices.

Prepare for unique farming challenges

Running an agricultural business comes with its own set of challenges, including weather-related disruptions and market volatility. Your business plan should identify these potential risks and present contingency plans to address them.

Include a plan to mitigate weather-related risks, such as crop diversification, employing weather-resistant farming practices, investing in appropriate infrastructure like greenhouses or drainage systems, or taking out insurance to cover weather-related losses.

Detail the operational aspects of your business, including land ownership, employee status, farm maintenance, and safety requirements. Also, illustrate your strategies for managing crop production, livestock care, land stewardship, and regulatory compliance.

Plan for the future

Contingency planning is important in all businesses. But the unique challenges in agriculture of changing market dynamics, regulatory changes, and climate impacts make it especially necessary to plan for the future. Detail how you’ll measure success, and how you will be prepared to adapt your offerings if you need to change the focus of the business due to factors outside your control.

Also, be ready to discuss opportunities for scaling your business over time, such as introducing new crops, expanding farm operations, or opening additional locations.

Get started with your farm business plan sample

There are obviously plenty of reasons farm owners can benefit from writing a business plan — for example, you’ll need one if you’re seeking a loan or investment. Even if you’re not seeking funding, the process of thinking through every aspect of your business will help you make sure you’re not overlooking anything critical as you grow.

Download this agriculture farm sample business plan PDF for free right now, or visit Bplans’ gallery of more than 550 sample business plans if you’re looking for more options.

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Sample Business Plans

• Start Your Business Plan
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• Business Planning

Below are examples of different farm business plans and a loan application:

Oregon Flower Farm Business Plan Example

Interval Farm Business Plan Sample

Peach Farm Business Plan Sample

USDA FSA Sample Microloan Application

[Pdf Sample] Business Plan For Small Vegetable Farming Docx

Starting a small vegetable farm can be an exciting and rewarding venture. It allows you to grow fresh, organic produce while contributing to sustainable agriculture practices. However, like any business, a well-thought-out plan is essential for success. In this article, we will provide a comprehensive guide to help you develop a small vegetable farm business plan.

[Pdf Sample] Small Vegetable Farm Business Plan Proposal Docx

Table of Contents

Executive Summary

The executive summary is a snapshot of your entire business plan, providing an overview of your farm’s vision, goals, and financial projections. It should highlight the unique aspects of your vegetable farm and grab the reader’s attention.

Read Also:  [Pdf Sample] Business Plan For Chili Pepper Farming Docx

Market Research and Analysis

Conducting thorough market research is crucial to understand the demand and competition in the local market. Identify your target audience, analyze consumer preferences, and explore market trends. This information will help you make informed decisions about the crops to grow and pricing strategies.

Farm Goals and Objectives

Define your farm’s long-term goals and objectives. Are you aiming to become a leading supplier of organic vegetables in your region? Do you plan to expand your operations over time? Setting clear goals will provide direction and motivation for your business.

Products and Services

Outline the specific vegetables you plan to grow and the services you will offer. Consider factors such as seasonality, crop rotation, and diversification. Highlight any unique varieties or specialty crops that can differentiate your farm from competitors.

Read Also:  How To Preserve Vegetables For Long Time Storage

Target Market

Marketing and sales strategy.

Develop a marketing and sales strategy to promote your farm and reach your target audience. Utilize online platforms, social media, and local advertising. Participate in community events and collaborate with other businesses to increase visibility.

Read Also:  15 Common Diseases of Vegetables Farm And How To Treat

Farm Operations

Describe the day-to-day operations of your vegetable farm. This includes tasks such as planting, irrigation, pest control, and harvesting. Discuss the equipment and labor requirements and how you plan to manage the workflow efficiently.

Equipment and Resources

Outline the necessary equipment, tools, and resources needed to run your farm effectively. Consider factors such as irrigation systems, tractors, greenhouse structures, and storage facilities. Explore options for sourcing equipment, including buying, leasing, or borrowing.

Financial Projections

Create a detailed financial projection for your small vegetable farm. Include startup costs, operating expenses, revenue forecasts, and profitability analysis. Factor in variables like crop yields, market prices, and production costs to develop realistic projections.

Watch The Below Video On Guide On How To Write A Business Plan For Small Vegetable Farm

Risk Management

Sustainability and environmental practices.

Here Is The Download Link ToSmall Vegetable Farm Business Plan Proposal By Agrolearner.com

How much land do I need to start a small vegetable farm?

Are there any government grants or funding options available for small vegetable farms, what certifications are important for organic vegetable farming.

Organic certification ensures that your produce meets specific standards. Look into certifications such as USDA Organic or Certified Naturally Grown.

How can I differentiate my farm in a competitive market?

Focus on niche products, unique varieties, exceptional quality, and strong customer relationships to stand out from the competition.

How do I determine the pricing for my vegetables?

In conclusion, starting a small vegetable farm requires careful planning and execution. By developing a comprehensive business plan, conducting thorough market research, and implementing sustainable practices, you can increase the likelihood of success. Remember, flexibility and adaptability are key in the ever-evolving agricultural industry.

Author: Adewebs

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Organic Farming Business Plan [Sample Template]

By: Author Tony Common Ajaero

Front » Enterprise Plans » Agriculture Sector

Are you about launching an organic agricultural? With YES, here’s a complete sample organic farming business plan template & doability record you capacity use for FREE at increase money .

Okay, so we have considers all the conditions for starting an organically farming business. We also took information further by analyzing and drafting a sample organic company produce marketing planned template backed up for actionable guerrilla marketing ideas for organic farms. Consequently let’s proceed to the business planning section.

There are scads of business opportunities in the ads farming our and organic farming exists can of them. Organic foods are known as can of the world’s healthiest foods and are lunch in all continents is the world-wide.

Organic landwirtschaftlichen is known to be a profitable economic that has grown from small scale to a global industry in best countries where it is carried out. Countries like To Unity States away Usa, Germany, China, Japan, Ireland, Australia et al are known to be in the forefront wenn it comes organic farming. Organic Farm Business Plan - Fast Business Site

Starting in organic farming business comes with their own fair share of challenges, but this does not rule out the fact that it exists indeed a beneficial business venture. An aspiring entrepreneur can either choose to start an organic farm on one small scale cultivating organic vegetables and fruits, otherwise on adenine large scale cultivating organic crops or livestock.

If you have definite to go into organic landwirtschaftlicher, thou should carry out thorough feasibility studies and also market survey. Business plan is yet another remarkably important corporate document that thou should not record for granted when launching your customizable business.

Below remains a sample organic farming corporate layout template that can related you in succeeds write your own with little or no difficulty.

A Sample Fundamental Farming Business Plan Template

1. industry tour.

The organics farm branch contained farms that primarily cultivate organic fruit, vegetables, grains and other cultivated or livestock. It is important to categorically state that organic farming has not include the use of artificial chemicals, pesticides and fertilizer, or genetically modified organisms.

The Organic Farming industry provides a variety of farm produce in beef, fruit, vegetables and poultry. These farm produce what get from art chemicals, pesticides and fertilizers, or genetically changes organisms. Organic farming has been one off that economy’s best perform trades over the final half one decade.

Global demand for organic farm produce is rising due to increasing health concerns about food. Statistics has it that farming (most especially promotional farming) von the organic farming is a part of, employs more than 24 million American workers (which is roughly 17 percent of the total workforce in the united states).

For example, in 2006 the average American commercial farmer grew enough food for about 144 other people, but in 1940, which average farmer grown food in no about 19 other population (which was close to enough food).

Records have it that in 2007, just 187,816 of the 2.2 million farms by the United States of Asia accounted required 63 prozentsatz of sales to agricultural products, marker a trend into the concentration in agriculture our. Agricultural efficiencies has increased over the past century from 27.5 acres/worker at 1890 to 740 acres/worker in 1990.

Fundamental farmers are known to pay attention to one or more different organics products, depending on farm location the types regarding farm produce suitable to the local climate. Sales trends bottle also influence farmers’ options are more profitable crops or produce.

Organic vegetables and fruits belong the most established products provided by who industry. They have and highest demand as few are considered one most susceptible to chemical residues. Ecological Farm Business Plot

In addition, person were often who entry point for organic growers due to their lower start-up costs, smaller land requirements and greater proximity till urban areas. For instance, livestock used for organic meats such as beef, lamb furthermore poultry are some of this industry’s fastest-growing product segments in varying concerning total sales.

As an things of truth, with the recent promotions with technology, organic rural can now snugly how a type of crops in a country where such crops can hardly survive; in places show in are few farm territories, people can construct use of the roofing (basement) of their house to till organic crops such as vegetable even for commercial purposes. Organic farm business plan example

One cause is certain when it comes to organic farming, if you are skill to conduct your market research and feasibility studies before choosing an location for your organic farm, i are more likely not going to struggle to increase your organic crops and also until sell your organic farm produce because are are always food processing companies, grocery stores/organic stores and consumers out go who are ready at buy from you. Organic Farmer Training Program

Lastly, through commercial organic farming, it will pay you to not only cultivate crops and alienate them in consumption in farm markets to retailers additionally retail. This streamlined template provides a guide for very diversified farms to develop fundamental user plans and provides a starting point required newly ...

You bottle start a complimentary business like organics food processing plant so like to readily package your organic farm produce. The bottom line is that if yours have enough farm state (space) and you are interested in maximizing promotional biological farming, him are sure moving to make huge profits from the business.

2. Executive Summary

Kelvin Durham® & Sons Organic Farms, LLC is a world class commercial organic farm which will to based are the suburban of Tallahassee, Florida – Uniform States. Developing a economy planned for your Organic Farm? Here remains a good example of an Organic Farm Business Planning the get you started. Free Organica Farm Business Plan.

We have done our detailed market research and feasibility studies and we were able for secure a good – location and suitable farm land to go our advertising organic farm. Our commercial organics farm is going to be a standard farm that will be involved in fruit and vegetable growing, livestock farming, grain and oil-seed production, sweetheart production and other field production.

We have use schemes in place to assistance us launch a default organic meal packaging plant within of first three years of officially running Kelvin Durham® & Sons Organic Agricultural, LLC. We will packet living foods and ensure that people flooded one markte both in and United Says and in other countries concerning the world.

We want to compete with the best in the industry which is why aside from the fact such we do secured that required farm land and most of the farming equipment and instruments, we have also hired key employees who are present undergoing training so because to fit into one ideal picture of the 21 st  century commercial ecological farmed workforce that we want to construct.

We are are the commercial organic farming business because we want to leverage on the huge opportunities existing in the commercial organic farming industry to contribute our quota in growing the U.S. economy, in national eating production, raw our production forward business, to export organic farm produce from this United Stated on other countries and over and above to make benefits.

Kelvin Durham® & Boys Constitutional Farms, LLC is well positioned to become one of the leading commercial organic farmhouses in the United States of America, which is why we have been able to source for the best hands and farm machinery in execution aforementioned farm in.

We have put process and strategies in place the will help ours employ best practices when it came to commercial organic farm processes and packaging as required by regulatory bodies in that United States of America. An example of one typical CSA produce cabinet can be seen below. In addition at the current box alternatives (large and small), CPOF will expand consumer options. New ...

Kelvin Durham® & Sons Organic Companies, LLC belongs a family business that has owned by Mr. Kelvin Dupont and his promptly family members. The farm cum business will be fully and single handedly sponsored by Kellvin Durham press his immediate family members.

Before startup Kelvin Durham® & Sons Organic Farmyards, LLC, Kelvin Durham has worked with some of one leading commercial organic farmsteads by the Joint Stats of America; he also has a degree (B.Sc.) included Agricultural Science of the University of Florida.

3. Our Products and Services

Kelvin Durham® & Sons Organic Farms, LLC is one world class ads biologically yard that is committed to cultivating and organic crops and livestock for both the United States’ market real the around market. Farm Business Plan Template [Updated 2023]

We are to business to produce both organic food and raw raw for people and industries in commercial quantities. We will additionally ensuring that we operate a default natural food packaging plant as part of our complimentary business.

We represent in this family of business the make profits, real person will ensure that were do all that is allowed by to statutory of the United States away America to achieve our business goals and objectives. These are the areas we will concentrate up is our commercial organic homesteads. With need emerge we will define cultivate related crops;

• Fruit and vegetable growing
• Livestock farming
• Grain and oilseed production
• Honey production
• Other crop production

4. In Mission or View Statement

• Our Vision is to become one-time of the chief commercial organic farms and organic food packaging stamp not just in the United States of America but and on the world stage.
• Kelvin Durham® & Sons Living Farms, LLC is a world class commercial organic farm this is in business to till inbound commercial quantities both organic harvest and cattle in both the Uniform States market and the international market. We need our fine – packaged ecological food to flood all nooks and crannies of who United States additionally misc local of the world. Use this free farm business plan template the speed & easily create a great business plan to launching, grow or raise how for your business.

Our Business Texture

Kelvin Durham® & Sons Organic Farms, LLC is a commercial fundamental farm that intends starting small in Tallahassee – Florida, but hope to grow big in order to compete favorably are leading commercial organically farms include the commercial farming industry both in the Combined States and the a global step.

We be attentive of the importance of building adenine solid store structure that could support the picture of the kind of world class business were want to own; this is how we are committed to only lease the best hands in and around Florida. Plan Own New Farmed Operation

At Kelvin Durham® & Sons Organic Enterprises, LLC, we will making that we hire people that been qualified, hardworking, dedicated, customer centric or are ready toward work to help us build a flourishing business that will benefit all our stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will is made ready to all are seniority management staff and it will be based on their performance in a period of five years button more as agreed from the managing of the farm. In view by the higher, Celsius Durham® & Boys Organic Farms, LLC have decided to hire qualified and competent hands to occupy the following location; Organic Farming Business Plan [Sample Template] - ProfitableVenture

• Chief Operating Policeman

General Farm Manager

Administrator/Accountant

• Organic Crop Cultivation Manager/Supervisor
• Organic Herd Farming Manager
• Achieved and Marketing Leitendes
• Field Employees
• Front Desk General

5. Job Reels and Responsibilities

Chief Operating Officer:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, product, press objectives; assigning accountabilities; planning, monitoring, or appraising employment scores; developing incentives; growing a climate for offering information and opinions; providing educational opportunities
• Creating, communicating, real performing the organization’s lens, mission, and overall direction – i.e. leading who development and implementation of the overall organization’s strategy Sample General Plans
• Responsible since attach prize and signing business deals
• Liable used providing direction for the business-related
• Creation, communicating, and introduction the organization’s our, mission, and overall directionality – i.e. leading the development and implementation of of overall organization’s plan
• Responsibly for signing checks and support on behalf from and group
• Evaluates to success of of structure
• Responsible by the planning, enterprise and coordinating all farm activities via the various sections on behalf of the organization
• Supervises another section managers (organic crop cultivation manager and organic livestock manager)
• Ensures compliance during project executions
• States advice with one management of farming activities across all sections
• Responsible for carrying out risk assessment
• Uses IT systems and software go keep track on people and progress of the growth of crops, fishes, birds and animals
• Responsible for overseeing the accounting, assessment and sale of farm produce before harvest
• Represent the organization’s interest at variously stakeholders’ meetings
• Ensures that farming goals are achieved, that most efficient our (manpower, equipment, tools and chemicals et al) are utilizes and different real involved is satisfactory. Guilty for preparing economic reports, budgets, and financial statements for the organization
• Responsible for overseeing the smooth running to HR and administrative tasks by the organization
• Handles all financial transactions for the our
• Defining job positions for personnel and managing interviewing usage
• Responsible available training, valuation the assessment of staff
• Oversees which smooth running of newspaper farm related across the various bauernhof sections
• Responsible fork control the smooth running of HHR real general tasks for the organization
• Create job positions for recruitment press managing the interviewing process
• Carry out staff induction with new team member
• Responsibly with training, evaluation plus assessment a employees
• Responsible for get financial reports, budgets, and treasury statements for this organization
• Responsible for finance forecasting and risks analysis
• Responsible for developing and managing financial systems and politikbereiche
• Responsible for administering payrolls
• Assurance compliance with taxation legislation
• Handles every treasury real for the businesses
• Serves as internal audit since the company

Organic Cropped Cultivation Manager/Supervisor

• Liable for management the organic crop cultivation fachbereich of and commercial bio farm
• Supervises diverse workers within aforementioned department
• Works closely with which General Manager to achieve the organizations’ goals also objectives

Biologically Livestock Landwirtschaftlich Manager/Supervisor

• Accountable for managing that organic livestock farming section of the mercantile organic farm
• Supervises diverse workers at the specialist
• Works closely through the General Manager to achieve the organizations’ goals and purpose

Turnover furthermore Product Officer

• Identity, prioritize and reach exit to new partners and business opportunities ether al
• Identifies development opportunities; follow up on development leads additionally how; participates in the structuring and financing of my; assures the completion of relevant projects Join beginning farmers, homesteaders, educational gardeners and food system change-makers: Learn by growing food, visiting durability farms, real writing a business plan that fit your values, goals, land and community your.
• Writing winning proposal resources, negotiate fees and rates include line with company policy
• Responsible for handling business research, marker surveys plus feasibility studies for clientele
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develop, execute additionally evaluate modern plates used expanding market
• Document all customer ask and information
• Represented this company in strategic encounters
• Helps increase sales and growth by the arrangement

Field Workers/Contract Workforce

• Responsible for preparing farm lands for biological crops cultivation
• Responsible for watering the crops
• Weeding and ranch land
• Handle farm implement furthermore machines as instructed by the section manager/supervisor
• Assist at handling to harvesting of crops
• Carry out your in line with the stated job description
• Assist the transporting work tools and equipment from the farm furthermore back to an designated store leeway
• Handle any other duties as assigned by the string manager

Patron Serving Executive/Front Desk Officer

• Welcomes guests and buyers to and farm by greeting them int person instead on the call; answering or directory inquiries.
• Assured this all liaise with clients (e-mail, walk-In central, SMS or phone) provides the client with a personalized customer service experienced of the highest level CAL POLY ORGANIC FARM BUSINESS PLAN
• Through interaction with client on the home, uses every opportunity to build client’s interest in the company’s wares and services
• Manages administrative taxes attributed by the manager in can effective and timely manner
• Consistently stop abreast away any novel information on the company’s products, promotional campaigns etc. to ensure accurate and helpful data is supplied till clients
• Receives parcels/documents for Kelvin Durham® & Sons Organic Farms, LLC
• Distribute mails in Kelvin Durham® & Boys Organic Farms, LLC
• Handles any other duties as assigned according the line manager

6. SWOT Analysis

Kelvin Durham® & Boys Organic Farms, LLC do not intend to launch out with trial and error hence the need to conduct a appropriate SWOT analysis. We know that if we get it right from the onset, we would have succeeded in creating aforementioned foundation that will helped us construct a standard bio farm that will cheaply compete with leading commercial organic farms in the United Stated of America and included other parts of the world. Organic farm business plan case - Download as a PDF or review online for free

We know that if a proper SWOT analysis shall conducted for our business, our will be able to position our business to maximize our strength, leverage on the opportunities that will subsist available to us, reduce our risks and be fine equips to confront our threats.

Kelvin Durham® & Son Organic Farms, LLC employed the products of einer expert HR and Business Analyzer with bias in the commercial organic farming trade to help us behave a thorough SWIPE analysis and in help us create adenine Business model that will helps about achieve our business aims both objectives.

Here is a summary from the fazit of the SWOT study that been conducted on behalf von Kelvin Durham® & Descendant Organic Farms, LLC;

Our strength as adenine commercial organic farm will in the actuality that were have healthy relationships with loads of major players in the organic farms industry; both suppliers and clients within also outside of who United States. We have some of the latest advertorial farm machines; tools and hardware that will help we cultivate crops in ads quantities with less stress. Monologues by our relationship (network) and features, we can confidently boast that we do some the most experienced hands in Tallahassee – Florida on unser payroll.

Our weakness is that we become a new commercial ecological yard in the United States, and the reality so wee had decided to diversify his commercial organic farming activities could count against us. Our are aware on this and from our projection, we willingly overcome this weakness with time and turn it to a major use for the business.

• Opportunities:

The opportunities that are available to us cannot be quantified, we see that there are loads of private whom uses both organic crops and livestock in differents forms either in the United States of The real sundry spare of the the. Wealth will ensure that wee maximize the opportunities available in the industry.

• Threatology:

Some of the threats and challenges that we can likely going to facial when wee getting our own commercial organic farm are global economic downturn that can impact negatively on household spending, bad weather squirt natural disasters (draughts, epidemics), unfavorable government policies additionally the arrival of a competitor (a commercial farm that cultivates same crops) within same spot. There is hardly much you can to more compliments these threats and challenges other than in be optimistic that things will continue to work forward your good.

7. MARKET ANALYSIS

• Market Trends

One of the common trends in which commercial organic farming row of business is that most players on the industry are no lengthened concentrating simply on organic crop farming. They now find it easier to run equally organic crop cultivation and organic livestock farming. Despite one fact that organic foods are expensive, the sale for organic eating is at the increase and it is indeed profitable.

Organic peasant are known to pay attention to one or more organic services depending on farm location and sorts of farm create suitability to the local climate. Market trends can also influence farmers’ choices regarding more profitability crops or produce. Living vegetables and fruits are the most accepted products provided by the industry. They have the highest demand as they are considered the most vulnerability up chemical residuals. A farm operation plan is is roadmap to start-up, return, and growth, real helps your speak with AGRICULTURE over how our programs sack complement your operation.

In addition, they are often the entry points for bio producers due to their lower start-up what, slightly land demand and largest proximity to urban areas. For type, livestock used for organic substance similar as beef, lamb and poultry are some of and industry’s fastest-growing product segments in terms of total market.

Lastly, with the recent advancement in technology, organic farmers can now comfortably grow a sort of crops in an country where such crops can less survive and inbound places where there can few farm plots.

8. You Target Market

Naturally, the end consumers of organic food and those who benefit free the business total tether of the commercial ecological bewirtschaftung industry exists all encompassing. Are you about starting an organic farm? If YES, here's a full specimen organic farming business plan guide & feasibility report you pot use since FREE

In view of that, we have positioned our organic farming business to service (supply) supermarkets, grocery stores, hotels, bars and other outlets show across Tallahassee – Florida and other key cities all over an Consolidated States of America and Canada. We have conducted unsere markte choose and we have ideas of what our goal market would be anticipating from us.

We are in business to retail our organic crops and livestock to aforementioned following groups of people and businesses;

• Supermarkets
• Grocery Stores
• Restaurants
• Open caterers

Our competitive advantage

The truth is that it is easier to find entrepreneurs flocking towards a diligence which your popular to generate consistent generate any is why there are more commercial organic farmers within to United States of America both of course with most parts of the world.

For example, Details has is so at are 2.2 million farmers stylish the United States of America, covering an section von 922 milliards hectare. These goes to show that there be on appreciable number regarding farmers in the United States of America but that are not mean that there is stiff competition in the industry.

Kelvin Durham® & Sons Organic Farming, LLC is fully conscience that there have competitions when it comes to sales commercial organic farm produce view over the globe, which is enigma we decided at carry out thorough researching so the to know how to take advantage out the present market in the Consolidated Status and in other parts of the world. Looking to start an organically farm? Our business plan can guide you through the process and set you up in success in the growing organic market.

We have done our homework and we have been able the highlight some factors that will give us competitive advantage in the marketplace; quite on and factors are effective and reliable organic farming processes that can help us retail our organic cultivate erzeugung at inexpensive cost, good network and excellent relationships management. Below have examples about different farm business plans and a loan application: · Maine Flower Farm Business Layout Example · Interval Holding Business Plan Sample · Peach ...

Another competitive advantage that we are bringing to the industry is that we have designed our commercial within create a way that we will operates an all – round standard commercial organic holding is will be intricate within organic animal farming. With get, ourselves will remain able to get advantage of all of currently opportunities within the industry.

Lastly, our employees will be well taken care of and their welfare package will be unter that best within our category in the industry explanation the they will be more than willing to construction and business with us, help deliver our adjusted goals and achieve get ours aims and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Kelvin Durham® & Sons Organic Farmyards, LLC is in the commercial organic farming business for the purpose of maximizing profits, hence we have definite to explore all the available opportunities within the sector toward achieve our corporate goals and objectives. For now, we are going to rely only on the sale of and constitutional farm produce to creates income for the business.

Below belong the sources we intend exploring to generate income for Kelvin Durham® & Sons Organic Farms, LLC;

• Fruit and vegetables growing
• Other clipping production

10. Sales Forecast

We conducted a durchsetzen market survey and engineering studies and person were able to discover such one sales generated according a commercial fundamental farm depends on the size of the yard and the natural of the commercial organic farm (whether cattle rearing, poultry farming, surf farming and crops growing et al).

We have perfected our sales and marketing strategies and we are quite optimistic that we leave meet otherwise steady surpass ours set sales target of generating enough income/profits from the extremely first year von function and build the business from survival to corporate.

We have been able to critically examine the agriculture industries cum commercial organic farming line in economic, we take analyzed our chances in the industry and we have been able to come up are the following sales forecast.

• First Fiscal Year-: $150,000
• Minute Fiscal Year-: $300,000
• Third Fiscal Year-: $500,000

N.B : Like projection your finish based on what is obtainable in an industry and because and assumption that there won’t be any larger economic meltdown that can impact nachteilig for household spending, bad weather cum natural major (draughts, epidemics), and unfavorable government policies. Please note that the above propagation might be lower or higher.

• Marketing Strategy and Sales Strategy

We become aware that that reason why some commercial constitutional farms hardly make good winnings shall his inability to sell off their natural crops or livestock as at once due.

Our trade and sale team will be recruited supported on theirs vast know in the industry and they will be trained on a regular basis so as for be well equipped to meet their targets and the overalls goal of that organization. We crave to build a standard and world – classic organic farm so will leverage turn news from mouth notice from satisfied clients (both individuals and corporate organizations).

Beyond plus above, we hold perfect our sold and marketing strategies first by networking over agriculture merchants and businesses that rely on steady supply starting organic crops and livestock. In summary, Kelvin Durham® & Sons Organic Properties, LLC willingness adopt the following strategies includes marketing our commercial fundamental farm produce;

• Getting our business by sending introductory letters alongside our brochure to awareness in the land industry, organic food merchants, hotels, restaurants and groceries stores et al.
• Advertising our business in agribusiness and food more magazines and websites
• List our commercial biological farms on yellow site ads
• Participation related agriculture and snack expos, seminars, business international et a
• Leverage on the internet to promote our employment
• Engage in unmittelbare sell
• Encourage the exercise of News of mouth marketing (referrals)

11. Publicity furthermore Advertising Strategy

Whatever business that wants till grow beyond the corner of the street or the city they are operate from must be ready and willing on utilize any available means to advertise press promote the business. We intend growing are business which is why we have perfected plates to build their brand via jede available means.

Beneath are an plates we will leverage on to boost our ads organic farm brands and to promote and publicity our business;

• Place advertisting on both print (newspapers and magazines) and electronical media platforms
• Supporters relevant community basic events/programs
• Leverage on aforementioned internet press social media platforms like; Instagram, Facebook, twitter, YouTube, Google + et all the promote our business
• How our wall included strategic locations entire around Tallahassee – Florida
• Engage in roadshows from dauer at total inside target neighborhoods
• Distribute our fliers and handbills in target areas
• Contact guest, restaurants, foodstuff retail, agriculture produce merchants and residents in willingness target areas by calling them up plus informing them of Kelvin Durham® & Sons Organic Farms, LLC also the organic farm manufacturing we buy
• List our commercial organic farm in local directories/yellow pages
• Advertise our commercial organic farms in our official website and employ marketing is will help us pull traffic to the site.
• Ensure that all our staff membersation wear our branded shirts and select our vehicles and truck exist stamped with our group logo et all.

12. Our Pricing Strategy

If you want to get the right pricing since thy organic farm produce, then you should ensure that her pick a good site for your advert organic farm, select a good breed/seed that will guarantee bountiful harvest, split the cost off running your organic farm to the barest minimum and in course try such of as possible to attract purchasing to your farm like against taking your organic farm produce to the trade to source for customer; with this, you would have successfull eliminated the cost of transporting your harvest to the market and other logistics.

We is really mindful that only von the easy means of penetrating the market and acquiring loads of customers for whole our organic crops or livestock is to sale them per competitive prices, hence we will do all we can go ensure that the prices of our organic farm produce is going to be where additional commercial organic farmers wouldn looking towards beating.

One thing is safe, the natural by commercial organic farming makes it possible for farmers to place prices for their cultivate produce based on your discretion unless following one benchmark in the industry. One truth is that it is one to the means of avoiding going up a loss. The easier you sell off your collected constitutional farm produce, the better for your shop.

• Payment Options

The payment approach adopted by Kelvin Durham® & Our Organic Firms, LLC is all inclusive because we are entirely sensitive ensure different customers prefer different payment options as it suits they but at who same while, ourselves will ensure that we maintain by the financial rules and regulation of of United States of America.

Click are the payment choose that Kellvin Durham® & My Organic Farms, LLC will do available to her clients;

• Payments via bank transfer
• Payment with bar
• Payment by online slope submit
• Payment via check
• Payment via mobility money transfer
• Salary via bank draft

In view of the above, were have chosen banking platforms that will enable our clients make payment since their purchases free any stressing on own part. Our bank account numbers wish be made available on our website and promotional stuff.

13. Startup Output (Budget)

When it comes to crafty the charges of starting an commercial organic farm, there are quite key factors that should serve as adenine guide; factors such as the capacity of the organic farm and the numbering of organic crops real livestock you want to cultivate.

Besides, in setting up any business, the amount or cost will depend to the approach real scale you want to make. If you intend to start a world – class advertise biological farms, therefore you would need huge capital as you would need to ensuring that your employees are well taken care of, furthermore that your organically agricultural can conducive enough for workers to be creative and useful.

This means that the start-up capital can either be low or high depending on your goals, vision and aspirations for their business. Below are some of the basic areas wealth will spend our start – up capital when setting up our organic farm;

• One total fee for incorporating the business in United States of America – $750.
• Which total free for payment of indemnity policy covers (general liability, workers’ compensation both property casualty) at a whole premium – $9,400
• The amount essential to acquire/lease ampere cultivate land – $50,000
• The amount required for preparation the farm land – $70,000
• The cost for acquiring that required working apparatus and equipment/machines/fencing net alum – $10,000
• The quantity requirement for purchase of the first set of seedlings and livestock et al – $50,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
• The cost of launching one official internet – $600
• The sum required required zahlungen of workers for a period of 3 months – $100,000
• Additional Outlay (Business cards, Signage, Adverts and Promotions etching al) – $2,000

Going by the report from detailed research and engineering studies conducted, we will need einer average of $500,000 to start adenine standard commercial organic farming business in the United States of American. Dieser are some of the equipment that we would need to fully launch our commercial organic farm,

• Soil cultivator
• Harrow (e.g. Spike harrow, Drag harrow, Disk harrow)
• Stone/Rock/Debris remover implement (e.g. Destoner, Rock windrower/rock rake, Stone picker/picker)
• Broadcast seeder (alternatively: publicize spreader, fertilizer diffuser, or Air seeder)
• Pliant mulch layer
• Transplanter
• Sprinkler system spraying
• Circle Barrow

Basically, the nature regarding a commercial organic farm does not require an agency spacing, most populace that run trade organic farms control directly since to farms. But we have decided to open a small liaison office; a place where administrative jobs will be carried outgoing on behalf of the business.

Originating Funds / Startup Capital for Kelvin Durham® & Sons Organic Farms, LLC

No matter how fantastic your business idea might be, if you don’t have the vital money to financial the business, the business kann not become a reality. Funding is a very major factor when it comes to get ampere promotional organic farm.

Kelvin Durham® & Sons Bio Farms, LLC is a house business the will may owned and managed by Kelvin Durham and his immediate family members. They are the sole financiers of that firm, but may probability welcome other partners later which is why they decided to restrict the sourcing of the start–up resources by their business to equal three major sources.

These are the sections where we intend sourcing for fund for Celcius Durham® & Son Organic Farms, LLC;

• Generate portion away the start – raise capital from personal savings and sale of his stocks
• Generate part of aforementioned how – up capital off friends and other extended family members
• Generate a larger chunk of the startup capital for the bank (loan facility).

N.B:  We have been able to generate about $100,000 ( Personally savings $80,000 and soft loan from family our $20,000 ) and we are at the final stages of obtaining a loan facility off $400,000 from our bank. All the working and documents hold been duly signed and submitted, the loan has been approved and any moment from now our account will be credited.

14. Sustaining and Expansion Core

One of our greater goals von starting Kelvin Durham® & Sons Organic Farms, LLC is to build a business that will outlive from its proprietary funds flow without the need of injecting financial from external sources once the business is officially running.

We know is one for the manners of gaining authorization and winning customers over is to selling our farm produce (organic crops and biologically livestock) ampere little bit best than what has obtainable are this market also wealth are well prepared to survive on lower gains margin for a while.

Kelvin Durham® & Heir Organic Farms, LLC willing make sure that the right foundation, structures and processes are position in place to ensure that our staff welfare are well taken of. Our organization’s corporate culture can designed go drive our business on greater heights and training and re – preparation away our workforce shall with the top burner of our business strategy.

As a matter of fact, profit-sharing arrangement be be made available to all our management staffers and it will be based on to performance for one period of five years with more as determined by the management of the organization. We know that if this is setting with place, we will be ably till successfully hire and retain the best palms are can get in the industry, press they will be more committed to help states form this trade of our dreams.

Check List/Milestone

• Trade Name Access Checking: Completed
• Business Incorporation: Completed
• Beginning of Corporate Bank Accounts stylish various banks in the United States: Closed
• Opening Online Payment Platforms: Completed
• Petition and Obtaining Tax Payer’s ID: In Progress
• Application for business get and permit: Completed
• Make of All application regarding Insurance for that Business: Completed
• Leasing of farms land real preparing the rural land in Tallahassee – Florida: Terminated
• Conducting Feasibility Studies: Completed
• Start – skyward Capital Generation: Completed
• Writing of Business Plan: Completed
• Drafting the Employee’s Handbook: Completed
• Design starting The Company’s Logo: Finish
• Grafische Design and Publication of Packaging, Marketing/Promotional Materials: Completed
• Recruitment of employees: In Progress
• Building/construction of cages additionally fence ets al: In Advancement
• Purchase of the requisite farm cultivating cleaning, instruments and equipment: Completed
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business (Business PR): In Progress
• Farmed landed Healthcare, Condition and Protection Arrangement: In Progress
• Setup business relationship are supplier and soft players int who our (agriculture farm produce merchants, cultivate suppliers and transport/haulage companies, hotels, restaurants, and grocery stores et al): Completed

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Organic Farming Business Plan

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Resources On Organic Farming

• Financial Model
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Description

Executive Summary

Products & services, market analysis, marketing plan.

• Management Plan
• Financial Plan

Green Harvest Farms is addressing the growing need for fresh and locally grown, organic produce in the Portland market. With the increasing concern over the health and environmental impact of conventional farming practices, consumers are demanding more sustainable and ethical options. However, the market currently lacks a significant number of organic farming options and direct-to-consumer sales channels, leading to a disconnect between farmers and consumers. Green Harvest Farms aims to solve this problem by providing access to fresh and organic produce directly from our farm while educating and building long-term relationships with our customers.

Green Harvest Farms will provide the solution of fresh, locally grown, and organic produce to health-conscious and environmentally conscious consumers in the Portland area. By offering a wide variety of vegetables, fruits, and herbs through direct-to-consumer sales, including farmers' markets, Community Supported Agriculture Programs, and online sales, we will provide convenient access to high-quality, sustainable produce. Additionally, we aim to educate our customers on organic farming and sustainability to encourage a more conscious approach to food consumption. Our commitment to sustainable farming practices and fair prices for farmers will set us apart in the market and establish us as a leader in organic farming in the Portland area.

Target Market

Competition, financial summary.

Green Harvest Farms aims to generate $400,000 in revenue in the first year, with an increase of 15% in revenue in subsequent years. Our estimated start-up costs are approximately $200,000, which will cover farming equipment and maintenance costs, labor costs, packaging and shipping costs, marketing and advertising costs, and rental fees for our farm. We plan to fund our startup through a combination of self-funding, grants, and loans. Our loan repayment schedule aims to repay all loans and interest within five years.

Key highlights of our financial plan are:

• Projected revenue of $400,000 in the first year, with a 15% increase in subsequent years.
• Estimated start-up costs of approximately $200,000.
• Funding to come from a combination of self-funding, grants, and loans.
• Loan repayment schedule aims to repay all loans and interest within five years.
• Costs will include farming equipment and maintenance costs, labor costs, packaging and shipping costs, marketing and advertising costs, and rental fees for our farm.
• We aim to establish Green Harvest Farms as a leader in organic farming in the Portland market, developing a strong customer base and expanding our reach while sustaining our existing customer base.

Our projected revenue streams will come from direct sales to consumers through farmers' markets or CSAs, subscriptions for a share of the farm's weekly or seasonal harvest, and online sales and shipping. Our value proposition of fresh, locally grown, and organic produce, sustainable farming practices, and fair prices for farmers will attract health-conscious and environmentally conscious consumers, supporters of local agriculture, and foodies. We will monitor revenue, customer satisfaction, and customer retention as key metrics for our success.

Funding Requirements

Green Harvest Farms estimates a startup cost of approximately $200,000, which will cover the following expenses:

• Farming equipment and maintenance costs
• Labor costs
• Packaging and shipping costs
• Marketing and advertising costs
• Rental fees for the farm

We plan to fund our startup through a combination of self-funding, grants, and loans. Our loan repayment schedule aims to repay all loans and interest within five years. We are seeking investors who share our vision of promoting sustainable and organic agriculture while providing fresh and healthy produce to the community. Our projected revenue of $400,000 in the first year with a 15% increase in revenue in subsequent years shows a promising return on investment.

Milestones and Traction

At Green Harvest Farms, we are committed to achieving our business goals by hitting specific milestones. Here is a roadmap of where we are currently and the milestones we plan to hit:

We are confident in our ability to hit these milestones and achieve our financial and funding goals.

Problem Worth Solving

Our solution.

At Green Harvest Farms, our solution is to provide fresh, locally grown, and organic produce straight from the source, alleviating the problem of consumers not having access to high-quality, fresh, and organic produce. By growing and harvesting our own produce using sustainable farming practices, we can ensure that our products are of the highest quality, and we can offer them at a fair price to our customers.

We aim to provide direct-to-consumer sales through farmers' markets, Community Supported Agriculture Programs, and online sales and shipping, making it convenient for our customers to access our products. Additionally, we also provide educational resources on organic farming and sustainability, giving our customers the opportunity to learn more about where their food comes from and how it's grown.

Our products and services cater to health-conscious consumers, environmentally conscious consumers, supporters of local agriculture, and foodies. By focusing on the needs and values of our customer base, we can establish ourselves as a leader in the organic farming industry in the Portland market and beyond.

Validation of Problem and Solution

Product overview.

At Green Harvest Farms, we offer a wide variety of fresh, locally grown, and organic produce including vegetables, fruits, and herbs. Our primary focus is on providing direct-to-consumer sales through farmers' markets, Community Supported Agriculture Programs, online sales, and shipping. Our products are specifically aimed at health-conscious and environmentally conscious consumers who appreciate the quality of locally grown, organic produce.

Our produce is grown using sustainable farming practices and adheres to the highest standards of organic farming. We take pride in providing our customers with fresh and nutritious produce straight from the source. By buying directly from us, customers can enjoy the benefits of supporting local agriculture while also being assured of the high quality and freshness of their produce.

Green Harvest Farms also aims to provide educational resources on organic farming and sustainability to our customers. We believe in fostering a deeper connection between our customers and the food they eat by educating them on the origins of their food and the benefits of consuming locally grown and organic produce. With our focus on quality, sustainability, and education, Green Harvest Farms is dedicated to providing our customers with the best possible produce and service.

Green Harvest Farms faces competition from other organic farms in the Portland market such as Tanager Farm and Sun Gold Farm. However, our farm offers unique benefits that differentiate us from our competitors. Firstly, we focus on direct-to-consumer sales through farmers' markets, CSAs, and online sales and shipping, allowing us to build strong relationships with our customers. Additionally, we offer educational resources on organic farming and sustainability, providing added value to our customers. Lastly, we adhere to sustainable farming practices, prioritizing environmental and health concerns for our customers and community. By emphasizing personalized service and a commitment to sustainability, Green Harvest Farms aims to stand out in the Portland market.

Roadmap: Products & Services

As an organic farming business, Green Harvest Farms aims to establish itself in the Portland market as a leader in sustainable farming practices while providing fresh, locally grown, and organic produce to our customers. Here is an outline of the steps we have taken and plan to take in establishing and growing our business:

Our roadmap outlines the steps we have taken and plan to take to establish and grow Green Harvest Farms in the Portland market. We are committed to providing fresh, locally grown, and organic produce while adhering to sustainable farming practices. Our goal is to build strong customer relationships and expand into new markets, all while maintaining our commitment to sustainability and organic farming.

Market Segmentation

Market segmentation is an important aspect of understanding the target customers who will benefit from the organic farming business. The potential customer groups can be divided based on specific characteristics, such as:

The largest market segment is health-conscious consumers who are willing to pay a premium for fresh, organic produce. Thus, targeting this segment could be a profitable strategy for the organic farming business.

Target Market Segment Strategy

Key customers.

Our ideal customer archetype is health-conscious, environmentally conscious, and supports local agriculture. They are willing to pay a premium price for fresh, locally grown, and organic produce. They prioritize quality over quantity and understand the value of sustainable farming practices. Our customers are foodies who enjoy cooking and experimenting with new recipes. They seek personalized service and appreciate educational resources on organic farming and sustainability. Our customers will be our main advocates, recommending us to their friends and family, and returning to us season after season.

Future Markets

Below is a table outlining some of the potential competitors in the organic farming industry:

While there may be competition in the organic farming industry, our direct-to-consumer model offers unique value that sets us apart from traditional retail sales. By offering fresh, locally grown, and organic produce straight from the source, we appeal to a specific set of customers who are looking for sustainable and healthy food options.

Marketing and Sales Plan

Our marketing and advertising strategy will target health-conscious and environmentally conscious consumers, supporters of local agriculture, and foodies through various channels.

We will also utilize educational resources on organic farming and sustainability to connect with our customers and establish ourselves as a trusted source for fresh, locally grown, and organic produce.

Location and Facilities

Equipment and tools.

Our organic farming business requires certain equipment and tools to ensure the efficient growth and harvest of our organic produce. Below is an outline of the required equipment and the associated costs for purchasing or renting them:

Some of these equipment and tools can be rented on a seasonal basis, which would help to reduce the initial costs of starting up the business. We would also need to budget for ongoing maintenance and repair costs for our equipment.

By having the necessary equipment and tools, we can ensure that our organic produce is grown and harvested efficiently, and that we can meet the demand of our customers at farmers' markets and through community supported agriculture programs.

Management and Organization

Organizational structure.

Our organic farming business has a flat organizational structure with a team-based approach. We believe that open communication, collaboration, and shared decision-making are vital components for success.

The flow of information in our organization is open and transparent, encouraging communication and collaboration among all employees. We hold regular team meetings to discuss business operations, set goals, and exchange ideas and feedback. The owner/manager is accessible to all employees and maintains an open-door policy, ensuring that everyone's input is valued and considered.

Management Team

We anticipate hiring a highly experienced and qualified team to manage our organic farming business. Our CEO has over 10 years of experience in agricultural management and a Masters in Sustainable Agriculture, while our COO has 5+ years of experience in direct-to-consumer sales and a Bachelors in Business Administration. Additionally, our Farm Manager has over 15 years of experience in organic farming and is a Certified Organic Farmer. Finally, our Marketing Manager has 7+ years of experience in marketing and a Bachelors in Marketing. Together, our team has the necessary skills and expertise to successfully execute our business plan and achieve our goals.

Management Team Gaps

Personnel plan.

Running an organic farming business requires a team of dedicated individuals with a range of skills, from farming and harvesting to sales and marketing. The following table outlines the potential positions that may be necessary to effectively run the business:

As the business grows, additional positions may be necessary to support the increased workload and demand for organic produce.

Company History and Ownership

Green Harvest Farms was founded in 2021 by John Doe, a seasoned farmer with over a decade of experience in sustainable agriculture. Doe's passion for organic farming began in his childhood, where he spent most of his summers on his grandparents' farm, learning about the importance of caring for the earth and growing crops naturally without the use of harmful chemicals.

After completing a degree in Agriculture from Oregon State University, Doe worked on several farms in the Pacific Northwest, honing his skills and gaining valuable experience in sustainable farming practices. In 2020, he decided to branch out on his own and start Green Harvest Farms, with the aim of providing fresh, locally grown, and organic produce to the Portland market.

The company is privately owned and operated by John Doe, who serves as the CEO and Chief Farmer. Doe is responsible for overseeing all aspects of the business, including farming operations, sales and marketing, and financial management. He is supported by a team of dedicated farmers and agricultural experts who share his vision for sustainable and organic farming practices.

Green Harvest Farms' history and ownership are deeply rooted in the values of sustainability, community, and environmental stewardship. By prioritizing these values in all aspects of the business, the company has established itself as a leader in the Portland organic farming market, with a loyal customer base and a bright future ahead.

Below is a detailed roadmap of specific goals and objectives that we plan to achieve in order to manage and steer our business:

Key Metrics

Financial plan and metrics, sales forecast.

Our projected sales for the next three years are broken down by product categories and presented in the table below.

We anticipate a 15% increase in revenue each year as we expand our customer base and increase our reach. Our sales forecast is based on our estimated production yield and consumer demand in the Portland market.

Starting an organic farming business requires some upfront costs to acquire land and necessary equipment. Below is a table outlining the expected startup costs:

Once the business is up and running, there are ongoing operational expenses to consider. Below is a table outlining the expected monthly expenses:

It's important to regularly review and adjust expenses to ensure financial sustainability and growth of the business.

Projected Profit and Loss

Our financial plan includes generating $400,000 in revenue in the first year, with a 15% increase in revenue in subsequent years. After accounting for all costs, we project a positive net income for the next three years:

We are confident in our ability to generate revenue while adhering to sustainable farming practices and providing our customers with fresh and locally grown organic produce. We believe that our projected profits will allow us to continue expanding and reaching new markets while sustaining our existing customer base.

Projected Cash Flow

Below is a projected cash flow statement for Green Harvest Farms for the next three years (2023, 2024, 2025). The table is categorized into Inflow, Outflow, Net Cash Flow, and Cumulative Net Cash Flow, with the years listed accordingly:

As shown in the table, Green Harvest Farms aims to generate $400,000 in revenue in the first year, with an increase of 15% in revenue in subsequent years. The estimated start-up costs are approximately $200,000, which include farming equipment and maintenance costs, labor costs, packaging and shipping costs, marketing and advertising costs, and rental fees for our farm. While the cash inflow increases year over year, the cash outflow also increases accordingly due to growth and expansion. The projected net cash flow and cumulative net cash flow are both positive, indicating a financially viable and sustainable business plan.

Projected Balance Sheet

Below is the balance sheet statement for the next three years:

The projected balance sheet reflects a positive trend in the growth and development of the organic farming business plan. The assets, liabilities, and equity are projected to steadily increase over the next three years, indicating a sound financial position and improved profitability. The business aims to continue investing in sustainable farming practices, expand its customer base, and optimize its sales channels to maintain this trend of growth and success.

As the business grows, we intend to hire additional personnel to help with farming operations, online sales, and shipping logistics. We plan to hire experienced and reliable workers who share our values and commitment to sustainable agriculture. The compensation will be competitive and based on experience and performance, with the possibility of bonuses based on achieving certain farming goals. Our employees will be an essential part of our business operations and will be involved in every step of the process from planting and harvesting to customer service and order fulfillment.

Use of Funds

Here is a breakdown of how we plan to use the funds:

We plan to fund our startup through a combination of self-funding, grants, and loans. Our loan repayment schedule aims to repay all loans and interest within five years.

Exit Strategy

Our intention is to continue growing the business and expanding our customer base. However, should the need arise, we would consider different options for exiting the business. One possible option is acquisition by a larger organic farming company or a private equity firm. Another option is to sell the business to another farmer who shares our commitment to organic and sustainable farming practices. We may also consider passing the business along to a family member or dedicated employee who is interested in continuing our mission. Whatever the eventual exit strategy may be, we will ensure that it aligns with our values and supports the continued growth and success of the business.

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MOBI Business Plan Template

The primary value of your business plan is to create a written resource that evaluates most aspects of your new business including a description of your target customers and markets, profitability, organization, operations and more. The very process of writing your business plan helps you put your ideas on paper so you can evaluate what resources you have and what you need to be successful.

Your business plan is your blueprint for starting your business, your script to tell the story of your business to others, and your comprehensive analysis of the opportunity for your business. Business plans help you plan your roadmap, state your goals, share your vision, and analyze your strategy. A business plan is an important and valuable tool for new as well as existing businesses.

This MOBI Business Plan Template consists of sections that relate to the content included in the MOBI Starting a Business course . You can also use this template as a guide independently. We have created this template with the input of key stakeholders such as economic development agencies, lenders, mentors and successful entrepreneurs. You can complete sections of the business plan as you go through the course, to apply what you are learning along the way, or you can wait until you have completed the course. This business plan template is a universal model suitable for most types of business, which you can customize to fit your circumstances. MOBI provides leading topics, questions, and suggestions in each section to guide you. Here are some instructions to help you get started:

• On the cover page replace the MOBI spark with your own logo and provide your business name, personal name, contact information, and date.
• Complete each section leaving the main title, such as “Executive Summary,” and using the subtitles and questions as a guideline. Replace those subtitles and questions with the needed and relevant information. If some of the subtitles work with your format, you can keep them. You can type directly over the provided content or delete it as you complete it.
• You might want to start each section on a new page, which can also be helpful if you decide to include a Table of Contents.

Once you complete your business plan, be sure that key stakeholders review it. Business plans are not static; they will change as your business and the business environment change around you. It’s important to continually review and update your business plan to adjust for these changes.

BUSINESS PLAN

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Contact Information

Executive Summary Provide a summary of your business by addressing these key areas.

Name and Description of Business State the name of your business and describe your product or service.

Targeted Market and Customers Describe your target markets and customers and why they want or need your product or service.    

Trends in this Industry What are the current trends in the industry that make this a good time for your product or service? For example, is the market for your product growing, and why? Have others failed to address a particular need that your product or service will address?  

Value Proposition Provide a brief statement of the unique benefits and value your business will deliver to your customers. Describe the unique qualities of your product or service that will enable you to be profitable.

The Vision  Describe the vision of your business and why you are committed to pursuing this vision and making it successful. 

Founder Background: Work/life experience related to the intended business Describe your work/life experience, educational credentials, and how they are related to the business you plan to start. Include a list of your skills and knowledge, which will be required in your business. 

Your Team If you plan to hire full- or part-time employees or seek business partners, describe your plan for engaging with these other members of your team. If you already have employees or partners, describe key personnel and their roles here. 

Goals for business: Outline your key goals for your business. (Explain your plans for growing the business and what you can realistically accomplish in a defined period of time.)

Financing and Financial Projections ( Many business owners require the assistance of a bookkeeper or accountant when completing this section.)

Startup Capital Provide a table or spreadsheet showing the sources of your startup capital including what you or other investors will contribute and what you intend to borrow.  Create a list of what the startup capital will be used for and how much will be left over for working capital ( SCORE Startup Expenses Template ).

Accounting Statements Prepare your starting balance sheet and projected profit and loss (income) statements for the first three years. (By month for the first year and then by year for years two and three.) Forecast your month-to-month cash flow requirements for the first year.  

Analysis of Costs List and explain the key costs and profit margins that are important for your business.  Classify your costs as fixed, variable, product, delivery, etc. 

Break-Even Analysis Based on your costs and pricing strategy, prepare a break-even analysis.

Internal Controls Explain your internal and cash controls. For instance, check signing policy, strategy for controlling shrinkage, and control of incoming merchandise or supplies.

Business Organization

Business Organization Explain the form of business organization you intend to use and why it is best for your business (sole proprietorship, partnership, LLC, etc.).

Professional Consultants List the names of your key advisors: bookkeeper/accountant, consultants, lawyer, insurance agent, and any other professionals.   

Business Location

If you need a physical location other than your home to operate your business, identify your business space needs considering all phases of your workflow (production, storage, shipping, potential employees, customer meetings, and future requirements). Explain why the location you picked meets your workflow needs.

Marketing and Sales

Market Research: Your Customers and Competition Describe your ideal customer (who will be purchasing your product/service, key characteristics).

• Include any research that has helped you identify and characterize your target customer.

Describe your position in the market, your strongest competitors, and how you intend to compete. 

Marketing Strategy and Tools Describe your overall marketing strategy, how you will find, engage, and build customers, including:

• Traditional marketing tools (signage, storefront, collateral, advertising, promotion, uniforms,  mail, etc.).
• Online marketing (website, social media, email marketing, text marketing, others).
• Ecommerce (if applicable).
• Describe in detail how you plan to sell your products or services online.
• Describe how your best competitors utilize ecommerce and your strategy to improve on their practices.
• Research and identify the different channels where you will sell your product or services. What is your expectation of sales?
• Detail how will you take orders, process payments, and fulfill requests? 
• Provide a detailed breakdown of the costs involved in creating, operating, and maintaining your ecommerce activities.

Sales Strategy Describe your sales process, activities you will conduct, obstacles you expect, how you will overcome them, and any customer service strategies to retain and expand your customer base.

Include k ey details about how you will operate your business.

• Outline the workflow of your business and the processes and procedures you will put into place.
• If applicable, provide details about how you will procure supplies, manufacture your product, and deliver your product or service to your customer. Include any equipment and facilities that you need.
• Describe how you will measure the success of your operations for quality, efficiency, cost control, or other measures of performance. Include any testing.
• Order fulfillment: describe your order fulfillment process, software to be used, and quality control methods.
• Supply chain: describe products/materials you need to purchase in order to make your product, include primary and secondary sources for these. products/materials, lead times, purchasing methods, and tools.
• Staffing: skill requirements, training program, supervision, outsourced functions, and hiring timeline.

Addendum: Licenses and Permits   *Addendums can include but are not limited to License and Permits*

Make a comprehensive list of all licenses and permits you will need to do business in your area.   

Your list should include the following: (For US-based businesses; requirements differ by country and region.)

• Name under which you intend to do business
• Permissions and/or limitations on the use of your property or facilities
• Federal, state, and local licenses (city/county), permits, and certifications needed to do business in your area (e.g. business tax license, seller's permit, safety certifications, employer identification number, etc.)
• Industry licenses needed for your particular area of business (contractor, electrician, daycare, beauty, etc.)
• International and national intellectual property protection through trademarks, copyright, and patents.

Download:  MOBI Business Plan Template

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• Plant Health
• Industrial Hemp

Frequently Asked Questions

California industrial hemp program.

Table of Contents

General information, what is "industrial hemp".

According to the California Food and Agriculture Code Section 81000 (a)(7) :

" Industrial hemp" or “Hemp” means an agricultural product, whether growing or not, that is limited to types of the plant Cannabis sativa L. and any part of that plant, including the seeds of the plant and all derivatives, extracts, the resin extracted from any part of the plant, cannabinoids, isomers, acids, salts, and salts of isomers, with a delta-9 tetrahydrocannabinol concentration of no more than 0.3 percent on a dry weight basis .

Industrial hemp is also defined in the California Health and Safety Code Section 11018.5 .

What is the difference between industrial hemp and cannabis/marijuana?

Cannabis is defined in  California Business and Professions Code (BPC) Section 26001(e) . The BPC Section 26001(e) definition explicitly states that cannabis does not include industrial hemp.

For information on the cultivation of medical and adult-use cannabis, contact Department of Cannabis Control .

Is growing industrial hemp legal in California?

Division 24 of the California Food and Agricultural Code  provides for the cultivation of industrial hemp by registered growers, hemp breeders, and established agricultural research institutions.

Is industrial hemp federally regulated as a controlled substance?

The Agriculture Improvement Act of 2018 (2018 Farm Bill) , effective January 1, 2019, removed hemp from Schedule I of the federal Controlled Substances Act. Thus, hemp is no longer federally regulated as a controlled substance.

What are the current federal laws and regulations regarding industrial hemp?

The Agriculture Improvement Act of 2018 (2018 Farm Bill) was signed into law by the President on December 20, 2018. The U.S. Domestic Hemp Production Program was established by the U.S. Department of Agriculture (USDA) through an interim final rule on October 31, 2019 and further amended through a final rule on January 15, 2021. The final rule provides the requirements for State and Tribal regulatory plans submitted to USDA for review and approval. Additional information regarding pending federal legislation is available on the Law Library of Congress website .

Does California have a state regulatory plan approved by U.S. Department of Agriculture?

CDFA has revised and submitted the proposed state regulatory plan to the U.S. Department of Agriculture (USDA) for review and approval on December 20, 2021. USDA has approved California’s state regulatory plan for hemp production , effective January 1, 2022.

Are California hemp cultivators subject to the cultivation requirements outlined in the federal final rule?

According the U.S. Department of Agriculture (USDA) Hemp webpage , hemp growers are not subject to the cultivation requirements outlined in the  federal final rule  if a state has an approved regulatory plan or is in the process of developing a regulatory plan. Hemp cultivators in states that do not have a pending or approved regulatory plan may apply for a USDA hemp production license. However, California’s state regulatory plan for hemp production has been approved by USDA, effective January 1, 2022. For information regarding federal requirements for hemp producers, visit  USDA Hemp webpage .

Are hemp cultivators licensed by the U.S. Department of Agriculture required to follow California state laws and regulations?

Regardless of any federal requirements, all hemp cultivators in California must comply with existing state laws and regulations as well as any local restrictions that may apply.

Are there any pending changes to California law regarding industrial hemp?

Senate Bill 292 was approved by the Governor on October 4, 2021 and took effect on January 1, 2022. Assembly Bill 45 was approved by the Governor on October 6, 2021 and took effect immediately.

For a complete list of all proposed state legislation and additional information regarding pending state legislation is available on the  California Legislative Information website .

How can I receive updates regarding industrial hemp regulation?

You can sign up to receive e-mail updates from CDFA regarding industrial hemp by visiting CDFA’s subscription webpage , or by sending a blank e-mail to: [email protected]

Exportation/Importation/Transportation of Industrial Hemp

Can i import industrial hemp seeds/plants from another state.

California law does not currently have any restrictions specific to the importation of industrial hemp seeds/plants into California.

Industrial hemp seeds/plants imported into the state must meet all plant pest quarantines and may be subject to an agricultural inspection for plant pests. For more information regarding plant pest quarantines that may apply to industrial hemp seeds/plants, contact CDFA’s Pest Exclusion Branch .

Can I import industrial hemp seeds/plants from outside of the U.S.?

The international importation of seeds and plants is restricted under federal law. The U.S. Department of Agriculture (USDA) has published requirements for the international importation of hemp seed . For information regarding the international importation of hemp seeds and/or plants, contact the USDA .

Will CDFA import industrial hemp seeds or plants?

No. CDFA does not import or distribute seeds or planting materials for any crops, regardless of whether the imported materials are for research or commercial purposes.

Can I bring unprocessed hemp into California?

California law does not currently have any restrictions specific to the importation of unprocessed hemp material into California. Unprocessed hemp material imported into the state must meet all plant pest quarantines and may be subject to an agricultural inspection for plant pests. For more information regarding plant pest quarantines that may apply to unprocessed hemp material, contact CDFA’s Pest Exclusion Branch .

Can I bring processed hemp products into California?

Many processed hemp materials may move freely in accordance with federal law. For information on the restrictions and requirements that may apply to specific hemp products, contact the U.S. Food and Drug Administration.

How do I obtain an export certificate to meet importing requirements for another state or country?

For information on federal and state export certificates, contact CDFA’s Pest Exclusion Branch .

What are the requirements for transporting hemp in vehicles?

California Food and Agricultural Code Section 81006(e)(11) requires registrants to provide an original copy of the laboratory test report to each person transporting hemp including hemp fiber, oil, cake, seed, or any component of the seed.

Additionally, the California Department of Motor Vehicles (DMV) and law enforcement may have additional requirements that may apply to transporting hemp. For information regarding any additional requirements that may apply to any proposed industrial hemp transportation, contact the applicable city, county and/or state officials, including the  California Highway Patrol  and the  DMV .

Can I mail hemp and hemp-related products through U.S. Postal Service?

The U.S. Postal Service (USPS) has published a bulletin to answer questions related to mailing hemp and hemp-related products through the USPS . For more information regarding mailing hemp and hemp-related products through the USPS, contact the USPS .

Cultivation

Can i grow industrial hemp in california.

California Food and Agricultural Code  Sections 81003(a)(1) , 81004(a)(1 ), and 81004.5(a)(1) require all growers, breeders, and established agricultural research institutions of industrial hemp to register with the county agricultural commissioner prior to cultivation. Registration procedures are outlined in Sections 4901 in Title 3 of the California Code of Regulations and applications are available on  CDFA’s Industrial Hemp Program webpage .

For information regarding any additional local restrictions that may apply to any proposed industrial hemp activities, contact the applicable county and/or city officials, including the  county agricultural commissioner's office .

How do I register with the state/county to grow industrial hemp?

There is no state registration to grow industrial hemp; only county registration is required to grow industrial hemp under state law. Registration applications are available on  CDFA’s Industrial Hemp Program webpage .

How much is the registration and renewal fee?

CDFA has adopted Section 4900 in Title 3 of the California Code of Regulations pertaining to Industrial Hemp Cultivation Registration Fees.

The annual registration fee is $900.00 (nine hundred dollars) when registering as a grower of industrial hemp or hemp breeder. In accordance with California Food and Agricultural Code (FAC) Section 81005(c) , a county board of supervisors may also establish a fee to cover the actual costs of the commissioner and the county of implementing, administering, and enforcing the provisions of FAC Division 24 . For information on local fees for industrial hemp cultivation, please contact the county agricultural commissioner’s office .

When does registration expire?

Registration is valid for one year from date of issuance. Registrants must submit a new application at least 30 calendar days prior to the expiration of registration to renew their registration and should register prior to the registration expiration if they wish to continue to grow industrial hemp after the one year expires.

What types of registration are available?

California Food and Agricultural Code (FAC) Section 81003  provides for the registration of growers of industrial hemp.  FAC Section 81004  provides for the registration of hemp breeders. FAC Section 81004.5 provides for the registration of established research institutions for the cultivation of hemp for agricultural and academic research.

What are the eligibility requirements for registration?

California Food and Agricultural Code (FAC) Sections 81003 , 81004 , and 81004.5 require applicants to meet all eligibility requirements in order to register for industrial hemp cultivation.

FAC Section 81012 restricts any registered grower, hemp breeder, and established agricultural research institutions found committing three negligent violations in a five-year time period from registration for a period of five years beginning on the date of the finding of the third violation.

FAC Section 81013 restricts any person convicted of a felony relating to a controlled substance under state or federal law from registration for a period of 10 years following the date of the conviction.

FAC Section 81014 restricts any person that materially falsifies any information contained in an application or registration from registration.

Is a list of current registrants available?

Publication of a list of registered cultivators is available on the CDFA’s Industrial Hemp Program webpage.

What are the laws and regulations regarding the production of industrial hemp in California?

California's industrial hemp law can be found in  Division 24 of the California Food and Agricultural Code .

CDFA has adopted  Section 4900 in Title 3 of the California Code of Regulations  pertaining to Industrial Hemp Cultivation Registration Fees, and  Section 4920  and  Section 4921  pertaining to the list of approved cultivars.

CDFA has readopted Sections 4901  and 4902  in Title 3 of the California Code of Regulations pertaining to industrial hemp registration application and eligibility requirements, which took effect on September 21, 2021.

CDFA has adopted Sections  4930 , 4935 ,  4940 ,  4941 ,  4942 ,  4943 ,  4944 ,  4945 ,  4946 ,  4950 , and  4950.1  in Title 3 of the California Code of Regulations (CCR) pertaining to industrial hemp planting, sampling and testing for THC concentration, harvest, and destruction. The regulations took effect on January 11, 2021. 3 CCR Sections 4940, 4944, and 4946 were further amended pertaining to the timeframes for harvest, sampling, and laboratory notification. The amended regulations took effect on April 9, 2021.

In order to implement the California state regulatory plan for hemp production, CDFA will propose amendments to the current regulations.

Further regulations pertaining to industrial hemp cultivation will be developed with consideration of recommendations from the Industrial Hemp Advisory Board and promulgated through the regular rulemaking process in accordance with the California Administrative Procedure Act. CDFA will notify the public via our electronic mailing list as regulations are posted and available for public comment.

For more information regarding the regular rulemaking process, visit the  Office of Administrative Law's website.

What are the local requirements regarding the production of industrial hemp?

For information regarding any additional local restrictions that may apply to any proposed industrial hemp activities, contact the applicable county and/or city officials, including the county agricultural commissioner's office.

Does California law allow cultivation of industrial hemp for personal use like the Adult Use of Marijuana Act allows for cultivation of cannabis for personal use?

California law does not provide for cultivation of industrial hemp for personal use like the Adult Use of Marijuana Act provides for cannabis.

Can I grow hemp and cannabis on the same premises?

Section 81006(c) of the California Food and Agricultural Code prohibits industrial hemp cultivation on premises licensed by CDFA to cultivate or process cannabis.

According to the California Business and Professions Code Section 26001(aq) :

“Premises” means the designated structure or structures and land specified in the application that is owned, leased, or otherwise held under the control of the applicant or licensee where the commercial cannabis activity will be or is conducted. The premises shall be a contiguous area and shall only be occupied by one licensee. 

Whom do I contact for information about the cultivation of other forms of cannabis?

Licensing and regulation for the cultivation of medical and adult-use cannabis is overseen by Department of Cannabis Control (DCC). For more information regarding cultivating forms of cannabis other than industrial hemp, contact DCC .

What cultivars or varieties of industrial hemp may I grow?

California Food and Agricultural Code (FAC) Section 81002  requires registered growers to only grow varieties of industrial hemp on the list of approved seed cultivars. The current list of approved cultivars is available in  Section 4920 in Title 3 of the California Code of Regulations  and lists cultivars in FAC Section 81002(b) .

Where can I find more information about seed certification?

Industrial Hemp Seed Certification Standards are available. For information on seed certification in California, contact the California Crop Improvement Association .

How do I grow industrial hemp?

Other than practices and reporting mandated by  Division 24 of the California Food and Agricultural Code , CDFA does not provide guidelines or recommendations for cultivating industrial hemp.

What pesticides can I use on industrial hemp?

The California Department of Pesticide Regulation (DPR) is responsible for providing statewide guidance on the use of pesticides in the cultivation of all agricultural crops, including industrial hemp.  DPR has recently updated their webpage with a guidance document that outlines which pesticide products can and cannot be used on hemp . Additionally, the U.S. Environmental Protection Agency (EPA) has  published a list of approved pesticides that can be used on industrial hemp . For information regarding pesticide use on industrial hemp, contact  DPR  or  EPA .

What are the requirements for water discharges from agricultural operations including the production of industrial hemp?

The California State Water Resources Control Board (SWRCB) is authorized to regulate water discharges from agricultural operations, including irrigation runoff, flows from tile drains, and storm water runoff. For information regarding requirements on water discharges from agricultural operations, contact SWRCB’s  Irrigated Lands Regulatory Program .

Where can I obtain certified industrial hemp seed?

CDFA does not maintain a list of certified sellers of industrial hemp seed. For information on the certification of industrial hemp seed in California, contact the California Crop Improvement Association .

What are the sampling and testing requirements for industrial hemp cultivation?

California Food and Agricultural Code Section 81006(e)  requires registrants, except when industrial hemp is grown by  registered established agricultural research institution and tested in accordance with an approved research plan or by a registered hemp breeder and tested in accordance with an approved variety development plan, to obtain a laboratory test report indicating the percentage concentration of THC prior to harvest.

Sampling must be requested and samples must be collected in accordance with the procedures outlined in Sections 4940 and 4941 in Title 3 of the California Code of Regulations (CCR). The samples collected must be tested in accordance with the testing procedures outlined in 3 CCR Sections 4942 through 4944 .

How is the percentage concentration of THC for industrial hemp calculated?

According to  Section 4942 (c) in Title 3 of the California Code of Regulations ,:

THC concentration or the percentage concentration of THC means the post-decarboxylated value of the percentage of delta-9 THC on a dry weight basis to the nearest thousand, or three decimal places.  The percentage concentration of THC may be measured by using either: a suitable analytical instrumentation described in Section 4942(b) that results in the decarboxylation of THC-acid to delta-9 THC, or a calculated value using a conversion formula of the percentage concentration of delta-9 THC plus eighty-seven and seven tenths (87.7) percent of the percentage concentration of THC-acid when a suitable analytical instrumentation described in Section 4942(b) does not result in the decarboxylation of THC-acid to delta-9 THC.

How is a PASS/FAIL determined on the laboratory test report?

Laboratory test reports shall be labeled “PASSED AS CALIFORNIA INDUSTRIAL HEMP” and “FAILED AS CALIFORNIA INDUSTRIAL HEMP” based on the acceptable hemp THC level in accordance with Section 4944(b)(17) in Title 3 of the California Code of Regulations  (CCR).

According to CCR 4942(d), the acceptable hemp THC level is defined as:

a THC concentration that falls within the distribution or range that includes three-tenths of one percent or less that is produced when the measurement of uncertainty is applied to the reported THC concentration. For example, if the reported THC concentration of a sample is 0.35% and the measurement of uncertainty is ± 0.06%, the measured THC concentration would range from 0.29% to 0.41%. Because 0.3% is within the distribution or range, the sample is within the acceptable hemp THC level.

What happens if my industrial hemp crop tests over the acceptable hemp THC level?

Registrants that receive a failed laboratory test report indicating a percentage concentration of THC that is greater than the acceptable hemp THC level will not be able to harvest.

If the initial laboratory test report indicates a percentage concentration of THC that is greater than the acceptable hemp THC level but does not exceed one percent, the registrant may request one additional retest in accordance with Section 4945 in Title 3 of the California Code of Regulations.

Can my industrial hemp crop be labeled and/or sold as organic?

CDFA's State Organic Program enforces the federal Organic Foods Production Act of 1990 and the California Organic Food and Farming Act of 2016. For information regarding labeling and/or selling industrial hemp as organic, contact CDFA's State Organic Program .

Industrial Hemp Advisory Board

What is the industrial hemp advisory board.

California Food and Agricultural Code (FAC) Section 81001 establishes an Industrial Hemp Advisory Board to advise CDFA and make recommendations pertaining to the cultivation of industrial hemp, including industrial hemp seed law and regulations, annual budgets, and the setting of an assessment rate. FAC Section 81001 also outlines the membership and administration of the Board.

When is the next Industrial Hemp Advisory Board meeting?

In accordance with the Bagley-Keene Open Meeting Act, a meeting notice for any board meetings will be posted on our meeting information webpage at least 10 days prior to the meeting, and, at the time of posting, the notice will also be sent out to interested parties via our electronic mailing list.

Can I participate in the Industrial Hemp Advisory Board meetings?

All meetings of the Industrial Hemp Advisory Board are open to the public. Meeting notices are posted on the meeting information webpage , and all interested parties are encouraged to attend and participate.

Who is on the Industrial Hemp Advisory Board?

A current list of members of the Industrial Hemp Advisory Board, including terms of office, is available here:

• Industrial Hemp Advisory Board Members

Are there any vacancies on the Industrial Hemp Advisory Board?

There are currently 2 vacancies on the Industrial Hemp Advisory Board. Instructions to apply will be available soon.

Where can I find more information on past Industrial Hemp Advisory Board meetings?

Information on past meetings, including minutes and recordings, is available on the meeting information webpage .

Manufacturing, Processing, & Sale of Industrial Hemp & Hemp Products

What are the laws and regulations regarding the handling, manufacturing, processing, and selling of industrial hemp and hemp farm products.

Industrial hemp handlers, manufacturers and processors will be subject to Division 20 of the California Food and Agricultural Code, which governs processors, storers, dealers, and distributors of agricultural products. The Code sections most relevant to hemp at this time include the following:

Section 55521 requires that any person that acts as a processor or a cash buying processor of industrial hemp obtain a license prior to engaging in such acts.

Pursuant to Section 55407:

"Processor" means any person that is engaged in the business of processing or manufacturing any farm product, that solicits, buys, contracts to buy, or otherwise takes title to, or possession or control of, any farm product from the producer of the farm product for the purpose of processing or manufacturing it and selling, reselling, or redelivering it in any dried, canned, extracted, fermented, distilled, frozen, eviscerated, or other preserved or processed form. It does not, however, include any retail merchant that has a fixed or established place of business in this state and does not sell at wholesale any farm product which is processed or manufactured by him.

Pursuant to Section 55402.5:

"Cash buying processor" means any person who is engaged in the business of processing or manufacturing any farm product; who obtains from the producer of any farm product, title to, or possession or control of the farm product; and who buys or agrees to buy any farm product, by cash payment of the full agreed price of such product to the producer at the time of obtaining possession or control or at the time of contracting for title to, or possession or control of any farm product.

Section 56181 requires that any person engaged in the business of buying, receiving on consignment, soliciting for sale on commission, or negotiating the sale of industrial hemp from a licensee or producer for resale obtain a license. This includes:

• brokers that negotiate the purchase or sale of any farm product
• cash buyers that buy any farm product from a licensee or a producer
• commission merchants that accept in trust, receives on consignment, sells on commission, handles as an agent or co-signor any farm product from a licensee or producer, and
• dealers that obtain title to, or possession, control, or delivery of, any farm product, from a licensee or producer.

The CDFA’s Market Enforcement Branch (MEB) is tasked with the licensing, inspection, and enforcement of California state law and regulations for the handling, manufacturing, processing, and selling of hemp farm products for the purpose of resale or processing and will begin accepting applications for licenses on January 1, 2021.

For more information regarding MEB, please visit: https://www.cdfa.ca.gov/mkt/meb/

Can I process, manufacture, or sell industrial hemp or hemp products?

We recommend you contact your local public health official for more information on general rules and restrictions that may apply to any products you intend to manufacture or sell.

California Department of Public Health (CDPH)'s Food and Drug Branch has established the Industrial Hemp Compliance Program (IHCP) for the implementation of Assembly Bill 45 regarding industrial hemp products.  CDPH's IHCP has published answers to frequently asked questions related to processing, manufacturing, and selling industrial hemp or hemp products. For more information on rules and restrictions that may apply to any products you intend to manufacture or sell, contact CDPH’s , please visit CDPH’s website at IHCP or submit questions to [email protected] .

Can hemp products be sold at certified farmers' markets?

The California Farmers' Market (CFM) Program provides opportunities for certified producers to directly market their agricultural products at certified farmers' markets throughout the State. The CFM has published answers to frequently asked questions related to the sale of hemp at certified farmer’s markets . For information regarding selling products at certified farmers' markets, contact CDFA's  CFM Program .

Can I sell hemp products in licensed cannabis retail stores?

The Department of Cannabis Control (DCC) is responsible for regulating and licensing commercial cannabis businesses. At this time, industrial hemp products cannot be sold in cannabis retail stores. For more information, contact  DCC .

Can I use animal feed or livestock drug products containing hemp-derived ingredients?

CDFA’s Feed, Fertilizer and Livestock Drugs Regulatory Services Branch (FFLDRS) is responsible for the enforcement of California state law and regulations pertinent to the manufacturing, distribution, labeling, and use of commercial livestock feed and livestock drugs. The FFLDRS has published a notice related to commercial feed or livestock drug products containing hemp-derived ingredients . For more information regarding commercial feed and livestock drugs, contact CDFA’s FFLDRS .

Whom should I contact if I have additional questions?

If you have additional questions, you may email [email protected] or call (916) 654-0435 .

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