agricultural business plan template

Agricultural Business Plan Template [Updated 2024]

Agricultural Business Plan Template

If you want to start an agricultural business or expand your current agricultural business, you need a business plan.

Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of agricultural business plans.

The following agricultural business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Sample Agricultural Business Plan

I. executive summary, business overview.

[Company Name] is a new agricultural business that produces crops for [location] and the surrounding area. [Company Name] will specifically grow root vegetables, including potatoes, onions, and beets. The company will work hard to grow these vegetables organically and without any chemicals. We will sell our produce at local farmer’s markets as well as to local restaurants and other establishments that would like to use or sell our produce.

Products Served

[Company Name] grows a variety of root vegetables for [location] and the local community. All produce will be organically grown. We alternate our crops, so the exact crops that are grown will be dependent on the season and current crop cycle. Some crops that we plan to grow include the following:

Customer Focus

[Company Name] will primarily serve the residents and businesses of [location] and the surrounding areas. Any individual or establishment that is interested in purchasing our crops is welcome to partner with us. We will sell our crops to individuals at local farmer’s markets and directly to wholesalers, grocery stores, and restaurants.

Management Team

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [Founder’s Name] has been a farm operations manager for the past [X] years, bringing a plethora of knowledge and skills that will prove to be invaluable to all aspects of the business. After working as a farm operations manager, [Founder’s Name] desired to run his own agricultural business that grows organic produce and benefits the local community. He will utilize his prior knowledge and experience to manage crop production, operations, and other aspects of the business.

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

• There is currently a high demand for quality produce in the community, specifically organic produce grown by local agricultural businesses.
• The management team has a track record of success in the agricultural industry.
• The crop production business (and the agricultural industry in general) is a proven business and has succeeded in communities throughout the United States.

Financial Highlights

[Company Name] is currently seeking $750,000 to start the company. Specifically, these funds will be used as follows:

• Land: $200,000
• Equipment: $200,000
• Working capital: $350,000 to pay for marketing, salaries, and other costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

II. Company Overview

Who is [company name], [company name]’s history.

[Founder’s Name] incorporated [Company Name] as an S-corporation on [date of incorporation]. The operations aspects of the business will be run from [Founder’s Name]’s home, while the agricultural aspects will be run from the land purchased for crop production.

Since incorporation, the company has achieved the following milestones:

• Found land to grow the crops and wrote a letter of intent to purchase it
• Developed the company’s name, logo, and website
• Determined agricultural equipment and inventory requirements
• Began recruiting key employees with experience in the cultivation industry

[Company Name]’s Products/Services

Iii. industry analysis.

The crops and products grown by local farmers and crop production companies are essential to the health of local communities. They provide jobs to the locals and result in locally grown food that the nearby residents can purchase. Larger agricultural businesses do not offer these benefits to smaller communities. Because of this, there has been a greater demand and emphasis on the sustainability of local agricultural companies that can directly benefit the local community.

Furthermore, local communities are demanding that crop production and other agricultural companies grow their products organically. Organic foods are much healthier for individuals to eat because they provide more nutrition and aren’t laced with chemicals. Improved technology and research into organic methods are making this form of crop production more profitable and sustainable.

Therefore, with the increasing demand for local organic farms, we are confident that [Company Name] will succeed in the local market and benefit [location].

IV. Customer Analysis

Demographic profile of target market.

[Company Name] will serve the industries and community residents of [location] and its surrounding areas. We will sell our produce at farmer’s markets to individuals and directly to establishments that wish to partner with us.

Customer Segmentation

The Company will primarily target the following customer segments:

• Individuals : We will market our brand and sell our produce to individuals of the local community through farmer’s markets and similar events.
• Restaurants : Local restaurants are eager to create dishes that utilize produce grown locally. We will partner with these restaurants to showcase our produce to the community and increase our brand awareness.
• Grocery stores : Many local grocery stores showcase local manufacturers and agricultural businesses. We will partner with them to offer small displays where customers can find and buy our produce.

V. Competitive Analysis

Direct & indirect competitors.

The following farms and agricultural businesses are located within a 50-mile radius and, therefore, directly or indirectly compete with [Company Name].

AgraFarm AgraFarm is one of the largest raw food manufacturers in the U.S., owning a 15,000-acre farm for agriculture. It has well-established connections with big FMCG companies and has been thriving in the industry for 12 years. It also has automated equipment and machines, which helps in improving its operations and reducing costs. AgraFarm is also known for delivering large orders at the right time without delay.

BDA Farms BDA Farms was established in 1998. BDA Farms is a very well-known company that provides good quality organic produce to companies. It also has a very good brand value, and its product packaging is second to none. BDA Farms is located in [location], and it has a very effective distribution and supply chain network.

BeetFarms BeetFarms was initially a beets producer company and then branched out to other vegetables. BeetFarms is now one of the ten largest vegetable producers in the state. The Company’s packaging and processing units are located in [location]. It has recently acquired other local vegetable producers, expanding its operations as well as limiting the variety of farms producing vegetables for the community.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include the following:

• Management : [Company Name]’s management team has years of experience in agricultural operations, which will prove invaluable to all aspects of the business.
• Relationships : Having lived in the community for [X] years, [Founder’s Name] knows all of the local leaders, media, and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
• Quality products at affordable pricing : [Company Name] will provide quality products at affordable pricing, as it has high-quality equipment and uses the latest techniques.

VI. Marketing Plan

The [company name] brand.

[Company Name] seeks to position itself as a respectable, middle-market competitor in the crop production and agricultural industries. Customers can expect high-quality root vegetables that are affordable and nutritious.

The [Company Name] brand will focus on the Company’s unique value proposition:

• Production of high-quality organic produce
• Affordable pricing
• Providing excellent customer service and customer experiences

Promotions Strategy

[Company Name] expects its target market to be individuals and local establishments in the food industry. [Company Name]’s promotions strategy to reach the audience includes:

Website/SEO [Company Name] will develop a professional website that showcases pictures of the farm and the products we will grow. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Advertisement Advertisements in print publications like newspapers, magazines, etc., are an excellent way for businesses to connect with their audience. [Company Name] will advertise its company offerings in popular magazines and news dailies. Obtaining relevant placements in industry magazines and journals will also help in increasing brand visibility.

Public Relations [Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its services in various media outlets like television stations, radio shows, etc.

Social Media Marketing Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content in terms of various forms and technologies of commercial cultivation and post customer reviews that will increase audience awareness and loyalty.

Industry Events By attending regional farming conferences, association meetings, and symposia, [Company Name] will network with industry leaders and seek referrals to potential customers. [Founder’s Name] will often attend with the assistant manager, but both may attend separately in the future as they gain experience in this networking.

Direct Mail The company will use a direct mail campaign to promote its brand and draw customers, as well. The campaign will blanket specific neighborhoods with simple, effective mail advertisements that highlight the credentials and credibility of [Company Name] as a high-quality crop production business.

Pricing Strategy

[Company Name]’s pricing will be competitive. Pricing will be about 50% lower than retail prices to allow wholesalers and retailers to earn their margins.

VII. Operations Plan

Functional roles.

In order to execute [Company Name]’s business model, the Company needs to perform several functions, including the following:

Agricultural Functions

• Prepare the soil in between growing seasons
• Tend and harvest crops
• Oversee farmhands
• Operate and maintain farming machinery
• Package produce
• Sell crops to retailers and farmer’s markets

Administrative Functions

• Marketing functions
• Bookkeeping
• Social media and website management
• Connect with local retailers and farmer’s markets
• Hire and train staff

VIII. Management Team

Management team members, hiring plan.

In order to launch the business, we will also hire the following additional employees:

• Administrative Assistant or Virtual Assistant (1 to start)
• Assistant Manager (1 to start)
• Farmhands (2 to start)

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come from the sales of root vegetables to its customers and local food establishments.

The major cost drivers for [Company Name] will be labor expenses, land purchase, equipment purchases and maintenance, and marketing expenses.

Capital Requirements and Use of Funds

[Company Name] is currently seeking $750,000 to start the company. The capital will be used for funding capital expenditures and land and equipment purchases, hiring initial employees, marketing expenses, and working capital.

Specifically, these funds will be used as follows:

• Land purchase: $200,000
• Equipment purchase and maintenance: $200,000
• Working capital: $350,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Key Assumptions

  5 Year Annual Income Statement

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Agriculture Business Plan Template

Written by Dave Lavinsky

Agriculture Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and farm owners create business plans to start and grow their agricultural companies.

If you’re unfamiliar with creating an agriculture or farm business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a good business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write an agriculture business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is an Agriculture Business Plan?

A business plan provides a snapshot of your agricultural business as it stands today, and lays out your growth plan for the next five years. It is a valuable tool that explains your business goals and your strategies for reaching them. It also includes market research to support your plans.  

Why You Need a Business Plan for an Agriculture Business

If you’re looking to start an agricultural business or grow your existing agricultural company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your farm to improve your chances of success. Your agricultural business plan is a living document that should be updated annually as your company grows and changes.  

Sources of Funding for Agricultural Businesses

With regard to funding, the main sources of funding for an agricultural business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review a comprehensive business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for agricultural companies.

    Finish Your Business Plan Today!

How to Write a Business Plan for an Agricultural Business

If you want to start an agricultural business or expand your current one, you need a business plan. A good farm business plan should include 10 sections as follows:

Executive Summary

Company overview, industry analysis, customer analysis, competitive analysis, marketing plan, operations plan, management team, financial plan.

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan. The goal of your executive summary is to quickly engage the reader. Explain to them the kind of farm business you are running and the status. For example, are you a startup, do you have an agricultural business that you would like to grow, or do you have a farming operation that you would like to sell? Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the agricultural industry.
• Discuss the type of farm you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

In your company overview, you will detail the type of agricultural production you are operating.

For example, you might specialize in one of the following types of agricultural businesses:

• Animal feed manufacturing : the production and sale of food formulas for farm animals.
• Agrichemical and seed manufacturing : the production and sale of agrichemicals (e.g., fertilizers, pesticides, and fungicides) and seeds to farmers that support the growth of their crops.
• Agricultural engineering : development, testing, and implementation of new agriculture tools and machinery to improve the process for farmers.
• Biofuel manufacturing : the production of energy from biomass.
• Crop production : the process of growing and harvesting a variety of crops such as fruits, vegetables, and grains.

In addition, the company overview needs to provide information about the business history.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include reaching X number of harvests per year, the number of customers served, or reaching $X amount in revenue.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

In your industry or market analysis, you need to provide an overview of the agricultural industry. While this may seem unnecessary, it serves multiple purposes.

First, researching the agricultural industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies industry trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in this section:

• How big is the agricultural industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your agricultural business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

The customer analysis section must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals, schools, families, and corporations.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of agricultural business you operate. Clearly, schools would respond to different marketing promotions than corporations, for example.

Try to break out your target market into segments in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target audience. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other farms and agricultural producers.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes other types of farmers, wholesalers, and distributors.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What type of agricultural business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you make it easier for your customers to engage with you?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For an agriculture business, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of agricultural company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you produce fruit, soy, or vegetable products?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your agricultural company. Document where your company is situated and mention how the site will impact your success. For example, is your agricultural business located on a small or large farm near your customer base? And, will you operate one or multiple locations? Discuss how your site might be the ideal location for your customers.

Promotions : The final part is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Attend farmers markets
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your farm business, including scheduling employees, tracking inventory, accepting orders and payments, and meeting with customers.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to reach your Xth harvest, or when you hope to generate $X in revenue. It could also be when you expect to expand your farm business to a new region.

To demonstrate your potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing agricultural businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing an agriculture business, or owning their own farm.

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, how many pounds of each crop do you plan to yield each season? And what is your sales strategy to grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your farm business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a farm business:

• Cost of farm equipment and supplies
• Operating expenses
• Payroll or salaries paid to staff
• Business insurance
• Other start-up costs (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your farm’s location lease or a list of agricultural equipment and machinery used on your farm.  

Free Business Plan Template for a Farm or Agriculture Business

You can download our farm business plan PDF template here.  

Agriculture Business Plan Summary

Putting together a business plan for your agriculture business will improve your company’s chances of success. The process of developing your plan will help you better understand your target market, your competition, and your customers. You will also gain a marketing plan to better attract and serve customers, an operations plan to focus your efforts, and financial projections that give you goals to strive for and keep your company focused.

Growthink’s Ultimate Business Plan Template allows you to quickly and easily write your business plan.  

Additional Resources for Starting an Agriculture Business

• How To Start a Farm
• Sample Farm Business Plan
• Starting a New Agricultural Business
• Small and Mid-Sized Farmer Resources
• Starting a Sustainable Agriculture Business
• Beginning Farmers and Ranchers Loans
• Business Resources for Those Starting to Farm or for an Existing Farm

With Growthink’s Ultimate Business Plan Template you can finish your plan in just 8 hours or less!

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.

See how Growthink’s business plan professional services can help you create a winning business.  

Other Helpful Business Plan Articles & Templates

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Agriculture Business Plan

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1. Executive Summary

• Introduction: Briefly introduce the business, mission, vision, and goals.
• Business Idea: Highlight the specific agricultural products or services offered.
• Target Market: Summarize the market analysis and the intended customer base.
• Financial Overview: Present an outline of projected income, expenses, and profitability.

2. Company Overview

• Business Name and Structure: Mention the name and legal structure (e.g., sole proprietorship, partnership).
• Location: Provide details of the business location (e.g., farm, office, etc.).
• Business History: If applicable, include background information about the farm or company.
• Mission Statement: State the mission that guides the business.
• Vision Statement: Define the long-term vision for the agriculture business.

3. Industry and Market Analysis

• Agricultural Trends: Analyze current trends in the agriculture sector.
• Target Market: Describe the demographics and needs of the target customers.
• Market Size and Growth: Provide an estimate of the market size and potential for growth.
• Competitor Analysis: List key competitors, their strengths and weaknesses, and your competitive advantage.
• Regulatory Considerations: Note any agriculture-specific regulations or requirements.

4. Products and Services

• Product Line: Describe the agricultural products or services offered (e.g., crops, livestock, organic produce).
• Production Process: Explain how products will be grown, harvested, or produced.
• Unique Selling Proposition (USP): Highlight what makes your products/services different (e.g., organic farming, eco-friendly methods).

5. Marketing and Sales Strategy

• Marketing Plan: Detail strategies for promoting products (e.g., digital marketing, farmer’s markets, partnerships).
• Pricing Strategy: Define how products will be priced (e.g., cost-based, value-based pricing).
• Distribution Channels: Outline the channels used to reach customers (e.g., wholesalers, direct-to-consumer).
• Sales Plan: Include projected sales volumes and strategies for reaching sales goals.

6. Operations Plan

• Production Plan: Detail how crops or livestock will be cultivated, cared for, and harvested.
• Suppliers and Inputs: List suppliers of seeds, fertilizers, equipment, etc.
• Equipment and Machinery: Describe the equipment and machinery needed for operations.
• Facilities: Explain the physical setup of the farm, processing units, or other facilities.
• Staffing Plan: Outline the roles, responsibilities, and number of employees required.

7. Management and Organization

• Management Team: Provide bios and roles of key management personnel.
• Organizational Structure: Display the organizational hierarchy of the business.
• Advisory Board (if any): Mention any advisors or experts consulted for business guidance.

8. Financial Plan

• Startup Costs: List all costs for starting the business (e.g., land, equipment, seeds).
• Projected Income Statement: Present revenue, expenses, and profits for the first 3-5 years.
• Cash Flow Projection: Include cash flow forecasts for 3-5 years.
• Balance Sheet: Offer a projected balance sheet for 3-5 years.
• Break-Even Analysis: Calculate when the business is expected to break even.
• Funding Requirements: State the amount of funding required and its intended use.

9. Risk Analysis

• SWOT Analysis: Detail the business’s strengths, weaknesses, opportunities, and threats.
• Risk Management Plan: Describe measures to mitigate potential risks (e.g., crop failure, market fluctuations).

10. Appendix

• Supporting Documents: Include any supporting documents, like market research data, licenses, contracts, etc.
• Visuals: Add diagrams of farm layout, production plans, or organizational charts if necessary.

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Step 1: Develop an Executive Summary

Step 2: define goals and objectives, step 3: craft an engaging introduction, step 4: present a mission statement, step 5: highlight your company history, share this post on your network, you may also like these articles, workout plan.

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