Plan? What Plan?
The idea of getting your hands dirty, spending time in nature, working with soil, plants, and animals to produce food for people has enormous appeal, especially since most of us are several generations removed from the farming lifestyle. But if you intend to sell any of your bounty, it is important to get past the romantic idyll of farming and do some research to see how feasible your ideas are. Many new and especially small-scale farmers don't think of their farm as a business. But we often hear from more experienced farmers "If I had treated my farm as a business and made smarter business decisions from the beginning, I would be in better shape now."
If your farm start-up will require a loan, you will need to have a solid business plan in place. But even if you are self-financing your operation, it's a really good idea to have at least an outline of a plan, to demonstrate the feasibility of your idea. Even if your farm will not be your primary income source, the sooner you learn to think of it as a business, the more successful you are likely to be.
Get Started Here
This site is set up to help you lay the foundation for a business plan. It's easy:
1. Register. Creating an account takes less than a minute and allows you to access the beginning farmers' forum, online worksheets, and other decision-making tools.
2. Start Planning Online. Use the online worksheets that are integrated into the lessons on this site to begin recording information that you can plug into a business plan later. You can edit your worksheets at any time and download them as PDFs when you're done working on them. When complete, these form your pre-business plan.
3. If you're ready to continue developing your plan, choose a business plan template below. Copy and paste responses from your pre-business plan worksheets into the relevant sections.
These worksheets will not cover all the necessary areas of a business plan - if you've never done it before, writing a full plan may require some additional assistance, which you might be able to get through your local Cooperative Extension office or NY FarmNet, once you have completed the materials on this site.
Business Plan Templates
An internet search will yield dozens of templates for writing a business plan, some of which are specific to farming. You can use any one you like. But here are two template options we recommend, depending on your needs:
Minimalist Start-up Plan - for yourself
If you are scared off by the term "Business Plan," AND especially if you don't need a loan for your enterprise, you can dip your toes into planning with the following worksheet. Before you invest your time and energy in an enterprise that isn't feasible, do some research to outline the following:
Not sure how to fill in this template? This site contains good links to help you think about mission and goals, marketing, and profitability. Two good ways to develop your production plan and cash flow scenarios are 1) to try growing and selling something on a micro-scale, keeping really good records to inform your possible expansion, and 2) to find a farmer with expertise in your chosen enterprise, and ask them to review your plan to make sure it's realistic.
More Detailed Business Plan - for presenting to prospective lenders
Cornell Professor Deb Streeter, who teaches entrepreneurship at Cornell, lays out a very flexible approach to business plan writing with some great additional food for thought. Although her publication is called Producing a Business Plan for Value-Added Agriculture, it is relevant for any kind of farm operation. Professor Streeter writes:
"it is extremely important to understand, for any specific context, what is expected in terms of the written business plan. The best way to find out is to ask the bank, private investor, or venture capitalist exactly what format is desirable. If you have a good relationship with the funding source, then you might even ask for an example of a plan that has been funded."
Templates, Forms and Examples
- As a quick reference, page 57 of Deb Streeter's publication contains the specific template business plan sections. Download the whole publication as a PDF here.
- Cooperative Extension Educator Janet Aldrich (Delaware County) uses this business plan template in her new farmer trainings. It includes both questions/descriptions and sample text from a business.
- Every business plan should include some economic analysis; typically cash flow, income statements, and a balance sheet. Here is a blank template of all three, courtesy of NY FarmNet.
- FarmNet also offers an example business plan for a goat dairy
- University of Minnesota offers an online business planning tool called AgPlan, specifically for small, rural, and agricultural enterprises. It is easy to use and walks you through the entire process of creating a business plan that you can take to a lender.
Other Agricultural Business Planning Guides
Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses Published by Minnesota Institute for Sustainable Agriculture, 2003. A 280 page, 5 chapter, step-by-step guide to developing a business plan- with a focus on agricultural businesses. Includes worksheets and farmer profiles/testimonials. Available at Sustainable Agricultural Publications 802-656-0484. $14.00 each.
Exploring the Small Farm Dream: Is Starting an Agricultural Business Right for You? Published by The New England Small Farm Institute, 2003. An 86 page, 5 chapter workbook designed to help individuals who are exploring the possibility of starting a small farm. Available at The New England Small Farm Institute 413-323-4531. $22.00 each.
Starting an Ag Business: A Pre-Planning Guide by Steve Richards, NY FarmLink, 2004. A 63-page guide with worksheets that help aspiring or diversifying farmers thoroughly explore the feasibility of their farm business idea. Available in print copy for $15 from NY FarmNet, 800-547-3276. Also available for free download (PDF) here.
