How to start a farm? Business plan of a farm

New state programs combined with tax incentives now make farming a promising business. This activity is aimed at making a profit from the production of agricultural products.

Selection of the sphere of employment

Before you understand with what to start a farm, you need to determine the main activity. Multidisciplinary enterprises can be created under the condition that there is a significant starting capital. And for the opening of a small farm, where family members will predominantly work, we must choose a narrow focus. It can be the cultivation of vegetable or fruit crops, breeding of poultry, pigs, cattle, beekeeping.

The direction of activity must be chosen so that you find it interesting. If you are afraid of bees, then it makes no sense to make an apiary. Also, do not start growing vegetables if you do not like garden work.

Preparatory stage

Before starting any kind of activity you need to evaluate your capabilities. For this purpose it is important to develop a business plan for the farm. The first stage involves the search for land. If you do not have the necessary plot in the property, then it can be rented. Land allotments should be chosen in such a way that it is easy to get from them to passing highways and large settlements.

It is better to find an abandoned farm. The work to restore it will be cheaper. It is much more difficult and more costly to start a business from scratch.

Preparation of business plan

Before you start preparing the necessary documentation, it is important to calculate all costs and possible revenues. But it must be remembered that agriculture is considered a risky business. Animals can die from disease epidemics, vegetables can not grow because of unfavorable weather conditions, fruits suffer from invasion of harmful insects, sudden frosts or hail.

The business plan of the farm must include information on costs. In vegetable growing, for example, they include not only the purchase of seeds, land rent, but also the costs of necessary fertilizers, the organization of irrigation, if necessary, the payment of the work of the people involved, the transportation costs for the delivery of harvested crops to the nearest outlets. Do not forget about the need to attract third-party organizations with special equipment for seasonal processing of land.

Only after the final calculation of all expenses can you begin to estimate the potential income. To calculate the profitability of crop production, you need to find out the approximate crop yields in your region and multiply it by the average cost of production in a season. So you will determine the possible revenue.

Financing

One of the main problems that many farmers face is the search for funds. In order to issue a loan, you need a competent plan for the farm. Only then can you expect to receive money. If you are not ready to pay a high interest for using the funds, then pay attention to the state programs designed to support the development of agriculture.

A competent business plan increases your chances of obtaining a loan. But money on preferential programs is given only to those who have fixed assets and at least some experience in this area. You can get a loan for a period of 5 years at attractive conditions with a reduced interest rate. At the same time, it is possible to start payments on loans provided under state programs only a year after they are provided.

Preparation of documents

It is worth noting that, in addition to the development plan, you must have all the necessary documents confirming that you are officially running a business. The farm must be registered with the tax authority. The indigenous inhabitants of the locality, who plan to start farming, can calculate for obtaining land allotments from local authorities.

The right approach

Having calculated the possible costs and revenues and legally formalized the business, you can start work. If you have an idea of how to start a farm, then it will be easier for you. Otherwise, it is better to find a person who understands this kind of activity. It can be an agricultural worker with a special education and experience.

If you want to do plant growing, but you have a small plot, it is better to install greenhouses. This will allow you to get extra profit from the earlier harvest. Many farmers, who now have several thousand hectares of land, started from small plots.

It is equally important to use modern technologies. They are designed to facilitate the life of the farmer and significantly improve the productivity of his labor.

Advantages of agricultural activities

At present, the development of the farm is one of the priority areas. The state allocates huge funds to support entrepreneurs who are ready to work in rural areas. Currently, programs on preferential lending to such businesses are being actively implemented. For farmers, the taxation system is simplified.

The state seeks to ensure that people do not reflect on where to start a farm, but act. For example, in 2012-2014 grants were allocated for the beginning of agricultural activities. But they were given only to young farmers. The government wants large subsidiary farms to move to a new stage of development. They must produce so many products that it is enough for realization. This will allow to abandon many imported goods.

For example, one of the priority areas is the cultivation of dairy cows. At present, it is rather weakly developed in Russia. And if you have the investment, a competent approach and the establishment of production, you can claim to cover a significant part of the market.

Potential problems

Not many seek to engage in agriculture because it requires substantial labor. As a rule, it is necessary to work independently at the beginning. Of course, with the expansion of production, at a stage when you can already give advice on how to start a farm, labor is partially mechanized, and a larger number of hired employees appear.

Also, the development of this sphere is hampered by the fact that large investments are needed to start activities. In combination with the fact that the agricultural business is risky enough, and the payback period of investments can last for several years, it becomes a serious obstacle. Of course, in crop production, with a lucky coincidence, you can return the investment in one season. In livestock, you do not have to count on quick profits.

When it is necessary to attract credit, many people face the following problem. The farmer takes money for business development, invests them. But the first return on investment will only be after a few months or years, and the loan and interest must be paid immediately. Therefore, it is so important to monitor state financing programs that offer preferential terms and enable you to postpone the first payment for a year.