Farm profitability and business plan preparation
Recently, the agricultural industry has been developing at a rapid pace. Large companies are actively buying up land in order to create farms on them. The state strongly supports entrepreneurs who have chosen this direction of activity. In this regard, it is safe to say that farming as a business idea for beginners is the best option for those who want to start their own business.
Agricultural products are always in great demand among the population. But, unfortunately, the existing farms cannot fully satisfy it, since they produce small volumes of products. Before the crisis, farming in Russia developed poorly, because the market was overflowing with products from European suppliers. After the imposition of sanctions, many unfilled segments appeared on the market, and the percentage of unmet consumer needs increased. The high demand for agricultural products and the lack of competition served as an impetus for the development of farming in Russia. This is quite an attractive idea for aspiring entrepreneurs who are taking their first steps in business.
If you have made a decision, I want to start farming, and are thinking about where to start and how to start a farm from scratch. We recommend starting by choosing a business line. This is a very important point for any novice businessman. Experts recommend opening a mixed subsidiary farm at first. Thanks to this, you will be able to study the demand for a particular product in practice, after which you can move on to a narrower specialization.
- Food processing facilities;
- Guided tours of the farm;
- Rural cafe or health food restaurant.
In addition, you can breed purebred young animals for their subsequent sale. Let's consider several options for organizing a livestock farm:
- Pig farm. This is one of the best 2021 business ideas with minimal investment, especially if you are raising Vietnamese pigs. In order to open a modern farm with a pedigree livestock of 100 individuals, you will need from 2 to 5 million rubles;
- The easiest way to start your business from scratch without money is poultry farming. If you don't have your own start-up capital, start raising laying hens. Of course, you will need a certain amount of money to purchase young animals and feed, but it is so insignificant that anyone can find it;
- It is worth noting that farming as a business also includes such a line of activity as beekeeping. To implement this idea, you will not need any special knowledge or large financial investments. To understand the course of the matter, it is enough to read the thematic literature or talk to experienced beekeepers. Such activities do not require significant monthly expenses, and the initial investment pays off in literally one year;
- You can also start raising rabbits, sheep or fish farming. We've covered several popular ideas. Where to start farming? The choice depends on your preferences and financial capabilities.
- Cultivation of grain crops. This business is closely related to animal husbandry, as cereals are the main ingredient in animal feed. In addition, crop products can be wholesaled to food, pharmaceutical and perfume businesses;
- If you want to start farming from scratch, you can start by growing flowers. Another promising direction is the cultivation of berries (strawberries, raspberries, currants, etc.). So that the seasonality does not affect business development, you can build several greenhouses or greenhouses. Vegetable growing also brings good profits, for example, growing garlic as a business. But for this business you will have to rent a large plot of land and a vegetable store.
When running a mixed subsidiary farm, you can significantly expand the range of products and thereby increase the profit margin.
Where can I get the money?
The correct organization of the farm will allow you to receive a stable income. After a long decline, this type of business activity is gaining popularity again today. A peasant farm (kfh) requires a fairly large investment, but if you organize the successful promotion of your goods, all the costs will pay off very quickly.
- Investments: 300 thousand;
- Profitability: 100 thousand / month;
- Payback calculation: 1 year
- Staff: 4-5 people
Farm organization: types and features
Before embodying a successful business idea, you need to find out what farming is and how you can make money on it. The best place to start is with theory. An organization that receives more than 70% of its profits from the sale of agricultural products can be considered a farm organization. Today, a novice businessman can organize the creation of a kfk specializing in the following areas:
- Growing a variety of agricultural crops;
- Breeding livestock and poultry;
- Release of finished food products prepared from agricultural products (meat, milk, cereals).
Each type of organization has its own characteristics and advantages. You can choose the farming business that you like best. Gradually, such an economy can be expanded and additional sources of profit can be mastered.
Farming: where to start?
You have finally decided to organize a profitable farming, but do not know where to start such a business? First of all, experts recommend drawing up a clear business plan, taking into account investments, options for promoting goods, and payback periods.
For farming, you will need a fairly large plot of land, especially if you plan to grow agricultural crops. If you don't have one, you will have to buy or rent it. Experienced farmers recommend paying attention to the following indicators:
- The land for the kfkh should be located near the city. So it will be easier for you to sell finished products, and transportation costs will be reduced.
- Pay attention to the ecological situation in the area of the land plot. Pure nature is the key to obtaining high-quality farm products.
- The best option is to buy a decayed ready-made farm. You will spend less money on upgrading and rebuilding it than starting a business from scratch.
Every entrepreneur planning to create a farm should know that a successful business will require large financial investments in agriculture. If you have a multidimensional KFX, then the probability of high profits will be higher. However, it will take a lot of money to launch such an organization.
The course towards import substitution creates favorable conditions for the development of farms. In addition, there are state support programs for young farmers. To receive such assistance, it is necessary to draw up a business plan for a farm with an analysis of this project.
In order to determine the services provided, you need to analyze the demand for this or that type of activity in the location of the farm. This will ensure a higher demand for manufactured goods and a lower level of competition. And also the choice depends on the amount of land that is at the disposal of the entrepreneur, and the possibility of placing buildings on the site. Large-scale projects are more profitable, but it is better to start small, gradually increasing production capacity.
The most profitable farm services:
- sale of vegetables and fruits,
- sale of crops,
- sale of meat,
- sale of milk, <
- selling eggs,
- selling cheese.
Additional services include the sale:
- skin ,
- wool ,
- down and feather,
- young animals.
You can consider the following types of services provided:
- a tour of the farm,
- processing of production products,
- a cafe with farm products.
The urgency of agricultural development in Russia is as follows:
- the demand for organic products is constantly growing,
- government support,
- improving the legislative framework,
- farming is a highly profitable business.
The fashion for healthy eating is increasing. That is why it is important to open a farming business. You can engage in livestock or crop production. The main thing is to first draw up an accurate business plan for the farm.
Peasant business is relevant for both the consumer and the entrepreneur. It is enough to pay attention to the existing facts:
- the deficit of raw milk in the Russian Federation is about 7 tons;
- the demand for healthy nutrition is increasing every year;
- market analysis shows that in the near future time, the consumption rates of natural products will only grow.
An additional advantage will be the availability of various programs for the development of agriculture.
Pros and cons of business
Opening a peasant farm has both advantages and disadvantages. Positive qualities include:
- carrying out all work in the fresh air;
- the opportunity to receive natural and organic products;
- the opportunity to do business with the whole family;
- choice of one or several directions for doing business;
- benefits for starting and running a business;
- participation in various government programs.
Not without its drawbacks. These include high opening costs, significant costs in the first few months, seasonality, risks, difficulties in obtaining a loan.
Existing business areas
There are several options for implementing the project. You can choose either one direction or several at once.
A well-calculated farm business plan is of great importance for organizing your own business in the field of animal husbandry. Meat and dairy products are of particular interest. At the same time, you can organize a small family business, in which there will be only about a dozen cows, or plan the organization of a farm for 100 heads of cattle and more. In both cases, you need to start with clear, well-thought-out actions for each specific project.
The importance of individual business planning
Before starting any business, you need to think carefully about everything. At the planning stage, it is important to determine the priority tasks on which the success of the private economy directly depends. Creating a business plan for a farm should begin with defining the general focus, format of a specific production.
Based on these indicators, it is necessary to study the market, pricing policy, possible competition, to establish preliminary contacts with potential buyers of manufactured products.
Among them, contacts with meat processing enterprises, dairies and leather dressing firms deserve special attention.
Having decided on the direction of activity, it is important to make calculations of the area of the optimal territory for running a specific farm, equipment and building materials.
How to start your business in the countryside
Before organizing a livestock farm, it is important to assess your capabilities, the seriousness of your aspirations. In addition, you need to carefully think over the necessary equipment, make a calculation of a detailed business plan for breeding cattle, which includes financial costs, payback time, and profit levels. It will be useful and necessary to study the basics of production of meat, dairy products, technology of raising cattle. Only by relying on proven knowledge, you can properly organize an effective business.
From the very beginning, the following steps should be taken:
- choose the right place for building a cowshed;
- explore the possibilities of renting ready-made premises;
- purchase the necessary equipment;
- ensure that the temperature inside the wintering house is kept at least 12 degrees Celsius;
- make sure there are nearby summer pastures for livestock;
- form a productive herd;
- it is better to start from a small farm with a maximum of 50 heads, and then expand the scale of the business;
- a small dairy with a packaging line will become an important part of a dairy farm, the business plan of which is focused on processing its own products.
Actions and funds to start your own livestock business
To start a business, you can rent a ready-made cowshed and adjacent land. This will require a certain start-up capital. The state program of concessional lending can help a novice entrepreneur in organizing a farm for 50 cattle.
After that, you should register entrepreneurship as a legal entity, open personal accounts to pay for communications. Before starting the work of cowsheds, you need to go through a check of firefighters, sanitary-epidemiological service, veterinarians.