The most profitable business ideas in agriculture
Many young entrepreneurs have managed to achieve success in a short period of time by starting their own business in this area. They proved that the agrarian economy is not a backward industry, but a very profitable business. What is the secret of success? The main thing is that it is necessary to clearly understand what agribusiness is, to learn the basic rules of its conduct and to see the development prospects.
Agriculture and agribusiness today are completely different concepts.
Agriculture has long been destroyed, it is characterized by outdated technologies, unusable production facilities and imperfect equipment and machinery. Agribusiness is another matter entirely. It combines a market economy and the latest technology.
In the 90s of the last century, agriculture left the planned economy, its development stopped along with other economic processes taking place in Russia at that time. Agricultural viability was found to be zero. Now it is no longer possible to work the way it was before. Therefore, the creation and competent conduct of agribusiness will help ensure the development and prosperity of the agricultural industry in general.
Relevance of the agricultural business topic
The ideas of this business are interesting and important, therefore there are special programs of introduction to agribusiness, which are used for studying in rural schools. The program is designed for students who have shown their interest in different types of work in rural areas. Experts believe that it is precisely from school that it is possible to instill in people an interest in the land and to involve them in the work of an entrepreneur.
Agriculture is now in the stage of serious transformations, so young, cool specialists are needed there. Children from the village must learn to work on the land, manage it competently and evaluate their results. Since the agro-industrial complex is increasingly attracting business people, the greatest attention in training the younger generation is paid to the basics of small and medium-sized businesses in this sector.
The program "Introduction to Agribusiness" is designed to familiarize with the best examples of organizing agribusiness in developed countries, with legislation in this area, with the rational use of natural resources, with the basics of organizing activities and specifics of management using the latest technologies. Starting an agricultural business is impossible without basic knowledge and love for the land.
If you start agricultural education and upbringing while still in school, you can achieve good results by raising real owners of the land who will bring the most daring ideas to life.
Typical areas of agribusiness
All agribusiness ideas that are applied in practice contain a certain set of costs. This:
- One-time investments in fixed assets: means of production and structures.
- Annual operating costs.
In the agro-industrial area, similarly to other spheres of the economy, agricultural business develops in different forms.
How to start a peasant farming business
The peasant-farm economic complex, according to the Civil Code, is a private enterprise. In this case, you have the right to register as a legal entity. Most often, such a volume of product is produced, the money from the sale of which is enough for a normal life. In the classical variation of farming, there is no problem of employment of all able-bodied citizens.
Ideas for creating an agricultural business from scratch
Farming implies the formation of large-scale production for the cultivation of a market product. Employees are hired for long-term activities using modern technologies.
The agrarian complex in our country cannot develop without the use of modern information technologies, modification of the economic system. As a result, there are ample opportunities for growing agricultural products throughout the year in areas where their production was completely impossible due to climatic conditions.
Greenery farming business
If we discuss the problems of yields, for example, when growing green onions, it can be noted that the maximum yield per square meter is 1,600 kg, and the seasonal harvest is approximately 3,800 kg. Ripening depends on the fertilizer used. This period is 28–31 days. Selling greens at retail, you can have 5 dollars from one kilogram.
There is an option to grow greenery in several tiers, for which you need to remember about shelving structures. This greatly increases the profitability of the sale of the product. Therefore, greenhouse propagation of greenery can be applied as business ideas for related activities.
In all branches of the production sphere, even in such classical ones as agronomy and animal husbandry, there is a place for new, interesting approaches and technical solutions. Startups in agriculture revitalize, accelerate, and sometimes completely change the idea of directions in particular and of the industry in general.
Features of a startup in agriculture
The main feature of rural startups, like any other, is the lack of guarantees of return on investment and capitalization of income.
On the one hand, it is obvious that agribusiness has a future (it is impossible to imagine that people will give up plants and milk and start eating, for example, clay processed in a special way). On the other hand, the agro-industrial complex (AIC) belongs to the category of risky (one dependence on weather conditions is worth it) and turns out to be beneficial when planning in the long term (at least five years). It is the need for cheap and “long” investment resources that significantly limits the number of startups in agriculture.
What projects are most in demand? In the age of the spread of pesticides and GMOs, such solutions of the agricultural sector as organic products, as well as proposals that reduce the influence of specific factors - seasonality, weather conditions - are in special demand.
Features of startups in Russia
In Russia, a special attitude towards innovations in the agro-industrial complex: trust arises only after being tested by Western colleagues. As an example, we can cite the history of the new technology of milk “pasteurization” developed by Dmitry Urvachev back in 2021. After long unsuccessful walks through the domestic authorities, investors for the project were found only in 2021 ... in Poland and Israel (at the moment, a patent for an invention has already been received, the technology has reached an industrial level). Or the story of Muscovites Alexander Militsin and Yegor Voitenkov. Their idea of creating small closed ecosystems-aquariums that use natural waste products of fish to grow plants, which in turn purify water, found understanding from the American company BacktotheRoots (today the new company employs 6 people, monthly income exceeds 4 million rubles).
There are many successful examples, but only… started with our own funds. This is Andrey Krivenko's project in the Moscow region called Izbenka - the largest chain through which fresh dairy products are sold; the case of raising sheep of Alexander Prokhorov from the village of Shustov; a rural startup by Sergei Koryukin in the Kurgan region - a livestock farm that has grown into an agricultural firm "Russian Field"; the beginning of the Istomin family "Zooprotein" - the use of fly larvae for the production of fodder protein and processing of food waste (biomass is obtained much faster than competitors).
Innovative projects in Russia are supported by several structures. Among them are Skolkovo, Rusnano, Russian Venture Company (RVC). So, in order to receive investments with ideas related in one way or another to agriculture, it is recommended to contact the Skolkovo Foundation - at the end of 2021, this organization was the first to support startups in the agro-industrial complex (to date, investments have been made in three projects).
The report of the "Open Government" (a governmental group of experts), available on the RVC website, talks about the initial level of work of Russian venture capital structures that invest in innovative projects - start-ups in agriculture have to be content with this for now.
top startups in agriculture
World practice has more than 150 startups in agriculture that have managed to grow into a large (with a capitalization of more than $ 1 billion) business. Among them are technologies to improve the efficiency of farming: software, sensors, aerial photography, distribution channels using Internet resources, technological research tools and equipment.
Informational assistance on the topic: "The most profitable business ideas in agriculture" with full disclosure of the subject of the article from professionals.
Agricultural business: ideas
Russia is the largest country in the world. The area of agricultural land in our country is huge. The only problem is that more than 90% of this land is located in areas of risky farming. Such climatic conditions mean that when running an agricultural business, there is a rather high risk of getting a loss in the event of unfavorable climatic conditions. Nevertheless, in recent years Russia has come out on top in the world among grain exporters and is confidently moving towards complete self-sufficiency in food products.
Of course, most of the successes of agriculture in our country, in recent years, are associated with large agricultural holdings. Only large-scale, mass industrial production of food products is capable of ensuring the extremely low cost of the final product. Does this mean that small business in agriculture is doomed and has no prospects? Of course not! On the contrary, all over the world and in Russia, in particular, there is a growing interest in products produced on small farms and peasant farms. Consumers are not afraid of high prices for such products.
Today, despite the general decline in the rural population in Russia, there is an increase in interest in agricultural production among the economically active part of the urban population. This is due to the mass of social, economic and psychological factors, the discussion of which is beyond the scope of this article. But one of these factors must be mentioned. Investing money in land is the most reliable way, if not to increase, then to preserve capital.
How much land is needed to engage in agribusiness
Agricultural production is closely linked to land. Therefore, any agricultural project starts with the land. How much land do you need to own (lease) to make an agricultural business profitable? It all depends on the type of activity you choose.
If hundreds of hectares are needed to grow crops profitably, then a successful rabbit farm can be located on several hundred square meters.
Breeding animals requires less space, but it should be borne in mind that the purchase of feed is a significant cost item. Therefore, having our own feed base significantly increases the profitability of the business. If you are not tied to a specific land plot, then when looking for it, you should provide for the possibility (and desirability) of further development.
Poultry farming is a promising business, despite the presence of huge poultry farms. Modern industrial technology provides a low production cost, but consumer confidence in its quality is low. If you have five to eight hectares of land for growing feed, then you can guarantee the consumer that poultry meat is grown with the right quality feed.
The agricultural sector provides many opportunities for running a private business. If there is a desire to work on the "land" and consistently make a profit from this industry, we suggest you get acquainted with the TOP-5 ideas for the agricultural business. In the country, there is a revival of farms, all kinds of support are provided to novice businessmen-farmers. Let's consider those options, for the implementation of which significant financial investments, large areas of land and weather conditions are not significantly affected.
For beginners, you can start your career in this field by growing quail. The main plus in the direction of their choice is that a room of impressive size and high costs will not be required.
It is quite possible to breed them on a small plot of land with outbuildings. Payback occurs within a few months, and the profitability is tangible. This type of activity can be carried out without leaving the main place of work.
At the initial stage and with a small number of pets, no permits are required. For example, to sell products on the market, it is enough to present a document stating that the seller is the owner of the land plot, the products being sold fall into the category of surplus personal subsidiary plots.
In the event that the farm is expanded to a large-scale size, it will require registration of the enterprise with the tax office and obtaining the status of a farm.
The poultry house should be provided with good ventilation, especially if large flocks are to be kept. The ammonia odor from the droppings is detrimental to bird health. It is desirable that there is no draft in the room.
Bright light sources are also contraindicated, they will irritate the bird, making it aggressive and prone to biting. Quails are among those species of birds that live in twilight lighting.
Which breed should you prefer?