We draw up a business plan for obtaining a grant for the program; Beginner Farmer
Hello dear readers! Peasant farms (PFs) in our country have been actively developing in recent years. This is due not only to the increased needs of people for quality products, but also to the support that the state provides in this area. In the regions of Russia there are various programs that allow you to receive a grant for the opening and development of your own economy.
Does this mean that anyone can get money from the state to implement their agricultural project? Not. Applicants must first ensure that they meet all the program conditions. After that, it is necessary to prepare a package of documents for filing an application, including a detailed business plan of the farm.
As different programs may operate in different regions, I advise you to contact your local Ministry of Agriculture for details.
In the Penza region, for example, one of the most famous and accessible programs is the Beginner Farmer program, which provides grants of up to 1.5 million rubles. To become a participant in the competition, an applicant must meet certain requirements, the main ones of which are:
- He must be the head of a peasant farm that has existed for no more than two years.
- Must have appropriate education or work experience in the agricultural sector for at least three years.
- The farmer undertakes to operate for at least 5 years after receiving the support.
- Undertakes to spend the grant exclusively on the development of his farm.
- Must provide a business plan containing the required sections.
Support is provided in such areas of activity as:
- beef and dairy cattle breeding,
- horse breeding,
- rabbit, sheep or goat breeding,
- potato breeding ,
- vegetable growing,
- fruit growing and berry growing,
- mushroom growing.
Is your project suitable for one of these areas? If so, go for it.
In addition to the Beginner Farmer Assistance Program, there is also a Family Farming Support Program. The amount of the grant here may be higher.
So, if you are planning to receive money for opening or developing your own farm, you will have to prepare a business plan. Usually, the decree on the rules for the competition describes in detail the structure of the business plan: what sections it should contain, what to write in them, etc. I will introduce you to the structure that is required in the Penza region. I repeat - in another region, it may differ (sometimes it is insignificant).
Hello friends! Many people want to start their own business. But financial opportunities are often not enough ... Nevertheless, the state still provides some support to start-up entrepreneurs. And this is manifested in the form of grants.
One of the types of state support is the "Beginner Farmer" program, according to which a one-time subsidy of up to 1.5 million rubles is given to the beginning peasant farms (peasant farms). Agree that this is a solid amount, right? With one and a half million in hand, it is possible to implement a fully efficient agricultural project.
Program conditions and eligibility requirements may vary by region. In the Penza region, for example, the main goals and conditions for granting a grant are spelled out in Resolution No. 691-PP dated September 18, 2021, approving the state program "Development of the agro-industrial complex of the Penza region for 2021-2021". But the list of required documents is specified in Decree No. 133-PP of March 19, 2021, which determines the procedure for the work of the tender committee.
If you are in another region, then you need to contact the local Ministry of Agriculture to clarify their requirements (sometimes you just need to go to the official website of the regional Ministry).
The required documents include a business plan. If we return to Resolution No. 133-PP (relevant for the Penza region), then there is Appendix No. 8, which contains a list of necessary sections. As you can imagine, you need to draw up a business plan based on this application.
Other regions may not have similar structure requirements. And in this case, the applicants have certain problems.
- How to draw up a business plan for a grant for a novice farmer?
- How to make all the necessary calculations correctly?
- Which sections must be included ?
Content of the business plan
If the Ministry of Agriculture of your region has not taken care of providing you with the necessary structure, then most likely you can use the standard structure, which, in particular, is offered in the Penza region.
I suggest you take a quick look at it.
This business plan for cattle breeding is a project to create a farm (hereinafter FH) for breeding cattle with a payback period of 2 years.
The organization of a farm has 4 main goals:
- Implementation of an agricultural project.
- Getting high profits.
- Creation of additional jobs in a separate settlement.
- Filling the market of beef, milk and dairy products in a particular region.
Form of entrepreneurial activity: KFH (peasant farm)
Type of taxation: Unified agricultural tax (Unified Agricultural Tax)
Type of project financing: own funds or a commercial loan from a bank
Amount of investment in the project: 10,000,000 rubles
Expected average monthly income: 350 thousand rubles
Expected average monthly profit: 200 thousand rubles
Opening your own farm attracts not only many rural residents, but also city dwellers. This is due to several reasons, the first of which is the desire to gain material independence. The popularity of farming is also caused by the consistently high demand for food and other agricultural products. This, with skillful business management, will guarantee the farmer's family prosperity and prosperity.
Types of business plans for a farm
The flip side of this circumstance is the need for annual reporting documentation. The information contained in it serves as a justification for the decision of local government bodies and banks to provide or not to provide assistance to the farm.
Because of this, a business plan for a farm is drawn up not only when organizing a peasant farm, but also at the end of each reporting year.
There is no fundamental difference between these two documents. The business plan of a farm, drawn up for a novice farmer, is less detailed, it also lacks production indicators. It only indicates the indicators that the entrepreneur expects to achieve in the future.
This is especially true for peasant farms, which are allocated a small loan from Rosselkhozbank. These peasant farms are usually very small and are engaged in one type of activity, for example, raising rabbits or poultry.
A business plan drawn up for such a starting peasant farm usually contains an indication of the type of activity that the farmer is going to be engaged in and the numbers of indicators that he is going to achieve during the year of his work.
The business plan of the farm, which is already in force, accordingly differs from the business plan for creating a start-up farm in that it contains indicators for already produced products and outlines prospects for further development.
Main sections of a business plan for a farm
The list of sections that this document includes is as follows:
- Introduction or resume. This section briefly describes the activities that the farm is engaged in. It also contains a brief description of the economy itself, and indicates the goals towards which its owners are striving.
- A detailed description of the farm with an indication of its main characteristics.
- A summary of the farm's financial and performance indicators.
- The financial section, which contains information about the sources of financing of the enterprise, as well as data on its expenses. In addition, this section prescribes the stages of further development of the economy and measures for their financial support. This section also contains calculations of the profitability of the farm and indicators of return on investment.
- The last section of the business plan contains an analysis of risks, and prescribes measures to stop or eliminate them.
Let's take a closer look at each of these sections.
Business plan summary
The agriculture industry is surprisingly popular among business startups. This is primarily due to the desire of the population to consume more wholesome food. Therefore, it will be a good idea to start such a business, because your products will be in demand among different age groups.
Any business has its positive and negative sides. Farming can be a very profitable business these days. Its products are popular with a wide range of consumers - from young children to retirees. This is due to the high demand for natural food, as many people prefer organic products. However, do not think that farming is easy and simple. It is quite difficult to achieve success without experience in such an industry. Here you can find a description of such nuances as starting a farm, where to start, videos and advice from business insiders.
The success of such a business also depends on a number of factors. This is the economic situation in the country, on which the size of buyers' income depends, seasonality, fluctuations in the cost of equipment and feed, high competition and much more. Therefore, before starting a farm, it is better to write a business plan. It will help you competently analyze income and expenses, distribute your actions step by step and reduce the percentage of risk.
Drawing up a development strategy
A business plan is the basis for starting any business. With its help, you will understand all the nuances and avoid various risks, find out what is the organization of a farm from scratch, where to start and how to get the maximum profit. First, you must decide which branch of agriculture you will be working in, as there are many options. We'll look at some of them.
Most often, entrepreneurs give preference to poultry and animal husbandry. This type of activity has ample opportunities for providing services - supply of meat, eggs, milk, wool, feathers and other products to the markets. Sowing cereals or fruit and vegetable crops would also be a good option. This type of activity is designed for a huge consumer audience. In addition to the above, you can do other farming industries.
Organization of a farm requires a large land plot. It is simply necessary for the arrangement of pastures and fields. Lack of finance for the purchase of a plot will not be a problem, because it can be rented. To reduce investments in the arrangement of the farm, it is rational to create them already on a ready-made base.
It is important to know that before starting your farm from scratch, you need to register it with the relevant authorities. Usually, entrepreneurs choose such a type of legal form as a peasant farm. This form is convenient in that it can apply to all household members and does not require legal education. After registration, you need to select the head of the company. This can be any family member over the age of 18.
Upon completion of registration of peasant farms, you need to register with the tax service. Entrepreneurs of this kind must pay the UST. Also, the head of the farm must be registered with the Pension Fund and Rosstat. In addition to all of the above, you definitely need to open your current account, because before you organize a farm from scratch, you must have initial capital.