Julia Shanks - The Farmer’s Office: Tools, Tips and Templates to Successfully Manage a Growing Farm Business

Expenses that are italicized are usually considered variable expenses (as opposed to fixed) and increase as sales increase.

Sales

CSA

Farmers Market

Farm Stand

Wholesale

Total Revenues

Animal Purchases

Produce for Resale

Farm Store/Farm Store Products for Resale

Total COGS

Gross Profit

Direct Operating

Bedding

Chemicals

Farm Stand Supplies

Farmers Market Supplies

Feed and Supplements

Fertilizer, Lime and Soil Amendments

Transportation Costs

Gasoline, Fuel, and Oil

Small Equipment

Equipment Rental

Other Supplies

Packaging

Processing/Slaughter

Row Cover

Scales

Seeds and Plants

Shearings/Shavings

Top Soil/Potting Soil

Veterinary/Medicine

Total Direct Operating

Payroll

Employee Benefits

Health Insurance

Hourly Labor Expense

Salary Expense

Payroll Service

Payroll Tax Expense

Workers Comp Insurance

Unemployment Insurance

Total Payroll

General and Administrative

Auto Insurance

Automobile Expenses

Bank Service Charges

Cleaning Supplies

Computer and Printer

Crop Insurance

Dues and Subscriptions

Insurance - Liability

Internet

Licenses and Permits

Office Supplies

Postage and Shipping

Professional Fees

Registration

Telephone

Vehicle Lease Payment

Total General and Administrative

Advertising and Promotion

Advertising Expense

Promotional Items

Website Maintenance

Total Advertising and Promotion

Repairs and Maintenance

Animal Housing

Automobile

Buildings

Coolers/Refrigerators

Equipment

Fencing

Greenhouse(s)

Irrigation

Total Repairs and Maintenance

Occupancy

Rent

Utilities

Gas and Electric

Water

Property Tax

Total Occupancy

Total Operating Expenses

Net Operating Income

Other Income

Grant Income

Interest Income

Rental Income

Other Expenses

Depreciation

Income Taxes

Interest Expense

Total Other Income/Expenses

Net Income

The business plan is a great way to organize the swirl of ideas about your new business, and an opportunity to make sure you think through all the different components of your new business or enterprise.

This outline is intended to coach you through the process of writing a business plan. Each header indicates the heading of each section that should be included. Under the headers in italics is a basic overview of each section and what it includes. Finally, we list all the details that should be included in your business plan, with questions to help you think through how you want to structure your business.

It is not required that you answer every question; some may not make sense for your business. Its better to leave out a section than to include language that sounds contrived.

The business plan is the narrative that accompanies your financial projections. As you work through the financials and plan, your vision will evolve.

This section should be written last because its read first. Its an overview of your farm concept, market opportunity, operations overview and any requested financing. It should be no longer than one page.

Farm name

Concept, including products and philosophy

Location

Target customers

Overview of financial projections

Amount of money needed to be raised and expected returns on investment

A 2 to 3 page basic overview of the farm.

What was the inspiration for the name and concept?

Legal form of ownership. Are you an LLC, Sole Proprietor, C-Corp, B-Corp

Why have you selected this form?

Where is the farm located or where do you plan to locate the farm? Why did you pick that location?

Total number of acres on the property; total acres in production or planned for production?

Number of acres used or planned to be used for different enterprises (i.e. vegetables, livestock, poultry, cut flowers, etc.)?

Infrastructure and its use or planned use?

Is there a barn? Greenhouse? If you dont yet have a farm site, what infrastructure will be necessary?

What is the purpose of your company?

What is your philosophy of doing business?

What are your goals?

What do you/will you grow/raise?

Influences? Specialty items?

Value-added products?

What differentiates your products from other farms? If you are not yet in business, what do you see as your potential distinguishing factors?

Where do you/will you sell your product? For each sales channel provide a few sentences about why the sales channel is a good avenue for you. Some sales channels include:

CSAs

Farmers Markets

Wholesale

Farm stand

Co-ops

Where else?

Are you already farming? If not,

Has a site been selected?

Have you built infrastructure?

Has your team (field crew, management and business advsiors) been solidified?

If so:

How many years have you been farming at the current location?

Are you an early-stage business or well-established? That is, how many years have you been in operation?

If you are already farming, do you plan on expanding the farm? When or at what stage?

Would you expand product offerings? To what?

What are your sales/revenue goals?

What is going on in the farm and food industry? How do these events affect trends, markets and sales? How do these trends impact your business? What are the current opportunities? This section should demonstrate an understanding of the agriculture industry as it relates to your business.

This section doesnt need to be more than a page or two. If you are proposing less common farm-income sources, such as agri-tainment or value-added products, you may want to expand on why the time is right for you to launch or expand your business based on industry trends.

For the type of products you are/will be offering

For the industry in general

localharvest.org/

smallfarmtoday.com/

dtnprogressivefarmer.com/dtnag/

newventureadvisors.net/marketsizer.php

ers.usda.gov/topics/farm-economy.aspx, rodaleinstitute.org/farm/organic-price-report/

marketnews.usda.gov/portal/fv

SWOT stands for Strengths, Weaknesses, Opportunities and Threats. A SWOT analysis addresses the businesss internal strengths and weaknesses, as well as external factors that provide opportunities or pose threats to the business.