Complete business plan Planning the direct farm business
Transcript Of Complete business plan Planning the direct farm business
Ed Skvarch, Commercial Horticulture UF IFAS St. Lucie County Extension [email protected]
FARM BUSINESS START-UP CHECKLIST
According to the United States Department of Agriculture (USDA), more than 167,000 U.S. farms locally produced and sold food through direct marketing practices, resulting in $8.7 billion in revenue in 2015. The survey also concluded that more than 80 percent of all direct market food sales occurred within 100 miles of the farm, and that most farms selling to consumers were less than 20 miles from their largest grossing marketplace. the value of Direct-to-Consumer Food marketing in the Southeastern United States was estimated at $38.8 million, an increase of $1.22 million from 2007. This no doubt is encouraging news for those who sell their produce directly to consumers and motivational to those who are looking to start up a direct sales farm operation.
To become a successful business owner there are a number of initial planning steps one should take! Why? According to data from the Bureau of Labor Statistics: about 20% of small businesses fail in their first year, and about 54% of small businesses fail within the first 4 years. One of the main reasons was attributed to inadequate business planning.
Business planning doesn’t begin on the day you hang out your shingle, it begins way before. Below is a checklist of tasks that as a beginning farmer (business person) are important to do before you plant that first seed!
Complete business plan
Marketing Plan
Production Plan
Financial Projections Analysis
Planning the direct farm business
Mail order/Internet site Farmer's market Roadside stand U-pick Agri-Tourism
Delivery service to homes, restaurants, schools, or other institution
Community Supported Agriculture (CSA)
Secure operating capital
Farm Credit System
Commercial banks
Private Capital
Check on zoning regulations or by-laws that may impact your farm
City
State
County
Health
Learn about land acquisition options that might be right for you
Purchase
Lease
Rent
Other
Select and establish your farm business entity
Partnership
S Corp
Limited Liability Corp.
C Corp
Register your business with your municipality and/or with your state. Obtain business certificate
Local
State
Obtain tax identification numbers for the farm business:
Tax I.D
Employer’s Tax
Sales Tax
Acquire necessary permits, licenses and certifications.
Local
Federal
State
Purchase necessary insurance
Liability Property
Workers’ Compensation Other
Establish credit
Farm equipment supplier Farm Production supplier
Open business accounts
Savings Checking
Establish operating / policy manual
Job descriptions for family members and employees
Safety policy
Establish bookkeeping system
Accounting software Accounting & record journals Payroll service
Office materials supplier
Credit /Debit card
Operating procedures Business policies Develop your marketing plan
HELPFUL WEB SITES Starting a Business in Florida www.stateofflorida.com/corporations.aspx Business Planning: www.beginningfarmers.org/farm-businesshttps://www.sba.gov/
https://www.sba.gov/writing-business-plan http://floridasbdc.org/locations/ Business Operating Manual: http://www.farmsreach.com/welcome/wpcontent/uploads/2014/07/FarmCommons_SampleFarmManual.pdf Marketing Your Farm: https://smallfarms.cornell.edu/resources/marketing/ http://www.directfarmbusiness.org/business-types/ http://njaes.rutgers.edu/farm-management/ap-wk2/apwk2_komar_carleo_social_media.pdf Selecting Your Farm Entity: http://www.directfarmbusiness.org/business-types/ Financing Your Farm: http://www.farmsreach.com/welcome/wp-content/uploads/2013/01/Financing-Your-Farm.pdf Structuring Your Small Farm Business: http://nationalaglawcenter.org/wp-content/uploads/assets/articles/FL_directfarm.pdf Financing Your Farm: http://extension.psu.edu/business/start-farming/capital www.fsa.usda.gov/microloans http://www.fsa.usda.gov/Internet/FSA_File/microloans_facts_2014.pdf http://www.farmsreach.com/welcome/wp-content/uploads/2013/01/Financing-Your-Farm.pdf http://smallfarms.cornell.edu/resources/funding/loans-financing/ Finding Land: http://www.beginningfarmers.org/finding-land-to-farm/ http://landforgood.org UF/IFAS Small Farms Web Site: http://smallfarms.ifas.ufl.edu/
Please contact us with any additional questions 772-462-1660
Ed Skvarch [email protected] An Equal Opportunity Institution
FARM BUSINESS START-UP CHECKLIST
According to the United States Department of Agriculture (USDA), more than 167,000 U.S. farms locally produced and sold food through direct marketing practices, resulting in $8.7 billion in revenue in 2015. The survey also concluded that more than 80 percent of all direct market food sales occurred within 100 miles of the farm, and that most farms selling to consumers were less than 20 miles from their largest grossing marketplace. the value of Direct-to-Consumer Food marketing in the Southeastern United States was estimated at $38.8 million, an increase of $1.22 million from 2007. This no doubt is encouraging news for those who sell their produce directly to consumers and motivational to those who are looking to start up a direct sales farm operation.
To become a successful business owner there are a number of initial planning steps one should take! Why? According to data from the Bureau of Labor Statistics: about 20% of small businesses fail in their first year, and about 54% of small businesses fail within the first 4 years. One of the main reasons was attributed to inadequate business planning.
Business planning doesn’t begin on the day you hang out your shingle, it begins way before. Below is a checklist of tasks that as a beginning farmer (business person) are important to do before you plant that first seed!
Complete business plan
Marketing Plan
Production Plan
Financial Projections Analysis
Planning the direct farm business
Mail order/Internet site Farmer's market Roadside stand U-pick Agri-Tourism
Delivery service to homes, restaurants, schools, or other institution
Community Supported Agriculture (CSA)
Secure operating capital
Farm Credit System
Commercial banks
Private Capital
Check on zoning regulations or by-laws that may impact your farm
City
State
County
Health
Learn about land acquisition options that might be right for you
Purchase
Lease
Rent
Other
Select and establish your farm business entity
Partnership
S Corp
Limited Liability Corp.
C Corp
Register your business with your municipality and/or with your state. Obtain business certificate
Local
State
Obtain tax identification numbers for the farm business:
Tax I.D
Employer’s Tax
Sales Tax
Acquire necessary permits, licenses and certifications.
Local
Federal
State
Purchase necessary insurance
Liability Property
Workers’ Compensation Other
Establish credit
Farm equipment supplier Farm Production supplier
Open business accounts
Savings Checking
Establish operating / policy manual
Job descriptions for family members and employees
Safety policy
Establish bookkeeping system
Accounting software Accounting & record journals Payroll service
Office materials supplier
Credit /Debit card
Operating procedures Business policies Develop your marketing plan
HELPFUL WEB SITES Starting a Business in Florida www.stateofflorida.com/corporations.aspx Business Planning: www.beginningfarmers.org/farm-businesshttps://www.sba.gov/
https://www.sba.gov/writing-business-plan http://floridasbdc.org/locations/ Business Operating Manual: http://www.farmsreach.com/welcome/wpcontent/uploads/2014/07/FarmCommons_SampleFarmManual.pdf Marketing Your Farm: https://smallfarms.cornell.edu/resources/marketing/ http://www.directfarmbusiness.org/business-types/ http://njaes.rutgers.edu/farm-management/ap-wk2/apwk2_komar_carleo_social_media.pdf Selecting Your Farm Entity: http://www.directfarmbusiness.org/business-types/ Financing Your Farm: http://www.farmsreach.com/welcome/wp-content/uploads/2013/01/Financing-Your-Farm.pdf Structuring Your Small Farm Business: http://nationalaglawcenter.org/wp-content/uploads/assets/articles/FL_directfarm.pdf Financing Your Farm: http://extension.psu.edu/business/start-farming/capital www.fsa.usda.gov/microloans http://www.fsa.usda.gov/Internet/FSA_File/microloans_facts_2014.pdf http://www.farmsreach.com/welcome/wp-content/uploads/2013/01/Financing-Your-Farm.pdf http://smallfarms.cornell.edu/resources/funding/loans-financing/ Finding Land: http://www.beginningfarmers.org/finding-land-to-farm/ http://landforgood.org UF/IFAS Small Farms Web Site: http://smallfarms.ifas.ufl.edu/
Please contact us with any additional questions 772-462-1660
Ed Skvarch [email protected] An Equal Opportunity Institution