Agricultural Business Plan Template

Agricultural Business Plan

You’ve come to the right place to create your Agricultural business plan.

We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Agricultural companies.

Below is a template to help you create each section of your Agricultural business plan.

Executive Summary

Business Overview

Schrute’s Roots is a startup agricultural business that produces crops for Scranton, Pennsylvania and the surrounding area. Schrute’s Roots will specifically grow root vegetables, including potatoes, onions, and beets. The company’s mission statement is to work hard to grow these vegetables organically and without any chemicals. We will sell our produce at local farmer’s markets as well as to local restaurants and other establishments that would like to use or sell our produce.

Schrute’s Roots is owned and led by Dwight Schrute. Dwight has been a farm operations manager for the past twenty years, bringing a plethora of knowledge and skills that will prove to be invaluable to all aspects of the business. After working as a farm operations manager, Dwight desired to run his own agricultural farm business that grows organic produce and benefits the local community. He will utilize his prior knowledge and experience to manage crop production, operations, and other aspects of the business.

 

Product Offering

Schrute’s Roots grows a variety of root vegetables for Scranton, Pennsylvania and the local community. All produce will be organically grown. We alternate our crops, so the exact crops that are grown will be dependent on the season and current crop cycle. Some crops that we plan to grow include the following:

• Potatoes
• Onions
• Beets
• Carrots
• Garlic
• Radishes

 

Customer Focus

Schrute’s Roots will primarily serve the residents and businesses of Scranton, Pennsylvania and the surrounding areas. Any individual or establishment that is interested in purchasing our crops is welcome to partner with us. We will sell our crops to individuals at local farmer’s markets and directly to wholesalers, grocery stores, and restaurants.

 

Management Team

Schrute’s Roots’ most valuable asset is the expertise and experience of its founder, Dwight Schrute. Dwight has been a farm operations manager for the past twenty years, bringing a plethora of knowledge and skills that will prove to be invaluable to all aspects of the business. After working as a farm operations manager, Dwight desired to run his own agricultural business that grows organic produce and benefits the local community. He will utilize his prior knowledge and experience to manage crop production, operations, and other aspects of the business.

 

Success Factors

Schrute’s Roots will be able to achieve success by offering the following competitive advantages:

• Management: Schrute’s Roots’ management team has years of experience in agricultural operations, which will prove invaluable to all aspects of the business.
• Relationships: Having lived in the community for twenty years, Dwight Schrute knows all of the local leaders, media, and other influencers. As such, it will be relatively easy for Schrute’s Roots to build brand awareness and an initial customer base.
• Quality products at affordable pricing: Schrute’s Roots will provide quality products at affordable pricing, as it has high-quality equipment and uses the latest techniques.

 

Financial Highlights

Schrute’s Roots is currently seeking $750,000 to start the company. The funding will be dedicated towards securing the land and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs and marketing costs. Specifically, these funds will be used as follows:

• Land: $200,000
• Equipment: $200,000
• Three Months of Overhead Expenses (payroll, utilities): $150,000
• Marketing Costs: $100,000
• Working Capital: $100,000

The following graph below outlines the pro forma financial projections for Schrute’s Roots.

 

Company Overview

Who is Schrute’s Roots?

Schrute’s Roots is a startup agricultural business that produces crops for Scranton, Pennsylvania and the surrounding area. Schrute’s Roots will specifically grow root vegetables, including potatoes, onions, and beets. The company’s mission is to grow vegetables organically and without any chemicals. We will sell our produce at local farmer’s markets as well as to local restaurants and other establishments that would like to use or sell our produce.

 
Schrute’s Roots is owned and led by Dwight Schrute. Dwight has been a farm operations manager for the past twenty years, bringing a plethora of knowledge and skills that will prove to be invaluable to all aspects of the business. After working as a farm operations manager, Dwight desired to run his own agricultural business that grows organic produce and benefits the local community. He will utilize his prior knowledge and experience to manage crop production, operations, and other aspects of the business.

 

Schrute’s Roots’ History

Dwight Schrute incorporated Schrute’s Roots as an S-corporation on May 1st, 2023. The operations aspects of the business will be run from Dwight’s home, while the agricultural aspects will be run from the land purchased for crop production.

Since incorporation, the company has achieved the following milestones:

• Found land to grow the crops and wrote a letter of intent to purchase it
• Developed the company’s name, logo, and website
• Determined agricultural equipment and inventory requirements
• Began recruiting key employees

 

Schrute’s Roots’ Services

Schrute’s Roots grows a variety of root vegetables for Scranton, Pennsylvania and the local community. All produce will be organically grown. We alternate our crops, so the exact crops that are grown will be dependent on the season and current crop cycle. Some crops that we plan to grow include the following:

• Potatoes
• Onions
• Beets
• Carrots
• Garlic
• Radishes

 

Industry Analysis

The agricultural industry is vital to all communities. The crops and products grown by local farmers and crop production companies are essential to the health of local communities. They provide jobs to the locals and result in locally grown food that the nearby residents can purchase. Larger agriculture businesses do not offer these benefits to smaller communities. Because of this, there has been a greater demand and emphasis on the sustainability of local agricultural companies that can directly benefit the local community.

Furthermore, market research shows that local communities are demanding that crop production and other agricultural companies grow their products organically. Organic foods are much healthier for individuals to eat because they provide more nutrition and aren’t laced with chemicals. Improved technology and research into organic methods are making this form of crop production more profitable and sustainable.

Therefore, with the increasing demand for local organic farms, we are confident that Schrute’s Roots will succeed in the local market and benefit the residents of the Scranton area.

 

Customer Analysis

Demographic Profile of Target Market

Schrute’s Roots will serve the industries and community residents of Scranton, Pennsylvania and its surrounding areas. We will sell our produce at farmer’s markets to individuals and directly to establishments that wish to partner with us.

The demographics of Scranton, Pennsylvania are as follows:

 

Customer Segmentation

Schrute’s target audience segments include:

• Individuals
• Restaurants
• Grocery Stores

 

Competitive Analysis

Direct and Indirect Competitors

Schrute’s Roots will face competition from other agriculture businesses. A description of each competitor company is below.

 

AgraFarm

AgraFarm is one of the largest raw food manufacturers in the U.S., owning a 15,000-acre farm for agriculture. It has well-established connections with big FMCG companies and has been thriving in the agricultural industry for 12 years. It also has automated equipment and machines, which helps in improving its operations and reducing costs. AgraFarm is also known for delivering large orders at the right time without delay.

 

BDA Farms

BDA Farms was established in 1998. BDA Farms is a very well-known company that provides good quality organic produce to companies. It also has a very good brand value, and its product packaging is second to none. BDA Farms is located in Scranton, Pennsylvania, and it has a very effective distribution and supply chain network.

 

BeetFarms

BeetFarms was initially a beets producer company and then branched out to other vegetables. BeetFarms is now one of the ten largest vegetable producers in the state. The Company’s packaging and processing units are located in Scranton, Pennsylvania. It has recently acquired other local vegetable producers, expanding its operations as well as limiting the variety of farms producing vegetables for the community.

 

Competitive Advantage

Schrute’s Roots will be able to offer the following advantages over their competition:

• Management: Schrute’s Roots’ management team has years of experience in agricultural operations, which will prove invaluable to all aspects of the business.
• Relationships: Having lived in the community for twenty years, Dwight Schrute knows all of the local leaders, media, and other influencers. As such, it will be relatively easy for Schrute’s Roots to build brand awareness and an initial customer base.
• Quality products at affordable pricing: Schrute’s Roots will provide quality products at affordable pricing, as it has high-quality equipment and uses the latest techniques.

 

Marketing Plan

Brand & Value Proposition

Schrute’s Roots will offer the unique value proposition to its clientele:

• Production of high-quality organic produce
• Affordable pricing
• Providing excellent customer service and customer experiences

 

Promotions Strategy

The promotions strategy for Schrute’s Roots is as follows:

Social Media Marketing

Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The company will use social media to develop engaging content in terms of various forms and technologies of commercial cultivation and post customer reviews that will increase audience awareness and loyalty.

Website/SEO

Schrute’s Roots will develop a professional website that showcases pictures of the farm and the products we will grow. It will also invest in SEO so that the company’s website will appear at the top of search engine results.

Industry Events

By attending regional farming conferences, association meetings, and symposia, Schrute’s Roots will network with agricultural industry leaders and seek referrals to potential customers.

Direct Mail

The company will use a direct mail campaign to promote its brand and draw customers, as well. The campaign will blanket specific neighborhoods with simple, effective mail advertisements that highlight the credentials and credibility of Schrute’s Roots as a high-quality crop production agriculture business.

 

Pricing

Schrute’s Roots’ pricing will be competitive. Pricing will be about 50% lower than retail prices to allow wholesalers and retailers to earn their margins.

 

Operations Plan

Operation Functions:
The following will be the operations plan for Schrute’s Roots.

• Dwight Schrute will be the Owner and President of the company. He will oversee all staff and manage client relations. He will help with the produce cultivation until he has hired a full staff of farmhands. Dwight has spent the past year recruiting the following staff:
• Meredith Grant – will oversee all administrative aspects of running the farm. This will include bookkeeping, tax payments, and payroll of the staff.
• Kevin Baird – Head Farmhand who will oversee the farming staff and day to day operations.
• Oscar Smith– Assistant Farmhand who will assist Kevin.

 

Milestones:

Schrute’s Roots will have the following milestones completed in the next six months.

• 07/202X Finalize land purchase
• 08/202X Design and build out Schrute’s Roots
• 09/202X Hire and train initial staff
• 10/202X Kickoff of promotional campaign
• 11/202X Launch Schrute’s Roots
• 12/202X Reach break-even

 

Management Team

Schrute’s Roots’ most valuable asset is the expertise and experience of its founder, Dwight Schrute. Dwight has been a farm operations manager for the past twenty years, bringing a plethora of knowledge and skills that will prove to be invaluable to all aspects of the business. After working as a farm operations manager, Dwight desired to run his own agricultural business that grows organic produce and benefits the local community. He will utilize his prior knowledge and experience to manage crop production, operations, and other aspects of the business.

 

Financial Plan

Key Revenue & Costs

Schrute’s Roots’ revenues will come from the sales of root vegetables to its customers and local food establishments.

The major cost drivers for Schrute’s Roots will be labor expenses, land purchase, equipment purchases and maintenance, and marketing plan expenses.

 

Funding Requirements and Use of Funds

Schrute’s Roots is currently seeking $750,000 to start the company. The funding will be dedicated towards securing the land and purchasing equipment and supplies. Funding will also be dedicated towards three months of overhead costs and marketing costs. Specifically, these funds will be used as follows:

• Land: $200,000
• Equipment: $200,000
• Three months of overhead expenses (payroll, utilities): $150,000
• Marketing costs: $100,000
• Working capital: $100,000

 

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and pay off the startup business loan.

• Number of customers per month:
• FY1: 30
• FY 2: 50
• FY 3: 75
• FY4: 105
• FY5: 150
• Annual equipment maintenance costs: $20,000

 

Financial Projections

Income Statement

Balance Sheet

Cash Flow Statement

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