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Home farm plan. How to open a farm from scratch |
Today, the agricultural business is strongly supported by the state - many entrepreneurs have turned their eyes to this niche. The advantages of running your own farm are enough - a huge sales market, quick payback, obtaining a consistently high profit. Of course, many difficulties will also await the novice - but they are quite surmountable if we correctly organize our activities.
How to become a farmer from scratch in Russia?Here, as in any other business area, you will need to draw up a business plan. This is especially important if you begin to use borrowed funds to organize activities. Entrepreneurs who decide to start a business in the agricultural sector have many opportunities for business development - this can be either a small family livestock farm or a large agricultural complex. But in order to minimize any risks, start small - it is worth expanding a business only if you have “free” finances and experience. Peasant farming is a commercial structure aimed at attracting income from production and further sale of agricultural products. There are not many large enterprises in our country - there are definitely not enough “capacities” to completely fill the market. Everyone has every chance to take a strong position in the niche. Starting a farm from scratch will be beneficial for the following reasons:
When thinking about how to organize a farm from scratch, do not forget about those pitfalls that can wait for you on the road to success - despite all the advantages of the direction, there are risks. The agricultural business is the area where profitability is largely dependent on external factors. You can lose half the crop due to drought or pest outbreaks. In the field of animal husbandry, there are problems — for example, epidemics of diseases that can kill half of the animals raised. Farming involves a significant share of manual labor - especially in the family business, when hired labor is not used. Therefore, it is worth preparing for hard work. Already decided for yourself "I want to farm"? Approach the matter thoroughly - carefully study the direction in which you will continue to work. If there is such an opportunity, be sure to visit existing farms to see everything in practice. What direction to choose?How to start a farming business? The first step is the choice of the direction of further activity. It is from this that all further stages of organizing one's own economy will depend. There are several profitable “formats” of the agricultural business:
Thinking in which direction and how to start farming, it is worthwhile to conduct a market analysis. Choose niches that are in demand in your region with minimal competition - this will make it easier to succeed in business. The amount of available finance is also of no small importance - some areas will require significant investments, while others can be mastered with a minimum of costs.
How is the registration of business in the field of agriculture?Many private farmers operate without registration - a significant savings on regular tax payments. If you plan to grow several cattle in your own summer cottage, at first you can do without business registration. But in this case, you can only sell products to private customers - they won’t even let you go to local markets without the appropriate documents. Registration of a farm is required without fail if in the future you plan to sell finished products to wholesale buyers. Design your business in the form of IP or LLC. You become registered with the tax inspectorate, register with Rosportabnadzor and SES. If we talk about the sale of products of animal origin (meat, eggs), finished products before marketing should regularly undergo veterinary checks. Financial costs for organizing a businessIs it profitable to farm? Definitely, yes - given that the organization of a business in some areas requires a minimum of cost. For example, to start breeding chickens in their own summer cottage, you need no more than 50,000 rubles. Therefore, not having at your disposal an impressive amount of money to open a large farm, start small. It will be quite difficult to indicate the exact investment figure - it all depends on the chosen field of activity. But in any case, in the business plan it is important to calculate all the upcoming costs. Make a list of what you need to become a farmer. Investments will be required for the following needs:
Thinking where to start farming, be sure to think about ways to raise funds to start an activity. Great if you have your own savings. If the business accumulated for starting a business is not enough, you will have to take a loan from a bank or try to apply for a state subsidy. Finished product sales channelsBecoming a novice farmer, given the risks involved and considering all the nuances, is easy. It is difficult for a novice to find wholesale buyers of finished products. It’s unlikely to immediately establish cooperation with large supermarket chains - focus on small retail outlets and private buyers.
We conclude - thinking about where to start the farming business, promote the market and already at the stage of designing the project start looking for wholesale customers interested in a particular type of product. When to wait for the first profit?How much do farmers earn in Russia? The exact indicator of profitability will depend on the "scale" of the business, sales volumes and prices established for the goods. Small farms from sales of finished products by the end of the season can have up to 500,000 rubles of net profit. Some areas actively (for example, raising chickens) generate income throughout the year. A home-based business, of course, will start producing less profit, since there will be significantly less sales. Despite the different size of investments, both livestock and crop production pay off at approximately the same time. Over the next 9-12 months you will invest in growing animals or plants. Only after scoring goals or harvesting you get revenue. In most cases, the first profit can be expected only after a year. Knowing where to start farming, you can build a highly profitable business in the field of agriculture. Do you have a desire to open your own farm? Perfectly! But one desire is not enough. Need money. Need some advice. Need helpers. All this is in the "ready-made solution" of the Agricultural Bank, which was developed for you by dozens of experienced specialists. It includes: a loan to create a family dairy farm; seven options for sample farm projects to choose from; An example of a feasibility study for a family farm; the possibility of obtaining subsidies for the reimbursement of expenses for the payment of interest on a loan; the possibility of financing the costs of building infrastructure and communications for the farm at the expense of the constituent entities of the Russian Federation. What is a family farm?Within the framework of the Program, a family livestock farm means a farm owned and / or used by peasant (farmer) farms created in accordance with Federal Law of 11.06.2003 No. 74-FZ "On Peasant (Farmer) Farm", whose members related by kinship and / or property and jointly carry out production and other economic activities in the field of agriculture based on their personal participation. Farms for work on a family livestock farm can attract permanent (seasonal) workers in the amount of not more than five people. With participation in the Farms Program over 100 goals, permanent (seasonal) workers in the amount of up to ten people may be involved. Where to get money for your participation in the project - 20%?First of all, remember: you can deposit your own funds in stages. The first 10% - until the first loan is issued, the remaining 10% - until the completion of the farm. Further: own funds may be money, but may not be! What does it mean? As its own participation in the project, the Agricultural Bank considers and takes into account property (land, building, equipment, etc.) that you own and which will be further used in farm activities, as well as subsidies, subsidies received by you from entities Russian Federation. To become a member of such a program, you need to contact the governing body of the agro-industrial complex in your region. Your candidacy will be discussed and approved at a meeting of a special joint commission, which includes representatives of the agro-industrial complex governing bodies of the Federation subject, the Association of Farms (AKKOR), the Russian Agricultural Bank and Rosagroleasing. How long can I get a loan?Up to 15 years for the construction of a family dairy farm Up to 8 years for the purchase of agricultural machinery, specialized vehicles and special equipment for the farm Up to 8 years for the purchase of technological equipment for completing the family farm Up to 8 years for the creation of engineering infrastructure and communications (electricity, water, wastewater, gas supply, construction of roads and access roads) providing livestock up to 5 years for the purchase of farm animals Up to 2 years for the formation of Table of initial working capital. This may be a stock of fertilizers, pesticides, seeds, feed, raw materials for processing, materials, GSLL, animals for fattening, etc. ● Call the Russian Agricultural Bank on the hotline 8-800-200-02-90 (the call is free) or contact the branch or additional office of the Russian Agricultural Bank at the place of residence. ● Get advice from a Rosselkhozbank employee and materials on a “turnkey solution”. Ask any questions, we will help you! ● Determine which loans you need. Do not hurry. Your success will depend on how carefully you think everything through! ● Decide where you will take the money for your own participation in the project - 20% of its value. This is a prerequisite! No ideas? Then read our recommendations (see above for text). A family dairy farm project is primarily money. And money requires a careful attitude. Therefore, special attention should be paid to the preparation of the part that relates to the execution of all necessary documents. You are offered: an example of drawing up a feasibility study (feasibility study), a list of initial permits and design and estimate documentation options (IRD and design and estimate documentation). Does that sound incomprehensible? In fact, everything is simple! ● We study seven options for examples of typical PSD, choose the appropriate one or offer your own. ● Following the example of a feasibility study (TEO), we evaluate the volume of necessary investments in the project, calculate financing options, profitability and payback period. ● We draw up a business plan for creating a farm. ● We collect the IRD package: land documents; construction documents; contracts evidence of a self-regulatory organization. ● Having drawn up a business plan and having decided on the project cost, we begin to prepare a set of documents for the commission and for the Bank to consider the issue of preliminary approval in obtaining a loan. Family farm business plan.The most important thing to write correctly is a business plan. Its main sections are given below. In this difficult matter, the Bank’s specialists have also done all the main work for you. The main sections of the business plan: 1. Information about you 2. The essence of the project 3. Dates and stages 4. Financing scheme 5. Efficiency BTW ACCOR proposes annually on a competitive basis to provide grants to beginner farmers up to a million rubles per farm as seed capital. Of course, not enough. It takes 3-5 million. Loans are needed, the Agricultural Bank will help here. And we are working on the creation of a federal guarantee fund that helps farmers who do not have collateral to work with banks. We decide how we build: ourselves, or with the help of a construction company.You can build a farm yourself, on your own, hiring workers at certain stages. Or you can hire a professional organization immediately for the entire project. And in both cases, the Agricultural Bank will support you! The first option will cost you less, but you will have to spend more time collecting and processing the IRD. In the second case, part of this work will be undertaken by the construction company, but this, of course, will cost additional money. The IRD package must include: Certificate of ownership of your land or lease agreement; Building permits and cadastral plan; Report on engineering and survey work on the site, technical conditions for connecting the farm to local engineering networks; General contract for the construction (reconstruction) of the farm, contract for engineering and survey works, contract for the provision of construction supervision services (technical supervision). With many of the documents listed, they can help you in a self-regulatory organization, i.e. in the company that will build your farm, or carry out construction work. What is included in the feasibility study for a “ready-made solution” for a family farm?
First, the Bank gives preliminary approval of the possibility of providing a loan, and then makes a final decision on the transaction. Next, we consider what documents are considered by the Bank and in what order. We will also give information on state support to the future farmer. ● Having collected the documents, we transfer them to the Agricultural Bank for preliminary approval and to the commission for the selection of participants in the sectoral or regional farmer support program. ● Are you included in the list of participants in the regional program and received preliminary approval from the Agricultural Bank? Yes! Then there was the last step! Prepare documents for a decision on the transaction and submit them to the Agricultural Bank. Details below! ● Confirm the cash contribution of 10% of the total project cost. Remember that it is not necessary to bring “live” money to the Bank. ● Remember that until the completion of construction and completion of the farm, the total amount of client’s own participation in the project should be 20%. ● Get a loan and start building your farm. Yes, and don’t forget about subsidies! 10% money and more! It is always worth remembering that you can contribute your own funds to the project not only with money, but ... with money already spent! Namely, to submit to the Bank payment and cash settlement documents confirming the expenses already incurred by you at the preparatory stage of the project. A preliminary approval of your application by the Bank requires not so many papers: Application Form Financial statements Business plan Customer Registration Confirmation How to replace the money in the first installment?Business Plan Development Costs Expenses for the creation of engineering infrastructure and communications, other preparatory expenses for the project Engineering Expenses Construction and installation costs Payment of advances under contracts for the purchase of machinery, equipment, livestock Participant Selection Criteria Industry target program The commission (which we described in Step 1) takes into account:
For the Bank to make a decision correctly prepare the documents. So, we are preparing for the Bank to consider the issue of financing our project. First you need to get prior approval. To do this, fill out the application form (you will be given it at the Bank), provide financial statements for the last reporting year and the last reporting date of the current year, the farm’s business plan and documents confirming the registration of the client. The Bank looks at these documents and, if everything is fine, you proceed to the second stage - prepare a package of documents already for the conclusion of the transaction. It's more serious here. First, you will need a document confirming your inclusion in the agricultural producers, which will receive state support. In addition - land documents, constituent documents of your organization and documents confirming ownership of the property that you represent as a pledge. Is the transaction approved by the Bank? Congratulations! Further, the Bank itself is preparing a set of agreements. You put your signature and - cheers! - Your dream of your own farm begins to come true! Subsidies from the state for the creation of family dairy farms can be received by the heads of peasant farms, individual entrepreneurs, agricultural consumer cooperatives. The state now considers the development of family dairy farms in Russia as one of the most important tasks. Therefore, you will not be left alone with your problems. Moreover, when obtaining a loan for purposes related to the establishment of family farms, the Bank's borrowers can count on receiving state support. The state will reimburse you part of the costs associated with the payment of interest on loans, which will reduce your expenses. The state can partially compensate your expenses for paying bank interest on loans. How is this done? You apply for a loan at the Bank, and then prepare documents for a subsidy. As soon as your application is approved, funds will be credited to your account in the Bank to pay part of the interest rate. Thus, by receiving a subsidy, you can reduce the "real" interest rate on a loan to 4-5%. Support for agricultural producers is carried out both at the federal and regional levels. Many constituent entities of the Russian Federation have now developed new special programs for small business forms that provide for additional measures and conditions for state support. Be sure to find out about the availability of such programs in your regional administration! Information on how to receive subsidies is also open. It is available in any regional agricultural management body, in regional organizations of AKKOR. Participants in the target program of the Ministry of Agriculture of Russia "Support for novice farmers for the period 2012-2014" can apply for a grant to create a production base for peasant farms. The size of the grant can be up to 1.5 million rubles. for one beginner farmer. The amount of the grant is determined by the regional competitive commission for the selection of novice farmers. The purposes for which the grant received by you from the state can be spent (Read carefully! Surely these are your plans!): Purchase of agricultural land; Development of design estimates for the construction (reconstruction) of industrial and warehouse buildings, premises; Purchase, construction, repair and rebuilding of industrial and warehouse buildings, premises, outbuildings, utility networks, barriers, structures; Registration of production facilities; Construction of roads and entrances to production and storage facilities; Connection to engineering networks - electric, water, gas and heat-conducting networks, road infrastructure; Purchase of farm animals; Purchase of agricultural machinery and equipment, freight vehicles, equipment and processing of agricultural products; - purchase of seeds and planting material for laying perennial plantings; Acquisition of fertilizers and pesticides. REMEMBER grants from the state for the creation of farms and other forms of business in the village can be received by individual entrepreneurs - heads of peasant farms. The subsidy can be up to 100% of the amount of interest on your loan.How is this done? Everything is quite simple. The fact is that the state today is extremely interested in creating as many family farms as possible, and that is, it supports those who want to start their business with all their might. Your expenses for paying interest on loans received from the Bank are subsidized from the state budget in the following order: - the state will return interest on loans issued for the establishment of a farm in the amount of: 100% of the refinancing rate of the Central Bank of the Russian Federation (from the federal budget) and 3 percentage points in excess of the refinancing rate - at the expense of regional budgets. Many constituent entities of the Russian Federation have also developed special state support programs for small business forms, providing additional forms and conditions of state support for the establishment of family farms. Be sure to check the availability of such programs in your regional administration! This information is public. Moreover - it will help your cause! BTW, state subsidies are provided in accordance with the Decree of the Government of the Russian Federation of February 4, 2009. No. 90 “On the distribution and provision in 2010 of subsidies from the federal budget of the constituent entities of the Russian Federation to reimburse part of the cost of paying interest on loans received from Russian credit organizations and loans received from agricultural credit consumer cooperatives”. So STEP 1 ● Find out which state organization in your region manages the agro-industrial complex. Usually it is the Ministry of Agriculture or the Department of Agriculture ● In the regional governing body of the agro-industrial complex, find out what documents must be collected for subsidizing and agree on how soon you will submit them. ● Collect all the necessary documents and submit them to the local agro-industrial complex (ministry of agriculture or agriculture). ● The state has established the most simplified procedure for obtaining such subsidies. A decision on your matter is taken within 10 days. ● If a positive decision is made, funds for the reimbursement of part of the costs are transferred to your current account opened with the Agricultural Bank. You can contact any branch of the Agricultural Bank on the territory of the Krasnodar Territory and get free advice by calling the hotline 8-800-200-02-90 The real story of the creation of the first family farm: Alexander Gulin, a 45-year-old farmer from the Mordvinian village of Teplovka, became the first Russian farmer to take a loan to create a family dairy farm. This was three years ago and now Alexander is ready to tell readers about his own invaluable experience. “It all started with a project competition held by our republican ministry of agriculture,” recalls Alexander. I sent a request there, received a positive response. An important “plus” in my favor was the fact that the land on which I planned to build a farm was already in my possession. The Russian Agricultural Bank gave me the first loan - 9.3 million rubles, and helped with the execution of all the papers. In just three months, a farm for 100 cows was built. I bought the milking equipment German, from the supplier working for a long time in our republic. Today, thanks to the latest technology, I get about 20 liters of milk per day from one cow. I deliver milk to the district center (they know it there and willingly buy it), I sell part of it to the local dairy. In 2011, I began to repay the loan, before that there was a delay in the Agricultural Bank. She really helped. The farm already brings money, sales are established, there is something to pay on loans. It remains for development - for example, last year the farm’s income amounted to 300 thousand rubles, which I invested in the development of production. In five years I plan to reach stable profit already “for myself”. And this is taking into account current plans for the development of the farm: the construction of a maternity hall, the organization of the production of cottage cheese, sour cream, cheeses. The material was provided by the public relations service of the Krasnodar regional branch of Russian Agricultural Bank OJSC There are several reasons to start hatching cattle. Some do this in order to sell it, others in order to have their milk and sell it. There are people who bring cattle for display at various exhibitions and holidays. Today, a lot of families decide to start cattle to meet their own needs. Whether you want to raise livestock and sell it, or if you just want a couple of cows for your own needs, here are some tips to get your herd. Steps
Think about your business plan. The first thing you should do is conduct a swot analysis of yourself and the cattle industry. Decide which cows you want to breed without thinking about the breeds and the type of farm you want to have.
Warnings
Many beginning businessmen are convinced that there is nothing easier and more profitable than agriculture: in their opinion, it is enough to plant several hectares of land with any demanded culture in order to make huge profits. In fact, due to the complexity of organizing and coordinating production processes, a medium-sized farm is approaching an industrial enterprise, and their planning is a prerequisite for successful operations. Therefore, it is very difficult to draw up a full-fledged business plan for farming: in fact, an entrepreneur must develop a separate project for each type of agricultural activity, and then link these documents together and coordinate them among themselves. Moreover, in the process of work, he will have to take into account such unpredictable values \u200b\u200bas average productivity, animal productivity, survival of young animals and daily feed intake. Therefore, experienced farmers recommend calculating several options for the development of events to make sure that the enterprise will have a margin of safety sufficient for a negative set of circumstances. Business featuresUrban residents most often imagine the farming business as an enlarged version of the subsidiary farm, in which all possible types of poultry run around in the yard, goats, sheep, cows and pigs graze in the meadow, and any vegetables grow on the beds, starting with potatoes and ending with eggplant . This opinion is only partly true: indeed, mixed-type farms are more viable and resistant to changes in the market situation, but their creation requires the attraction of a huge amount of financial and human resources. Therefore, entrepreneurs starting a farm business from scratch are limited to one or two popular areas, concentrating all efforts on them. The remaining activities are non-core in nature and are intended more to satisfy personal needs or to form a food supply than to make a profit. However, even in this case, farm labor cannot be called easy: animals and plants require constant, sometimes around-the-clock care without holidays, holidays and weekends. Since it is almost impossible to cope with so many tasks alone, entrepreneurs have to look for volunteers or hired assistants. For this reason, a small farming business is considered a family business: a person who is personally interested in the productivity of his labor will work much more efficiently than an outside specialist. Newcomers who do not have agricultural experience often believe that growing plants, as well as raising animals, are industries that, in principle, cannot be unprofitable. However, in reality, these types of activities are associated with many risks and difficulties - for example, before you open a farming business from scratch, you need to consider that:
It should be understood that it is impossible to draw up an objective picture of the agricultural sector on the basis of shortcomings and risks alone. Therefore, when developing a business farm development plan, the following positive factors must also be taken into account:
Activity RegistrationStudying, it can be noted that peasant farm is an analogue of IP or LLC, which is created by one or more able-bodied citizens with the aim of production, processing and sale of any agricultural products. Considering the family format of the enterprise specified by law, it is allowed to include in its composition:
Future members of the farm should hold a meeting of the founders, agree on the charter of the enterprise and select its head, as well as form the authorized capital of the peasant farm by depositing cash or tangible assets totaling 10,000 rubles. The result of such a meeting of all participants is the conclusion of an agreement on the establishment of a holding containing such information as:
Peasant farms can be created even by one person who automatically becomes his head. In this case, the procedure is greatly simplified: in the absence of other co-owners, it is not necessary to form a charter fund and conclude an agreement. How to start a business: farming is considered legitimate after holding not only these activities, but also state registration of SPD. This procedure includes payment of state duty, submission of an agreed package of documents to the Federal Tax Service, registration with the FIU and opening of a current account. Direction selectionWhen looking for the idea of \u200b\u200ba farm business, the state does not limit the entrepreneur in any way - just remember that the main features of agriculture are the natural nature of production and the possibility of reusing the resulting product in the process. Simply put, the cultivation of cucumbers belongs to this category, but their processing and canning no longer exists. within the framework of peasant farming: The cultivation of crops. When choosing specific types of plants, it is necessary to take into account the climatic features of the region, the nature of the soil and the presence of demand in the local market. Peasant farms are most often cultivated:
Livestock and poultry. The popularity of the data is due to the demand for meat, milk, eggs, down, wool and hides. The farm can breed:
Related business. When breeding cows, farmers receive additional income from processing milk into cottage cheese, sour cream or butter, and raising animals for meat allows us to diversify the assortment of products with smoked meats, sausages and semi-finished products. You can also consider such a business option as a farm products store: having your own outlet will help to build an audience of regular customers and increase demand. The main condition for maintaining the status of peasant farms in this case is a structural limitation of profit: the share of income from additional activities should not exceed 30% of the total. To simplify organizational processes, a novice entrepreneur can use one of the ready-made business plans for farms or order its development in one of specialized companies. At the same time, the following are considered as the most accessible and demanded among beginners:
Site SearchThe process of creating an agricultural enterprise begins with the search for a fertile land, the size and type of which depend on the chosen type of activity. For example, it does not involve the use of large production areas, while growing wheat or potatoes is unprofitable on the scale of one or two hectares. In order to choose the right place for the farm, you need to take into account the following factors:
The magnitude of the cost of acquiring land is limited only by the financial capabilities of the entrepreneur - for example, a farm business plan may include the following options for obtaining a plot:
Premises and equipmentThe next step in the arrangement of the farm is the preparation of production facilities. Of course, plots with prefabricated buildings are sometimes found on sale, but their cost is usually frankly overstated, so an entrepreneur most often has to provide for the cost of equipping a farm from scratch as part of the business plan of a peasant farm. Listing the composition and purpose of the main structures, it should be mentioned:
The specificity of agricultural work requires the use of certain equipment, which is conditionally divided into two groups: equipment that helps to mechanize labor-intensive production processes, and devices used to provide comfortable conditions for plants and animals. It should be noted that you can’t do without equipment: even such a simple business as buying incubators, brooders and cell batteries for chicks. In general, the farm can find application:
At the initial stage, heavy equipment can be rented, and as the business develops, gradually acquire ownership of potato and grain harvesters, harrows, mowers, cultivators. StaffMost start-up entrepreneurs at the start prefer to do it on their own and with the help of family members. However, as the enterprise develops, the scope of current tasks increases significantly, which necessitates the involvement of not only qualified specialists, but also working personnel. For example, a business plan for a peasant farm specializing in livestock and crop production should include the search and hiring of:
Sales methodsAfter harvesting, the farmer has to solve a less difficult task: to look for quick and profitable ways to sell their products, which, given the short shelf life, sometimes turns into a real problem. Depending on the volume of production of peasant farms, you can choose retail or wholesale distribution channels. The first include:
It is much easier to wholesale meat, milk or vegetables in bulk, because in this case the farmer does not have to spend time and resources on such non-core activities as finding a place to trade, obtaining permits and selecting sellers. The only drawback of this method is the pricing policy of purchasers: in order to interest counterparties, an entrepreneur is forced to provide them with a 25–35% percent discount, which is not always justified for farms with low profitability. The main wholesale customers of the peasant farm are resellers, retail chains, supermarkets and catering establishments. In addition, you can regularly sell quite large volumes of products using such distribution channels as:
Related videos Investments and incomeCeteris paribus, mixed farms have certain advantages in comparison with specialized ones: even with a drop in demand for one type of product, they avoid significant losses due to the sale of other goods. However, the creation of such a large enterprise will require no less major investments, therefore, for beginning entrepreneurs, the best way to develop is to implement the two or three of the most popular business ideas with a phased coverage of related areas in the future. In the process of designing an agricultural enterprise and determining the scale of investments, it is also necessary to take into account that the farmer will receive the first profit in the best case after 5-10 months. Thus, he will not only have to purchase equipment, seeds and young stock, but also throughout the season to constantly buy fertilizers, feed, fuel, and pay utility bills. Summarizing the above, you can make a list of expenses of the farm:
Thus, the costs of creating medium-sized peasant farms from scratch reach 7–10 million rubles. To reduce this amount, some entrepreneurs start by buying in the countryside a small plot of 25-40 acres, on which residential and farm buildings have already been erected. Using this area, you can open the following types of business: Types of agricultural business
ConclusionMany entrepreneurial people try their hand in areas close to agriculture: some are engaged, others set up a greenhouse in their own apartment and sell houseplants, others acquire summer plots and plant garlic or herbs there. In such a situation, a gradual transition to full-fledged farming activity is logical. However, one cannot hurry in this matter: despite the high profitability, such a business is sensitive to mistakes and miscalculations of newcomers: it is enough to purchase seed of dubious quality or use the wrong fertilizer to lose the entire crop. Therefore, only a combination of theoretical knowledge and practical experience will help the entrepreneur to create a successful farm. A farm is a business aimed at growing products of plant growing or animal husbandry and their further implementation. This is a popular type of production, attractive for its accessibility for private entrepreneurs. The industry has a high level of competition and faces significant risks. Given that a large part of the market has already been captured, first of all, it is worth taking care of the product distribution channels. A good, but costly solution is to open your own store for direct deliveries and sales of goods. The development of farming as a small business is strongly encouraged by the state through financial support and simplification of the system for obtaining all the necessary decisions. Drawing up a competent business plan and consciously conducting production can make farming a profitable business for an entrepreneur who is not afraid to take risks in such an ambiguous niche. The idea of \u200b\u200bcreating your own farmCreating your own farm is a type of business accessible to everyone. Even the lack of initial capital will not be a problem: with a well-designed business plan, it is quite possible to take out a loan at a favorable interest or even find a good sponsor interested in a quality product. Economists consider farming a cost-effective form of small business. But, in connection with the technological progress of recent decades, some of these farms have closed, giving way to the established monopolists in the form of distributors of genetically modified products. The existence of great competition in this industry discourages many inexperienced entrepreneurs. Despite this, a natural quality product will always find its buyer. There are several possible industries for developing a farm:
It is not necessary to choose one specific direction. Many industries coexist perfectly in the complex. Thus, livestock products can become fertilizer for plants, and plants can become livestock feed. It all depends on the size of the territory and the initial capital of the founder of the farm. Business Plan DevelopmentHaving decided on the niche of your production, it is time to create a business plan. The planning stage is the foundation of future income: it allows you to evaluate the prospects of the business, calculate the necessary costs and payback, and prevent possible risks. The development of a business plan includes:
As far as risk assessment is concerned, there are many possible force majeure events in the farm. These can be sudden disasters, epidemics, problems with weather conditions or insects. You must always be prepared for unplanned spending, saving part of the funds received in the appropriate fund. Some novice entrepreneurs seek to make their business plan the most optimistic and evaluate possible production only in ideal utopian conditions. The content of the business plan must be reliable, and the calculations can be made in two ways at once: optimistic (normal average conditions) and pessimistic (fulfillment of possible risks and termination of financing). In the current unstable economy, it is necessary to use the most current prices. Obtaining the territory for the farm and collecting the necessary documentsIn contrast to the personal subsidiary plots, the KPH (large subsidiary plots) has a number of privileges for selling products, but for this it is subject to mandatory control by the sanitary and epidemiological services. The opening of its own CPC begins with the choice of territory for production. There are several criteria for a suitable location:
Depending on the chosen direction, additional conditions will be required: large fields in the vicinity for cattle breeding, a pond for waterfowl or the presence of peduncles for bees. To officially obtain the status of a farm with the possibility of selling products, you must go through the following steps:
In the process of registration at different stages the following documents will be needed:
Facilities management and staff recruitmentAfter the long preparatory stages of planning, choosing the territory and registering the farm, it is time to begin the immediate arrangement of the place. The farm includes:
Depending on the selected niches, different preparation will be required.
Almost any livestock farming will require the construction of warehouses equipped with a refrigerator system. In parallel with the equipment of the territory of the farm, there should be a search, selection and hiring of personnel. On any type of CPC, you will need:
The number of personnel depends on both the type of production and its volume. For example, beekeeping will require almost 10 times more people to service hives than to service a similar volume of chicken eggs. The core of any livestock industry will be the hiring of a competent and educated livestock specialist, under whose guidance production processes will be ensured. It is difficult to overestimate the importance of a veterinarian. He not only monitors the health of animals, but also monitors vaccination, maintains accountability with the relevant services and is directly involved in the emergence of new animals (takes birth or participates in the purchase of a new livestock). The purchase of animals or plants, as well as the necessary feed, becomes the last stage in arranging one's own farm. For these purposes, only trusted suppliers with all the necessary documents and permits are suitable. Animal welfare and sanitary-epidemiological surveillanceGood conditions are the basis for successful business dealing with farming in any direction. If in the case of plant growing, we are talking about storing the finished product for its further transportation and sale, then animal husbandry involves a more scrupulous approach to the issue of maintenance. First of all, their growth and, as a result, productivity (the amount of milk, meat or wool for cattle, eggs for chickens, honey for bees or down for rabbits) depends on the living conditions of animals. The second important factor that is directly dependent on the conditions of detention is the reproductive function of livestock. The better the animals feel, the healthier they are and, accordingly, the more and more often the farmer’s population increases. In addition, nutrition, microclimatic conditions and care have a direct impact on the well-being of each animal. Cattle feeding should be as balanced as possible. At the moment, there are two types of feed: dry and wet. Most farms prefer the former. This is not only more profitable from a financial point of view, but also due to sanitary standards. A herd of 300 animals will require about 35 tons of feed. In addition to the main meal, multivitamin complexes and additives are mandatory in the livestock diet. Equally important is the continued access to clean drinking water. Particular attention should be given to pregnant and sick individuals. In addition to feeding, some animal species require a certain microclimate. In a room specially equipped under the shed, not only a comfortable temperature should be maintained, but also an appropriate indicator of air humidity. The shed must be isolated from drafts, but provide good air circulation. Do not forget about lighting. So, for example, for high productivity of chickens, a long daylight hours are necessary, but too strong lighting can become stress for laying hens and have the opposite effect. Likewise, a loud noise may cause a drop in egg production. For farms of any direction, close sanitary and epidemiological control is carried out.
Sales channelsThe sale of finished products is the main stage of farming, on which all profits depend. The most favorable development of the event will be the conclusion of a contract for the supply of products for a large network. Depending on the chosen niche and form of production (IP or LLC), it is possible to use various wholesale and retail distribution channels. The main ways of selling products can be:
As additional distribution channels, it is worth considering the participation of the economy in seasonal exhibitions, state tenders, membership in the agricultural consumer cooperative. In addition to standard distribution channels, do not forget about technological progress. At the moment, there are several large platforms on the Internet for selling agricultural products directly to customers. These can be both small retail orders and large wholesale ones on an ongoing basis. Calculation of financial indicatorsThe financial calculations of the farm depend on many factors: coverage of industries, size and type of production, equipment used and seed capital. The approximate cost of starting a project on a herd of 40 goals will be 3 million rubles, which includes:
According to experienced farmers, the main cost per year is feed (up to 40%). That is, by increasing start-up costs for the parallel development of crop production and creating your own feed source, it is possible to achieve a higher profitability of the business. Having calculated the economic indicators of the project with the successful implementation of the products, we can talk about a profitability of 35% and a project payback of 3 years. |
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