by LUIS RODRIGUEZ, UF/IFAS Polk Extension
Farming is more than just a way of living; it’s a business. While the rewards of working outdoors and producing food for the nation are immense, long-term success in agriculture depends on careful planning and strategic management of the farm operation. A well-designed farm business plan is essential for guiding daily operations and achieving success.
What Is a Farm Business Plan?
A business plan is a living document that outlines your farm’s goals and the strategy and methods to achieve them. It includes the resources you have available, the challenges you face or will face, and the steps you will be taking to remain viable and profitable. This roadmap should be reviewed regularly and updated as your business grows or changes. A good timeframe is to review your business plan at least every 6 months.
A typical farm business plan includes the following components
- Business Description: The first step in starting a farm business plan is creating a clear description of the farm operation. This should outline the purpose of the business, name and logo (if any), location, and the history of the business (To provide authenticity). It must also include the mission, vision, and goals of the farm business, as well as the organizational structure (Examples: sole proprietorship, partnership, corporation, etc.). If you’re just starting, include your startup strategies as part of this description.
- Marketing Plan: Your marketing plan outlines how you’ll sell your products and reach customers. It should include:
- Target customer analysis
- Pricing Strategies
- Distribution strategies (examples: farmers markets, retail, direct consumer sales, etc.)
- Promotional Tactics (examples: flyers, social media, magazine outreach, etc.)
- Competitor Analysis
Ultimately, the goal is to define what makes your farm unique, how your product meets customer needs, and how you’ll generate consistent revenue.
- Operational Plan: A Farm Operational Plan is a document that outlines the key day-to-day activities and processes of an agricultural business. It serves as a roadmap to improve efficiency, support decision-making, and guide the farm toward profitability. A well-designed operational plan must:
- Outline daily, seasonal, and annual tasks
- Clarify production methods and timelines
- Help assess labor and equipment needs
- Align operations with short, medium, and long-term goals
Treat the operational plan as a guide that keeps your farm running smoothly and profitably on a daily basis.
- Human Resources (HR) Plan: The Human Resources Plan describes the organizational structure of the business, identifying who will manage it and the number and type of employees needed. Your HR plan should include:
- List of farm tasks and who is responsible for them.
- Roles & Responsibilities
- Hiring Plans
- Compensation & Benefits
- Training & Evaluation Processes
The HR plan ensures you have the right team and that they understand their role in your business success.
- Financial Plan: A Farm Financial Plan outlines the funding needs to start or maintain operations, including costs for equipment, land, labor, and materials. It includes a break-even analysis to determine when the farm will become profitable by covering all fixed and variable costs. A good financial plan will include:
- Startup or Operating Capital Needs
- Break-even Analysis
- Projected Income Statements
- Cash Flow Statements
- Balance Sheets
These tools help you understand when and how your farm will generate profit, how to manage economic risks, and whether external funding will be needed, such as loans or grants.
- Executive Summary
Though placed at the beginning of the plan, the executive summary is written last. It provides a brief snapshot of your plan’s key points: your mission, strategies, financial needs, and expected outcomes. It’s especially useful when presenting your plan to lenders, investors, or potential partners.
Building Your Florida Farm Business Plan: A Free Online Resource for Florida Farmers
The UF/IFAS Polk County Small Farms and Alternative Enterprises Program has developed a complimentary online free resource to assist Florida farmers in creating a well-designed farm business plan. This online resource was developed for both aspiring and established producers by providing practical tools, expert guidance, and essential resources. Its goal is to support strategic planning and informed decision-making, promoting the growth of strong and sustainable agricultural enterprises. Furthermore, the resource is available in English and Spanish for better outreach to the Florida population.
We encourage you to visit the following websites to get started with practical support focused on Florida agriculture.
English: https://sfyl.ifas.ufl.edu/polk/agriculture-programs/small-farms-and-alternative-enterprises/building-your-florida-farm-business-plan/
Or you can scan the QR code below to access the website.
A Clear Path Forward
Whether you’re launching a new farm or continuing an existing operation, a strong business plan is a critical foundation for success. It not only helps you manage resources and set goals but also ensures your farm remains sustainable for years to come.
Luis Rodriguez is the Polk County Small Farms and Pesticide Education Extension Agent. You can reach him at lrodriguezrosado@ufl.edu or 863-519-1049.