agri business planning program

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Consultant List: B.C. Agri-Business Planning Program

Qualified Business Consultants are eligible to provide services to applicants of the B.C. Agri-Business Planning Program. Consultants on this list were reviewed and pre-qualified based on professional experience and qualifications.

Applicants are responsible for selecting their own consultant. Information on how to select a Qualified Business Consultant is available courtesy of Alberta Agriculture at: Choose a Consultant

Many consultants will provide remote services or are willing to travel outside their region or offer remote services . If you have any questions about a consultant’s willingness to travel to your region, please contact them directly.

You can search for consultants by:

Program Streams: Business Plan Coaching, COVID-19 Recovery Planning, Specialized Business Planning

Specializations: Business Structures, Business Strategy, Cash Flow and Financial Analysis, Production Economics, Value Added Ventures, Risk Assessement and Mitigation, Human Resources, Succession / Transition Planning, Livestock Production, Crop Production, Seafood, Food Processing, Group Business Planning Services

Contact information

If you have any questions while selecting a consultant, please contact B.C. Agri-Business Planning Program staff.

Email: [email protected]

Phone:  1-888-221-7141

The B.C. Public Service acknowledges the territories of First Nations around B.C. and is grateful to carry out our work on these lands. We acknowledge the rights, interests, priorities, and concerns of all Indigenous Peoples - First Nations, Métis, and Inuit - respecting and acknowledging their distinct cultures, histories, rights, laws, and governments.

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• Texas A&M College of Agrculture and Life Sciences

AgriBusiness planning

In order to develop a complete agribusiness plan, it is necessary to recognize all the potential risks. The uncertainties are not limited to production, but to all facets of a business. A comprehensive manual on how to write an agriBusiness Plan was developed by  Extension Agricultural Economist of Texas A&M University System . The manual gives a complete overview of the importance of agribusiness planning and how each issue should be addressed. Each topic includes a publication for reference, necessary worksheets for completing that lesson and a case study application. A farmer interested in doing an AgriBusiness Plan is advised to read and understand the manual, and then follow each step in the manual to write down his own business plan.  Having a written AgriBusiness Plan has many potential uses, but overall it would help you to understand better your risks, have a plan for each one of them, and react accordingly.

The following components of an AgriBusiness Plan include:

1. Executive Summary

The purpose of the executive summary is to combine all the components of the business plan into its principal points in one summary document. It must cover the information in the report in enough detail such that the reader can quickly formulate a picture of the operation. The executive summary is written after all the parts of the business plan have been completed. Follow this link to know more about the steps to consider when writing the business plan.

2. Business Organization

The business plan begins with a summary of the pertinent information regarding the operation. This includes names and contact information of all involved in making decisions, managing risk for the operation, and/or providing counsel. It provides a combined list of all the necessary information to contact the owners, managers, and others that have an impact on the operation in one central location.

3. Business History

If you are new to farming, you might not have a Business History, which can be omitted. However, if you have farmed, as it is the case for most Small Acreage Farmers in South Texas, then you will benefit from writing it. In this component, you should briefly describe how the operation came to be and how you came to be its owner and/or manager. This would include when and how was the operation started, the location of the operation, the source of the land, equipment and other resources, and was it inherited or purchased or is it rented. How was and is the operation financed? What management changes have occurred over its history? What were the defining moments or events that caused you to control the operation?

4. Mission Statement

Every operation has a reason for taking on the risks associated with agricultural production. The purpose of the mission statement is to precisely and emphatically state why your operation exists. It should focus each person involved in the operation each day. Anyone working within the operation should, upon reading the mission statement, know how his or her daily tasks, once completed, have helped to fulfill the operations mission. The mission statement should answer three key questions:

• What are the opportunities or needs that we exist to address? (The purpose of the organization)
• What are we doing to address these needs? (The business of the organization)
• What principles or beliefs guide our work? (The values of the organization).

5. Resource Inventory

Agricultural producers use resources such as land, labor, machinery, breeding stock, management and financial capital to produce commodities for sale. An accurate inventory of these resources is important for the evaluation of the current health of the operation and planning as well as a preliminary method for evaluating new enterprises. The use of an up-to-date resource inventory can help to:

• Provide a current overview of the operation
• Complete a balance sheet
• Provide a summary of collateral that can be used for a loan
• Identify the status and condition of your assets and liabilities
• Evaluate options for growth and diversification

6. SWOT Analysis

A SWOT analysis is a term used to describe a tool that is effective in identifying your Strengths and Weaknesses, and for examining the Opportunities and Threats you face. While it is a basic, straightforward model, it has been a popular business practice for many years because it helps provide direction and serves as a basis for the development of business plans. It accomplishes this by examining the strengths (what an operation does well) and weaknesses (what an operation does not do well) in addition to opportunities (potentially favorable conditions for an operation) and threats (potentially unfavorable conditions for an operation). Once completed, the SWOT analysis can help determine if the information indicates something that will assist the operation in achieving its objectives (a strength or opportunity), or if it indicates an obstacle that must be overcome or minimized to achieve desired results (weakness or threat).

7. Legal and Liability Issues

Contemplating the prospects of legal action against your farming or ranching operation can be unnerving. The assorted unknown variables can make the planning process frustrating, while the threat of enormous adverse judgments generates an emotional response. Planning for the loss or withdrawal of a key member of your management team can also be unpleasant. The business planning process will help identify risks and assign resources to manage these risks. A large number of potential legal and liability issues will be identified with a thorough SWOT analysis. Similarly, a resource inventory will help identify the individuals and tools necessary to manage these risks. It will be impossible to list all potential liability risks as well as to completely eliminate all of the legal and liability risk from an activity as inherently risky and uncertain as agriculture. The completed business plan will address specific action plans for dealing with identified risks, as well as outline contingencies for the unforeseen risks.

8. Setting Goals

One of the most important aspects of business planning is the setting of goals. Properly defined goals can assist the operation’s management team in determining whether the operation is moving forward. Goals can be either short term or long term, however, each short term goal should correspond to a long term goal, and each of these should move the operation towards fulfilling its mission statement. Goals should be incorporated into each of the financial, production and marketing components. One common theme found in most business planning publications regarding goals is the concept of SMART goals. This concept suggests that goals must be Specific ,  Measurable , Attainable , Rewarding and there should be a Time-frame specified for reaching each goal.

9. Production Plan

The production plan conveys the type and quantity of commodities to be produced. The production plan pairs information from the resource inventory and financial records to serve as a realistic estimate of current activities and their anticipated financial results. A thorough production plan should detail all enterprises on an operation (crop, livestock, and other) so that scheduling of labor and financial resources can be easily examined. The production plan should provide a basis for projecting future operational activities and alternative enterprises. While changes will occur, the production plan serves to document historical performance and project the future direction of the business. Crop production plans should include the estimated acreage and yield for each crop. Estimated production levels can then be combined with anticipated prices to generate some of the figures needed for the financial component. The livestock production plan must clearly identify all related production information, including the size of the herd, cull rates, weaning rates, weaning weights, rates of gain, purchase price, sales prices, etc. In addition, details regarding the replacement herd and breeding herd should be described.

10. Financial Plan

The financial plan component of the business plan serves as the heart of the overall plan and has three main objectives. The first is to identify where the operation is financially (Financial Position). The second objective is to determine how the operation performed during the previous year (Financial Performance). Finally, the third objective is to provide an analysis of where the operation will be in the future (Financial Projections). These three objectives are discussed further in this link .

11. Marketing Plan

It is essential for an agricultural producer to have a written marketing plan. Developing a good marketing plan will help you identify and quantify costs, set price goals, determine potential price outlook, examine production and price risk, and develop a strategy for marketing your crop. While producers have traditionally done a good job of producing, they have often neglected marketing. In the past, farm loan programs and deficiency payments allowed producers to neglect or ignore the marketing side of their businesses. Now, with the possible elimination of farm programs and increased volatility in the markets, producers will have the right and the obligation to determine their own financial security. In this more uncertain and risky future, failing to plan may be the same as planning to fail.

12. Example AgriBusiness Plan

When you start writing you Agribusiness Plan, follow the example provided in the manual to guide your work.

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Agribusiness Planning: Providing Direction for Agricultural Firms

Introduction

Future outcomes are a function of today's decisions. Although there is a high degree of randomness and uncertainty associated with the future, you can increase the probability of a successful outcome by planning ahead. This is true in nearly every aspect of our lives, both personal and professional. For those who operate their own businesses, planning becomes increasingly important because the personal and professional aspects become more difficult to untangle. In agricultural businesses, planning may be even more vital because of the inherent uncertainty associated with agricultural production. Some important sources of uncertainty include production risk, price risk, financial (or interest rate) risk, and changes in government programs.

This publication discusses the importance of business planning for agricultural firms—from input suppliers to producers to processors—and describes the steps required to prepare a thorough business plan. The general process of business planning is the same for each type of firm. However, each may have differing individual aspects that affect its plan's contents. Regardless, we present a recommended format that should be useful for all types of agricultural firms as they develop written business plans. We use examples from the wide variety of agribusinesses to provide a broad context to the general theme of business planning.

About the Business Plan

One of the most important documents for any business is their business plan. It is common practice for consultants, lenders, potential business partners, and other business-associated individuals to request a business plan to make a more informed decision concerning their relationship with a business. However, business plans have many more direct benefits for the business owner. The planning process forces owners to systematically consider all facets of the business. In so doing, they become more knowledgeable of the business, the industry, and the market environment in which their business operates. The process also helps to define business goals and to assess the impact that uncertainty may have on future business outcomes. Perhaps most importantly, the written plan provides a well-defined direction for the business. Therefore, it can be used to keep all employees moving toward the common goals established within it.

Completing a business plan can be a time-consuming activity, but well worth the effort. Because businesses operate in an ever-changing environment, the plan should be revisited periodically to be sure that the business is headed in the proper direction or to formally alter the firm's course if circumstances dictate that this is necessary. Again, the systematic review of the business plan forces the owner, and potentially others, to look at the business as a whole and make better-informed decisions.

We provide an example format for you to use as a guide in developing your plan. Notice that there are several topics that should be addressed, corresponding to the four functional areas of management: marketing, production, finance, and human resources. By developing a section for each of these topics, the plan will be easy to follow as you revisit it or as others review it. You should take some liberty as you develop your plan; feel free to customize it in a way that will fit your specific circumstances.

SWOT Analysis

Performing a SWOT analysis , which stands for strengths, weaknesses, opportunities, and threats, lays the foundation for the business plan. Four separate SWOT analyses should be performed, each related to one of the four functional areas of management: marketing, production/operations, finances, and human resources.

When assessing strengths and weaknesses, the focus should be internal. Opportunities and threats, on the other hand, should reflect external factors. For example, proximity to a major market, such as a large city, may provide an opportunity to market processed dairy products directly to a restaurant. Threats may take the form of new competitors or changes in agricultural production or environmental policy.

 Performing SWOT analyses is relatively easy. Simply divide a piece of paper into four quarters, label the quarters appropriately, and begin to write your thoughts down.

Example Marketing SWOT Analysis for Carl's Custom Crop Scouting

• Only specialized scouting operation in the county
• 3,700 acres under contract
• No full-time sales person

Opportunities

• Expand operations to include planting and harvesting
• Partner with firm that only plants and harvests crops.
• Genetically modified corn kills insects. Scouting for those pests no longer important.

Because this is the foundation on which the planning process is based, be sure to take a broad perspective. In addition to incorporating the views of at least the owners and managers of the operation, it also might be a good idea to allow all employees, or at least a subset, to provide their perspectives. Some firms may also benefit from allowing professional advisors (such as veterinarians, bankers, nutritionists, etc.) to provide input. Although the top management should develop the plan, you should tap many sources of information. Finally, the raw results of the SWOT analyses might best be presented in an appendix, rather than in each of the four sections related to the functional areas. In the individual sections, a summarized version will suffice.

Example Business Plan Format

The format presented here represents one way to structure the business plan.

Sections of Business Plan

Marketing management, production/operations management, human resources management, financial management.

As noted, it covers the four managerial functional areas. We present the example structure and provide some ideas for what you will want to include in each section. Creating a thorough document the first time through is important. This will make follow-up revisions easier to implement.

The introductory section gives a broad overview and background of the business. Several subsections (outlined below) should be included to provide a thorough overview. However, if there's something that you feel isn't applicable to your business, feel free to omit it from your plan.

The first page should give the name of the document, the firm's name, and the names of all those involved in developing the plan. Dating the plan so that you can remember when it was developed or updated is also wise.

Executive Summary

This section, while appearing at the front of the business plan, is actually the last piece developed. Here you should present the most important information, which may include the firm's goals and objectives and associated target dates. Basically, the executive summary provides a concise overview of the business plan.

Table of Contents

The table of contents should provide the titles of all section headings in the plan and the page numbers on which the sections begin.

Vision and Mission Statements

These relatively brief statements tell the reader why the business is in operation and where the management team, or owner(s), plans to be in the future. The vision statement should tell the reader what business the firm is in, or plans to enter, and what the most important business goals are. That is, it should tell where the firm is going.

We have provided a few example vision statements for you to use as a guide when developing yours:

Example Vision Statements

Agchoice farm credit.

AgChoice Farm Credit will be the first choice for financial services that help customers succeed.

To build the world's first truly global securities market. ... A worldwide market of markets built on a worldwide network of networks ... linking pools of liquidity and connecting investors from all over the world ... assuring the best possible price for securities at the lowest possible cost.

Northwest Airlines

To build together the first choice airline and global alliance network with the best people each committed to exceeding our customers' expectations every day

Whenever dairy farmers have a need they should think first of DeLaval. We aim to always be there, always be available, always work on their behalf.

Note that some are from very different industries. Regardless, they present a common theme of what their respective companies want their firms to be.

The mission statement provides a succinct overview of the firm's operation, including its collective values, its unique circumstances or industry position, what product(s) it sells, and why it is in business. As the business evolves, the mission statement can be adapted to reflect the changing face of the firm.

The mission statement can provide more detailed information than the vision statement. We have provided some example mission statements that allow you to see how other firms— although maybe very different in nature—have defined their missions.

Example Mission Statements

Agway cooperative.

AGWAY is a farmer-owned business dedicated to improving the profitability of its members. We achieve profitability for our members by being the most effective partner on every farm we serve, by adding value to what farmers produce, and by using our capabilities to win non-farm customers.

Land O' Lakes

We are a market- and customer-driven cooperative committed to optimizing the value of our members' dairy, crop, and livestock production.

To enable people and businesses throughout the world to realize their full potential.

To help practically anyone trade practically anything on earth.

Some are more specific than others. At a minimum, the mission statement should tell the reader why you are in business.

Business Organization

Briefly describe how the business is legally organized (for example, proprietorship, partnership, or corporation). Include the names and titles of the firm's managers (or board of directors). This section should be quite short.

Overview of Current Business

In general, the business plan is concerned with the firm's future. Here, however, you should review the firm's past and fully describe its present position. Although a business start-up may not have much to reveal, documenting the present situation is important. In doing so, it will be easier to document the firm's history as you revise the plan.

An overview of the firm's past helps to set the context of how the firm has evolved into its current form. This may be particularly useful if the plan is to be used to secure financing because the past reveals something about how the firm has been managed over time. A structured chronology can serve as an outline for this subsection.

Example Firm Chronology

“Hanks' Harvesting" formed as partnership between Jerry and Ed Hanks.

Harvested 4,300 acres of corn for grain and chopped 2,200 acres of corn silage.

Purchased a new combine and a used chopper.

Harvested 8,700 acres of corn for grain and 5,300 acres of corn silage.

January 2002

Contracted for 10,500 corn grain acres and 7,800 corn silage acres for fall 2002.

Began to investigate custom planting services as a possible expansion of current operations.

The narrative in this section should also provide an overview of how the business has been financed. Furthermore, discuss how profits, equity, and other important financial measures have changed over time.

Next, describe the present situation of the firm. You should provide information related to business location (include pictures if you like), current sales, assets, inventories, geographic market area, number of employees, and any other information you feel is appropriate in describing your current business. Upon reading this section, one should have a snapshot picture of your firm's current status.

This and the three sections to follow provide the meat of the plan. These give the reader a thorough understanding of the firm's present and future. In the marketing management section, you should address several key factors, each in its own subsection.

Marketing SWOT Analysis

Provide a brief overview of the main results of the Marketing Management SWOT analysis. Let the reader know what the most important results were.

Products and/or Services Produced

Here, describe your product(s) or service(s) specifically. If you are in the custom heifer raising business, for example, your statement may be something similar to “We raise heifers for dairy producers." If you are operating a dairy farm, your statement may be much more detailed because it is recommended that you include both the products you produce and the products you sell, listed separately. For example, you may produce corn silage, but may not sell it. Remember also that you sell bull calves and cull cows. These may not be your major enterprise, but should be listed as products sold.

Remember that differentiating your product may be an important aspect of your marketing strategy. While this is difficult to do with a commodity, it's not impossible. For example, maybe you feed for high-butterfat percentage to increase the price received for your milk. It's also possible that you operate an organic turkey farm in an attempt to extract higher market prices. There are also those who market kosher meats and dairy products. These types of efforts should be included here as part of your marketing efforts.

Industry Overview and Position of Firm

Describe your industry and how you fit into it. This may not be too difficult to write if you operate under contract production because this is specified in the contract. It may also be relatively simple for anyone producing a commodity and selling it by the typical means (such as selling corn to a grain elevator or hogs to a pork processor). A custom business operator may have a more difficult time defining the industry and describing how the firm fits. However, this section is important for at least two reasons. First, it forces the planner to analyze the industry and determine the firm's relative position in terms of competitive advantages. Second, it provides important evaluative information for “outsiders" to better understand the business and its relationship with the industry.

In describing the industry, include as much information as you feel is necessary to define the firm and the market. Consider including the following: volume sold (in production units -- this may be, for example, hundredweights if describing the dairy industry, head if describing beef, or acres scouted if describing a custom crop scouting operation), total annual sales in dollars, trends in industry sales, competitors, new marketing opportunities, prevailing prices, and how prices are determined (for example, cash market, contract price, cost-plus). Also, describe the customer. Who is purchasing your product? What type of person is likely to buy your product? Again, those selling an undifferentiated commodity may have little to write. Those selling custom services or, even more importantly, those engaged in marketing agricultural products directly to the consumer may need to more thoroughly describe the customer base. This will help you better define your target market.

Managerial Expertise

Here, take stock of the total managerial expertise used by the firm. What marketing-related special knowledge do the managers possess? Is there one manager who has particular expertise in marketing? Thinking beyond the organization is wise; those in production agriculture have other sources of knowledge that may exist outside of the firm. For example, consultants may be available to provide information related to the current economic situation and outlook. Also, the Extension system and the USDA provide a great deal of information and data on agricultural prices and marketing.

Marketing Strategy

This is where you lay out your plan and future expectations, which are founded on all of the preceding information in this section. Here, you should describe any marketing opportunities you face and how you plan to take advantage of those. What advertising or promotional programs will you undertake? How will you distribute your product? How will you determine if your marketing plan is successful? For this, you should have clearly defined targets. For example, “We will market at least 2.5 million pounds of milk each year." You may also want to set targets for number of customers, market share, or any other measure(s) that you might use to determine whether your firm has been successful in marketing.

Finally, be sure to employ any appropriate risk-management tactics. In marketing, you will want to manage risks associated with input and output prices. Can you contract for some inputs to lock-in a particular price? If processing on the farm, have you contracted with a retailer or wholesaler to be sure that someone will take your product? In production agriculture, the farm owner or manager should understand and analyze futures and options markets as tools to manage price volatility. You should also understand any relevant government programs such as Loan Deficiency Payments (LDPs) that affect your price.

(We differentiate “production" and “operations" based on whether the firm's product is a good or a service. However, in many cases, we use “production" to denote either case.)

Through the production of goods and services the firm generates profits. Therefore, assessing the production/ operations process and making plans for the future is vitally important. This may be particularly important in cases where a farm is planning to expand or where a change in business enterprises is to occur.

Production SWOT Analysis

Provide a summary of the SWOT analysis for production/operations. This may be the most important area to gather input from employees, who are likely the ones most closely associated with daily production. Therefore, their insights could provide a valuable additional perspective.

Overview of Productive Assets

Outline what productive assets are necessary to make your product or provide your service. The following deserve particular attention:

• Other Facilities (particularly if on-farm processing is involved)
• Equipment and Machinery
• Materials and Supplies

Focus on what the firm currently owns, the quality of those assets, and how others will be obtained, if needed. Only discuss the resources needed. Save any discussion of financing these assets for the Financial Management section.

Here again, note the special expertise held by management in the area of production/operations. For example, is the herdsman on a dairy farm trained in dairy science? Does the crops manager have a background in agronomy, soil science, or other related field? How many years of experience in this type of position does this person have?

Production/Operations Performance

Describe your current production practices. How much do you produce? When do you produce it? You may want to develop a visual approach to help tell this story. A time line could help to describe when products are made or services are sold. The more complex the business is, the more useful a visual might be.

Regulatory Considerations

Government regulations affect production in many industries. This is particularly the case in production agriculture. If producing agricultural products, be sure that you are complying with all relevant regulations. These include, but may not be limited to:

• Manure management
• Soil conservation
• Worker Safety
• Inspections of the product and of the production facilities

You can gain information on relevant policies and regulations from business consultants, Penn State Extension, agricultural cooperatives, and government agency Web sites.

Production/Operations Strategy

Now that you have laid out your current production practices and defined some firm and industry trends as they relate to some important benchmark measures, it is time to describe your production- or operations-related plans. As you do this, be sure to set specific production goals, outline potential changes in enterprises or production practices, and describe how you plan to locate and purchase inputs. The following list of questions may be useful to you as you develop this section. Again, not all are relevant for all types of operations. Also, you may think of others that should be addressed.

• How long will your current productive assets be of use? When do leases on land and equipment expire? How soon can you expect to replace important machinery and equipment?
• Where can you find other inputs, such as feed, in the future—particularly if you are expanding your operation?
• Should you consider hiring a custom operator to perform a portion of the production tasks?
• Are there new production practices or machinery you should consider adopting?
• How many units of product do you want to sell over your planning period? Provide specific targets and a time line, if appropriate.
• Do you need to develop a nutrient management plan or update an existing one? Are there other environmental plans that should be developed?
• If expanding, how will new construction or other changes affect output? How will these changes affect your resources? Will you be able to operate in a timely manner without affecting the quality of your product(s)?
• Are there new enterprises that should be explored?

One of the most important—yet most often overlooked—inputs is labor. The competency of your human resources may dictate how successfully your business will perform. Use this section to outline your current human resource (HR) policies, how these may change over the planning period, and what you or other managers may need to do to improve HR management.

Human Resources SWOT Analysis

Provide the reader with the summarized results of the human resource management SWOT analysis. This is another point at which the insights of the employees may be particularly useful. Their perception of your HR policies could be substantially different from yours.

Organizational Chart and Related Information

Begin by providing a current organizational chart. When doing so, you should follow very distinct guidelines. However, our example chart (Figure 1) should provide enough guidance to help you if you've not yet developed one. If your organization is particularly large, you may lump several individual positions into one box, as long as the box describes those positions. In Figure 1, for example, the three parlor operators might be represented by only one box if their job descriptions are the same.

The organizational chart allows the employees to see their position in the firm. Also, the chart should show that each person has only one immediate supervisor. We cannot stress this point enough. Defining the managerial structure so that employees directly answer to only one person is very important. Often the partners who own the farm tend to supervise employees together. This results in a situation in which the employee may get conflicting directions. If the employee has only one direct supervisor, this situation can be avoided.

Overview of Current Policies

Whether formalized or not, your firm has HR policies. While we encourage you to formalize those if they are not already, you should complete this section with the most accurate information you have at your disposal. Think about the following individual points as you consider what you would like to include in this section. Also, remember to include information regarding all employees of the business, including the management team.

• Compensation and Benefits (Incorporation of this information may dictate that a portion of the plan be labeled as confidential. Thus, only certain members of the ownership or management team would have rights to view this type of information. you are trying to hide information.)—How much do you pay your employees? At what intervals are they paid (for example, weekly or monthly)? What sort of benefits package is offered? Does the package differ by type of employee? Do you have an incentive plan for employees? Are owner/ operators paid a salary or do they capture retained earnings?
• Job Descriptions and Recruiting — Does each position have a written job description? Are these used to assess the suitability of potential employees? How do you recruit new workers/managers? Provide written copies of job announcements and descriptions in an appendix.
• Training and Standard Operating Procedures —What training is provided for new employees? What training is provided when employees assume new responsibilities? Are common task sequences documented with written standard operating procedures (SOPs)?
• Performance Evaluation and Performance Feedback —Is there a formal mechanism for evaluating workers' performances? If so, how frequently is performance assessed? How does the employee receive the manager's assessment? Are salaries or wages based at least partially on these evaluations?

Penn State Extension provides materials to help develop job descriptions, SOPs, and other important HR documents. Business consultants with expertise in HR management should also be used in many instances to help the business owner develop the best HR policies possible for that particular business.

Human Resource Strategy

Once you have outlined your production and marketing plans, you must evaluate the ramifications of those plans for the firm's human resources. Will the plan require any shift in HR policy? If so, how? For example, an expanding custom heifer grower may need to hire a full-time nutritionist to be sure that the heifers are receiving a properly balanced ration as they develop. The best way to reflect these changes may be to provide one or more additional organizational charts showing how the organization is expected to change over time. In the text, be specific as to what changes are to be made and when.

Also, be sure to describe any changes you plan to make in your HR management. If you don't have formal job descriptions, standard operating procedures, or evaluations, for example, you should consider putting those in writing. Also indicate if the plan will require additional training of existing and new employees. Finally, if expanding, describe where you might find potential employees.

This section is the most crucial from a potential lender's perspective. Here, you should tie together the details in the rest of the plan in terms of how they affect the firm's financial performance. Ultimately, operating a business is about making money. Therefore, this section needs to allow the reader to assess where the firm is and where it intends to go over the planning horizon. Although you should provide current and projected future (“pro forma") financial statements with the plan, they might be best presented in an appendix. This section should be mostly a verbal explanation of the business's finances, with perhaps a few tables to highlight important information.

Because this section is so important, especially if financing is being pursued, we highly recommend that you work with a business consultant, accountant, or other financial advisor to develop it.

Financial SWOT Analysis

Perform a SWOT analysis of the firm's financial position. Unlike some other areas, your frontline workers may not have as much to provide in this analysis. However, depending on the firm's “culture," (the accepted values and norms under which it operates. Some firms may be quite “laid back," allowing employees a good bit of decision-making authority. Others might be more “straightlaced" following a well-established set of rules, whether written or unwritten) you may still want to invite their input.

Review of Current Financial Situation

Here you should highlight the important points of your financial statements (income statement, balance sheet, and statement of cash flows). Focus on the positive aspects, while not ignoring the negative. You do not want to provide a potential lender with an impression that you are trying to hide information. It might help if you work with a financial advisor to develop this narrative.

Provide a table of current outstanding debt. Include the terms of the debt, the lender(s), the principle amount(s), your payment amount(s), how frequently you make payments, and how many payments remain. Furthermore, a table of financial ratios would be useful in providing a snapshot view of the firm. You will want to provide measures of profitability, financial efficiency, liquidity, and solvency. Although your financial advisor may have some specific advice, we provide a few commonly used measures, which are defined in the glossary:

Commonly Used Financial Measures

Profitability.

• Rate of return on assets
• Rate of return on equity
• Profit margin

Financial Efficiency

• Asset turnover ratio
• Operating expense ratio
• Current ratio
• Working capital to value of production ratio
• Leverage ratio
• Debt to asset ratio

Provide other sources of managerial decision-making input. For many farm owners, this is the most difficult facet to monitor. Using a business consultant, a CPA, or some other financial advisor may increase farm profits as you allow some of these individuals to help analyze financial data and make recommendations for you to review.

Financial Strategy

At this point, you need to set forth your plan for financing the firm's operations over the planning period. Where will you get money when you need to purchase a new truck or replace your barn, for example? Present the highlights of the pro forma financial statements as discussed earlier. Also, you should relate your financial plan to your production, marketing, and human resources plans. A time line relating events planned in the other sections to financing may help to clarify this section's message for the reader.

In your discussion, be sure to let the reader know how you will assess financial performance. As in other sections, be specific. Will you require that net income grow at 8 percent per year, for example? Set goals for the measures you have used previously to describe the health of the business. Therefore, you should aim for specific values for your selected measures of profitability, financial efficiency, solvency, and liquidity. Also, do not forget that an information management system should be in place so that the financial data you gather is accurate. (An information management system (IMS) is any system that you can use to track important information regarding financial performance, in this case. Actually, you should have a system of information management that provides high-quality information for each of the four facets of management. This might include a production record-keeping system (DHIA for dairy farms), an accounting system, an inventory list, employee time sheets, and so forth.)

You should be realistic with your plans, yet push yourself. Stated differently, you should plan to succeed, not just survive. If your business is to be viable over the long term, then you should generate returns to grow the business, grow equity, improve your credit-worthiness, and otherwise improve the odds of operating this business well into the future. If the plan covers a major shift in the business's operations, such as a large expansion, then special care is needed to discuss how cost overruns might be handled, when production will begin in a new facility, when debt repayment will commence, and so forth. Although the planning process should reduce the amount of uncertainty associated with such a change, it can never eliminate uncertainty. Therefore, it should be noted that insurance may be used to protect the firm against financial losses that may be associated with operating a business. Be sure to define your insurance needs in this section of the business plan.

Uncertainty should also be accounted for in your financial forecasts. Let the reader know what assumptions you have made when developing the proforma statements. Also, some sensitivity analyses would be useful to show how your statements would change if output or input prices were different from your projections. If appropriate, set forth some contingency plans to be enacted if certain undesired outcomes are realized. For example, if milk production suffers from a hot, dry summer, you should have a contingency plan in place to help cash flow the business until production increases. For example, such a plan might include a revolving line of credit with the local bank.

The body of your business plan should have a final section in which you again tell the reader the highlights of the plan. Highlight the most important features of your plan. Restate your most important goals and briefly mention how you will achieve them. Here again, a time line might help to state what your goals are and when your firm expects to reach them. Remember, you have already provided many details, so keep this section relatively brief, referring the reader to earlier material where necessary.

In this section, draw focus on what your plan means for future profitability, efficiency, liquidity, and solvency. That is, all of your plans will likely affect the farm's financial status. Because this is a business plan, and businesses continue to operate only when profitable, this should be the major thrust. However, remind the reader of what may happen if your assumptions, particularly those related to input and output prices and quantities produced, are not realized. Refer to your contingency plans and sensitivity analyses.

If the business is a family-run operation, as many farms and other small agricultural businesses are, then you may want to include some family goals in your plan. Although you should try to separate family issues from business issues to the extent possible, completely divorcing the two is not always possible. Highlight where business success coincides with success in meeting the family's goals.

Finally, a concluding paragraph should draw the plan together and reinforce for the reader that your firm is committed to working collectively toward the plan's goals. Leave no doubt in the reader's mind that, barring detrimental outside influences, the goals of the plan will be reached.

Throughout this publication, we have pointed out some things that you may want to include in appendices. For example, one appendix might contain your financial statements, both actual and proforma, to which you refer in the Financial Management section. You may also want to include the formal job descriptions you have prepared. Use appendices as you feel appropriate. If you would like to include something that may not be relevant for the body of the manuscript to further describe your operation, then include it as an appendix. To differentiate them, give each new appendix a unique name such as, “Financial Statements" or “SWOT Analysis Results."

One of the most important things you can do to ensure success is to plan for the future. The planning process may take many hours to complete, especially if it is to provide a thorough representation of the firm. However, it will be a valuable asset as it forces a review of the firm and the industry, unites the collective labor force of the firm to work toward a set of common goals, and allows outsiders to gain a detailed understanding of the firm's past, present, and future.

Business planning is not applicable only to large firms. Smaller agricultural businesses, which are often family owned, stand to benefit at least as much from planning as do larger firms. In agriculture, especially agricultural production, the small compete directly with the large. Business planning will help firms of all sizes to better understand their relative positions in the agricultural industry. It will also help the owner to set goals and devise strategies for reaching those goals.

Asset Turnover Ratio

The percentage of total assets earned as gross income. A higher number is generally associated with higher profits. Mathematically, this equals gross income divided by average total productive assets.

Balance Sheet

A financial statement that shows total assets, total liabilities, and owners' equity at a specific point in time. The liabilities and owners' equity represent claims on the firm's assets.

Business Planning

The process of analyzing the firm's strengths, weaknesses, opportunities, and threats, using that information to develop organizational goals, and crafting strategies to reach those goals.

Competitive Advantages

Refers to particular strengths of the firm relative to those of other firms. Some examples are being the first firm in an area to provide custom heifer raising, having a manager with strong direct-marketing skills, or having superior land for growing crops.

Contingency Plans

These are strategies for dealing with potential outcomes that differ from those assumed in the initial planning process. These are most frequently associated with unfavorable outcomes.

Contract Production

Refers to any situation in which the farmer grows crops or livestock for a specific firm under terms negotiated in a contract.

The system of offices located around individual states that provides information and education to farm managers and other individuals. In Pennsylvania, this is Penn State Extension.

Current Ratio

Measures the ability of the firm to pay its current liabilities with its current assets. A ratio greater than one indicates that the firm is liquid and able to cover its current liabilities. Mathematically, this is equal to current assets divided by current liabilities. Current assets include cash and other assets that will be converted to cash or used up within one year. Current liabilities are those that are payable within one year.

Custom Business

Any firm offering to perform services for a farm that would replace those already provided by the farm's labor. Some examples include crop scouting services, custom planting and harvesting, or custom heifer growing.

Debt to Asset Ratio

Indicates the percentage of total assets owned by creditors. For example, a debt to asset ratio of 0.5 means creditors own 50 percent of the farm's assets. Mathematically, this is total debt divided by total assets.

Income Statement

Provides a review of revenues and expenses over a given period of time, often a year. This may also be referred to as a profit and loss statement, earnings statement, or an operating statement.

Leverage Ratio

This represents total farm debt as a percentage of equity. If this ratio is greater than one, for example, then the business is financed by debt more than by equity. Mathematically, this is total debt divided by equity.

Mission Statement

Provides a summary of why the business is in operation. This may include the firm's common values, an overview of products or services, target markets, or other information to provide a clear picture of the firm's purpose.

Represents the difference between gross income and total expenses. Mathematically, this equals gross income minus total expenses. A positive number means that the business is making enough to cover expenses and either reinvest in the company, pay debt more quickly, or increase owner incomes.

Operating Expense Ratio

Represents the percentage of gross income used in operating expenses (those expenses on inputs used in the current period). Mathematically, subtract interest expenses from operating expenses and divide the result by gross income.

Organizational Chart

A graphical representation of the formal chain of command for a firm. It shows who the supervisors are and over whom these have authority.

This indicates that the financial statement is a projection of the future. These should be based on the best possible estimates at the time they are put together.

Profit Margin

This shows the percentage of gross income resulting in profits for the firm. Mathematically, find the value of net income plus interest expense minus the value of operator and unpaid operator labor and divide that value by gross income. Interest expense is added back to net income because it represents a return to the debt-financed assets. Removing the value of operator and unpaid operator labor shows that returns must be enough to cover this value.

Rate of Return on Assets

This shows the return to all assets employed in the business as a percentage of the total assets employed. Mathematically, it is found by dividing the numerator of net income plus interest expense minus the value of operator and unpaid operator labor by the denominator of average total farm assets. Interest expense is added back to net income because it represents a return to the debt-financed assets. Removing the value of operator and unpaid operator labor shows that returns must be enough to cover this value.

Rate of Return on Equity

This shows the returns to equity assets employed in the business as a percentage of the equity assets. Mathematically, it is found by dividing the numerator of net income minus the value of operator and unpaid operator labor by the denominator of average total equity assets. Removing the value of operator and unpaid operator labor shows that returns must be enough to cover this value.

Revolving Line of Credit

A type of credit account in which the borrower has a given credit limit which can be borrowed at any time. A credit card or standing account with an equipment dealer are examples of revolving credit lines.

Risk Management

Refers to any attempt to avoid the possibility of unfavorable outcomes under uncertainty. Insurance and buying on futures and options markets to lock in input or output prices are good examples of tools used in risk management.

Sensitivity Analyses

Refers to using alternative assumptions to determine what the outcome of a financial analysis will be if different outcomes are realized. For example, if developing a proforma income statement, using a range of assumptions associated with output prices helps to show how projected net income will change if prices differ from the base assumption.

Standard Operating Procedures (SOPs)

These are written sequences of steps required to perform a specific task. Milking a cow, for example, requires many steps. A written SOP allows the milker to perform this task in the same way every time the cow is milked.

Statement of Cash Flows

This shows cash income and cash expenses over a specified period of time, often a year. These receipts and payments are typically broken into three categories associated with operations, investments, and financing.

A systematic review of the firm's strengths, weaknesses, opportunities, and threats. This is used to draw focus on what the firm does well and what it may be able to do to take advantage of emerging market opportunities.

Vision Statement

Provides a summary of the firm's most important goals. Firms differ with respect to how specific they state these goals in their business plans. We recommend being as specific as you can comfortably be.

Working Capital to Value of Production Ratio

This represents working capital as a percentage of gross income. Working capital is equal to current assets minus current liabilities. Current assets include cash and other assets that will be converted to cash or used up within one year. Current liabilities are those that are payable within one year.

Additional Resources

See the Penn State Farm Management website for other resources that may be useful as you develop your agribusiness plan.

Prepared by Jeffrey Hyde, assistant professor of agricultural economics, and Sarah Cornelisse, extension associate.

The authors would like to thank Todd D. Davis, extension economist at Clemson University, and Richard Stup, senior extension associate with Penn State Dairy Alliance, for their helpful reviews of an earlier draft of this publication.

• Value-added agriculture
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How to Start a Farm: Beginning Farmers and Ranchers

New to farming? Want to learn how to start a farm? USDA offers dedicated help to beginning farmers and ranchers. USDA considers anyone who has operated a farm or ranch for less than ten years to be a beginning farmer or rancher.

USDA can help you get started or grow your operation through a variety of programs and services, from farm loans to crop insurance, and conservation programs to disaster assistance.

On This Page

How to start a farm operation.

Plan Your Farm Operation

1. Start here! Think about your operation from the ground up and start planning for your business.

Plan your farm

Visit Your Service Center

2. Get in touch with your local Service Center to find programs to support your operation.

Visit A Service Center

Fund Your Farm Operation

3. USDA has spent decades helping new producers find land and money for their businesses.

Fund your farm

Build Your Business

4. Lean on USDA to help you build your operation with sound business and financial knowledge.

Build your Business

Sell Your Farm Products

5. Explore everything about producing, marketing and actually selling your final product.

Sell your products

Maintain Your Farm

6. Take care of your farm operation, and it will take care of you. USDA can help.

Maintain your farm

USDA Support for Beginning Farmers

From farm loans to crop insurance, and conservation programs to disaster assistance, USDA is here to support you and your operation.

Underlined Header Farmer Coordinators

Beginning Farmer and Rancher Coordinators are USDA team members in each state that can help you understand the USDA process and find the right assistance as you are starting out. Reach out to your state's coordinator for one-on-one technical assistance and guidance. They can also connect you with organizations that specifically serve beginning farmers and ranchers.

View Beginning Farmer and Rancher Coordinators

Underlined Header Service Centers

Your local USDA Service Center has staff who can meet with you one-on-one to help you identify USDA programs that meet the needs of your operation, including farm loans and conservation assistance. Service center staff can guide you through the process of preparing and submitting required paperwork, with no need to hire a paid preparer. 

If you need information in a language other than English, we offer free translation services .

Find Your Local USDA Service Center

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After you've registered your farm and set up an individual customer record with your local USDA Service Center, you can sign up for a secure farmers.gov account to access a number of self-service features. For example, you can:

• View loan information, history, and payments.
• Get help requesting financial assistance.
• View, upload, download and e-sign conservation documents.
• Request conservation assistance.
• View, print and export detailed farm records and farm/tract maps.

Learn More About Farmers.gov Accounts

Tools for Farmers

Learn about conservation issues and build a list of concerns to discuss with a local USDA conservation specialist.

Learn about USDA disaster assistance programs that might be right for you by completing five simple steps.

Learn about the farm loans that might be right for you, check your eligibility, and get instructional help with the application forms.

Get Involved

In addition to our farm programs, there are many leadership opportunities for beginning farmers to contribute their voices and experience. Through USDA, you can take advantage of several key opportunities like committee elections, research and promotion programs, and federal advisory committees. 

Connect With Your Agricultural Community

Additional Resources

• Farmers.gov Blog: Beginning Farmers
• Fact Sheet for Beginning Farmers
• Have a Question? AskUSDA
• Get Started! A Guide to USDA Resources for Historically Underserved Farmers and Ranchers
• USDA Small and Mid-sized Farmer Resources
• USDA CARES Partner Portal – Resources for underserved farmers, ranchers, and landowners and partners who work with them

Beginning Farmers Blog Posts

Ask the expert: beginning farmer and rancher q&a with lindsey abentroth, fridays on the farm: from veteran to beginning farmer, farmers.gov dashboard pilot: a gateway into farmer-focused data and information, usda’s support for beginning farmers and ranchers, ask the expert: new to farming because of the pandemic q&a with anne stephens, ask the expert: veterans transitioning to production agriculture q&a with chris groskreutz, ask the expert: beginning farmer and rancher q&a with sarah campbell, new farmers.gov feature enables usda customers to manage farm loans online, find your local service center.

USDA Service Centers are locations where you can connect with Farm Service Agency, Natural Resources Conservation Service, or Rural Development employees for your business needs. Enter your state and county below to find your local service center and agency offices. If this locator does not work in your browser, please visit offices.usda.gov.

Learn more about our Urban Service Centers . Visit the Risk Management Agency website to find a regional or compliance office  or to find an insurance agent near you.

Farm Business Planning

Farm Business Planning is key to beginning farmer success.

It helps beginning farmers :

• Plan for the economic sustainability of a new farm enterprise.
• Obtain funding to purchase land, equipment and other resources from lending institutions, investors and/or grant making agencies.
• Articulate what their farm will look like.

On this page, we compiled free farm business planning resources to help you understand what a formal business plan is, and how to start planning your farm business. Sections include:

• Developing a Farm Business Plan
• Enterprise Budgeting

Enterprise budget resources are included on the farm business planning page because such tools are usually essential in helping you to develop your business plan.

Planning your farm business involves more than is outlined on this page alone. You’ll probably also be interested in funding (loans/grants) , farm incorporation , and risk management . Our  starting a farm page is worth visiting first. Also, you might find the following article helpful, because it touches on many farm business planning topics: Farm Products, What to Charge: Marketing, Price, Calculating Costs, Strategy and Much More .

1. Developing a Farm Business Plan

A  business plan  is a decision making tool that takes the form of a formal document. It states your business goals, why you think you can achieve them, and lays out your plan for doing so. Farm business planning is also a process, not an end product. A business plan is a work in progress, which farm business owners or operators will want to revisit regularly. 

Planning and Funding Your Farm Business  from the Cornell University Small Farms Project has lots of important and useful farm business planning resources.

Rural Businesses  is a web and print publication from the Minnesota institute for Sustainable Agriculture (MISA).

Building a Business Plan for Your Farm: Important First Steps  is a 20 page farm business planning publication that discusses the initial steps to help you move toward writing a formal business plan.

The Center for Agroecology has a Small Farm Business Planning publication that goes over many of the basics in a step by step format.

Building a Sustainable Business: A Guide to Developing a Business Plan for Farms and Rural Businesses is a farm business planning publication available from SARE.

Do I need a Business Plan for my Farm? is a web resource from the New England Small Farm Institute. It’s a great place to get started.

AgPlan  from the University of Minnesota helps rural business owners develop a business plan for free, while also offering sample business plans for ideas, and a way to print or download your plan.

Developing a Farm Business Plan includes several helpful resources from the USDA National Agricultural Library’s Rural Information Center.

Organic Farm Business Planning Page  from North Carolina State University features a number of publications and links related to financial planing for organic farmers.

Agricultural Business Planning Templates and Resources   is an ATTRA publication most relevant to smaller-scale or alternative agricultural entrepreneurs.

Beginning Farmer and Rancher Resources offers comprehensive resources on Bookkeeping and Other Basics ; Cash Flow Budgeting and Managing Debt ; Small Farm and Ranch Income Taxes , and more.

Purdue University’s Center for Food and Agricultural Business  has educational resources to explore, such as the New Ventures in Food and Agriculture in Indiana , which offers business planning assistance.

Purdue University Cooperative Extension offers strategic farm business planning tools for commercial farm producers.

Penn State University College of Agricultural Sciences has many Business Planning tools and information.  Penn State Cooperative Extension has a Developing a Business Plan page. Penn State also has a Farm Business Plan Template that allows you to plug in your information and create a basic business plan.

The U.S. Small Business Administration  works with local partners to counsel, mentor and train small businesses. It is worth getting to know their programs and connect with your local office.

The Martindale Center Reference Desk has an extensive  compilation of links to calculators, applets, spreadsheets, courses, manuals, handbooks, simulations, animations, videos and more. Martindale’s Agriculture Center can be of great use to farmers making business plans.

2. Enterprise Budgets

Enterprise budgets project costs and returns for a particular farm production practice. You can use enterprise budgets to make smart business management decisions, and to help you develop a viable business plan.

Enterprise Budgeting Tools of all sorts from the Agricultural Marketing Resource Center, including organic crop budgeting tools, many vegetable budgeting tools, the crop conversion tool for side-by-side crop comparisons, specialty crop and livestock budgets, hydroponics budgets, wind calculators, composting calculators, manure calculators, distillers grain budgets, biomass calculators and specialty foods calculators.

Introduction to Farm Planning Budgets for New and Beginning Farmers (Virginia Tech)

Importance and Use of Enterprise Budgets in Agriculture   (University of Nevada)

Enterprise Budgeting (Kerr Center)

Organic Specific Enterprise Budgets

• Enterprise Budgets and Production Costs for Organic Production (ATTRA)
• Organic Crop Production Enterprise Budgets and Information   (Iowa State)
• Organic Enterprise Budget (Kansas Rural Center)

More Enterprise Budget Pages and Information

• Enterprise Budgets List (Virginia Cooperative Extension)
• Dairy Sheep Enterprise Budget (Center for Integrated Ag Systems, UW-Madison)
• Crop Budgets (University of Maryland)
• Farm Management Enterprise Budgets (Ohio State)
• Alabama Enterprise Budget Summaries (Alabama A&M and Auburn) 
• Start developing your business plan with the resources at   https://www.beginningfarmers.org/farm-business-planning/
• You can find more gr eat farming resources at   https://www.beginningfarmers.org/additional-farming-resources/

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Canada, British Columbia supporting new and young farmers

From: Agriculture and Agri-Food Canada

News release

New and small-scale farmers will be able to grow their business and help strengthen food security in their communities with the relaunch of the New Entrant Farm Business Accelerator Program.

October 31, 2023 - Victoria, British Columbia - Agriculture and Agri-Food Canada

Farmers can now apply for the first phase of the program which provides support for business planning and a growth strategy. The second phase will support the implementation of that growth strategy and includes funding for on-farm infrastructure and equipment, such as greenhouses, tractors and irrigation systems.

The new program is an update to the Small Business Acceleration Pilot Program launched in 2020 as part of the Province’s COVID-19 Stronger BC economic recovery plan. It supported more than 60 farm ers. The updated program builds on the success of the pilot and provides support to farmers so they can grow their diverse farm businesses throughout B.C.

The pilot program supported operations such as Puzzlegrass Farm in the Naramata region, owned and operated by first generation farmers, Erin Abercrombie and Madison Whale. The women operate a community-supported agriculture program from the farm. They received support to help buy materials to build a small farm-store outlet, a shed and a seedling greenhouse to increase vegetable production.

New orchardists Trent Mason and Emily Chambers, who own Blue Canoe Orchards in Creston, also received funding from the pilot to purchase a tractor. This helped them increase sales productivity from their orchard with almost 900 cherry trees.

Applications for the first phase of the program will be accepted October 31 until November 30, 2023 , or until funds are fully allocated. Applicants who complete Phase 1 are eligible to apply for Phase 2 funding.

The program is receiving $600,000 through the Sustainable Canadian Agricultural Partnership, a 5-year (April 1, 2023, until March 31, 2028) $3.5-billion investment by federal, provincial and territorial governments to strengthen the competitiveness, innovation and resiliency of the agriculture, agrifood and agriculture‐based products sector. This includes $1 billio n in federal programs and activities and a $2.5 billion commitment that is cost-shared 60% federally and 40% provincially / territorially for programs that are designed and delivered by provinces and territories.

“Young farmers are the future of Canada’s agriculture and agri-food sectors, and it’s important that we support them. Investments through this program will provide more farmers in British Columbia with the tools they need to succeed and contribute to a strong, local food supply.” - The Honourable Lawrence MacAulay, Minister of Agriculture and Agri-Food

“We recognize the barriers that new and young farmers face, which is why this program is so important for growing farm businesses and helping B.C. entrepreneurs flourish. By providing this support, farmers can map out their future and then purchase what they need to succeed as a business, while also strengthening the economy and food supply in their communities.”  - Pam Alexis, B.C.'s Minister of Agriculture and Food

"The funding from the program allowed us to build infrastructure on our farm that was necessary to grow our business. Not only did it improve our farm, but we were able to hire a contractor who was able to start her own business as well. For that we are so grateful!" - Madison Whale, owner/operator, Puzzlegrass

“We are extremely grateful for the support from the pilot program that helped us purchase a new tractor, which is essential to our day-to-day operations at Blue Canoe Orchards. This has helped us work towards our goals of production and value-added activities.” - Emily Chambers, owner/operator, Blue Canoe Orchards

Quick facts

The pilot program supported 64 ap plicants in 54 different communities; 36% were under the age of 35, 73% identified as women, 11% self-identified as Indigenous, 5% as having a disability, and 73% as having farmed for less than 5 years . 

Other participants of the pilot program used the funding to invest in on-farm infrastructure such as greenhouses, tractors, irrigation systems, a flash freezer and cold storage, pens for smaller animals like chickens and hogs, and a rainwater harvesting system.

A New Entrant Farm Business is defined as a farm that has not reported farm income for more than 5 years.  

The B.C. Agri-Business Planning Program is also open to applications to support agricultural producers and food and beverage processors with agri-business skills, leadership development, and specialized planning such as disaster preparedness and recovery.

Associated links

• B.C. Agri-Business Planning Program
• New Entrant Farm Business Accelerator program information

Francis Chechile Press Secretary Office of the Minister of Agriculture and Agri-Food [email protected]

Media Relations Agriculture and Agri-Food Canada Ottawa, Ontario 613-773-7972 1-866-345-7972 [email protected] Follow us on  Twitter ,  Facebook ,  Instagram , and  LinkedIn   Web:  Agriculture and Agri-Food Canada

Dave Townsend Government Communications and Public Engagement Ministry of Agriculture and Food 250-356-7098 250-889-5945 (mobile)

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B.C. Agri-Business Planning Program

Description.

The B.C. Agri- Business Planning Program offers two distinct streams of support for agri-businesses:

• Specialized business planning  to enable producers and processors to make more informed decisions and strengthen their business
• Disaster recovery planning  to help producers implement an immediate and long-term disaster recovery plan

Eligible Applicants

• A Primary Agriculture Producer producing agricultural products that are 100% grown or raised in B.C, and the land where your agricultural products are produced is classified as a farm by the BC Assessment Authority; OR
• A food processor selling or marketing a product processed in B.C. (i.e. processing food, beverages or agriculture products that are processed and packaged in B.C. with 51% or more of the direct cost of producing the product in its final form – i.e. the sum of raw materials, direct labour, variable processing, and packaging – originating in B.C.. When raw materials are available in sufficient quantities from B.C. producers, they must be used).
• You have not received support from the Agri-Business Planning Program for the same eligible activities for which you are now applying since October 1, 2018.
• If approved, you will not exceed the annual maximum funding contribution of $10,000 per fiscal year (April to March) for eligible individual applicants or eligible applicants with common partners or shareholders.
• You are presently actively engaged in the farming or processing entity (i.e. participate in the day-to-day operations of the business) and you, as the owner(s) of the business, are a resident(s) of British Columbia.
• You reported total annual gross revenues greater than $30,000/year in the previous year to Canada Revenue Agency.

For the Disaster Recovery Stream,  in addition to the above criteria, you have been living in an area where either:

• A local government issued an evacuation alert or order due to a disaster, such as fire or flood, since 2017;
• Where the Canada Food Inspection Agency (CFIA) or the Chief Veterinary Officer of B.C. has declared an incident whereby the B.C. Foreign Animal Disease Emergency Support Plan (BC FADES Plan) was activated since 2018; OR
• The Chief Veterinary Officer of B.C. has issued an emergency order under Section 59 of the B.C. Animal Health Act since 2018.

Eligible Expenses

• Business Structures:  identification and evaluation of potential business structures
• Production Economics:  development of production systems and/or strategies
• Business Strategy:  development of a strategic plan
• Financial Analysis : development of financial analysis
• Value Added Ventures:  development of a business plan for a new value added venture
• Risk Assessment and Mitigation:  assessment and development of a business and financial risk management system or strategy
• Human Resources:  development and implementation of a strategic Human Resource Plan
• Succession/Transition Planning:  development and preparation of a Farm Succession Plan

Deadline Date

Contact Name: B.C. Ministry of Agriculture

Phone Number: 1-888-221-7141

E-mail Address: [email protected].

Website: https://www2.gov.bc.ca/gov/content/industry/agriculture-seafood/programs/agri-business-planning-program#disaster_recovery

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• Location: British Colombia

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Canada, B.C. supporting new and young farmers

Honourable Pam Alexis

Email: [email protected]

Translations

News release, media contacts, dave townsend, annie cullinan, agriculture and agri-food canada.

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New and small-scale farmers will be able to grow their businesses and help strengthen food security in their communities with the launch of the New Entrant Farm Business Accelerator Program.

“Young farmers are the future of Canada’s agriculture and agrifood sectors, and it’s important that we support them,” said Lawrence MacAulay, federal Minister of Agriculture and Agri-Food. “Investments through this program will provide more farmers in British Columbia with the tools they need to succeed and contribute to a strong, local food supply.”

Farmers can apply for the first phase of the program, which provides support for business planning and a growth strategy. The second phase will support the implementation of that growth strategy and includes funding for on-farm infrastructure and equipment, such as greenhouses, tractors and irrigation systems.  

“We recognize the barriers that new and young farmers face, which is why this program is so important for growing farm businesses and helping B.C. entrepreneurs flourish,” said Pam Alexis, B.C. Minister of Agriculture and Food. “By providing this support, farmers can map out their future and then purchase what they need to succeed as a business, while also strengthening the economy and food supply in their communities.”

The new program is an update to the Small Farm Business Acceleration Pilot Program launched in 2020 as part of the Province’s COVID-19 Stronger BC economic recovery plan. It supported more than 60 farmers. The updated program builds on the success of the pilot and provides support to farmers so they can grow diverse farm businesses throughout B.C.

The pilot program supported operations such as Puzzlegrass Farm in the Naramata region, owned and operated by first-generation farmers Erin Abercrombie and Madison Whale. The women operate a community-supported agriculture program from the farm. They received support to help buy materials to build a small farm-store outlet, a shed and a seedling greenhouse to increase vegetable production.

New orchardists Trent Mason and Emily Chambers, who own Blue Canoe Orchards in Creston, also received funding from the pilot program to purchase a tractor. This helped them increase sales and productivity from their orchard with almost 900 cherry trees.

Applications for the first phase of the program will be accepted Oct. 31 until Nov. 30, 2023, or until funds are fully allocated. Applicants who complete Phase 1 are eligible to apply for Phase 2 funding.

The program is receiving $600,000 through the Sustainable Canadian Agricultural Partnership, a five-year (April 1, 2023 until March 31, 2028), $3.5-billion investment by federal, provincial and territorial governments to strengthen the competitiveness, innovation and resilience of the agriculture, agrifood and agriculture‐based products sector. This includes $1 billion in federal programs and activities and a $2.5-billion commitment that is cost-shared 60% federally and 40% provincially/territorially for programs that are designed and delivered by provinces and territories.

Madison Whale, owner/operator, Puzzlegrass Farm –

"The funding from the program allowed us to build infrastructure on our farm that was necessary to grow our business. Not only did it improve our farm, but we were able to hire a contractor who was able to start her own business as well. For that we are so grateful."

Emily Chambers, owner/operator, Blue Canoe Orchards –

“We are extremely grateful for the support from the pilot program that helped us purchase a new tractor, which is essential to our day-to-day operations at Blue Canoe Orchards. This has helped us work towards our goals of production and value-added activities.”

Quick Facts:

• The pilot program supported 64 applicants in 54 different communities: 36% were under the age of 35; 73% identified as women; 11% self-identified as Indigenous; 5% as having a disability; and 73% as having farmed for less than five years.
• Other participants in the pilot program used the funding to invest in on-farm infrastructure such as greenhouses, tractors, irrigation systems, a flash freezer and cold storage, pens for smaller animals such as chickens and hogs, and a rainwater harvesting system.
• A New Entrant Farm Business is defined as a farm that has not reported farm income for more than five years.
• The B.C. Agri-Business Planning Program is also open to applications to support agricultural producers and food-and-beverage processors with agri-business skills, leadership development and specialized planning, such as disaster preparedness and recovery.

Learn More:

For application intake for the B.C. Agri-Business Planning Program, visit: https://www2.gov.bc.ca/gov/content/industry/agriculture-seafood/programs/agri-business-planning-program

New Entrant Farm Business Accelerator program information:  https://www2.gov.bc.ca/gov/content/industry/agriculture-seafood/programs/new-entrant-farm-business-accelerator-program

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Preparing an Agri-Business Plan

This is a simple to use agri-business planning guide and has been successfully integrated in training programmes devoted to agri-business enterprise development. It provides for an easy to use process of developing a business plan and is also furnished with a glossary of terms.

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Building a Business Plan for Your Farm: Important First Steps

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12: Business Plans

What is a business plan.

A business plan is a document that helps you to organize and succinctly summarize the vision you have for your business. The plan contains the operational and financial objectives of a business, the detailed plans and budgets showing how the objectives are to be realized.

A good business plan will contain the following:

• Your business vision, mission statement, key values, and goals
• Description of the product(s) you intend to produce
• Strengths, Weaknesses, Opportunities and Threats the business may experience are described
• Production plans
• Marketing plans
• Estimated start-up costs
• Information on your legal structure and management team
• Current financial statements or projected financial statements.
• Resume or brief explanation of your background and relevant experience
• Less than 10 total pages so that people actually read it

Helpful Publications for Writing a Business Plan

General Business Resource Publications:

• Starting an Ag-Business? A Pre-Planning Guide http://publications.dyson.cornell.edu/outreach/extensionpdf/2004/Cornell_AEM_eb0408.pdf
• Business Transfer Guide: Junior Generation http://publications.dyson.cornell.edu/outreach/extensionpdf/2016/Cornell-Dyson-eb1605.pdf
• Producing a Business Plan for Value-Added Agriculture http://publications.dyson.cornell.edu/outreach/extensionpdf/2007/Cornell_AEM_eb0708.pdf
• Business Planning for the Agriculture Sector: A Guide to Business Plan Development for Start-up to Mid-size Operations http://publications.dyson.cornell.edu/outreach/extensionpdf/2010/Cornell_ pdf
• Building a Sustainable Business (Sustainable Agricultural Research Education (SARE)Publications) sare.org/publications/business.htm 280 pages of education and practical exercises to guide you through the financial, management, and interpersonal skills needed to start a successful farm business. Order hard copy for $17 or download PDF online for free.

Cornell Cooperative Extension Publications for Specific Commodities:

• Landscape Business Planning Guide http://publications.dyson.cornell.edu/outreach/extensionpdf/2003/Cornell_AEM_eb0313.pdf
• Writing a Business Plan: A Guide for Small Premium Wineries http://publications.dyson.cornell.edu/outreach/extensionpdf/2002/Cornell_AEM_eb0206.pdf
• Writing a Business Plan: An Example for a Small Premium Winery https://ageconsearch.umn.edu/bitstream/122203/2/Cornell_AEM_eb0207.pdf

Getting Help Writing a Business Plan

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20 Tips You Should Consider When Creating Your AG Business Plan

by FCSC | May 28, 2024 | FCSC Blog , Industry Insights

Embarking on an agricultural venture, whether it’s running a beef ranch out East or managing a large produce business, is both thrilling and daunting at the same time. Creating an effective, sustainable, and profitable business plan from which to run your entire company appears overwhelming at first glance. However, our Farm Credit of Southern Colorado team is here to help you create a solid business plan or recreate one you already have in place to improve upon. We fully understand the myriad considerations of starting or enhancing your agricultural enterprise. From navigating legal structures to defining your goals and objectives, establishing governance strategies, and making crucial decisions, we’ve got you covered every step of the way.

Let us make the development of this critical document easier for you! We’ve put together a guide that walks you through all the intricacies of organizing a new plan and ensures your journey toward viability is smooth sailing.

How to Create a Helpful Business Plan for Your Farm

A well-crafted business plan is one of the most important foundational pieces of planning for success in the agricultural realm. Whether you’re drafting your very first business plan or revamping an existing one, it’s essential to cover all your bases to be well-prepared for all situations. Here are some key points to consider covering within your plan:

1. Operational Plan: Map out your vision, your mission, and the strategies you will use to achieve your goals. A clear roadmap will guide your actions and keep you focused on your goals.

3. Set Goals and Budgets: Creating a business growth strategy can be more manageable when you start from where you would like your business. Goals give you focus, create budgets, and help you understand if your plan is reasonable. They can also validate whether you’re on the right growth path.

4. Licenses and Certifications: While every farming operation’s certification and license will differ depending on the type of product they produce, it’s crucial to complete your research and ensure you are fully certified and licensed where you need to be. Ensure there is a yearly check-in for reestablishments of all documentation as well.

5. Company History: Record all the pivotal moments in your business from its origins to the present day to organize milestones, accomplishments, and the work of influential figures into a cohesive narrative. It is helpful to record your farm’s progress and story.

6. Inventory: Markup a consistent monthly or quarterly game plan to check in and count your farming inventory. Make sure to include physical count, spot checking, cycle counting, and new product ordering, amongst any other item nuances you may have in your operation.

7. Establish Sales and Distribution Channels: Identify the most suitable sales and distribution channels for your agricultural products to calculate your potential net profit. Explore options such as direct business-to-consumer, partnerships and networks with distributors, and growth paths to get into larger markets and supply chains.

8. Financing Opportunities: Find ways to obtain financing, grants, or loans to further your growth and expansion. Identify potential sources of income and create a comprehensive budget to support your business goals, including forward acquisitions and other growth options.

9. Emergency Protocols: A guide that includes roles, responsibilities, relevant contact information, and resources available in the case of emergency. This plan should consist of assessing damage, protecting property, minimizing damage or business disruptions, and determining the appropriate actions after the incident.

10. File Records: Keep proper records of finances, transactions, inventories, and other vital information to track progress and make informed decisions. Accurate recordkeeping is critical for compliance, financial analysis, and strategic planning.

11. Risk Management: Identify potential risks and develop strategies to mitigate them, protecting your business from unexpected challenges. Engaging and managing risks will help protect your assets and business continuity.

13. Mental Health: Prioritize self-care and well-being to ensure resilience and sustainability. Farm work can be demanding, and maintaining mental and emotional well-being is essential to long-term success.

14. Field Transition Plan: Define follow-up procedures and plans to ensure a smooth transition of ownership and operations. Succession planning is essential to preserve the legacy of your business and ensure its continuity across generations.

15. Environmental Stewardship: Create a map to implement sustainable farming practices, conserve natural resources, and promote biodiversity. A solid hold on your business’ sustainable operations is crucial to appeal to the current customer market in this greener age.

16. Environmental Preparedness: Due to weather and environmental factors like droughts, freezing temperatures, hail, pests, and diseases, you must be prepared to plan and react to each. Adapting to climate change and reducing environmental risks requires careful planning and adaptation that fits your personal business needs.

17. Knowledge Expansion: Ensure you have a game plan encouraging you and your employees to expand their knowledge bases and improve their expertise constantly. Focusing on further education is the steppingstone to sustainability and diversification within your organization.

18. Growth Strategy: Conduct a detailed outline that lists your actions to expand operations, increase revenue, and boost market reach. You’ll want to evaluate the financial, market, and industry positions to establish clear objectives to help your business develop over time.

19. Labor and Workload: Farming can be physically demanding and labor intensive, requiring long hours, especially during critical periods such as planting or harvesting. Managing and coordinating workers’ energy can be difficult, especially in large operations.

20. Marketing: Create a comprehensive marketing strategy to promote your product or service, reach your target audience, and generate sales. Effective marketing strategies will help you build brand awareness, attract customers, and generate revenue. Utilize social media platforms to target your audience directly.

With Farm Credit of Southern Colorado by your side, you’ll be equipped with the knowledge, resources, and support you need to thrive in the competitive agricultural landscape. Our team is here to help not only with the ag financial and ag insurance side of things but also with your farm’s business planning and operational logistics. We take pride in also being an educational resource for our customer-owners, so never hesitate to ask for assistance ! Let’s embark on this journey together and pave the way for your local agricultural venture’s success.

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Business Planning

Why create a business plan?

For many beginning farmers, writing a business plan can seem like a chore, a necessary evil, or at worse, an insurmountable challenge that always falls to the bottom of the to-do list. For the lucky few, business planning is interesting, motivating, and fun. Before we get into the nuts and bolts of how to write a business plan, consider why farmers need them—who are the potential audiences and why they are so important? We’ll also break down the components of a business plan into manageable bites, offer the best resources and examples we know of, and show you how writing a business plan is a creative act, akin to designing and building your farm. First things first, why is it so important for farmers to write business plans?

Convincing your Funders: Any person or entity who loans or gives a business money will want to see a business plan. Farms are no exception. These include banks, credit unions, the Farm Service Agency, and private entities. Most lenders require it, and will scrutinize business plans to see that farmers have considered potential risks, assessed their competition, understand their assets, products and human resources inside out, and developed a solid marketing plan.

Creating a Roadmap: Once farmers hit the ground, a solid business plan becomes invaluable. Whether the farm is run by an individual, a family, or a partnership, front loading planning and research will make for a smoother transition into running the business. Remember that business plans are working documents. Nothing written is set in stone. In fact, being nimble and responsive to internal and external changes makes farm businesses more successful.

Start Your Business Plan  - A step by step guide for writing your own business plan.

Refine Your Business Plan  - Guides and resources to make your business plan relevant for financing and other farm programs. 

Resources for Business Planning  - Additional resources to help you build an effective business plan.

Sample Business Plans  - Examples of real farm business plans.

Farm Business Planning

Planning is essential to any business, no matter how large or small your inventory, payroll, and bank account. To be sustainable and profitable a farm operation must have a clear understanding of production, marketing, finances, and labor. Having these plans mentally is not enough! Taking time to formulate thoughts, evaluate your business, devise a strategy, and anticipate possible problems will help your business be successful. The Farm Business Planning tools on this page will help put you on the right track.

Accompanying Resources

• Business Plan Worksheets (Microsoft Excel) Financial worksheets required for a business plan. Complete these on a yearly basis for your farm. Before using the worksheet, save a copy on your personal computer.  
• Greenway Farm(pdf) Greenway Farm Worksheet (pdf)  
• Hayin Beef Acres (pdf) Hayin Beef Acres Worksheet (pdf)  
• Fall River Floral Farms (pdf) Fall River Floral Farms Worksheet (pdf) Fall River Floral Farms Worksheet (Microsoft Excel)

For more information about the Farm Business Planning Workbook and resources, contact: Shannon Dill, Extension Educator; University of Maryland-Talbot County  Phone: (410) 822-1244 Email: [email protected]

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AgriBusiness Planning & Analysis

The Agribusiness Planning and Analysis (APA) program provides business education and support for Agribusiness professionals in the area. The APA coordinator works primarily one on one with farmers to meet their businesses' specific and unique needs. Whether you are a beginner or an experienced farmer the program is designed to assist you with the business know-how to meet your goals.

The APA program has been a part of area agriculture since 1972. The program has served hundreds of operations that contributed millions of dollars to the area's economy.

We help you take the data from the field to the office and create valuable business reports.

Areas of focus include:

Efficient Records

Profit/Loss Reports

Balance Sheets

Direct Customer Marketing

Cost of Production Analysis

Credit Management

Tax Estimates

Estate Planning

Our goal is to empower you with the tools to achieve your business goals. Understanding where you currently are helps you create a plan to get to where you want to be. ​

Can you find the information you need, when you need it?

How much does a product cost to produce?

Are you reaching your customers? (direct consumer sales)

How do these skills improve your agriculture operation: ​

Detailed information for quality business decisions

Improved information for government programs & insurance policies

Supporting reports for loans and financial support

Information and preparation for taxes

AgriBusiness growth and outreach

All information is kept strictly confidential. Much of the training is one-on-one so your specific business questions can be answered. Contact The Career Center for current tuition. The APA program is part of Adult Technical Training at The Career Center.

Annual Analysis

Agriculture tends to be an isolated profession, knowing how you stack up to your neighbors is not always possible. However, when completing an annual analysis our participants take a detailed look at their annual business transactions, where their money went, and on what enterprises. Allowing the opportunity for realistic future estimates and decisions.

AgriBusiness Planning & Analysis Member Banquet

APA holds an annual in-person educational event partnered with OSU Extension. Various presenters discuss the latest information on agriculture topics. In addition, vendors and agencies are set up to discuss programs and products that may be beneficial to farmers in the valley. AG Night is held annually in February, information can be found on our Facebook page or by calling the APA Coordinator.

Have some questions? We are here to help!

740.373.2766 Ext. 2019

WASHINGTON, June 26, 2024 — The U.S. Department of Agriculture (USDA) is expanding the Food Safety Certification for Specialty Crops (FSCSC) program to now include medium-sized businesses in addition to small businesses. Eligible specialty crop growers can apply for assistance for expenses related to obtaining or renewing a food safety certification. The program has also been expanded to include assistance for 2024 and 2025 expenses. Producers can apply for assistance on their calendar year 2024 expenses beginning July 1, 2024, through Jan. 31, 2025. For program year 2025, the application period will be Jan. 1, 2025, through Jan. 31, 2026. 

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USDA Expands Funding Opportunities for Specialty Crop Growers to Help Offset On-Farm Food Safety Expenses for 2024 and 2025

1400 Independence Ave. SW Washington, DC 20250 [email protected]

WASHINGTON , June 26, 2024 — The U.S. Department of Agriculture (USDA) is expanding the Food Safety Certification for Specialty Crops (FSCSC) program to now include medium-sized businesses in addition to small businesses. Eligible specialty crop growers can apply for assistance for expenses related to obtaining or renewing a food safety certification. The program has also been expanded to include assistance for 2024 and 2025 expenses. Producers can apply for assistance on their calendar year 2024 expenses beginning July 1, 2024, through Jan. 31, 2025. For program year 2025, the application period will be Jan. 1, 2025, through Jan. 31, 2026. 

“The Food Safety Certification for Specialty Crops program helps producers cover costs of on-farm food safety certification in order to meet regulatory requirements and access additional markets,” said Farm Service Agency (FSA) Administrator Zach Ducheneaux. “We recognize the value in supporting specialty crop producers incurring these expenses, so we’re not only continuing the program but also improving access by expanding program reach to include medium-sized operations.” 

Program Details   

FSCSC assists specialty crop operations that incurred eligible on-farm food safety certification and expenses related to obtaining or renewing a food safety. FSCSC covers a percentage of the specialty crop operation’s cost of obtaining or renewing its certification, as well as a portion of related expenses.  

Eligible FSCSC applicants must be a specialty crop operation; meet the definition of a small or medium-size business and have paid eligible expenses related to certification.  

• A small business has an average annual monetary value of specialty crops sold by the applicant during the three-year period preceding the program year of no more than $500,000. 
• A medium size business has an average annual monetary value of specialty crops the applicant sold during the three-year period preceding the program year of at least $500,001 but no more than $1,000,000.  

Specialty crop operations can receive the following cost assistance:  

• Developing a food safety plan for first-time food safety certification.  
• Maintaining or updating an existing food safety plan.  
• Food safety certification.  
• Certification upload fees.  
• Microbiological testing for products, soil amendments and water.  
• Training.     

FSCSC payments are calculated separately for each eligible cost category. Details about payment rates and limitations are available at farmers.gov/food-safety .  

Applying for Assistance   

Interested applicants have until Jan. 31, 2025, to apply for assistance for 2024 eligible expenses. FSA will issue payments as applications are processed and approved. For program year 2025, the application period will be January 1, 2025, through January 31, 2026. FSA will issue 50% of the calculated payment for program year 2025 following application approval, with the remaining amount to be paid after the application deadline. If calculated payments exceed the amount of available funding, payments will be prorated. 

Specialty crop producers can apply by completing the FSA-888-1, Food Safety Certification for Specialty Crops Program (FSCSC) for Program Years 2024 and 2025 application. The application, along with the AD-2047 , Customer Data Worksheet and SF-3881 , ACH Vendor/Miscellaneous Payment Enrollment Form , if not already on file with FSA, can be submitted to the FSA office at any USDA Service Center nationwide by mail, fax, hand delivery or via electronic means. Alternatively, producers with an eAuthentication account can apply for FSCSC online . Producers interested in creating an eAuthentication account should visit farmers.gov/sign-in . 

Specialty crop producers can also call 877-508-8364 to speak directly with a FSA employee ready to assist. Visit farmers.gov/food-safety for additional program details, eligibility information and forms needed to apply. 

More Information   

To learn more about FSA programs, producers can contact their local USDA Service Center. Producers can also prepare maps for acreage reporting as well as manage farm loans and view other farm records data and customer information by logging into their farmers.gov account . Producers without an account can sign up today .  

USDA touches the lives of all Americans each day in so many positive ways. Under the Biden-Harris administration, USDA is transforming America’s food system with a greater focus on more resilient local and regional food production, fairer markets for all producers, ensuring access to safe, healthy and nutritious food in all communities, building new markets and streams of income for farmers and producers using climate smart food and forestry practices, making historic investments in infrastructure and clean energy capabilities in rural America, and committing to equity across the Department by removing systemic barriers and building a workforce more representative of America. To learn more, visit usda.gov .   

USDA is an equal opportunity provider, employer and lender.

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Recent news, usda announces 2024 wool and mohair marketing assistance loan rates.

WASHINGTON, Dec. 27, 2023 – The U.S. Department of Agriculture (USDA) Commodity Credit Corporation today announced Marketing Assistance Loan rates for 2024-crop graded wool by micron class. Loan rates for ungraded wool and mohair are unchanged and remained the same from the prior crop year.

USDA Appoints New Members to the Federal Advisory Committee for Urban Agriculture and Innovative Production

Agriculture risk coverage and price loss coverage programs receive 2018 farm bill one year extension, farmers can now enroll for the 2024 crop year.

Dacotah Bank Scholar in Agricultural Economics/Agribusiness

South Dakota State University (SDSU) and Northern State University (NSU) have joined forces in a unique partnership to enhance and enable curriculum offerings to students at both institutions. The partnership between SDSU and NSU is motivated by, and in response to, the need for community bankers to better understand the financial and banking services that are essential to South Dakota’s agricultural and agribusiness sector. By offering the courses that comprise SDSU’s agribusiness minor and NSU’s banking and financial services minor online, students at both institutions have the opportunity to graduate with significantly improved career preparation.

This initiative was made possible through the financial support of Dacotah Bank. The Dacotah Bank Scholars at each institution will lead the collaboration through curriculum development, recruitment and advising and engagement with industry. Nicole Klein , professor of agricultural marketing and farm and ranch management, is the SDSU Dacotah Bank Scholar in agricultural business. Joining her in the collaboration Todd Muehler and Robert Preston , assistant professors of banking and financial services, are the NSU Dacotah Scholars in banking and financial services.

The Dacotah Bank Scholars lead the collaboration and are responsible for its promotion, student recruitment and advising, industry engagement and course and curricula development. They will work with undergraduate and graduate students and faculty colleagues at SDSU and NSU, as appropriate, on case studies, consultancies, customized problem-solving investigations and research.

Banking and Financial Services Minor

SDSU students can receive a banking and financial services minor from NSU. The banking and financial services minor offers a broad understanding of the domestic and international financial services business and prepares students for careers as leaders in the global banking and financial services industry. SDSU students can complete the 18-credit Banking and Financial Services minor by taking four courses (all available online) beyond the SDSU Management Core.

Learn more about the Banking and Financial Services minor in the online catalog .

Agricultural Business Minor

NSU students can receive an agricultural business minor from SDSU. The agricultural business minor builds on a foundation of economic theory as it relates to South Dakota’s largest industry and prepares students for careers in production agriculture, rural banking, agribusiness, finance and marketing. NSU students can complete the 18-credit Agricultural Business minor by taking three agricultural economics courses (all available on-line) beyond the NSU core business classes.

Learn more about the Agricultural Business minor .

Empowering small emerging commercial farmers: A Mozambique success story

Blessings botha.

Having seen so many smallholder farmers trapped in low agricultural productivity in Mozambique, I had always wondered what models could help transform the sector. It turns out that a little boost in Mozambique can help emerging smallholder farmers create partnerships with and pull others out of subsistence farming . This approach has the potential to gradually reshape the narrative for Mozambican farmers, a staggering 98% of whom currently rely on subsistence farming.

On a recent trip to the Meconta district, Nampula Province, I met Laura José, an inspiring 43-year-old farmer from the Naperere community. Laura harbored a deep-seated aspiration to become a successful farmer and uplift fellow subsistence farmers to enhance their agricultural output. Her journey as a small emerging commercial farmer on a 6-hectare plot of land gained momentum when she learned about an opportunity through the World Bank-supported Sustainable Rural Economy Program, MozRural . This initiative solicited business plans from small emerging commercial farmers to bolster agricultural production by collaborating closely with subsistence smallholder farmers.

This model facilitated by Laura involved small emerging commercial farmers doubling as private sector extension agents, offering support and commercial services to networks of smallholder subsistence farmers. These emerging farmers crafted business plans, underwent competitive evaluation, and, upon success, contributed a minimum of 20% towards the investment and remained matched by the project. This funding covered productive assets, agricultural inputs, and technical assistance, addressing the challenges of low agricultural productivity in Mozambique due to various factors like limited access to inputs and markets and inadequate extension services and mechanization. Among the assets included a tractor, which helped to increase her mechanization efforts on her land and assist other smallholder farmers she worked with.

Although Mozambique's agricultural sector contributes significantly to GDP and employment, it faces productivity issues compared to its regional counterparts. Laura was among the 608 smallholder emerging commercial farmers supported by MozRural, which has disbursed $51 million in matching grants. Her business plan, approved in 2022, allocated funds for sesame, maize, and pigeon peas production, including acquiring a tractor and input kits.

Through Laura's initiative, 80 smallholder subsistence farmers, including 21 women, received support with agricultural inputs, market assurance, and extension services. Over two agricultural campaigns, Laura expanded her farmland to nearly four times its original size, with a notable focus on sesame production to meet market demand. This expansion led to a three-fold increase in sesame production and a substantial rise in revenues - eight-fold. Improved use of inputs, technical assistance, and adoption of agronomic practices contributed to enhanced yields and significant revenue growth for Laura, enabling her to substantially improve her family's living standards.

The success of Laura's venture underscores essential lessons:

• Ownership drives commitment : Laura's personal investment in her business plan fostered a sense of ownership and responsibility, crucial for sustainable growth and effective partnerships with smallholder farmers.
• Group mobilization enhances cohesion: Organizing farmers into groups promoted unity towards shared goals, facilitating targeted extension services and collective bargaining for better prices.
• Assured markets stimulate production: Laura's role as an aggregator and buyer provided smallholder farmers with market security, reducing post-harvest losses and encouraging increased production.
• Technical assistance spurs growth: Integrated support for improved inputs and technical assistance yielded significant productivity gains, highlighting the importance of technological advancement in agricultural development.

Moving forward, efforts should focus on strengthening market linkages for aggregated produce, potentially exploring value-addition opportunities. Access to market information, digital marketing tools, and infrastructural improvements will be critical. Moreover, integrating resilience measures to combat the effects of climate change is imperative for sustainable agricultural production and broader societal benefits.

Laura's story exemplifies the transformative potential of empowering small farmers. She realized her aspirations by leveraging partnerships, innovation, and a commitment to agricultural advancement. She catalyzed positive change within her community, laying the foundation for a more prosperous agricultural sector in Mozambique.

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Table salt vs. sea salt: What's the difference?

Salt is the most common ingredient in foods, which is probably why 90% of Americans consume more salt than the recommendation. This can be a problem as an excess of sodium can lead to high blood pressure, increasing the risk of heart disease and stroke. Those looking for lower sodium options often assume that sea salt is a “better for you” salt. According to the American Heart Association, 61% of survey respondents thought that sea salt is a lower sodium alternative to table salt. However, both salts contain approximately 40% sodium. The difference is that sea salt has larger granules, and therefore contains slightly less sodium by volume.

Table salt is produced by mining underground salt deposits. It’s then processed to remove other minerals and impurities and ground into a fine texture. Sea salt, on the other hand, is produced by the evaporation of saltwater. It’s minimally processed which means minerals, such as magnesium, calcium, potassium and iron remain, though they are only present in trace amounts. These minerals are present in various other foods so it’s not critical that we get them through salt. However, iodine is an essential nutrient, meaning our body cannot make it and therefore, we need to obtain it through food. Table salt has been fortified with iodine for many years, thus decreasing the number of people in the U.S. with iodine deficiency and goiters. Most sea salts, however, do not have iodine added. When it comes to which salt to choose, it depends on your taste buds, but if you don’t consume foods naturally present with iodine, such as dairy products and fish, you may not want to fully switch to a non-iodized salt. 

Sources: American Heart Association. Sea Salt vs Table Salt.  Centers for Disease Control and Prevention. Prevalence of Excess Sodium Intake in the United States — NHANES, 2009–2012.

About the Author

Jenna Smith  is a Nutrition and Wellness Educator with University of Illinois Extension, serving Livingston, McLean, and Woodford Counties. Smith uses her experience as a registered dietitian nutritionist to deliver impactful information and cutting-edge programs to Livingston, McLean, and Woodford Counties and beyond.

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June 25, 2024

$1.5M USDA NIFA grant will help Purdue researcher identify community-based food waste solutions

The Purdue University College of Agriculture’s Department of Agricultural Economics has received a $1.5 million grant from the U.S. Department of Agriculture’s National Institute of Food and Agriculture. The new funding will create the Purdue Center for Food Conservation and Waste Reduction. (Photo/Adobe Stock)

Development of new center aims to increase nutrition security and mitigate climate change 

WEST LAFAYETTE, Ind. — The Purdue University College of Agriculture’s Department of Agricultural Economics has received a $1.5 million grant from the U.S. Department of Agriculture’s National Institute of Food and Agriculture. The grant will fund a research and Extension project titled “Designing Co-Created Solutions to Improve Nutrition Security, Health Equity, and Environmental Sustainability.”

Brenna Ellison , professor of agribusiness management and undergraduate program coordinator in the Department of Agricultural Economics, is the project’s principal investigator. The new funding will create the Purdue Center for Food Conservation and Waste Reduction, a vital research vehicle for Ellison and her longtime collaborator, Melissa Pflugh Prescott, assistant professor in the Department of Nutrition at Case Western Reserve University.

Ellison and Prescott have expertise in the interrelated topics of improving diet and health outcomes while also reducing food waste. Their main goal will be to accelerate meeting national food loss and waste reduction targets by engaging underrepresented young adults, private and public sectors, and households in improving nutrition security and health equity.

“Many efforts to reduce food waste in the U.S. are top-down in nature and sometimes provide ‘one-size-fits-all’ guidance,” explains Ellison. “We’re interested in a bottom-up approach, working with different types of households to see how their food management behaviors differ. Our hope is to collect data and observe patterns, eventually co-creating behavioral strategies to reduce food waste that are tailored to households’ needs.”

Ellison and Prescott want to build an online hub for households to access educational resources on adopting practical strategies for food management activities such as food planning, preparation and storage.  

In the fall, the center will start recruiting student food equity specialists in five to six communities across the U.S. to establish a baseline for household food literacy and food waste. Food equity specialists will be recruited on college campuses and trained on the food system, food waste and citizen science. This work to collect household food literacy and waste data will provide a service-learning opportunity and prepare the next generation to better understand how to achieve a more sustainable food system.

Student food equity specialists will work with the project team to codesign equity summits in their local communities to share their baseline findings and engage with public and private stakeholders to discuss how they can empower food conservation and waste reduction. 

Ellison and Prescott will also offer a mini-grant program available to student food equity specialists. Based on their observations during the baseline assessment period, students will be able to apply for small grants to improve food literacy and promote nutrition security and health equity in their respective communities.

The center will also develop a National Extension Food Loss and Waste strategy, aligning with the Cooperative Extension’s National Framework for Health Equity and Well-Being .

Ellison says, “ W e want to meet households where they are and hear about their unique barriers and challenges in managing food waste . By utilizing citizen science, our desire is to actively engage U.S. households in the conversation to cocreate a shared understanding of feasible, culturally appropriate strategies to improve food literacy and household food waste. We also hope to empower households to be more resilient and nutrition-secure.”

About Purdue University

Purdue University is a public research institution demonstrating excellence at scale. Ranked among top 10 public universities and with two colleges in the top four in the United States, Purdue discovers and disseminates knowledge with a quality and at a scale second to none. More than 105,000 students study at Purdue across modalities and locations, including nearly 50,000 in person on the West Lafayette campus. Committed to affordability and accessibility, Purdue’s main campus has frozen tuition 13 years in a row. See how Purdue never stops in the persistent pursuit of the next giant leap — including its first comprehensive urban campus in Indianapolis, the Mitchell E. Daniels, Jr. School of Business, Purdue Computes and the One Health initiative — at https://www.purdue.edu/president/strategic-initiatives

Writer/Media Contact: Ashvini Malshe, 765-496-7480, [email protected]

Source: Brenna Ellison, [email protected]

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US and Allies Clash With Tehran and Moscow Over Iranian Nuclear Program at UN Security Council

UNITED NATIONS (AP) -- The United States and its key European allies clashed with Iran and Russia over Tehran's expanding nuclear program, with the U.S. vowing "to use all means necessary to prevent a nuclear-armed Iran" in a U.N. Security Council meeting on Monday.

The U.S., France, Britain and Germany accused Iran of escalating its nuclear activities far beyond limits it agreed to in a 2015 deal aimed at preventing Tehran from developing nuclear weapons, and of failing to cooperate with the U.N. nuclear watchdog, the International Atomic Energy Agency.

Iran and Russia accused the U.S. and its allies of continuing to apply economic sanctions that were supposed to be lifted under the deal, and insisted that Tehran's nuclear program remains under constant oversight by the IAEA.

The clashes came at a semi-annual meeting on implementation the nuclear deal between Iran and six major countries -- the U.S., Russia, China, Britain, France and Germany -- known as the Joint Comprehensive Plan of Action.

Under the accord, Tehran agreed to limit enrichment of uranium to levels necessary for the peaceful use of nuclear power in exchange for the lifting of economic sanctions.

Then-President Donald Trump pulled the U.S. out of the deal in 2018. Trump said he would negotiate a stronger deal, but that didn't happen.

The council meeting followed an IAEA report in late May that Iran has more than 142 kilograms (313 pounds) of uranium enriched up to 60% purity, a technical step away from weapons-grade level of 90%. The IAEA said this was an increase of over 20 kilograms (45 pounds) from February.

The IAEA also reported on June 13 that its inspectors verified that Iran has started up new cascades of advanced centrifuges more quickly enrich uranium and planned to install more.

U.S. deputy ambassador Robert Wood told the council that the IAEA reports "show that Iran is determined to expand its nuclear program in ways that have no credible civilian purpose."

Wood said the U.S. is prepared to use all means to prevent a nuclear-armed Iran, but said it remains "fully committed to resolving international concerns surrounding Iran's nuclear program through diplomacy."

The three Western countries that remain in the JCPOA -- France, Germany and the United Kingdom -- issued a joint statement after the council meeting also leaving the door open for diplomatic efforts "that ensure Iran never develops a nuclear weapon."

They said Iran's stockpile of highly enriched uranium is now 30 times the JCPOA limit, and stressed that Iran committed not to install or operate any centrifuges for enrichment under the JCPOA.

Their joint statement also noted that "Iranian officials have issued statements about its capacity to assemble a nuclear weapon."

Iran's U.N. Ambassador Amir Saeid Iravani blamed "the unilateral and unlawful U.S. withdrawal from the JCPOA" and the failure of the three European parties to the deal "to honor their commitments," saying it is "crystal clear" they are responsible for the current non-functioning of the agreement.

In the face of U.S. and European sanctions, he said, Iran has the right to halt its commitments under the JCPOA.

Iravani reiterated Iran's rejection of nuclear weapons, and insisted its nuclear activities including enrichment are "for peaceful purposes" and are subject to "robust verification and monitoring" by the IAEA.

The Iranian ambassador strongly endorsed the JCPOA, calling it a hard-won diplomatic achievement "that effectively averted an undue crisis."

"It remains the best option, has no alternative, and its revival is indeed in the interest of all of its participants," he said. "Our remedial measures are reversible if all sanctions are lifted fully and verifiably."

But France, Germany and the UK said some of Iran's nuclear advances are irreversible.

Russia's U.N. Ambassador Vassily Nebenzia said U.S. promises "to abandon the policy of maximum pressure on Tehran and to return to the nuclear deal remained empty words."

He accused some other JCPOA parties, which he didn't name, of "doing everything possible to continuously rock the boat, jettisoning opportunities for the implementation of the nuclear deal."

Nebenzia urged the European parties to the agreement and the United States to return to the negotiating table in Vienna and "demonstrate their commitment to the objective of restoration of the nuclear deal."

EU foreign policy chief Josep Borrell, the coordinator of the JCPOA, said the compromise text he put forward two years ago for the U.S. to return to the JCPOA and for Iran to resume full implementation of the agreement remains on the table.

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