Agriculture, despite the dismissive attitude of some entrepreneurs towards it, is quite profitable and profitable. This is especially true for those businessmen who have previously tried to calculate all the pros and cons of organizing their own production.
As a rule, farmers prefer to engage in animal husbandry, because to obtain high profits when growing crops or vegetables you need a plot of very large area, and for its processing you need both equipment and fuel for it. However, the farm business plan below partially addresses this issue.
Farming is a great business idea!
We have already said that in order to achieve success it is necessary to think through all your actions in advance, to decide which species of animals you will breed. Here everyone decides for himself, but if you do not have sufficient area for pasture, we recommend paying attention to pigs.
Why exactly them? The fact is that a meat pig can be raised in just six to eight months. Cattle need to be raised for at least a year and a half, and the cost per kilogram of products in our climate is higher.
If we talk about dairy cattle breeding, then we cannot do without very (!) Large investments or special government subsidies. However, if you correctly compile a business plan for cattle farms, then you can get off with "little blood."
In the case of pigs, everything is much simpler. The only condition is to immediately determine the forage base, purchase a small factory for the production of combined feed, or arrange wholesale purchases with suppliers.
But this is true only for those farms that are relatively close to large cities. The farther from them, the cheaper the land. In addition, for a relatively small amount of money, you may well be able to find rented premises suitable for dairy farming.
Today, there are already many examples of how in far-flung villages with the material base left from the long-gone collective farm, entrepreneurial farmers organized their farms.
If the local leadership is responsible, then you can be given not only the opportunity to farm, but also help with obtaining subsidies for business development.
In general, farming as a business idea is often very warmly supported by the local municipality, as it allows you to create new jobs.
Please note that on the leased (or bought, if there is such money) plot there must necessarily be grass meadows, since you will need hay in any case.
If there is such money, you can immediately provide for areas for growing grain. But this will require considerable costs for the purchase of equipment, seed and fuel, so in the early years it is not practical to do this.
Important! Be sure to make sure that engineering communications can be made to the site. Without gas, water and electricity, much cannot be achieved. The cost of supplying everything you need can cost such amounts that it will be cheaper to buy a finished farm, rather than draw up a business plan. Farms that would be founded far from such communications, you simply will not find because of their unprofitability.
Moreover, you should even start your activity with paperwork for communication. If you meet on your way a lot of bureaucratic problems and the reluctance of local authorities to cooperate, it is better not to try to organize an economy in this place. In vain you will lose money and time.
We buy breeding cattle
Of course, without a high-quality breeding fund, nothing will come of you. Even poor premises can be repaired, but to do something sensible with unproductive animals is simply impossible. So this issue should be approached as seriously as possible.
For example, we will consider dairy cattle breeding. It so happened that in our country there is no shortage of pastures. In addition, within the former CIS, both dairy and meat products are always in high demand. In short, with the skillful organization of the production process, the lack of customers does not exactly threaten you. So every business plan for farmers must take into account the organization of the marketing service.
The whole technology of breeding dairy cattle has been tested for centuries, and most often this direction is subsidized.
Why exactly breeding cattle?
We strongly recommend buying thoroughbred animals, since the desire to save money and base their business on raising dairy cattle bought for a penny on dying farms will not lead to anything good. Farming like a business idea does not hold water.
Young animals of specialized breeds are rapidly gaining mass, entering the stage of physiological maturity faster. This means that you will begin to receive products from them as soon as possible, spending much less money on feed and livestock.
Overseas will not help ...
Speaking of thoroughbred animals, we do not suggest that you do the basic stupidity of novice zootechnicians: do not buy cattle from abroad. Of course, farms in the Netherlands supply excellent livestock, but experts warn of its extreme demands on feeding conditions.
Yes, English dairy breeds are distinguished by the ability to produce an incredible amount of fat milk in one lactation, ideal for the production of butter and cheese, but they are poorly adapted to domestic conditions. Do not forget about this when organizing your farm. Where to start in this case?
At one time, it was precisely on this that Soviet breeders went wild. So we advise you to purchase domestic purebred black-motley cattle. He is very unpretentious, undemanding to the conditions of feeding and maintenance. Even on poor feed, dairy cows can produce 4 thousand liters per year, and with improved feeding and keeping conditions, you can count on 7-9 thousand liters.
They sell such animals from 200 rubles per kilogram of live weight, but in some regions they can be bought much cheaper.
Optimal herd composition
In order to be able to independently reproduce the herd, getting your own young, you must have a core, 55% of which are healthy lactating animals. They will provide the main profit, for which your farm was founded. Where to start to ensure reproductive ability of the herd?
At the same time, the herd should have at least 10% of heifers, which are not only a production reserve that guarantees the receipt of new calves, but also ensures a constant increase in the level of milk production after calving.
The same number should be already calving and actively lactating heifers older than a year. In addition, at least 15% of already covered heifers under the age of one year must be kept ready at the farm. If there are plans for the production of meat products, it is worth keeping about 10% of bulls for fattening.
What equipment will be needed?
In the early years, you are unlikely to need a complete set of agricultural machinery, but at first you will have to purchase the following units:
- Tractor with a set of attachments.
- No less than a couple of trucks.
- If you organize a dairy farm, it will also be rational to purchase a loader that can be used to distribute feed.
- Automatic drinker system.
- Installations for milking animals.
- Conveyors for the removal of manure and slurry.
- Mixers for feed.
Note that all of the above can now be freely leased.
How to purchase equipment on lease?
What it is? This is the name of the contract for the rental of equipment or even livestock, which is concluded on the condition that the tenant has the right to redeem the property he has leased. Given that this method is widely subsidized by the state, it is not surprising that he found wide support among domestic farmers.
If your goal is to organize a farm, what conditions must be met to obtain equipment or animals under a leasing agreement?
- For at least three years, the gross product of your enterprise has been constantly growing.
- You must have a collateral base under which the equipment manufacturer can provide it for rent. If your collateral is another technique, then no older than three years and in good technical condition.
If you are leasing livestock, you must provide the following documents:
- Mandatory availability letter of recommendation from the Ministry of Agriculture in your area.
- An agreement stipulating livestock rental conditions with the participation of Rosagroleasing OJSC.
- A full package of documents from the State Veterinary Service of the region, which confirms the well-being of the farm for infectious diseases of livestock.
- The protocol of the estimated value of the enterprise.
Some notes
As a rule, an advance payment is about 7-15% of the cost of animals, and a surety agreement must be submitted to Rosagroleasing, in which the parties agree to accept funds from all settlement accounts without acceptance.
If there is no guarantee, then a one-time advance payment of 30% of the value of the livestock is paid subject to the conclusion of a leasing agreement for seven years. The appreciation for the year is not more than 6%, so a leased purchase is quite profitable.
For how long is a leasing contract drawn up?
All specialized cultivation equipment agricultural crops issued for five years. Tractors, combines and automobiles are leased for seven years. If you intend to purchase equipment for the farm in this way, then it will be provided to you under a ten-year contract.
A leasing agreement for the purchase of animals is drawn up for a period of five years.
What kind of staff will be needed?
Most often, in our conditions, classic farms are staffed by members of the entrepreneur's family. It is they who are responsible for the bulk of the work in the field and on the farm.
To maintain the health of animals and monitor the quality of their diet, you will need a veterinarian and livestock specialist. If turnover and livestock allow, it would be better to hire them on an ongoing basis. It is impossible to do without a good economist on the farm, without which the development of the farm will be impossible.
Of course, you need a mechanic to service the equipment. Please note that all specialists must pay wages not lower than the minimum for the region. Do not forget about mandatory contributions to the pension fund.
We collect documents
Immediately we will rejoice: if you need state registration of a peasant farm, there is no need to create a legal entity. But in any case, a lot of documents will have to be provided:
Application (in standard form P21002).- Your passport, a photocopy of its first pages and a registration page.
- Your birth certificate and a photocopy of it.
- You will also need a receipt from the bank for the payment of state duties.
- A power of attorney for the disposal of material assets in the name of your manager (if there is such a need). As a rule, then all subsequent registration of the farm will be made in his name.
It is very important to provide an agreement on the establishment of a farm. It includes the following items:
- Information about all members of the farm.
- An agreement providing for the appointment of one of the members of the economy as its head.
- Paper on the distribution of duties and job descriptions for all members of the farm.
- You will need a document that considers the formation of the material base of the farm, as well as the disposal of this property.
- You must immediately stipulate the rules on entry and exit from the membership of the economy.
- If the farm includes relatives, then copies of all documents that could confirm the fact of kinship will be required.
We hope you promote your business. The farm is able to bring huge profits!
