Violation of the sequence of actions when organizing a farm can lead to artificial difficulties in organizing your business. Therefore, it is necessary to understand your goals and objectives very clearly so that you can strictly follow them.
How to organize your own farm
The instructions for organizing a farm are extremely simple and clear. And if you act consistently, success is guaranteed. The first step is drawing up a plan. The main thing is to remember that you are making this plan primarily for yourself, so try to take into account all the nuances that are important to you. A business plan must contain a detailed project, an idea for its development and the end result that you want to strive for. Also, the plan should indicate the direction in which your business will work - cattle breeding or something else. Also, despite the fact that you are writing this plan for yourself, you definitely need to indicate the validity of this project.
It would not be amiss to add a preliminary estimate of the project to the business plan. This will help you better understand what you have and how you will supplement your existing budget.
The next stage is the selection and acquisition of a suitable land plot. And it will be necessary in any case, regardless of what type of farming you choose. Do not be upset if you understand that you will not be able to acquire land ownership due to lack of funds. After all, a plot of land can always be rented from the state. And then, when your farm begins to generate income, you can already think about purchasing land as your own.
Next, you need to settle the legal details. Registration of your farm is required. After all, if you do not file your case in the manner prescribed by law, quite serious troubles may arise later. First, you need to obtain title documents for the land plot. This may be a certificate of land ownership or a lease agreement for a plot for a certain period. In addition, you need to decide how many people will own the farm.
So, for example, if there is only one owner, then no additional agreement is needed. If the farm is owned by a group of people - relatives, friends, etc. - you will need an additional agreement concluded between all members of the farm. It must contain information about the number of shares each of them has, the authorized capital and other information established by law. After you collect all the documents, you need to register your farm with the tax office. For this you will need:
- agreement between members of the farm;
- a copy of the owner’s passport(s);
- title documents for the site.
Making a decision to build a house. Remember that according to the instructions, the building should not occupy more than 30% of the total area of the land plot.
Hiring employees. If according to the plan it should be quite large, it will be quite problematic for the farmer to cope alone. And he will simply need assistants. It is advisable to draw up employment contracts with employees. In addition, at this same stage it is necessary to take care of providing your future economy with the material and technical base: purchasing equipment, purchasing materials, animals, etc.
Farming activities
Before opening your own farm, be sure to determine what kind of activity it will be engaged in. The main direction is usually considered to be the production and processing of various agricultural products. In addition, this also includes transportation, storage and sale of products. However, engaging in other types of activities related to agriculture, of course, is not prohibited.
The main activity of the farm directly depends on what interests are pursued by the owner and other business participants, as well as on what is currently of greater interest in the market.
True, experienced farmers recommend starting with growing vegetables as the most promising way to develop a business. And only then move on to more complex variations.
If the starter permits, you can immediately engage in the most promising activities today - pig farming, cattle breeding and much more. The proceeds, experts say, can be wisely spent on developing further business - purchasing materials, animals, equipment.
What is the key to successful farming?
Experts assure that the success of a farm or, as it is also called, a peasant enterprise is determined by the literacy of the sale of products. If he himself is able to sell successfully, he remains at a big advantage. If a person does not have such a streak, it is better not to waste money and hire a good marketer. Otherwise, why even organize your own business? In addition, the more money you receive, the more you can invest in your business, and the more effective your business will be.
When our first farmers appeared, the people around them who did not dare to start said:
It’s not time yet, there are no conditions to start - laws, loans, capital, etc. and so on.
Now the same people are saying:
They were lucky - they started on time, successfully used loans, now there are no such opportunities, again there are no funds, etc., etc.
And it will always be this way - some people do it, others weigh their own options. There are always opportunities, you just have to be ready to take advantage of them.
Starting is always difficult, both now and fifteen years ago. Especially when the wind is blowing in your pockets. Anyone can start with money, but starting from scratch will be a more difficult task. In short, it's quite a gamble. Yes, if you also consider that the bets in the game called “agriculture” are very risky.
Of course, it’s best to start in the direction that you know, know how to do, and what your heart is drawn to. When you do something you like, you get pleasure. And when, in addition to pleasure, there is also a good material result - what else can you dream of?
But it often happens that you yourself don’t know what you like best, but you need to start.
Of course, you need to try yourself in different directions, but first of all in those that can bring quick results with small financial investments. Even if your passion is gardening, for some time you will have to earn money for this in other directions, since starting a garden will require considerable financial resources and for several more years you will only have expenses that need to be covered with something.
Agricultural business from scratch. When I started and thought about which direction to choose, I proceeded from the following:
1) there is no money;
2) there is no technology;
3) there is no transport;
4) there are no special practical skills either.
I looked closely at everyone who worked on the land on their own. And I couldn’t find a better direction than growing vegetables.
What attracted me to vegetable growing:
Plant growing, and vegetable growing in particular, gives greater freedom than, for example, livestock farming.
Any animal with minimal care must be approached at least a couple of times a day so that it does not scream. And so every day, and 365 days a year.
Vegetable growing is seasonal. Although it has peaks at certain periods, it is not so intense throughout the year. You don’t have to approach the plants for more than one day. Even if it lacks something, it does not scream. Although an oversight can also lead to worse results.
Vegetable growing on a small area does not require large initial financial investments. These are mainly the costs of seeds, soil cultivation and plant protection.
It is possible to practice without having your own equipment. For basic tillage, equipment can be hired. There are few such works.
The main work is done manually. That is, basically everything depends on me.
Before me was an example of Koreans who were engaged in growing melons and vegetables. As a rule, they had neither their own equipment nor their own land, but they always had a lot of watermelons and vegetables.
I saw that my friends who had worked for at least a season with the Koreans had good results and no longer wanted to return to collective farm life.
All other intricacies of the technology of growing vegetable crops were mastered in the process of work. Familiarity with other people's experiences gave a lot. Healthy curiosity doesn't hurt here at all. And also the trial and error method is the oldest and best method of learning. Everything else is a work in progress.
The next year we were able to buy film and build greenhouses for seedlings to start growing early vegetables. We did not stick to one culture and one type of product. We tried to have early, middle, and late products.
You shouldn’t expect very big results right away in the first year. You just need to set yourself the task of annual development. You cannot be content with what has been achieved and mark time. Today we cultivated 1 hectare, next year - 2 hectares. Or you received 50 tons of products, the next year - 100 tons. And even better - work on doubling your income. In any case, you need to set yourself the goal of increasing the results of your business.
With such a gradual increase in production, the result will come. Over time, you will begin to acquire equipment and will be able to attract workers to help you.
And then there will be opportunities to engage in other areas that require large resources: gardening, viticulture, livestock farming, etc.
Over time, I was able to acquire equipment, the opportunity arose to rent large areas of land - I began to engage in grain production, where the processes require less manual labor and are more mechanized, since there are limited labor resources in our area.
Many farmers who started out the same way and do not experience problems with labor, on the contrary, did not get carried away with increasing their acreage, but began to intensify vegetable growing. They are expanding their product range, introducing drip irrigation, purchasing precision seeding machines, achieving higher yields, improving quality, and have taken up packaging.
After all, vegetable growing still provides the highest income per 1 hectare of land; it is several tens of times higher than when growing any grains, oilseeds and industrial crops.
And one more important point - when you start and the volume of grown products is small, in order to get a better result, we sold everything ourselves to the end consumer - we did not use the services of intermediaries and wholesalers. Although over time, when they began to grow large volumes of products, they moved away from retail trade. It has become more profitable for us to sell in bulk so as not to waste time on the market and focus only on production.
Although I no longer farm vegetables, I still believe that there is nothing better to start in the farming business.
Nowadays, farming has begun to develop at a rapid pace. In any locality you can find a person who is engaged in this type of business activity. is considered quite profitable, but at the same time a very risky business, requiring large financial costs. Therefore, before opening a farm from scratch, you need to familiarize yourself with all the intricacies of this matter.
To become a farmer, you need to have decent starting capital on hand, as well as know all the basic principles of farming and marketing finished products.
Registration
Before officially registering your business, you need to decide on the type of activity.
Farms can engage in:
- Production of dairy products;
- Plant growing;
- Beekeeping.
- Land lease agreement;
- Permission from Rospotrebnadzor;
- Fire inspection permit.
In addition, you must register an individual entrepreneur, as well as issue quality certificates for the goods. All meat products must undergo veterinary examination.
Equipment and premises
When setting up a livestock farm, the most expensive item is the purchase of equipment. To open a large farm, you will have to spend 2-3 million rubles. It may take several months to purchase equipment and install it.
Another equally important point is the layout of the room. A farm may require different areas. It depends on what you want to do. For poultry farming, you need to purchase poultry cages, and for livestock farming, livestock stalls. You also need to install equipment for manure removal and feeders.
The room should be warm and cozy. Make sure that in winter the temperature does not drop below 17 degrees. Don't forget to maintain normal humidity. If there are drafts in the room, this can negatively affect the productivity of animals. This is especially true for chickens and their egg production. Remember to regularly ventilate the room to provide fresh air.
Benefits of farming business
Entrepreneurs who are interested in how to open a farm should know that this type of business in our country is gaining more and more popularity every year.
The following factors contribute to this:
- State programs aimed at supporting national producers and new farms. Under such programs, beginning farmers can receive grants, subsidies, tax breaks, as well as start-up capital or land for farming;
- Farm profits are constantly increasing due to rising food prices;
- Farm products are always in great demand, so there are no problems with sales;
- National producers do not experience restrictions on access to the market;
- Wide range of business activities.
Farming is a promising and fairly profitable activity. If you competently develop a business plan for a mini farm and invest a certain amount of money in it, you can get a significant profit that will fully justify the time and money spent.
Family farm
Starting a small family farm doesn't require a lot of resources. Choose a direction of activity taking into account the personal interests of all family members. If everyone does what they love, your farm will prosper.
What animals to raise?
A small country house with a plot of land or a summer cottage is perfect for a family business. Before you open a family farm, decide what you would like to do. For example, you can raise broiler chickens, which after 2-3 months are slaughtered for meat or, whose meat and eggs are incredibly healthy. will provide you with homemade eggs, which are always in great demand.
You can also raise piglets on the family farm. To start, take 2-3 pieces. Such animals grow quickly, so after a few months they can be slaughtered and sold for meat.
Also, if you wish, you can start keeping exotic birds, for example, or.
The money you receive from selling products should be invested back into the business. When the farm begins to expand, you can register your personal subsidiary plot or individual entrepreneur with the relevant authorities. To properly manage your farm, do not forget to draw up a business plan for your family farm. If you approach the matter competently and collect all the necessary documents, you can receive assistance from the state for the development of a peasant farm.
Additional activities
Entrepreneurs who, a few years ago, firmly decided that I wanted to open a farm and realized their business idea, have already managed to take their place in the market. But they don’t stop there and constantly find new sources of additional income:- A farm that grows fruits and vegetables can open a plant for freezing them;
- A livestock farm can produce sausages, stews and other deli meats;
- Farmers who produce grain crops open enterprises for the production of cereals or flour, as well as their own bakeries.
Farm business in the USA and Russia
Investments and profitability
As mentioned above, farming requires large financial investments. You will have to spend 2-3 million rubles on equipment alone. Therefore, before opening your own farm, you need to collect decent start-up capital.
In addition to purchasing equipment, money will be needed:
- For the purchase or lease of a land plot – 0.7-1 million rubles;
- Purchase of livestock – 4-5 million rubles;
- Farm maintenance – 500 thousand rubles (monthly);
- Purchase of feed – 50 thousand rubles (monthly);
- Veterinarian’s salary – 25-30 thousand rubles;
- The salary of each employee is 15 thousand rubles.
The profitability of an enterprise largely depends on the volume of product sales, as well as on the chosen strategy and operating conditions. The average annual income is approximately 0.2-2 million rubles.
Farmers mainly sell their products through large retail chains or at the local market. The initial investment can be returned in literally 2-3 years. But for this you need to constantly develop and expand the economy. If you know what it takes to open a farm and constantly improve working conditions, after a while this business will bring you significant profit.
New government programs, combined with tax incentives, now make farming a promising type of business. This activity aims to generate profit through the production of agricultural products.
Selection of area of employment
Before you figure out where to start farming, you need to decide on the main type of activity. Multi-industry enterprises can be created subject to the availability of significant start-up capital. But to open a small farm, where family members will mainly work, you need to choose a narrow focus. This could be growing vegetable or fruit crops, raising poultry, pigs, or beekeeping.
The direction of activity must be selected so that it is interesting to you. If you are afraid of bees, then there is no point in making an apiary. Also, don't start growing vegetables if you don't like gardening.
Preparatory stage
Before starting any type of activity, you need to assess your capabilities. This is why it is important to develop a farming business plan. The first stage involves searching for land. If you do not have the required plot of land, you can rent it. It is better to choose plots of land in such a way that they can be easily reached from passing roads and large populated areas.
It's better to find an abandoned farm. The work to restore it will cost less. It is much more difficult and expensive to start a business from scratch.
Preparation of a business plan
Before you start preparing the necessary documentation, it is important to calculate all the costs and possible income. But it must be remembered that agriculture is considered a risky business. Animals may die from disease epidemics, vegetables may not grow due to unfavorable weather conditions, fruits may suffer from an invasion of harmful insects, sudden frosts or hail.
A farm business plan must include information about costs. In vegetable growing, for example, these include not only the purchase of seeds, but also the costs of necessary fertilizers, organizing watering, if necessary, paying for the work of hired people, and transportation costs for delivering the harvested crop to the nearest retail outlets. Do not forget about the need to attract third-party organizations with special equipment for seasonal cultivation of the land.
Only after the final calculation of all expenses can you begin to roughly estimate your potential income. To calculate the profitability of crop farming, you need to find out the approximate crop yield in your region and multiply it by the average cost of production per season. This way you can determine your potential revenue.
Financing
One of the main problems that many farmers face is finding funds. In order to obtain a loan, you need a competent farm plan. Only in this case can you count on receiving money. If you are not ready to pay high interest rates for the use of funds, then pay attention to government programs designed to support agricultural development.
A competent business plan increases your chances of getting a loan. But money under preferential programs is given only to those who have fixed assets and at least some experience in this area. You can get a loan for a period of 5 years under attractive conditions with a reduced interest rate. At the same time, payments on loans provided under government programs can begin only a year after they were issued.
Preparation of documents
It is worth noting that, in addition to the development plan, you must have all the necessary papers confirming that you are officially running a business. The farm must be registered with the tax authority. Indigenous residents of the area who plan to start farming can count on receiving land plots from local authorities.
The right approach
Having calculated possible expenses and income and legally registered the business, you can begin to begin work. If you have an idea of where to start farming, it will be easier for you. Otherwise, it is better to find a person who understands this type of activity. This may be an agricultural worker with special education and experience.
If you want to start growing crops, but you have a small plot, then it is better to install greenhouses. This will allow you to get additional profit due to an earlier harvest. Many farmers, who now have several thousand hectares of land at their disposal, started with small plots.
It is equally important to use modern technologies. They are designed to make life easier for the farmer and significantly increase his productivity.
Advantages of agricultural activities
Currently, the development of farming is one of the priority areas. The state allocates enormous funds to support entrepreneurs who are ready to work in the region. Programs for preferential lending to such businesses are now being actively implemented. The taxation system has also been simplified for farmers.
The state strives to ensure that people do not think about where to start farming, but act. For example, in 2012-2014, grants were allocated to start agricultural activities. But they were given only to young farmers. The government wants large subsidiary farms to move to a new stage of development. They must produce enough products to be sold. This will allow us to refuse many imported goods.
For example, one of the priority areas is raising dairy cows. Currently in Russia it is rather poorly developed. And with investments, a competent approach and the establishment of production, you can claim to cover a significant part of the market.
Potential problems
Not many people want to engage in agriculture due to the fact that it requires significant labor costs. As a rule, in the initial stages you have to work independently. Of course, with the expansion of production, at the stage when you yourself can give advice on where to start farming, labor is partially mechanized, and a larger number of hired employees appears.
The development of this area is also hampered by the fact that large investments are needed to start operations. Combined with the fact that the agricultural business is quite risky, and investments can take several years, this becomes a serious obstacle. Of course, in crop production, with a successful set of circumstances, you can return your investment in one season. In livestock farming, you can’t count on quick profits.
When it comes to borrowing money, many people face the following problem. The farmer takes money to develop his business and invests it. But the first profit from investments will be only after several months or years, and the loan and interest must be paid immediately. That’s why it’s so important to keep an eye on government financing programs that offer preferential terms and make it possible to defer the first payment for a year.
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