Think about your operation from the ground up and start planning for your business. A good farm business plan is your roadmap to start-up, profitability, and growth, and provides the foundation for your conversation with USDA about how our programs can complement your operation.
Keep reading about planning your business below or jump to a different section of the farmer's journey.
1. Plan
2. Visit
3. Fund
4. Build
5. Sell
6. Maintain
Why You Need a Farm Business Plan
A comprehensive business plan is an important first step for any size business, no matter how simple or complex. You should create a strong business plan because it:
- Will help you get organized. It will help you to remember all of the details and make sure you are taking all of the necessary steps.
- Will act as your guide. It will help you to think carefully about why you want to farm or ranch and what you want to achieve in the future. Over time, you can look back at your business plan and determine whether you are achieving your goals.
- Is required to get a loan. In order to get an FSA loan, a guarantee on a loan made by a commercial lender, or a land contract, you need to create a detailed business plan. Lenders look closely at business plans to determine if you can afford to repay the loan.
How USDA Can Help
Whether you need a good get-started guide, have a plan that you would like to verify, or have a plan you’re looking to update for your next growth phase, USDA can help connect you to resources to help your decisions.
Your state's beginning farmer and rancher coordinator can connect you to local resources in your community to help you establish a successful business plan. 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.
It is important to know that no single solution fits everyone, and you should research, seek guidance, and make the best decision for your operation according to your own individual priorities.
Build a Farm Business Plan
There are many different styles of business plans. Some are written documents; others may be a set of worksheets that you complete. No matter what format you choose, several key aspects of your operation are important to consider.
Use the guidelines below to draft your business plan. Answering these kinds of questions in detail will help you create and develop your final business plan. Once you have a business plan for your operation, prepare for your visit to a USDA service center. During your visit, we can help you with the necessary steps to register your business and get access to key USDA programs.
Balance Sheet
Form FSA-2037 is a template that gathers information on your assets and liabilities like farm equipment, vehicles and existing loans.
Income and Expenses
Form FSA-2038 is part of the farm loan application, and shows you the type of information you should gather when preparing your plan and application materials.
Another key tool is a conservation plan, which determines how you want to improve the health of your land. A conservation plan can help you lay out your plan to address resource needs, costs and schedules.
USDA’s Natural Resources Conservation Service (NRCS) staff are available at your local USDA Service Center to help you develop a conservation plan for your land based on your goals. NRCS staff can also help you explore conservation programs and initiatives, such as the Environmental Quality Incentives Program (EQIP).
Crop insurance, whole farm revenue protection and other resources can help you prepare for unforeseen challenges like natural disasters.
Special Considerations for Businesses
There are different types of farm businesses each with their own unique considerations. Determine what applies to your operation.
- Organic Farming has unique considerations. Learn about organic agriculture, organic certification, and the Organic Certification Cost Share Program to see if an organic business is an option for you. NRCS also has resources for organic producers and offers assistance to develop a conservation plan.
- Urban Farming has special opportunities and restrictions. Learn how USDA can help farmers in urban spaces.
- Value-Added Products. The Agricultural Marketing Resource Center (AgMRC) is a national virtual resource center for value-added agricultural groups.
- Cooperative. If you are interested in starting a cooperative, USDA’s Rural Development Agency (RD) has helpful resources to help you begin. State-based Cooperative Development Centers, partially funded by RD, provide technical assistance and education on starting a cooperative.
Special Considerations for Individuals
Historically Underserved Farmers and Ranchers: We offer help for the unique concerns of producers who meet the USDA definition of "historically underserved," which includes farmers who are:
- beginning
- socially disadvantaged
- limited resource
- military veterans
Women: Learn about specific incentives, priorities, and set asides for women in agriculture within USDA programs.
Heirs' Property Landowners: If you inherited land without a clear title or documented legal ownership, learn how USDA can help Heirs’ Property Landowners gain access to a variety of programs and services
Resources
Business Planning
Creating a good business plan takes time and effort. The following are some key resources for planning your business.
- Farm Answers from the University of Minnesota features a library of how-to resources and guidance, a directory of beginning farmer training programs, and other sources of information in agriculture. The library includes business planning guides such as a Guide to Developing a Business Plan for Farms and Rural Businesses and an Example Business Plan.
- The Small Business Administration (SBA) offers information about starting, managing, and transitioning a business.
Mentorship
SCORE is a nonprofit organization with a network of volunteers who have experience in running and managing businesses. The Score Mentorship Program partners with USDA to provide:
- Free, local support and resources, including business planning help, financial guidance, growth strategies.
- Mentorship through one-on-one business coaching -- in-person, online, and by phone.
- Training from subject matter experts with agribusiness experience.
- Online resources and step-by-step outlines for business strategies.
- Learn more about the program through the Score FAQ.
Training Opportunities
Attend field days, workshops, courses, or formal education programs to build necessary skills to ensure you can successfully produce your selected farm products and/or services. Many local and regional agricultural organizations, including USDA and Cooperative Extension, offer training to beginning farmers.
- Cooperative Extension offices address common issues faced by agricultural producers, and conduct workshops and educational events for the agricultural community.
- extension.org is an online community for the Cooperative Extension program where you can find publications and ask experts for advice.
How to Start a Farm with USDA
Get an overview of the beginning farmer's journey or jump to a specific page below.
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.