Farming Business Model

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Having a farming business together with the family is a good idea to earn a profit, but do you know how to plan a farming business effectively?

Before you could start a farming business there are several things you need to consider, so to help you out on this task we can cite some farming business models as your guide.

Understanding the Farming Business Model

A farming business model is very important if you plan to start a farming business with your family or partners in the business. It is not that easy to establish a farm and the process of modeling a farm business needs a lot of studies and intensive research. In spite of this, many people still has great interest in farming business because of the big opportunity to earn a huge profit once the goals are successfully achieved. However, before you can taste the sweet success you need to consider first the important aspects and basic principles involved in a farming business model.

According to farm experts, it is very crucial to a farm owner to learn the modeling principles in farming business to ensure that everything will work fine. If the farming business will be run also by family members (also known as collective or communal farming model), let everybody to get involved in the planning and modeling of the farm. The main reason for this is that most farm models have a long-term structural plan which is usually passed to the next generation in the family to continue its legacy. However, the involvement of family members in the farming business normally causes conflicts in terms of management decision and financial agreements. That’s why it is highly imperative to distribute fairly the duties of every member and let them understand their functions in running the farming business.

There are other farming business models that can be applied for a worthwhile investment depending on the size of the farm. Currently, one of the most popular farming business models is the organic farming. In organic farming, all methods used are purely natural and restrict the use of chemical substances like pesticides and manufactured fertilizers. Another farming business model is mixed farm which focuses on producing different varieties of agricultural crops and livestock products. A specialized farm model only deals in a particular variety of agricultural product..

How to Plan a Farming Business Effectively

Once the members have decided of which farming business model will be applied, the next step is planning the business and accumulating the investment cost. A business plan should be created that will include the goals, the marketing strategy of the business, and the most important thing, the source of funding or investment. The total investment cost for the farming business includes the start-up capital (for the equipments, resources, permits and licenses, land acquisition, etc.) and the operational cost (e.g. labor, taxes, insurances, farm expansion, and maintenance). Considering these aspects are very useful for the success of the business, based on the chosen farming business model.

2 Comments

  • 1. preetham gowda p g said on August 31, 2012
    I'M planing to do dairy Farming, in my native plz give some more idea about Dairy farming, how to implement dairy farming and goat farming.
  • 2. wuraola said on October 11, 2012
    I'm preparing to establish an orchard of my own. Pls I need guide on how to manage and plan the crop farming business.
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