Farming Business Plan Template: How to Start a Farm in 2025

According to the US Department of Agriculture’s (USDA) February 2025 report, net farm income is projected to increase nearly $38 billion from 2024 to 2025 (after adjusting for inflation). That’s well above recent historical averages and signals strong profitability in the sector.

A solid business plan paves the road to success for those joining the ranks of prosperous farms—and many USDA grant and loan programs won’t consider your application without one.

A farming business plan proves to investors that you understand your industry and market and have a detailed plan to navigate the highs and lows. It helps you communicate your vision, demonstrate preparedness, and keep your farm on track.

This guide walks you through the components of a complete farming business plan—from executive summary to financial projections to marketing strategy. You’ll learn how to structure each section, what investors look for, and how to prove your farm is positioned for success.

Types of farming businesses 

There are many ways to make money farming beyond running thousand-acre operations. Direct-to-consumer sales show strong growth, whether through farmers markets or ecommerce stores with specialty farm products, like the jams and dried fruit sold by Frog Hollow Farm.

Agritourism (like open-to-the-public lavender farm Terre Bleu) and niche markets such as cut flowers and artisanal fibers (alpaca wool, for example) are also expanding. New models continue to emerge as farmers adapt to market demands.

Your business model shapes your business plan’s financial projections, operations, and market analysis. Investors and lenders evaluate farms differently based on their type—organic certification opens different funding doors than agritourism, for example.

Here are some types to consider for your business:

• Organic farming. A regulatory term under the Organic Foods Production Act of 1990. Certified Organic farms avoid most synthetic pesticides and fertilizers, growth hormones, antibiotics, and GMOs, and the term is defined by federal standards rather than guiding principles. 

• Sustainable farming. A principle-driven approach focused on long-term stewardship of natural resources like soil and water.

• Regenerative farming. A practice focused on improving soil health and ecosystems. It is sometimes viewed as building on sustainability, leaving land, water, and ecosystems better than you found them.

• Crop farming. The cultivation of grains, vegetables, and fruits for food, biofuels, and other products.

• Orchard farming. The cultivation of nut and fruit trees for harvest.

• Christmas tree farming. The cultivation of evergreen trees, which typically take about seven years to grow to salable height.

• Ranching. The raising of grazing animals like cattle, sheep, and goats for meat, dairy products, and fibers.

• Aquaculture. The breeding, rearing, and harvesting of fish, shellfish, and aquatic plants in marine or freshwater systems.

• Market gardens. Small-scale crop production designed to sell directly to consumers through outlets like farmers markets.

• Community supported agriculture (CSA). A subscription-based model in which members cover farm costs and receive a share of the seasonal harvest. 

• Urban farming. The use of urban green space or small lots to cultivate crops for local direct-to-consumer sales.

• Nurseries. The cultivation and sale of seedlings, starts, mature plants, and trees for consumers and farms, often specializing in niches such as native plants or fruit trees.

• Agritourism. The combination of tourism and agriculture, offering experiences such as farm stays, classes, events, and more.

Farming business plan components

• Executive summary
• Company overview
• Market analysis
• Logistics and operations plan
• Financial plan
• Marketing plan

A business plan outlines your overall business strategy, helps secure financing, and keeps you focused on your goals as you launch or expand your own business. Each section of your farming business plan works together to demonstrate profitable growth and preparedness:

Executive summary

The executive summary is a concise overview of your farm’s vision and goals. Include your mission statement, farming model (conventional, sustainable, organic, regenerative, etc.), products, target market, and a snapshot of your marketing plan and financial projections. 

Even though this section comes first, prospective business owners often write the executive summary last. This way it accurately captures the highlights of each section from the rest of the plan, serving as a powerful first impression for potential investors.

Company overview

A company overview goes deeper than an executive summary. This section paints a detailed picture of your business structure and goals so that you, loan officers, and investors understand your intended path to profitability.

Your company overview should include:

• The basics. Business name, location, and farm size and scale. If you plan to sell direct-to-consumer, consider your business name from a branding perspective.

• Business structure. Options include sole proprietorship, partnership, limited liability company (LLC), C corporation, S corporation, nonprofit corporation, or cooperative.

• Mission statement. Your farm’s purpose for existing, what you want it to accomplish, and its core values. If you are taking a specific approach to farming, like organic or regenerative, include your “why” here.

• Products. Core product categories or value-added farm products. You don’t need to list specifics like jam flavors, but include all of the product lines you plan to create.

• Target audience. Description of your customer base, based on your market analysis.

• Credentials and experience. Relevant training, education, and experience for both you and your partners. If you’re expanding an existing farm business, note how long you’ve been operating. If you’re just starting, list any workshops, online courses, farm mentorship programs, or industry events you’ve participated in.

• Growth vision. Road map for the future, whether staying in one lane (e.g., CSA crops only) or expanding into new product lines or partnerships.

Market analysis

Market analysis for commercial crop farming or ranching looks very different from one focused on agritourism or ecommerce. Either way, a market analysis should demonstrate your understanding of your market to investors and loan programs.

At a minimum, your market analysis should identify:

• Target customer. Will your target audience be consumers or other businesses that process your products for sale—or both? Describe your target customer and, if using personas, how they shop and why they buy.

• Market size. Estimate demand for your product. For example, if you plan to sell grass-fed beef, research whether your local market or an urban farmers market is the better fit. Then, determine how many customers you can reach.

• Pricing benchmarks. Analyze the online stores and websites for other farms or check industry data for information on crop and livestock prices, comparing direct-to-consumer and wholesale paths.

• Competitors. Identify competing farms or adjacent businesses. Review their strengths and weaknesses by studying their longevity, online reviews, and brand positioning.

Next, perform a competitive analysis. If you don’t have many direct competitors, common in rural settings, look at adjacent markets like agritourism, camping, or local groceries. The USDA’s yearly data on the agricultural industry can also help you identify market opportunities and trends.

Logistics and operation plan

Your daily operations depend on having the right resources in place—from land and buildings to equipment and people. A logistics and operation plan explains how you will run your farming business.

Outlining it in your business plan helps you understand and communicate what resources you need to handle daily operations. It also shows investors and loan programs exactly what you need to launch and sustain your farm.

Here are components to address:

• Land. If you are growing crops, grazing animals, or hosting people on your farm, you need land. Describe whether you plan to lease, rent, or buy land, the number of acres, pricing, and terms of your agreement.

• Real estate. If you need to rent or buy buildings (warehouses, barns, tiny homes for farm stays, office space, event space, farmstand space, etc.), list the rental or purchase terms and purpose of each building.

• Equipment. List any required machinery, equipment, or tools you’ll need to rent or purchase to grow, process, and get your products to market. Examples include tractors, trucks, pickers, storage supplies, and packaging supplies.

• USDA regulations. “Organic,” “humane certified,” and “cage free” are all terms regulated by the USDA. Do you need any specific resources to meet any guidelines stated in your mission?

• People. Will you need to hire employees to operate the farm? Full-time, part-time, or seasonal? Will any family members be working with you?

• Licensing and permits. Licensing and permit requirements differ by state and even by county. Contact your National Association of State Departments of Agriculture representative to learn what’s required in your state. You can also reference the Small Business Administration’s breakdown of federal licenses and permits by business category with links to issuing agents.

• Insurance. Consider crop insurance, liability insurance, property insurance, and health insurance. Workers’ compensation, unemployment, and disability Insurance are federal requirements if you will have employees.

Financial plan

Your financial plan demonstrates how your farming business will make money and cover expenses. It’s an essential section if you’re seeking outside investment.

Here’s what to include:

• Funding needs. If you’re seeking a loan or investment, describe how much funding you need and how you’ll use it.

• Revenue model. Identify all of your potential income streams. For example, a farm might combine a market garden with farm stays, sell meat through direct sales, and invest in an orchard for long-term returns. 

• Pricing strategy. Will you price using value-based pricing, competitive pricing, or another pricing strategy? Will your prices change based on seasonality? Will you offer tiers of pricing for different levels of CSA commitment or for wholesale orders?

• Assets and liabilities. List assets like property or investments and liabilities like debts, loans, or payments owed.

• Projected profitability. List monthly expected income versus expenses to demonstrate your profit margin. 

• Business expenses. What will it cost to cover your monthly expenses? Include utilities, production costs, employee costs, equipment, land, and loan payments.

• Risk management. Outline potential risks and your management plan for things like natural disasters, water availability, and blight.

• Success metrics. Some farm models take time to show returns: Trees need years to mature, and livestock takes time to raise. Define the metrics you’ll use to measure success—CSA retention, yield per acre, or gross margin, for example—and the time periods you’ll review. 

• Production costs. List any inputs you’ll need to produce your products, such as fertilizers, animal feed, seed, and soil treatments, along with their costs.

Marketing plan

Your marketing plan details how you’ll find customers. A 2024 Penn State report on value-added farming recognizes the value of “the development of a farm brand identity that can be leveraged to develop and grow customer loyalty.”

Start by outlining your brand strategy—the image and message you want to transmit—and then list the marketing channels you’ll use to attract customers:

• Website. Create a website so that customers can find you, book stays, shop for products, sign up for your CSA, or contact you for wholesale. If your business model includes agritourism or order pickup, set up local citations to boost local search visibility.

• Social media. Instagram marketing, Facebook marketing, and TikTok marketing are powerful platforms for direct-to-consumer sales. Outline how you’ll use these platforms to share your farm story, behind-the-scenes content, new products, and expertise. 

• Email marketing. Building an email list of customers and interested leads lets you nurture relationships by sending seasonal event invites, recipes using your meat or produce, or promotion codes. Mention any customer relationship management system (CRM) or other software you’ll be using, for example, Shopify Email.

• Partnerships. Note whether you plan to partner with other producers or local businesses to expand your offerings and reach. For example, you might produce a collaborative jam with your local bed and breakfast or offer farm tours and activities to its guests.

• Digital ads. Outline whether you have the budget to invest in targeted ads. For example, you might use Google Ads to target keywords like “u-pick pumpkin patch.”

• Events. Consider offering farm dinners, seasonal farm tours, and holiday events so people can get to know your brand.