Even if it’s small, your own business is an excellent alternative to hired work. However, often, even with such a desire, people are afraid to open their own business because they see only obstacles, primarily with regard to financial investments. We will help you figure out whether it is so difficult to organize a farm from scratch, what is required for this and how to do it with minimal costs.
Where to begin
First, you will need a business plan that will outline all the costs, profitability and profitability. You should not ignore this stage, because if you do not think through everything from the beginning, all sorts of unpleasant surprises will arise during the work, which is extremely undesirable. 
- Start-up capital– how much money you will need, and where you will get it; in other words, it will be your own money or credit.
- Place– To run a farm you need a plot, and not a small one. It’s great if you already have one, but if not, you should calculate how much it will cost to buy or rent.
- Expenses for purchasing animals or planting material– here, depending on the type of proposed activity, write down how much animals, birds, seeds or seedlings cost.
- Outbuildings– sheds and utility rooms will be needed in any case, both when breeding animals and when growing plants. At this point, we calculate how much it will cost to build a greenhouse, barn, chicken coop, apiary or pond, depending on what you plan to do.
- Purchase of specialized equipment– here it is important to calculate everything down to the smallest detail: equipment, equipment, etc.
- Salary to employees– in most cases you will need qualified assistants, and the cost of maintaining them must also be taken into account.
- Utility costs and taxes– we set down the cost of electricity, water and everything that will be used, and also do not forget that a considerable part of the profit will go to taxes, which should also be calculated in advance.
- Advertising– will entail certain expenses and promotion of the product. This could include printing flyers, advertising on local radio, TV and newspapers, or placing posters on billboards.
- Sales– before producing anything, you need to understand where and how to implement it. Therefore, at this point, write down where the products will be sold and what costs this will entail. For example, this could be renting a point in the market or “going on the shelf” in a supermarket.
- Profit– after calculating all the expenses, you will be able to display the estimated income and the time it will take for the farm to become profitable.
Did you know? There are more than 2,000,000 farms in the United States, 97% of which are family businesses.
Types of farms
Now you need to decide on the direction in which you would like to work. And it’s worth noting that there are a lot of them. Therefore, let's look at the most popular types of farming.
Breeding chickens, ducks, geese or turkeys does not require large financial investments, but is very profitable. This also does not require a very large area and expensive equipment. Caring for poultry is much easier than, for example, pigs, and the profit even from a small farm is very attractive.
When raising chickens, you get not only meat, but also eggs, which is also a significant advantage. The disadvantages of this type of farming include greater competition in the market.
Livestock
Raising cows, goats, sheep and other animals can also provide excellent income. This type of activity involves several directions.
Animals can be kept for the following purposes:
- production of milk and dairy products;
- production of meat products;
- tanning of hides;
- sales of young animals.
Did you know? Small-scale farmers produce 70% of the world's food.
Setting up an apiary does not require large investments, so this direction looks very attractive. At the initial stage, all you need is a plot, hives and a bee colony. It is necessary to take into account that beekeeping requires certain knowledge and skills, without which it will not be possible to choose the right place or create optimal conditions for the bees to bring honey. 
But if you delve into this issue and regularly learn from the experience of professional beekeepers by visiting exhibitions and fairs, you can acquire all the necessary skills and organize a successful business. Please note: at the end you get several beekeeping products that sell well - honey, wax, propolis.
To organize the process you will need a pond and larvae or fry. Such a business can be built with minimal investment, and it does not depend on weather conditions and has virtually no other risks. Beginners are recommended to breed fish that quickly gain weight and are in demand on the market - this includes carp and trout. Carp is perfect for these purposes, since the fry are cheap, easy to care for, and the grown fish sells well and pays off with interest.
Trout is more capricious in care and requires knowledge and skills for its breeding, but at the same time it pleases with its high cost at the end, and therefore large profits. The disadvantages of fish farming include the fact that the number of fish in a reservoir cannot be controlled. Therefore, you need to hire only trusted personnel whom you trust, otherwise there is a possibility that you may be deceived. 
Pig farming
Raising pigs is considered very profitable, but requires large financial investments and is very labor-intensive.
In order for a pig farm to generate income, it is necessary to maintain a livestock of at least 100 pigs. And they need to be fed, provided with vitamins and cared for. Accordingly, in addition to a large plot and outbuildings, hired workers, preferably specialists, will be required.
There are often no problems with selling pork - it sells well and is not cheap, so such a business has a relatively quick payback, followed by a stable income.
An excellent option for organizing a farm from scratch is raising rabbits. With minimal costs at the initial stage, the business brings high and stable income. The advantages of this type of activity include the following:
- cheap feed, especially in summer;
- rabbits are very fertile;
- dietary meat is very popular;
- competition in the market is minimal.
The disadvantages of breeding these fur-bearing animals are considered to be high requirements for sanitary standards, high mortality of young animals, and also the fact that such a business will pay off no earlier than in 3 years. Important! Rabbit skins can be donated to clothing factories and ateliers, which will become another source of income in addition to the sale of meat.
Growing plants
Another niche for organizing your own business is growing plants. This business, of course, has its pros and cons, but with the right approach and organization of the process you can make great money. Financial investments can be minimal - for example, if you grow crops in open ground - or they can be quite large if the construction and maintenance of greenhouses is required. Let's look at the most popular destinations.
Setting up a mushroom business requires minimal costs. Mushrooms can grow in basements, barns, abandoned houses and so on - accordingly, there is no need to invest money in construction. You just need to find a suitable building, install heating and light, and install ventilation. And also - purchase substrate and mushroom mycelium. Most often, the familiar oyster mushrooms and champignons are grown for sale. 
Caring for mushrooms is minimal and not labor-intensive - you just need to maintain a constant temperature and humidity, as well as harvest in a timely manner. The demand for such products is quite high, so sales problems rarely arise.
Fruits, berries
The year-round demand for berries and fruits makes their cultivation very attractive for entrepreneurs. It can be carried out seasonally in open ground, or all year round, but in the presence of a greenhouse. Of course, equipment for a greenhouse requires a large investment, but its advantage is that you can collect and sell at least 2 crops per year.
Organizing a peasant farm begins with developing a clear business plan. Working on land is a very expensive business. And in order to become one of those who make a profit from the land, you need considerable starting capital. The future landowner must have good knowledge in his chosen field. It is imperative to be confident in your abilities, and to regard difficulties in the first steps as temporary. If the goal is to succeed and make his business successful in the village, he must know what awaits him and what obstacles lie in wait on the path to prosperity.
Many people consider farming to be a profitable business. In principle, this may be true. But only if you put in a lot of effort and investment.
First of all, you need to choose what the future farm will do and develop a clear business plan. Agriculture and cattle breeding are different industries. But with a rational approach they can be combined.
Where to start farming, what you need to know
If the ownership is based on agriculture, it is worth taking care of the availability of a sufficient amount of land. Technology also plays an important role. If the owner has the required amount, it can be purchased. If not, there are special companies that provide equipment for rent.
Raising livestock also requires a large area of land. If we are talking about cattle, you will need an area for grazing. Of course, rabbits and laying hens can also be housed in a small area. Everything depends solely on the plans and requests of the farmer.
If you have initial capital, it is easier to set up production. But what about the ordinary, average resident of the country who simply decided for himself “I want to become a farmer” and dreams of organizing a small farm from scratch.
Where to start farming in Russia, when state farms and collective farms have collapsed, and new companies are not created very often. The only way is to use government support. The authorities are trying in every possible way to support those who want to create a personal farm. Entire programs and tax incentives have been created to help beginners in this area get on their feet.
LPH or peasant farm?
If you already have a small plot of land, then it is better to start from a private plot of land - a personal subsidiary plot. It does not require registration as an individual entrepreneur, the tax code provides benefits, there is no need to submit regular reports and tax payments are not as high as for entrepreneurs. But this is provided that the farmer owns no more than 2.5 hectares of land. The disadvantage of private household plots is that their sales markets are limited, since the issuance of certificates and declarations of conformity is not provided.
If a farmer plans to actively develop his activities, then it is better to register a peasant farm (peasant farm). It involves the use of land in large quantities and expands possible sales markets. You can take out a loan from almost any bank for your development. While banks are not particularly willing to work with private household plots. Another advantage is that you can officially provide jobs to both your family members and employees. Tax benefits are also provided for peasant farms: during the first five years, income is not subject to taxation, and from the sixth year you can use patents, unified agricultural tax, and simplified taxation system.
Branches for breeding
If we talk about livestock farming, the most popular today are pig farms. Breeding cattle, goats, rabbits, and horses is also considered a profitable business. It is important to remember that animals have their own distinctive features and characteristics of their content. Pasture is provided for cows and goats, rabbits need careful care and a variety of green feed, and horse breeding requires a large area for walking. A pig farm can be located on a relatively small plot of land. There is no need for large reserves of hay and straw, since modern technology has gone much further than it was in the last century.
If you organize a pig farm correctly and rationally, you can make a profit in the first years of your operation.
Another promising industry is fish farming. It has its own specifics, since breeding the most popular fish, such as carp, sturgeon, silver carp, pike, and catfish, requires the presence of several reservoirs. Reservoirs can be officially leased from the state, or purchased if there is such a financial opportunity.
Poultry farming can also be classified as a promising area. Laying hens are raised for their large number of eggs. Broiler chickens are popular due to their rapid growth and large amount of meat, which can be obtained in a fairly short time. Ducks, geese, and turkeys take much longer to grow, but their meat is more valuable and nutritious and is also in demand among consumers. For exotic lovers, breeding ostriches and pheasants will be interesting. Their meat is not very popular among the general population, as it is beyond the affordable price category. However, these birds are designed for wealthy consumers.
Another industry that has always been and will be popular is beekeeping. It does not require a lot of land and labor. A few workers are enough to service more than 100 bee colonies.
Each animal has its own specific content. It is important to study complete information about the proper care of animals, fish or bees. What are the living conditions for them, what food needs to be prepared, study possible diseases and their prevention. Only a responsible approach guarantees a positive result and business prosperity.
What can you grow?
There are quite a lot of crops that are suitable for growing on an agricultural plot. When choosing them, it is worth starting from what latitude the crops are planned to be grown in, what conditions of care and watering they require.
If the owner has a small amount of land, the following crops are suitable:
- Potato
- Carrot
- Cabbage
- Tomatoes
- cucumbers
Growing grain crops is advisable if the property has more than one hectare of land, and you also have your own equipment for processing, or the finances to hire it. Wheat, barley, corn, sunflower, buckwheat, and millet are very popular. Particular attention should be paid to the seeds that will be used for sowing.
What type of activity can you choose additionally?
Each main type of activity provides unlimited opportunities in choosing another source of income. Livestock farming makes it possible to engage in the production of prepared meat products: stewed meats, sausages, and prepared meat products. Cows and goats provide not only meat products, but also dairy products.
Farming allows you to open the production of flour, cereals, and even a bakery.
If the agricultural estate has additional resources, then over time it is possible to combine livestock farming, for example, raising pigs, and growing grain crops, or beets, pumpkins. This will provide the animals with food and save on its purchase.
Registration of business activities
The main law that determines the creation of a farm “On Peasant (Farm) Farming” No. 74-FZ of June 11, 2003 (as amended on December 28, 2010 N 420-FZ). This is what everyone who has decided to create their own farm and is looking for where to start should focus on.
According to the laws of the Russian Federation, any capable citizen of the country can create a peasant farm. Members may be relatives of the owner, as well as other persons, but the total number should not exceed five people. If a farm ownership is created by several people, Article 4 of this law provides for the conclusion of an agreement on joint activities.
The procedure for registering peasant farms is described in detail in Article 5 of this law.
How to become a farmer and where to start? To do this, you have to go through a number of mandatory procedures:
- Pay the state fee
- Visit a notary and have him certify the registration application
- Provide a complete package of documents to the Federal Tax Service. The specific government agency will tell you which ones are required.
- After the registration documents are in the hands of the owner, you need to register with the Funds and receive a letter from Rosstat with statistics codes.
Start-up capital and investments
When a person has the question “I want to start farming, where should I start?”, the first thing we advise is to worry about where to get money for development.
There are several sources for obtaining start-up capital:
- Loan from the state
- Loan from private banks
- Become a member of the agro-industrial complex development program to receive a loan from the state.
- Own finances
Another source of additional finance can be called investments. The main thing is to prove your prospects and solvency to potential investors.
Sales markets
If a small farm is organized from scratch, you need to carefully study consumer needs and the areas where the product can subsequently be sold. Since products generally deteriorate quickly, a very important role is assigned to finding a regular consumer.
The agricultural market has a big drawback - high competition. You can sell products on it yourself, but in small quantities. But for those who do not want to stop there, this option is not entirely suitable.
In order to arrange supplies to large retail outlets, such as restaurants, supermarkets, and specialized retail outlets, it is imperative to have quality certificates for each product.
Small farmers often sell their products to resellers, which has a detrimental effect on their profits, since the price in this case is much lower than that of a direct buyer. But only farmers with extensive experience in this industry can find direct access to a large buyer.
Another way to sell your own product is to unite several farms in order to sell your goods abroad. Prices in this market are much higher than in the domestic market, but it is often quite difficult for an ordinary manufacturer to get there.
From this we can conclude that it is not enough to organize a business in a village; it is important to find a regular client and buyer for the goods produced. Only in this case can you achieve profit and not be disappointed in your own endeavors.
Advantages and disadvantages of farming business
Farming business, like any other, has its advantages and pitfalls. It is better to familiarize yourself with the estimated risk initially than to invest money and not get the desired profit. If you have the desire, you can reach heights.
Benefits of farming:
- little competition. More and more people are choosing to look for a way to improve their lives in the city. The village is not popular.
- environmentally friendly products. The producer himself knows what he grows and what he invests in his production.
- knowledge and experience are mandatory components for starting your own business
- large financial costs at the first stage
- risk associated with force majeure (crop failure, pestilence among livestock)
- hard physical labor
In agriculture, there are an unlimited number of niches for organizing a business. In rural areas there is always something to do - raise birds, fish, animals, crayfish, or grow vegetables, fruits, berries, or open a store or pharmacy. To have your own production in a village, a profitable and full-fledged business, it is important to choose the right project and organize it correctly. But where to start an agricultural business?
Agricultural business - where to start
In order to have a profitable agricultural business in the future, it is important to choose the right activity, that is, an idea to implement. The profitability of a business can be judged after calculating its profitability. And this indicator depends on the existing conditions for the selected business and the region as a whole.
As mentioned above, there is a large selection of business opportunities in the village, but each entrepreneur must decide for himself what he likes to do.
There are several important nuances to consider when starting an agricultural business.:
Relevance. When choosing a business idea, you should conduct a market analysis and determine whether there is demand for future supply;
Competition. To ensure high income from the chosen field of business activity, it is desirable that in one village there are no competitors in this business niche;
Focus. Achieving success in any field of activity is possible only with great effort and desire, therefore, when choosing an activity for the soul, you should not rush between ideas, but choose one thing and devote all your free time to this activity.
You can find out about other equally profitable areas of rural business in the section - “”.
Options for agricultural business ideas
Today, doing agricultural business is profitable; government assistance in the form of government programs and grants for business development, combined with tax incentives, make entrepreneurship in rural areas a promising activity. For a family business where family members work, you should choose one focus, such as growing vegetables, raising animals or beekeeping.
Breeding areas:
Poultry farming - you can breed broiler chickens, geese, ducks, turkeys, pheasants, laying hens and so on;
Animal husbandry – breeding rabbits, pigs, goats, sheep, nutria, horses, etc.;
Beekeeping – the possibility of obtaining honey and honey products;
Fishing – carp, trout, sturgeon, catfish, carp and other types of fish are bred.
Growing areas:
Greens – you can grow various types of greens: basil, onions, parsley, dill, cilantro, garlic, etc.;
Vegetables - tomatoes, zucchini, cucumbers, peppers, cabbage, potatoes, carrots, eggplants and so on are suitable for growing;
Fruits and berries - mainly strawberries, cherries, raspberries, cherries, apples, plums, grapes, melons, watermelons are grown;
Grain – oats, rye, corn, millet and so on are suitable for growing.
A fairly popular agricultural business is growing vegetables, fruits, berries, or herbs for sale. It is very easy for even a beginner to gain a foothold in this field of activity. Vegetables and herbs can be grown all year round; it is enough to equip a greenhouse, and the products can be sold on the market.
Breeding animals (rabbits, pigs, goats, sheep), birds (chickens, ducks, quails) is an equally popular type of business in the village. This will require a room with the required microclimate parameters for a specific animal, as well as equipment for processing animals after slaughter.
Naturally, this is not a complete list of what you can do in the village, but these industries are the most popular among other areas of agricultural business that are in demand in Russia.
When planning the chosen project, you should consider whether it is possible to receive additional income separately from your main income. For example, when growing vegetables and fruits, you can also sell frozen vegetables and fruits; when raising animals (pigs or cows), you can produce stewed meat, homemade sausage and other delicacies. When keeping cows, you can sell not only meat, but also milk, cream, sour cream, cottage cheese, and cheese. If you grow grain, you can organize the production of flour, as well as equip a mini-bakery and bake bread and bakery products.
Many entrepreneurs who do not want to grow or breed anything, perhaps without such experience, decide to open a supermarket in rural areas. This business idea has every chance of becoming successful and bringing good income to the entrepreneur. But all this is possible with little competition; if there are several grocery stores in the village, it is better to open another establishment, for example, of an entertainment nature.
A profitable solution would be to open a pharmacy in a village, especially if the village is located far from the city. But this type of business requires significant material costs and pharmaceutical experience. You will also need to register your business with the tax office, a license for pharmaceutical activities, and a permit to sell medicines.
Stages of business planning in a village
Like any other business, agricultural also cannot do without a planning stage. It consists of drawing up a business plan. For farming, the first stage will be to search for a plot of land, for raising animals - premises for a farm; it may be easier to find a ready-made farm, for example, if someone sells it, it is more difficult to start all over from scratch.
How to start an agricultural business from scratch? A plot of land for farming and premises for a farm can not only be purchased, but also rented, it is desirable that the access roads to it be convenient.
Next, you should analyze the costs of organizing a business, as well as calculate the approximate profit. Why approximate? Because the agricultural business is full of risks, for example, the crop may not grow due to weather conditions, and animals may die due to an epidemic of various diseases, and naturally these costs will not be recouped.
Therefore, costs are the main point of a business plan in building an agricultural business. For example, for farming you will need to purchase seeds, fertilizers, equipment for an irrigation system, pay workers (if you plan to hire workers), transport the crop to the place of sale, use special equipment - all these costs must be described and provided for in this paragraph of the business plan. After analyzing all costs, you can begin to analyze possible income.
To calculate the possible profit, you need to know the profitability of a particular area of activity. Let’s say when planning to grow tomatoes, you should study the average yield of the vegetable in a given climatic region for one season. This figure must then be multiplied by the average cost of tomatoes during the season, thus giving an approximate amount of possible income from growing tomatoes.
The next important point of the business plan is the sources of financing for business activities. One of the few reasons why many entrepreneurs abandon their venture into farming is the lack of the required amount of funds.
The state today pays enough attention to improving the level of development of agriculture, and also allocates enormous amounts of money to support beginning farmers who want to work in the countryside. An entrepreneur can apply for a loan for the missing amount; for this, there are preferential lending programs designed specifically for beginning farmers, but this will require a comprehensive business plan for the future farm.
If you do not want to pay high interest on the loan, you can take the opportunity and participate in the distribution of grants for agricultural development - this is a government program to help young or existing entrepreneurs, which does not need to be repaid - it is free of charge. Obtaining this grant is not so easy; it is necessary to draw up an entire program for future production or a plan for modernizing an existing one and prove to the expert commission that the proposed project deserves to win.
The Russian government is interested in ensuring that agricultural products satisfy the needs of the entire population, which in turn will help to completely abandon imported products and goods. Today, the dairy cow breeding industry is a priority, as it is very poorly developed. Therefore, having received government support and competently organizing production and sales, it is quite possible to cover a large part of the relevant market.
Once possible costs and income have been calculated, a plot of land or premises for a farm have been found, you can draw up documents - register the future enterprise.
To do this you need to do the following::
Pay the state fee at the bank;
Write an application for business registration and have it certified by a notary;
Collect the necessary set of documents for the inspection of the Federal Tax Service (IFTS);
After a set time, pick up the finished documents from the Federal Tax Service;
Register with the Pension Fund and other required authorities;
Obtain statistics codes from the Federal Statistics Service;
Open a current account at a financial institution;
After completing the documents and registering the business, you can begin organizing the selected farm. An entrepreneur must have an idea of the business he will be engaged in; if he does not have the skills to conduct agricultural activities, it is necessary to invite an experienced worker - a farmer with appropriate education - to help with the work.
To grow plants and vegetables, it is better to organize greenhouses if the plot is small and harvest all year round. You need to start with a small plot and then gradually expand the farm every year. Modern technologies today can significantly facilitate the farmer’s work and increase farm productivity, and this should be used.
Next, you need to buy the necessary equipment, individual for each industry. For example, to raise broiler chickens, you will need special heaters, cages for keeping chickens, feeders, drinkers, equipment for removing feathers from slaughter birds, and so on; to grow greens all year round, it is necessary to equip the room with shelving and optimal lighting above each tier of the shelving, as well as provide appropriate microclimate for a good harvest.
Potential problems of agricultural entrepreneurship
Agricultural business at first glance may not seem so attractive, but this is partly true; organizing farming requires considerable capital investment and a lot of physical labor. In organizing and establishing a business, at first you will have to work independently in order to save money to pay wages to workers.
In some industries, the payback period is quite long, for example, when breeding animals, although this cannot be said in the case of growing vegetables. If successful, you can recoup the costs in one harvest season. However, even here there are risks - seedlings may not sprout, part of the crop may die due to weather conditions, plants also have diseases and often they damage a large area of plantings. All these nuances need to be taken into account.
In livestock and poultry farming there is also a high risk of death of livestock and poultry due to disease epidemics; sometimes even healthy animals and birds have to be slaughtered in order to avoid a global epidemic. Therefore, the entire agricultural business is quite risky.
The most profitable agricultural business
To find a profitable niche in the agricultural business with minimal investment, you should carefully analyze the technologies and conditions for the implementation of various projects. Through long-term studies of the conditions for organizing a business, calculations of its profitability, costs of feed, equipment and the resulting income, the most profitable agricultural business was determined - poultry farming, namely geese breeding.
Firstly, geese are unpretentious birds; they live in any climate zone, gain optimal weight and are resistant to disease. Goose meat is high-calorie and not expensive compared to beef and pork, so it is in high demand on the market. When breeding geese, a related business is the sale of eggs, feathers, down and fat of geese.
Geese breeding technology consists of the following cycles:
Obtaining eggs and ensuring the incubation period;
Hatching goslings from eggs;
Intensive fattening of goslings for at least three months with a special, highly balanced feed;
Fattening to obtain fatty liver within two weeks;
Poultry slaughter and processing;
Sales of carcasses and related products;
Considering the cost of raising one bird, from the moment it emerges from the egg until the moment the meat is sold, which is about 600 rubles, we can say that running this business is quite profitable. Labor costs for servicing a herd of up to 100 heads will require only 3 man-hours - this figure is also relatively small compared to, for example, raising cows or pigs.
In the final weeks before slaughter, the geese are kept in individual cages, which practically do not allow them to move; they are given water and force-fed with special syringes. They sell goose meat, liver, offal, down and feathers. On average, one goose brings a profit of up to 2,000 rubles, and the profitability is up to 400%. Therefore, we can safely say that breeding geese is the most profitable agricultural business.
Is it profitable to do agricultural business in Russia or not? The answer to this question can be answered unequivocally yes, it is profitable, even despite the fact that some sectors of agriculture require large capital investments, hard physical and mental labor, and also have a long payback period. It can be argued that agriculture is a highly profitable occupation, an object of production as it passes through the stages of the technological cycle from its beginning to the moment of sale of the finished product increases in price several times (cleaning, processing, sorting, moving, packaging, etc.).
And in conclusion of the article, briefly about the main thing. Agricultural business where to start? As described above - from planning. It is impossible to build a profitable business without a good, competent business plan. A difficult stage in business is the sale of manufactured products; it sometimes takes years to find regular customers and points of sale. You should clearly choose one direction and develop it. Many new farmers grab at everything at once (a few chickens, ducks, a couple of cages with rabbits, a pig, a cow) - this is good for the household, but not for business, in the end they do not succeed.
Agriculture is a complex activity, so manual labor should be mechanized to the utmost, using automatic machines (watering, irrigation, drinking troughs for livestock, milking machines, etc.).
To further develop an already successful farming business, you can try to join a well-known agricultural brand, but this will require a franchise. Buying a franchise will not be cheap, but with its help you can count on an increase in sales volumes and, accordingly, profits.
Did you like the article? Share with friends on social media. networks:Today there are a number of government programs that are aimed at developing and supporting farmers, and tax benefits have been defined for owners. This type of entrepreneurial activity has become promising in Russia. Let's figure out where to start farming, what expenses will be required and how to successfully start in this business.
A farm is a commercial organization that operates on a family basis and produces agricultural products for the purpose of sale for profit.
Before starting a business in this area and to draw up a business plan, decide on the choice of direction.
Branches for breeding
- Livestock: , horses, .
- : trout, carp, sturgeon, silver carp, pike, carp, catfish.
- Poultry breeding: laying hens, broiler chickens, ducks, geese, ostriches, .
What do they grow?
- Vegetables: cucumbers, tomatoes, cabbage, peppers, eggplants, pumpkin, potatoes, carrots.
- Fruits and berries: melons, watermelons, apricots, pears, apples, strawberries, cherries, prunes, plums.
- Greens: parsley, dill, onion, garlic.
- Grain crops: wheat, oats, barley, rye, corn, sunflower, buckwheat.
This is not a complete list, but we have listed common and traditional crops.
What type of activity should I choose additionally?
When drawing up a business plan for a farm, take into account that additional income from related activities is possible.
- If you decide to grow fruits and vegetables, additionally set up the production of frozen vegetables and fruits.
- If you want to deal with pigs, at the same time start the production of stewed meat, products and other meat delicacies. Cows also mean profit from the sale of dairy products: milk, sour cream, cottage cheese, cheese and others.
- When growing grain crops, organize the production of flour, cereals, or try.
Where to start when starting a farm
The procedure for the formation of property is determined by the Law “On Peasant (Farm) Farming” No. 74-FZ of June 11, 2003 (as amended on December 28, 2010 No. 420-FZ).
According to clause 1 of Article 3, any capable citizen of the Russian Federation, as well as a foreign or stateless person, have the right to create a peasant farm. Clause 2 of the article states that the following can become members: spouses and parents, grandparents, children, sisters, brothers, grandchildren (up to three families). Also persons who are not relatives of the head, but no more than five people.
Article 4 states that the creation of a business by a group of persons will require the conclusion of an agreement on joint activities.
Article 5 describes the procedure for registering a peasant farm.
Registration procedure
- pay the state fee;
- notarize the application for registration;
- submit a package of documents to the Federal Tax Service;
- register with the Funds;
- receive a letter from Rosstat with statistics codes;
- open a bank account.
On state support for agriculture
There are a number of benefits for newly created enterprises, but when you need a loan to develop an agricultural business, do not expect to receive a loan from the state. It is available to farms included in the agro-industrial complex development program. It also includes guarantors.
You are not a pensioner and do not work - contact the employment service with an application for inclusion in the self-employment program so that you have the opportunity to receive government assistance from 50 to 60 thousand rubles for opening an individual entrepreneur in the agricultural sector.
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.
