Recently, many citizens began to open a business in countryside, since in the city almost all profitable niches have long been occupied by experienced entrepreneurs. Another good reason is the ability to start without major capital investments. In this article, we'll talk about how to get started. farming and how to lead it to success.
How to open a farm?
If you decide to open a farm, but do not know where to start, the first thing to do is to develop a competent business plan. First, carefully calculate all costs, consult with experts and plan all your further actions. After that, you can start implementing the idea. The business plan will become the guiding thread that will lead your business to success. The most important thing is to start successfully, and all problems can be solved as they come.
So, where to start organizing a farm? The first thing to do is to find a suitable piece of land. It can be purchased or rented. It's best to buy land. In this case, you will not worry that its owner will refuse to renew it after the lease expires. On the this moment in the regions, one hectare of agricultural land costs 2–4 thousand rubles. This is quite an affordable price even for beginners who do not have a large start-up capital.
After you understand the land, you need to decide what exactly you will do.
The most popular areas of activity:
- Pig breeding;
- poultry farming;
- Breeding cattle;
- Growing vegetables or melons;
- Fish farming.
The easiest way to start a farm from scratch is to choose one area of activity and gradually develop it. The main advantage of any farmer is that in addition to the main profit, he can receive additional income. For example, if you organized, you can simultaneously engage in the production of frozen berries, preserves and jams. Entrepreneurs who raise cows or pigs can produce sausages and stew. The cultivation of grain crops can be accompanied by the production of flour, pasta and croup.
Financial investments
It is quite difficult to answer the question of how much it costs to open a farm, since the size of the initial investment largely depends on the scale of the future enterprise and the scope of activity. If you plan to start raising cattle, you will need a large start-up capital, about 2-5 million rubles. The opening of a small poultry farm will have to spend 0.7-1.5 million rubles. For beginners who are interested in how to open a farm from scratch, it is better to start by growing vegetables. In this case, you will need money only for the purchase of seed and fertilizer.
Aspiring entrepreneurs who want to start their own business in the countryside often ask the question, I want to open a farm, how will the state help? You should not count on the fact that immediately after registering a company you will be able to get a loan. In our country, it is issued only to those farmers who fall under the program for the development of the agro-industrial complex. In addition, this is too troublesome, because in order to receive financial assistance, you need to find several guarantors. If you register for unemployment at the employment center, you may be given a gratuitous subsidy for starting a business in the amount of 50-60 thousand rubles.
Profit
The first profit from the farm can be obtained in 9-12 months. The payback period of a business does not depend on the direction of activity. With a competent approach, you can cover all expenses in just a year of work. After that, your income will be significantly higher than the cost of maintaining the farm. If you can’t decide, be sure to pay attention to this promising line of business. Many successful farmers started as a small family farm and have managed to reach great heights thanks to their patience and hard work.
Business Profitability
Some farmers cannot make their business profitable because they do not have the appropriate knowledge and skills. But this does not mean that this area of \u200b\u200bactivity should be put an end to. To be successful, you need to regularly update equipment and other assets, study cutting-edge agricultural developments, and stimulate land.
To increase the profitability of the business, breed several types of animals or grow different vegetables and fruits. If one part of your structure turns out to be unprofitable, the other part will in any case cover all costs and allow you to make a profit.
Another effective method increasing profitability is own production on a farm basis. Open a small business and process finished products on your own. In addition, you need to find buyers who will buy it in bulk at competitive prices.
The most popular ideas for beginners
Interested in how to open a farm without large initial investment? In agriculture, you can open your own business literally from scratch. If you treat your work responsibly, over time a small farm will turn into a highly profitable one. manufacturing enterprise. If you are not attracted to growing vegetables or other crops, you can start breeding:
There are several forms of doing business, depending on the type and scale of commercial activity. When starting a business from scratch, many people prefer the design of an IP, as this is a fairly simple and quick procedure. But if a person decides to engage in agricultural activities, he can also register a farm. To understand what is better - an individual entrepreneur or a peasant farm, and choose the optimal form of doing business, you need to understand the intricacies of each of them.
KFH as a type of activity
Peasant farming (KFH) is represented by a group of people who are most often relatives, or for some other reason have joint property and are engaged in agriculture for profit. Members of the KFH are engaged in the production of products, their processing, storage, transportation and sale. A peasant farm can produce any product, but only if it is agricultural: poultry meat, livestock, vegetables, cereals.
If you are going to produce products of a different kind, such a form of business as KFH will not suit you.
What are the benefits
KFH has a number of advantages:
- support and privileges from the state;
- grace period in taxation;
- the possibility of using large land plots, the area of which exceeds 2.5 hectares;
- the possibility of obtaining grants under support programs from various foundations;
- official registration of employees;
- preferential conditions for obtaining loans for the purchase of land and equipment;
- in the absence of violations on the part of the legislation, peasant farms are not subject to inspection by commissions from the local government.
Therefore, many rural residents who have sufficient initial capital for the development of agricultural business prefer to create a peasant farm.
Disadvantages of KFH
Unfortunately, no form of business is perfect. And KFH has disadvantages, which, however, are not so many:
- High costs for registration of a farm in comparison with a conventional IP.
- Mandatory use of land for its intended purpose. That is, if your land is intended for cultivation cultivated plants, you cannot graze livestock on it.
- A participant in such a farm can be a member of only one peasant farm.
Agricultural business is characterized by rather long payback periods. And if you want to speed up the process of making a profit, as well as have some guarantees for yourself, you should follow a few recommendations:
What is IP
IP (individual entrepreneur) is individual, the person who formalized commercial activity and pays taxes. That is, an entrepreneur does not formalize a legal entity in order to engage in a certain type of business.
Registration of an IP is a fairly simple procedure that does not require a long time and significant financial costs. Therefore, this way of doing business will do for those who want to start their own business from scratch.
Who can establish a KFH
Both a group of people and one person - the head of the KFH - IP can create a KFH. That is, the founder of the farm should already be individual entrepreneur. Therefore, the concepts of KFH and IP are closely related.
If the farm will include more than one person, an agreement must be concluded between the co-owners. This document includes the following sections:
- General provisions on the work of the farmer's association.
- Information about the head of KFH.
- Rights, duties and responsibilities of all members of the KFH.
- Rules for entry and exit from the peasant economy.
- Regulations on the transfer of personal property to the ownership of KFH.
- Distribution of profits from the activities of the economy.
Package of documents for registration
Only one of the members of the society takes part in the design of the KFH - the head of the KFH with the status of an individual entrepreneur. To register, he must collect a package of documents:
- A notarized statement on the creation of a peasant farm with the signature of the head of the economy.
- Agreement between members of the KFH.
- A copy of the passport of the person in whose name the company is registered.
- Copies of passports of all members of the household.
- TIN of all members of the peasant farm.
- Copies of certificates confirming family ties of co-owners.
- List of OKVED codes.
- Bank details.
- Receipt for payment of the fee.
KFH members
As we have already said, the members of the KFH are mainly relatives: spouses, parents and children, sisters with brothers and more distant relatives. Their number in the composition of the farm is not limited. For other people who cannot confirm family ties with the head of the peasant farm, there are 2 rules:
- It is possible to accept strangers into society, but only so that their total number does not exceed 5.
- The maximum number of different families in a society is 3.
Registration Forms
Previously, it was possible to register a peasant farm as a legal entity, or to stop at an association of people, among which one would have the status of an individual entrepreneur. But in 2003, the Law on KFH was adopted, in which there was no talk of registering a legal entity. Since that time, the heads of communities are required to draw up an IP and submit reports on their own.
In what cases is a legal entity formed?
If you want to run an agricultural business with a large number of partners who are not your relatives, you will not be able to issue a KFH. Registration of IP of one of the participants and hiring others by employment contract does not give guarantees to partners and does not protect their rights. In this case the best option LLC will be registered.
IP - head of the KFH
The main advantage of creating a peasant farm is that there is no need to register an enterprise. The main thing is that one of the members of the community has the appropriate status.
The head of a peasant farm is called an individual entrepreneur, and a farming society is opened at the place of his registration.
The head of the KFH performs all organizational work:
- acting on behalf of the community;
- organizes his work;
- signs everything Required documents;
- makes transactions with distributors;
- hires employees;
- maintains all records;
- submits reports.
LPH or KFH
The closest form of agriculture to peasant farming economic activity is LPH. The difference between personal subsidiary farming and peasant farming is as follows:
- The owner of private household plots works informally, he does not need to register as an individual entrepreneur, pay taxes and provide reports.
- The owner of the subsidiary farm cannot issue declarations and quality certificates for his products. Therefore, he makes products more for his own consumption, and not for sale. The activity of the KFH provides mainly for making a profit.
- Private household plots for growing crops can use no more than 2.5 hectares of land. While for peasant farms there is no limitation in land resources.
- The head of a peasant farm has more chances to get a loan, as he is perceived as an individual entrepreneur, and not a private person.
As you can see, PSP is not a way of doing business; in order to make a profit, it is recommended to create a farm. But, unfortunately, not everyone can afford to buy a large plot of land. Others do not want to live in the countryside just to start a family business.
Accounting KFH
Since the KFH is not a legal entity, the head of the community, in accordance with federal law dated December 29, 1995 No. 222-FZ, can keep records according to a simplified system. Financial statements, according to the law, must be kept according to the book of accounting for income and expenses. But different KFHs can differ greatly in their scale. For large farms the most common would be a system of accounts and double entry. It allows you to reflect in detail all business operations and processes.
Tax incentives for peasant farms
After receiving a certificate of registration of a peasant farm, the head of the community must choose a taxation system. Most often, in this case, a single agricultural tax is chosen, in which the community pays 6% of the profit every six months. But for farms there is a grace period for paying taxes, which is 5 years from the date of registration of the IP by the head of the peasant farm. During this period, the economy does not pay taxes, which has a good effect on the payback period of the business.
State support for peasant farms
KFH is one of the few forms of doing business that has received significant support from the state:
- Support in lending to agricultural producers. Subsidies are assigned to companies to cover part of the cost of paying the interest rate of the loan.
- Financial assistance in the form of grants and one-time assistance for the creation and development of peasant farms.
- Property support in the form of transfer of ownership of land plots, non-residential premises, transport, equipment, machinery, inventory and other state property on the basis of a lease agreement on preferential terms.
- Compensation of the social insurance fund in case of loss of a breadwinner.
Summing up
You have already understood that the concepts of KFH and IP are closely intertwined. But in its purest form, these two types of business have significant differences. For a clear example, we have created a table of differences, which is better - a peasant farm or an individual entrepreneur:
| Criterion | Individual entrepreneurship | |
|---|---|---|
| Number of members of the organization | An unlimited number of people who are related, in other cases - no more than five. | One man |
| Registration | Only the head of the KFH is registered, but an agreement is required in the case of several co-owners. | Registration of one person with the provision of information about his personality. |
| Income distribution | Between all members of the society, according to the agreement. | All income belongs to the entrepreneur. |
| A responsibility | It is distributed among all participants of the KFH, in accordance with the relevant provision in the agreement. | All responsibility lies with the IP. Responsible for personal property. |
| Privileges | Grace period in taxation, property governmental support, insurance compensation. | Simplified taxation system, reduced insurance premiums, subsidies and subsidies for start-up entrepreneurs. |
The advantages of an individual entrepreneur over a peasant farm appear only if you want to run a business on your own. In the case of a family or partnership business, it would be better to register a KFH or LLC so that all business participants have the same rights and guarantees.
KFH - the history of formation and success: Video
In this article, we have collected a few useful tips, which will help you figure out where to start, what is more profitable to do and how much money you need to start.
The right of a farm, in accordance with the legislation in force in Russia, has any capable citizen who has reached the age of 16 Russian Federation , as well as any foreign citizen or stateless person.
At the same time, the husband or wife of the head of household, the parents of both spouses, as well as their closest relatives, including grandparents, brothers, sisters, children and grandchildren, can become members of such an entity, provided that they have reached the age of 16 and are members of not more than 3 different families.
In addition, people who are not related to other participants and the head of the household can become members of the farm, but the number of such members is limited - there should be no more than five people. Regardless of the presence of family ties, all participants in the farm should be directly involved in economic activities.
If the economy is created by one physical. person, it is enough to go through the appropriate procedure state registration, according to the current Russian legislation order, but if the farm will have several members, they must conclude a multilateral agreement on jointly administered economic activity.
Since the property of the FH is the common property of the members, upon withdrawal from its membership, the participant has the right to material compensation.
How to draw up an agreement on the creation of a farm
An agreement on the creation of a farm must necessarily include the following information:
- about members of the future FH;
- on the appointment of the head of the farm;
- on the procedure for the formation of the property of a farm;
- on the possession of such property, its use and disposal;
- about the obligations and rights of each of the participants in this agreement, including the chapter;
- on the admission of new members to the farm and the procedure for leaving the farm;
- on the distribution of agricultural and other products obtained as a result of economic activity, or profit from its sale.
How to draw up documents
To submit documents for registration of a farm, you must contact the Federal Tax Service at the place of registration.
The list of documents that must be submitted for registration of a KFH
- statement about the state registration of FH in the form P21002 with a signature certified by a notary;
- an agreement on the creation of a farm, if there is more than one member in the farm;
- a set of documents confirming the existence of family ties between the members of the agreement on the establishment of a farm;
- a notarized copy of the passport of a citizen of the Russian Federation;
- application for the transition to the selected taxation system;
- receipt of payment of the state fee (it will cost 800 rubles).
If you submit all the necessary documents, and there will be no claims against them, a certificate of registration of a farm, a certificate of registration in tax office and an extract from the USRIP you can receive in five working days.
Which tax regime is better
The optimal tax regime for farming is UAT- a single agricultural tax that exempts the farmer from property and profit tax, as well as from value added tax. The tax rate is only six percent (paid on profits).
According to the current rules, the tax should be paid once every six months, and reporting to the Federal Tax Service must be submitted once a year.
What to do
Any associated with either animal husbandry or crop production. As an additional activity, a farm can process its own products and process products purchased from other farms.
At the same time, it should be borne in mind that the larger the farm, and the more diversified its specialization, the more resistant it will be to changes in the market situation. Such enterprises provide FH members with consistently high profits, but require significant investment.
Growing crops
Unfortunately, the climate suitable for growing crops is far from being everywhere, and the soil that provides high yields is even rarer.
However, there are many crops that can be grown in greenhouses even in the coldest climates, so their production can be profitable in any region.
Can be grown
- cereals and legumes: wheat, corn, oats, rye, barley, millet, rice, sunflower, peas, buckwheat and others;
- vegetables and fruits: , apples, radishes, peppers, apricots, radishes, beets, peaches, plums, zucchini, quince, pears, and others;
- gourds: , ;
- greens: green onions, parsley, sorrel, cilantro, basil;
- berries: , raspberries, gooseberries, currants, cherries, grapes, cherries,;
- mushrooms: champignons, chanterelles, and others.
Breeding animals and fish
If the climate in your area is not conducive to growing crops, you can focus on raising animals, insects, or fish.
You can breed
- large animals: , goats, cows, horses;
- small animals:, nutria, and others;
- bird:, turkeys, and others;
- insects: bees, ;
- fish: , cyprinids, catfish, pike, and others.
Processing and recycling
One of the advantages of farming is the possibility of obtaining additional profit from the processing and processing of agricultural products.
For example, farms that specialize in growing various crops can pack cereals, and pack flour and even bake from it bakery products, produce frozen and canned fruits and vegetables, pickles.
Farms specializing in raising pigs can produce a variety of meat products, from raw meat and offal to sausage products and smoked meats.
Sheep farms can make good money on wool processing, and farms that breed cows can make good money on the production of milk, cottage cheese, and other dairy products.
How to get state support
If the head of the farm has not yet reached the retirement age established by the legislation of the Russian Federation and is not officially employed labor activity, he can apply for self-employment in the agricultural industry. You must first register for unemployment.
In this case, after reviewing all the documents, he will be able to get state subsidy in the amount of 50-60 thousand rubles. In addition, in some regions, agricultural activities are subsidized by local authorities.
But on special conditions can only be calculated if farming is listed in the development program agro-industrial complex which, for obvious reasons, is impossible for new farms.
Investments and profit
The total cost of everything that is needed to open a farm depends on the type of activity, the volume of expected agricultural production and a number of other factors.
On average, investments in the arrangement of a small farm are about 30 thousand dollars, and profits range from 8-15 thousand dollars a year.
As you can see, farming is not that difficult. But it will be difficult to turn a good profit during the first year, especially if you have never had farm experience before.
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Hello! So the time has come to release a series of articles on the growing business in the field of agriculture. How to register a KFH (peasant farm) and much more we will talk today.
The concept of KFH
(KFH) is entrepreneurial activity one citizen or a group of persons (no more than 5 people), created to make a profit from activities in the field of agriculture.
This business activity is not legal entities, but it has similar features with IP, during registration.
Registration of KFH
Anyone can open a KFH. As a citizen of the Russian Federation, and guests from abroad. Provided they are legally capable and of legal age.
Persons wishing to register a peasant farm may be related, or they may be completely strangers to each other, but have one goal - entrepreneurial activity in agriculture.
Documents are submitted, as with, to the tax office at the place of residence. By registering in one place, KFH participants can carry out their activities throughout the territory of the Russian Federation.
What you need to provide to the tax office:
- Application in the form p21002;
- Download the application form
- Creation agreement - it is necessary if there are more than 1 participant;
- Download agreement form
- Application for a special taxation regime (download);
- Check for payment of state duty;
- Passport of the head + its copy;
The procedure for filing and processing documents for registration
- By downloading the application form fill it out as in the example.
- Download sample application
If you cannot bring it to the Federal Tax Service yourself, then fill out the application (except for the last page) and go to the notary. There you will make a power of attorney for your representative and certify your signature on the application.
- Download the agreement, fill it out, provided that your farm will consist of more than 1 person. This is a kind of charter, which spells out the procedure for the work of your organization, the goals of its creation, and ways to resolve certain issues.
- State duty= 800 r.
- The registration period of the KFH is 3 working days.
- You can send documents to the tax office in the following ways:
- personally or through your representative;
- on e-mail, with an electronic signature;
- a letter with a description of the investment and declared value;
- through the nearest MFC to you.
After registration you will receive Certificate and extract from USRIP.
Differences between IP and KFH
|
Individual entrepreneur |
Peasant farming |
|
| 1 | IP is created by 1 person, you cannot open IP for two. | KFH is created by 1 person or a group of people. |
| 2 | Registration at the place of permanent residence | Registration by permanent or temporary registration of the head of the peasant farm |
| 3 | Liability with your personal property | Subsidiary liability of all members of the KFH |
| 4 | Special tax regime: USN, PSN, UTII, OSNO | Special tax regime: ESHN |
| 5 | Tax benefits when choosing the appropriate taxation regime. | Benefits on taxes and fees, up to 5 years are exempt from paying taxes |
| 6 | Less favorable credit terms compared to KFH | More favorable credit terms. |
The organization of a peasant farm begins with the development of a clear business plan. Working on the ground is a very costly business. And in order to become one of those who profit from the land, you need a lot of start-up capital. The future landowner is required to have good knowledge in his chosen field. Be sure to be confident in your abilities, and regard the difficulties in the first steps as temporary. If the goal is to succeed and make his business prosperous in the village, he must know what awaits him and what obstacles lie in wait on the path to prosperity.
Many consider farming a profitable business. In principle, this may be true. But only if you put a lot of effort and investment.
First of all, you need to choose what the future farm will do, develop a clear business plan. Farming and animal husbandry are different industries. But with a rational approach, they can be combined.
How to start farming, what you need to know
If the property will be based on agriculture, it is worth taking care to have enough land. Quite a few important role technology plays. If the owner has the necessary amount, it can be purchased. If not, there are special companies that provide equipment for hire.
Raising livestock also requires a large area of land. When it comes to big cattle, it will require an area for its grazing. Of course, rabbits and laying hens can be arranged in a small area. It all depends solely on the plans and requests of the farmer.
If there is initial capital, production is easier to set up. But what about an ordinary, average resident of the country, who simply decided for himself “I want to become a farmer” and dreams of how to organize a small farm from scratch.
Where to start farming in Russia, when state farms and collective farms have collapsed, and new firms are not created very often. The only way is to use state support. The authorities are doing their best to support those who wish to create a personal farm. Entire programs and tax incentives have been created to help beginners in this field get on their feet.
LPH or KFH?
If a small plot of land is already available, then it is better to start from private household plots - personal subsidiary plots. It does not need to be registered as an individual entrepreneur, the tax code provides for 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 sales markets are limited for it, since it does not provide for the issuance of certificates and declarations of conformity.
If the farmer plans to actively develop his activities, then it is better to issue a KFH - a peasant farm. It implies the use of land in large volumes, expanding possible markets. You can take a loan from almost any bank for your development. While banks are not particularly willing to work with private household plots. Another plus 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, ESHN, USNO.
Branches for breeding
If we talk about animal husbandry, then the most popular today are pig farms. Breeding of cattle, goats, rabbits, horses is also considered profitable business. It is important to remember that animals have their own distinctive features and content specifics. Pasture is provided for cows and goats, rabbits need careful care and a variety of green fodder, horse breeding requires a large area for walking. A pig farm can be located on a relatively small piece of land. There is no need for large stocks of hay and straw, as modern technologies went 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 activity.
Another promising industry is fish farming. It has its own specifics, since the breeding of the most popular fish, such as carp, sturgeon, silver carp, pike, catfish, provides for 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 a large amount of eggs, Broiler hens are popular due to their rapid growth and the large amount of meat that can be obtained in a fairly short time. Ducks, geese, turkeys are grown much longer, but their meat is more valuable and nutritious and is also in demand among consumers. For lovers of the exotic, it will be interesting to breed ostriches and pheasants. Their meat is not very popular among the general population, as it goes beyond the affordable price range. However, these birds are designed for a wealthy consumer.
Another industry that has always been and will be popular is beekeeping. It does not require a lot of land and work force. A few workers are enough to serve more than 100 bee colonies.
Each animal has its own specific content. It is important to study the full information about the proper care of animals, fish or bees. What are the conditions for their living, what kind of feed should be prepared, to study possible diseases and their prevention. Only a responsible approach guarantees a positive result and business prosperity.
What can be grown
There are a lot of crops that are suitable for growing on an agricultural plot. When choosing them, it is worth starting from what latitude it is planned to grow crops, what conditions of care and watering they require.
If the owner has a small amount of land, the following crops will do:
- Potato
- Carrot
- Cabbage
- Tomatoes
- cucumbers
Growing crops is advisable if the estate has more than one hectare of land, and also has its own processing equipment, or finances for hiring it. Wheat, barley, corn, sunflower, buckwheat, millet are very popular. Particular attention should be paid to the seeds that will be used for sowing.
What type of activity can be chosen additionally
Each main activity unlimited possibilities choosing another source of income. Animal husbandry makes it possible to engage in the production of finished meat products: stew, sausages, meat finished 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 holding has additional resources, then it is possible over time to combine animal husbandry, for example, raising pigs, and growing crops, or beets, pumpkins. This will provide animals with food and save on its purchase.
Registration of entrepreneurial activity
The main law that determines the creation of a farm "On a peasant (farm) economy" No. 74-FZ of 11.06.2003 (amendments of 12.28.2010 N 420-FZ). It is on him that everyone who decides to create their own farm and are looking for where to start should be guided.
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, while the total number should not exceed five people. If a farm holding is created by several people, Article 4 of this law provides for the conclusion of an agreement on joint activities.
The procedure for registering a peasant farm 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 duty
- Visit a notary and certify an application for registration
- Provide a complete package of documents to the IFTS. What exactly will be required, they will prompt in this state structure.
- After registration documents will be in the hands of the owner, you need to register with the Funds, 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 take care of the question of 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.
Markets
If a small farm is organized from scratch, you need to carefully study consumer requests, and those directions where you can later sell the goods. Since the products generally spoil quickly, a very important role is given to the search for a permanent 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 deliveries to large outlets, such as restaurants, supermarkets, specialized outlets, it is mandatory 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 a farmer with extensive experience in the industry can find direct access to a major buyer.
Another way to sell your own product of production is to combine several farms in order to sell your product 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 the village, it is important to find a regular customer and buyer for the goods produced. Only in this case you can get profit and not be disappointed in your own endeavors.
Advantages and disadvantages of a farm business
Farm business, like any other, has its advantages and pitfalls. It is better to familiarize yourself with the perceived risk initially than to invest money and not get the desired profit. If there is a desire, you can reach heights.
Farming Benefits:
- little competition. More and more people prefer to look for a way to improve their life in the city. The village is not popular.
- environmentally friendly products. The manufacturer himself knows what he grows and what he invests in his production.
- knowledge and experience are essential components for starting your own business
- high financial costs at the first stage
- risk associated with force majeure (crop failure, pestilence among livestock)
- heavy physical work
