Why your farm background is important to your business plan

A business plan is a crucial document for any company, including farms. It acts as a roadmap that explains who you are, how your farm operates and your finances.

One section, the company background and history, is part of introducing a solid business plan, but farm business owners often overlook it.

Taking time to write out this information may seem less valuable than setting goals or calculating financial data; however, it’s a critical component of the document. That’s because some people reading your plan - such as lenders, investors or strategic partners - may not be familiar with you or your farm business. Don’t discount the deep history of your family’s farm, says Nicholas Clermont of SomaDetect.

“This area adds a lot of credibility to a farm in general,” Clermont says. “Many farms date back multiple generations, and the people know how to run a successful business. It alleviates a level of risk to potential partners as they see you successfully navigate the challenges of operating a farm.”

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