By Suzanne Withee, farm business consultant, First Pioneer Farm Credit, Bedford, N.H.

The decision

A husband and wife are very interested in starting a new farm enterprise. They have land, buildings, serviceable field equipment and a strong desire to farm. They completed preliminary research on the viability of growing specialty vegetables for local restaurants, and found that there is an increasing demand in their area.

Accordingly, they want to focus on supplying this niche market — but they don’t know how to get started. They asked their local Farm Credit business consultant for help in determining profitability potential and start-up steps.

Homework — and a business plan

Creating a new farm enterprise can seem overwhelming whether you’re a veteran farmer who wants to change enterprises or a new farmer just getting started. This couple is already off to a good start since they are asking good questions and asking for expert help. Tools and resources are available if the couple is willing to do their “homework.”

Essentially, what this couple needs is a business plan for the new enterprise — a road map that identifies a destination (i.e., a long-term objective) and the steps the couple must take to arrive at that destination.

The process

The process of developing that business plan is as valuable as the final written plan. During the journey, the business owners will learn about the new enterprise and make the first key decisions. The couple’s success in business planning will be dependent upon their personal involvement in the key components of mapping a business plan. These include:

• Spending quality time learning, making decisions and truly buying into a planned course of action.
• Maintaining objectivity, which means dealing with the facts rather than plunging ahead despite the facts.
• Figuring out how to begin by understanding the market first. This means: Grow what you can sell. (By researching local demand, this couple appears to have addressed this issue.)
• Assessing feasibility, resources needed, a budget and a timeline.

Lots of books, software packages, Internet sites and local college courses are available to help you develop a business plan. The key word here is help. There is no substitute for assessing options, making your own choices and committing a lot of your quality time to creating a realistic plan that is unique to your own business.

Farm Credit as facilitator

Farm Credit consultants work with many clients each year to facilitate start-up business planning. A consultant can help you with the process, making suggestions, advising on budget decisions, challenging assumptions and finalizing a written plan.

Thinking about a start-up? Call your local Farm Credit office for information about our business consulting services.

Suzanne Withee has more than 15 years of varied experience with Farm Credit, first as a loan officer and tax specialist and later as a branch manager. In her current role as business consultant, she has served customers in New Hampshire and eastern Massachusetts for several years.

Contact us at info@farmcreditmaine.com for more information.

© 1999-2005 Farm Credit of Maine, ACA. All rights reserved.