farming business plan uk

How to start a farm business

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Amid post-Brexit uncertainty, supply chain issues, a looming recession, rising fuel and energy costs and a critical shortage of seasonal agricultural labour, is now the worst possible time to consider starting your own farm?

It’s not all bad news. But, if Clarkson’s Farm has taught us anything, it’s that even the best-funded among us can come a cropper in this most challenging of industries. With EU subsidies gone and the government being pushed to support the UK farming infrastructure even further, the future of the industry is never far from the headlines.

There’s no avoiding the facts on the ground – farming can be a brutally tough line of work to make a success of. But, potential profits are there, provided you plan carefully, understand the upfront and ongoing costs, and know exactly what you’re getting into.

Below, we’ll take you through the obvious and not so obvious costs, such as machinery, land, and property, as well as other considerations such as marketing and location, so you can get started on setting up your own farming business.

There’s a lot of planning that needs to go into launching a successful farm. Thankfully, one area which needn’t cause undue stress is creating a website to promote your business. Thanks to modern templates like the one below , you can create one of your own in under an hour.

At Startups.co.uk, we test and rate website builder tools, and we’ve identified Wix as one of the best you can choose for creating a business site. Wix even has a selection of  custom website templates designed specifically for farms  – you simply drop your own company information, wording and preferred imagery into your chosen template. Better still, it’s completely  free to try  for yourself.

This article will cover:

What does the farming industry look like today, training and regulations, types of farm businesses, potential earnings, promoting and expanding a farm business.

At Startups.co.uk, we’re here to help small UK businesses to get started, grow and succeed. We have helpful resources for helping new businesses get off the ground – you can use the tool below to get started today.

What Does Your Business Need Help With?

Farming incomes were hit hard by the start of the coronavirus pandemic, and they have struggled to recover since.

According to ONS figures, released in 2021, the Total Income from Farming is estimated to have fallen by £768m (-15.7%) from 2019. That’s the lowest value since 2007.

However, COVID-19 is not all to blame. The report outlined that, of the income lost, adverse weather conditions had cost the industry £999m as a dry season threatened wheat and potato production.

Brexit has also played havoc on UK farms. Supply chain issues caused by a lack of HGV drivers meant that many farmers were reportedly pouring fresh milk down the drain as no delivery drivers were able to collect produce.

The UK government is responding to the issue. As part of a new grant scheme to help revitalise the sector, and bring in more innovative and sustainable solutions, it announced it will pay older farmers up to £100,000 to retire.

However, more government support will undoubtedly be needed to aid farmers as they deal with the fallout of these various business challenges over the next few years.

While there isn’t one set route into running your own farm business, it’s useful to know which training you may need to complete, as well as what regulations you’ll need to abide by.

What are the skills needed to become a farmer?

Organisation – when you’re running a farm business, it’s likely that you’ll wear many hats, with varied tasks including working out on the land, completing paperwork or overseeing staff. To do this, you’ll need to be able to keep on top of multiple areas of the business at once, plus know how to prioritise tasks accordingly.

Management – although you may be starting a small farm from scratch, it could become a farm that employs one or two team members. Then, in time, your business may grow to be a much bigger operation, requiring you to manage more and more team members. You’ll need the ability to motivate staff and match the right people to the required work.

Fitness – working on a farm often involves physically demanding tasks. Even though your skills might be more in line with the behind-the-scenes office duties, you’ll still need to know about the day-to-day operations of a farm business, especially in the early days. Ensure you’re physically strong and healthy enough to manage the demands of running a farm.

What training is required?

To manage a farm, you should have:

• Practical experience – before opening your own farm business, it would be wise to have some real-life experience on a working farm to understand how this type of business works. If you’re still in full-time employment, consider volunteering on a farm at the weekends.
• Driving licence – whether it’s getting from one side of the farm to another, or transporting goods into town, knowing how to drive can be essential.
• Formal qualifications – while not mandatory, it can be useful to have completed more structured training too, such as a diploma, apprenticeship or degree in an agricultural subject. Alternatively, qualifications and experience gained in other sectors could be transferred to managing a farm business too.

What regulations do you need to comply with?

There are many laws and regulations that you’ll need to know about, and consequently abide by, when opening a farm. Which rules will apply to your business will often depend on the type of farm you operate.

Generally, you’re expected to comply with health and safety regulations, as well as laws that govern how the animals and produce you farm is reared and supplied. This includes:

• Planning permission – this is governed by your local authority and is usually applicable if you want to change what you use your farm or land for, or to build a house.
• Farm vehicles must be registered with the Driver and Vehicle Licensing Agency (DVLA) and meet health and safety requirements.
• Land used for agricultural purposes should be registered with the Rural Land Register.
• If your farm creates milk products you need to register with the Food Standards Agency (FSA), which is the organisation responsible for ensuring food safety in the UK.
• Health and safety – you’ll need to be aware of, and follow guidance on health and safety on farms from the Health and Safety Executive (HSE). This includes conducting risk assessments where necessary, such as assessing the safety of using buildings or hazardous chemicals, as well as handling livestock.
• Food standards and accreditations – to ensure food is of a high quality and traceable ( Red Tractor ), or to ensure organic farming methods have been used ( Soil Association organic certification ).

When you think about starting a farm, it’s easy to be overwhelmed by the possibilities. In this section, we’ll break down some of the different types of farm businesses, and offer practical advice to help you decide which is best for you.

How to get started in farming: Glossary

There are a lot of words and phrases used in the farming industry specifically. Here we offer a quick guide to the ones you’re most likely to come across.

Utilised agricultural area (UAA) – land used for agriculture purposes, including arable land, permanent grassland and crops, as well as kitchen gardens

Arable land – land that can be ploughed, cultivated or farmed on

Pastoral land – used for raising animals

Mixed farming – land that is used for both arable and pastoral farming

How to start a poultry farm business: Key points to consider

• Decide if you want to run a farm that rears chickens for eggs (layers) or for their meat (broilers)
• Consider how the chickens will be raised – in barns or free-range?
• Assess what type of poultry you will farm – chickens may be more popular, but it’s also possible to rear ducks, geese and turkeys on a poultry farm too
• Think about the equipment you’ll need to keep your poultry safe in general, and protected from predators

How to start a vegetable farm business: Key points to consider

• Consider what type of vegetables you want to grow, and check if it’s possible on the land and soil you’re planning to farm on
• Think about what type of irrigation system you’ll use to water your vegetables
• Decide if you’ll grow organic or non-organic produce – be sure to get the required accreditation if you’re intending to grow the former
• Assess how many different varieties of each vegetable you want to grow, in addition to the number of different types

Some examples of other types of farms include:

• Dairy – rearing cows or goats to produce milk for sale
• Cereals – growing crops such as barley, oat and wheat
• Pig – rearing pigs indoors or outdoors for pork products
• Fruit – growing apples, strawberries or raspberries, for example

At this stage, you’ve got a good idea of what’s involved in opening a farm, so you’re probably wondering how to run a farm as a business. In this section, we’ll examine the costs involved, and how much you could potentially earn.

How much does it cost to start a farm business?

Buildings and outbuildings – while your farmland may come with buildings already, you’ll need to ensure they match your farming requirements. Similarly, you may need to extend or add outbuildings or other structures as your farm business expands, so be sure to factor these costs into your budget.

Equipment – the equipment you need will depend on the type of farm business you decide to start, as outlined in the section above. Find out if you need to buy the equipment, if it’s possible to rent the items that you need, or if you can get them second-hand. Read our page on farm equipment for more detailed information about the costs involved.

Land – this will be one of the major costs of starting your farm business. While land is often inherited, that’s not the only option: it’s also possible to buy or rent farmland in the UK too. You’ll need to consider how much land you need for the crops or livestock you intend to farm.

How much does land cost?

The average value for arable land in the UK, according to a 2021 report by Carter Jones, is £8,450 per acre. For pasture land, it’s £6,744 per acre.

That means the cost of the average UK farm size of 87 hectares would be a little over £1.8m, based on arable land costs.

Insurance – there are a number of ways in which you should protect your farm business, and taking out adequate business insurance policies is key. You’re likely to need contents insurance for your equipment, as well as building insurance for your property.

Similarly, consider business interruption insurance to cover your business should you be unable to operate. If you take on staff, you’ll need employers’ liability insurance too. Ensure you find policies that match the requirements of running a farm specifically.

It can be difficult to give an indication of how much you would expect to make from your farm business, as there are a lot of variables to take into account. These include:

• What crops or livestock you farm
• How many income streams you have – diversifying your farm’s offering may help to increase your earnings ( see below for more information)
• Schemes you participate in, such as subsidies and environmental schemes

How much farming experience you have, as well as national and international politics, can all affect demands for farming – and in turn, earnings. Plus, weather can also have a big impact on harvests from year to year.

After the initial set-up, next it’s time to think about how to grow your business. In this section, we’ll outline some of the best ways to promote and expand your farm business.

Whichever ways you decide to market your farm business, ensure you have your target audience – the customers you’re trying to appeal to – at the forefront of your decision-making process.

Social media

While your farm may be located in a rural area, don’t let geography stop you from using social media to reach out to people, both within your local community and further afield.

Decide which platforms work best for your business: Instagram and Pinterest are highly visual, and can let people see what’s happening on your farm.

By contrast, LinkedIn and Twitter are text-based, so they’re ideal for positioning you and your farm business as an industry leader through sharing articles or joining forums. Facebook has a range of features, although its messaging function could be ideal for responding to customer enquiries.

You’ll need to create a website so that people can easily find information about your farm online, as well as ensuring that you have somewhere to direct traffic to from your social media posts.

A website should have key information about your farm, such as contact details, as well as information about your team members and your produce.

Initially, you could use a website builder to create your own website. As your business develops and your website requirements become more complex (whether that’s a booking form for farm visits or an e-commerce store to sell your goods, for example), you may need to hire a professional web developer.

Industry events

Trade shows, association events and networking sessions all offer opportunities to further promote your farm business.

Connect with other attendees at these meetings to develop a network of farming industry professionals, as well as those that work in related sectors. Be sure to bring your business cards!

Traditional marketing

While it’s important to have an online presence, don’t dismiss traditional marketing. Some ways of promoting your farm offline include:

• Brochures and leaflets – you could distribute them at community halls and local amenities, for example
• Print ads – promote your farm in local or regional newspapers and magazines, as well as trade publications
• Radio – create a jingle or ad yourself, or with an agency, to promote your farm on radio stations and country shows relevant to your target audience. This could be especially useful to reach those customers who also live in rural areas, and who may be unable to easily access the internet due to poor signal strength

How to expand your farm business

In time, you may want to consider expanding your farm business, such as through diversifying your offering. Some examples include:

• Opening a farm shop
• Providing accommodation, such as a bed and breakfast or camping ground
• Growing non-food crops e.g. flowers or flax
• Rearing certain species of goats, rabbits, sheep or alpacas for their wool

Be sure to review if your farm has the capacity to diversify as well as maintain your primary business function. Plus, find out if any additional regulations or legislations will apply to your new intended production.

Read the Gov.uk guide on diversifying farming business for more information.

What are the next steps?

By reading this article, you’ve gained an understanding of how to start a farm business, including what training and regulations you’ll need to complete and follow, as well as some of the potential costs and earnings. We’ve also looked at different types of farm businesses, plus how to promote and expand your business.

The next step is to get your business starting off in a strong financial position. Our online comparison tool gives you quotes from the best business loan providers in the UK in just one minute. 

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What are you looking for, how to start a farm.

• Brought to you by AAT Business Finance Basics

• 1. What is the reality of starting a farming business?
• 2. How to start a farm in the UK
• 3. How to run a successful market garden
• 4. Step 1: Do your research
• 5. Step 2: Design your farm
• 6. Step 3. Create a basic crop plan (if you’re going down the produce-growing route)
• 7. Step 4. Prepare your land for production
• 8. Step 5. Grow your crops
• 9. Step 6. Market and sell your crops
• 10. Step 7. Measure, analyse, adjust, repeat
• 11. What support do I receive as a UK farmer?

Many of us, at one point or another, have probably romanticised about living in the countryside and running a farm business. Fresh eggs and milk for breakfast, ponies popping their heads in through the window to say good morning, warming your feet by the fire after a hard day’s work – all very Darling Buds of May.  But, what is the reality of starting a farm business and what do you need to know to get started?

What is the reality of starting a farming business?

It only takes a read of the news and a watch of Clarkson’s Farm to understand how brutally tough the UK farming industry can be. In his hugely popular Amazon Prime series, Jeremy Clarkson ploughs straight across the romantic notions of starting a farm, and shines a spotlight on the many hurdles farmers face on a daily basis. As he attempts to run a farm with no previous farming experience, Clarkson’s show has gained a reputation for not sugarcoating how tough the reality of farming is.

For many in the industry, it’s hard work, long hours – and for almost no profit, as Clarkson discovered after his 1,000-acre Diddly Squat farm made just £144 profit in its first year. Hardly enough to last someone through a week, let alone a year. Post-Brexit uncertainty, rising energy, and fuel costs, supply chain problems, a shortage of seasonal agricultural labour, a recession on the horizon… let alone the potential costly mistakes of learning on-the-go, it’s likely that many tempted first-time farmers are probably asking themselves, is this the right time to be chasing my agricultural dream ?

Crunching the numbers with land agent, Charlie Ireland, at the end of the first season, Clarkson was left to wonder aloud what farmers ‘who don’t have Amazon film crews following them around’ were going to do when the subsidies were reduced. Charlie simply predicted there would be ’30 percent less farmers, probably’, and if a new farm backed by celebrity endorsement and an Amazon film crew can only make £144 profit in year one, it’s not likely to entice new startups.

According to The Observer , the average British farmer saw their subsidies cut by 22% on average last year, and this year they’re expected to drop by another 36%. Some farms have said their subsidies dropped by a total of 45%.

With the industry in its current status, this article is intended to provide information on how to start a farm – but it’s recommended to approach this career move cautiously, being as informed as possible. It’s an extremely tough life (in fact, it’s a lifestyle choice), which can be at the mercy of so many factors outside your control (and let’s not get started on the impact of climate change…).

If you’re determined to start a farming business, it’s important to plan carefully, understand the upfront and ongoing costs, and know exactly what you’re getting into.

How to start a farm in the UK

Several steps and considerations are involved when starting your own farm, which can vary depending on the type of farm business you’re looking to grow. Here is some general guidance:

1. Develop a business plan

A good business plan will help you to identify your target market, set realistic goals, and plan your financial and operational strategies. If you need help writing yours, access our free guide and business plan template . 

2. Identify the type of farm you want to start.

You should decide what type of farm you want to start based on your interests, skills, and market demand. The common types of farms in the UK are livestock, arable, mixed, and horticulture.

3. Identify suitable land

Choosing the right land is crucial to the success of your farm. Factors to consider include soil type, topography, climate, water availability, accessibility and zoning regulations. You should also consider the location of your land in relation to markets, transportation, and labour.

It’s essential to consider the environmental factors that affect your farm. For instance, the soil type and climate can impact what crops or livestock you can produce. You can check your farm’s soil type by using the Soilscapes website , which provides detailed maps of soil types in the UK.

When selecting land, you should also consider the size of the property and whether it can accommodate the type of farming operation you plan to establish. You should also consider the cost of the land and any associated expenses, such as property taxes and insurance.

You can search for available farmland on the UK Land and Farms website or contact local estate agents and landowners. You can buy or lease land depending on your financial capacity. It is advisable to get advice from a land agent, who can help you find land in your preferred location and within your budget.

4. Obtain necessary permits and licences

Starting a farm involves many legal requirements that vary depending on the location and type of farming operation you plan to establish. To ensure that you operate within the law and avoid penalties, you need to obtain the necessary licences and permits.

Before you start farming, you should research the regulations and requirements for your area, including any permits or licences required for farming, land use, water usage, and animal care. In the UK, for example, you need to register with the Rural Payments Agency and obtain a unique business identifier number. You may also need to apply for a CPH number, which identifies your land and enables you to move livestock.

In addition to the above, you may need to obtain permits for building structures on your land, installing irrigation systems, or using pesticides. You should also familiarise yourself with the relevant health and safety regulations, including those related to food safety and handling.

You need to obtain planning permission from the local council before starting any farming activity. The planning permission process ensures that the proposed use of the land is suitable and complies with environmental regulations. Depending on the type of farming you plan to do, you may need to obtain permits and licences from local and national authorities. For example, if you plan to raise livestock, you may need an animal welfare licence from the local council.

The UK government’s business support website has a directory of permits and licences required for different types of farming activities.

5. Secure funding

Starting a farm can be an expensive venture, so you may need to look at ways to fund your farm, such as investors, lenders, crowdfunding, government grants and subsidies. It is important to carefully consider your funding options and develop a realistic budget for your farm business.

According to a survey conducted by the National Young Farmers’ Coalition, access to capital is the most significant challenge for young farmers. It’s important to have a solid financial plan and to explore all funding options available to you.

6. Register your farm business

You’ll need to register your farm business with Companies House and HM Revenue & Customs (HMRC) for tax purposes, as well as relevant authorities including the Rural Payments Agency (RPA). Registration allows you to access financial support and other benefits. You may also want to consider joining a trade association, such as the National Farmers’ Union of England and Wales (NFU) , to access support and advice from other farmers.

If you’re keeping cattle, you also need to register with the British Cattle Movement Service (BCMS) , which is responsible for maintaining a database of all cattle movements in the UK.

7. Choose your farming methods

You need to decide on the farming methods you want to use, such as organic or conventional farming. Organic farming requires certification, so you should contact the The Soil Association for advice.

8. Acquire equipment and supplies

You’ll need to invest in equipment and supplies to run your farm, such as tractors, livestock housing, and feed. You can find suppliers of farm equipment and materials on the National Farmers’ Union (NFU) website . 

9. Get advice

Finally, you should seek advice from experts, such as agronomists, veterinarians, financial, legal and business advisers. They can help you with farm management, animal health, crop production, business planning, as well as financial and legal compliance.

How to run a successful market garden

Let’s take a closer look at a specific type of farm startup, and the steps involved in making it a success…

A market garden is the relatively small-scale production of fruits, vegetables, and flowers as cash crops, frequently sold directly to consumers and restaurants. A market garden can offer first-time farmers the opportunity to get started in the industry, without taking on too much, too soon (especially when experience is limited). Market gardens also make great side businesses for those with a passion for gardening, and are looking to make some extra money on the side without having to invest in lots of expensive equipment, acres of land, or possess a formal education.

According to @TheDutchFarmer , Moreno de Meijere ( rootsreconnected.com ), there are seven steps to starting a small farm from scratch, even if you already have a 9-5 job, limited resources, and limited experience (not just the production side, but the business side, too). Moreno explains that these steps helped him and his wife earn a ‘comfortable living’, and are worth taking note of as a useful framework in getting started in your own farming journey.

Step 1: Do your research

This is the most crucial thing you can do to give your farm business the best chance of success. You need to identify who your ideal customers are, find out what they want, how much they want, and what they’re willing to pay for it. Will you sell your crops at local farmers markets, to local chefs, to grocery stores?

Too many people start their farm business in the opposite way, following the incorrect advice of growing ‘what you like to eat yourself’. This is a big no-no for a farm business. You need to be strategic about it, which starts with going out into your local areas and talking to potential customers. Visit your local farmer’s market…

• What are other farmers growing?
• What sells best?
• How do they price their produce?
• How do they present it?
• Is the produce imported, or strictly farm-grown?
• What’s their customer service like?
• What are their customers like?
• Is demand higher than the supply?
• Or is your local area saturated with a particular type of produce?
• Can you see a gap in the market?

By understanding the supply and demand in your area, you’re able to plan your approach strategically, for example, is there enough room for another vendor at the farmers’ market? Or is there a local audience that isn’t being catered for?

Take a look at the local restaurant scene. Talk to chefs and see if they’d be interested in working with local growers. What types of crops are they looking for, and when? Where do they currently get their produce from? What are they willing to pay for it? How often would they need deliveries?

By acquiring a basic understanding of the demand in your area, you can grow your crops towards that estimated demand, rather than the other way around. You definitely don’t want to have an abundance of a crop when there’s no demand for it.

Once you have the rough estimations of demand for each individual crop,  you can estimate how profitable each would be based on yields and the input required to go from seed to finished product. You can then decide which crops would be most profitable to grow, in line with both the demand and your own financial goals.

You must verify the demand before you start growing. Then, see what grows and sells best – and keep doing more of what works!

Step 2: Design your farm

The design of your farm needs to be well organised and optimised for efficiency, practicality and profitability.

Modern agriculture professionals are striving to use modern technology to increase their profits, lower operational costs, reduce the need for manual labour and make their farms easier to manage overall. Farm mapping is how this all comes together, as it allows farmers to create detailed maps of their property, showing where land boundaries are, location of buildings, fences, getaways, water pipes, etc. Farmers can also record crops that have been planted in different sections, and the types of operations carried out in their fields.

Farm mapping is crucial when designing your farm, as it will help you decide on the best areas to plant certain crops, graze certain animals, etc. Some of the technology tools available to help with this are:

• Farm mapping software . E.g FieldBee, Pear Technology
• Agriculture drones (handy to remotely assess the condition of your land and drops in your fields)
• Satellite imagery (just like drones, this provides accurate information regarding the condition of your crops and can help you monitor how your crops change in response to fertilisers, herbicides, pesticide application, and change in irrigation
• Remote moisture sensors , connected to a farm mapping app, can automatically show which sections of fields need an increase or decrease in irrigation
• Soil analysis devices . Different parts of a field can have completely different soil. Farmers can analyse different parameters of the soil in various sections of their fields and then record those parameters on field maps, making it easy to take those differences into account during future agriculture procedures.

Once you have the data you need, you can plan your farm accordingly. For example, you might add a windbreak in an area you know receives strong winds to protect your crops, or you might not graze animals in an area you know can get easily flooded in the winter months. You might position your greenhouse east-to-west or north-to-south depending on whether you’re growing for summer or winter production.

These design decisions will have a large impact on the functionality of your farm.

Step 3. Create a basic crop plan (if you’re going down the produce-growing route)

Now your basic design is ready and you know how many growing beds you’ll have, you can start establishing your crop plan, which will ensure a continuous supply of crops during the growing season. Ensure you’re clear on your financial goals, so you know how many crops you need to grow to reach them. Start with your financial target, then break your crop plan down into a production system that acknowledges this goal alongside local demand.

Take a look at what you’re looking to grow and the quantities you need to produce. Then review timings – how long will it take from being sown, to the harvesting stage? Include this information in a data sheet, which will contain all the information you need per crop, to help you plan. This data will also help you plan the exact placements each crop needs to grow well, as well as basic crop rotation practices.

Step 4. Prepare your land for production

When you first start out, the chances are that one of the immediate areas to address is to tackle weeds and the existing vegetation on your land to convert it into a production area. Take a look at the farming techniques that can help you do this, from tilling and ploughing with a tractor or walk behind tractor, using a silage tarp to kill off existing vegetation through a process called occlusion, to the ‘no dig’ non-cultivation method where you lay a thick layer of compost on the surface without integrating it, to deprive the vegetation of sunlight.

The next stage is to balance your soil. Most soil offers crops the nutrients necessary for good vegetable growth, but usually the missing link is soil organic matter and soil life. You can quickly correct this with compost to start feeding the food web, which in turn will start taking care of your crops.

Once your soil is prepared and balanced, it’s a matter of keeping your soil fertility maintained by introducing organic matter each year.

Step 5. Grow your crops

Based on your market research , you’ll already have a good idea of what produce is likely to be popular and sell well in your area. The crops you decide to grow will determine key factors such as row spacing, and whether they’re crops that fare better in a dedicated nursery first, before being transplanted into fields later.

A production schedule will help you plan when various items will be ready for sale. As a market gardener, there will be a number of people and places depending on you to be their supplier, so you need to provide high quality produce on time, week after week.

Succession planting will be required to ensure new crops are ripening constantly every week. By estimating how much you think you’ll sell at any given date, you can work backwards to figure out how much you need to plant to hit that goal.

Don’t forget to keep on top of things such as weed management, pest control and irrigation.

Step 6. Market and sell your crops

Your initial market research should make the selling part much easier! Branding is important when it comes to marketing, as a number of customers will be looking to connect with your brand story and values e.g. organic, local, family-run, eco-friendly packaging, etc. If you find your ideology isn’t quite hitting the mark in your area, it might be a case of selling what’s in demand, while educating your customers from there.

Don’t forget to keep an eye on your competition . What are they up to? How are they marketing themselves? Are there ways you could differentiate yourself from them, and spotlight this in your marketing? 

Step 7. Measure, analyse, adjust, repeat

Moreno recommends analysing the performance of your farm by looking at various aspects of your operation, such as crop yields, costs and revenues. Keep track of your expenses, including any labour costs, and compare them to your income. This will help you to identify areas where you can potentially reduce costs and increase your profits.

Don’t be intimidated by data – to farm successfully, you need to embrace data – from crop rotation to sales – to ensure what you’re doing is worth it. For example, are the numbers telling you that you need to be planting your crops more densely? Are you not meeting the demand of a particular crop? Could you factor this into your succession planning? You need to dedicate time to the data of your business to tell you which step to take next, and even preempt any issues that could be on the horizon.

What support do I receive as a UK farmer?

With EU subsidies gone,  the UK government provides various forms of support to its farmers to promote sustainable and profitable agriculture. But is it enough?

The government is replacing the EU’s Common Agricultural Policy (CAP), which paid subsidies to farmers to keep them in business, with “payments for public goods”, meaning land managers get paid for improving nature.

Launched in 2022, the Sustainable Farming Incentive (SFI) pays farmers to carry out actions that support both a sustainable farm business and a healthy natural environment (for example, looking after their soil). However, farms risk “going out of business” as new figures reveal only a tiny fraction of this new scheme – designed to replace lost subsidies – went to agriculture businesses in 2022. (See the full story here .)

New schemes aside, how else are UK farmers receiving support?

• Direct Payments. Farmers in the UK receive direct payments from the government through the Basic Payment Scheme (BPS) . The BPS provides financial support to farmers based on the area of land they farm and the environmental measures they implement.
• The Countryside Stewardship Scheme (CSS) is a voluntary scheme that provides financial incentives to farmers, foresters, and land managers to look after and improve the environment. For example, running projects that increase biodiversity, improve water and air quality, and improve habitats.
• Farming Advice Service. The Farming Advice Service (FAS) provides free advice to farmers on a range of issues, including animal health, crop management, and business planning.
• Research and innovation. The government invests in research and innovation in agriculture to improve productivity, reduce environmental impact, and develop new technologies. This includes funding for research institutions such as the Agriculture and Horticulture Development Board (AHDB) and the Biotechnology and Biological Sciences Research Council (BBSRC) .
• Trade agreements. The government negotiates trade agreements to open up new markets for UK farmers and support export growth.

As you can see, starting a farm business involves several steps and can vary based on the type of farm business you’re looking to run, and where. It can be a complex and challenging process that can be at the mercy of a number of factors outside your control.

While the above isn’t an exhaustive list, the steps outlined can help direct you around some common pitfalls to avoid you making diddly squat (pardon the pun). If you decide to don your wellies and follow your farming dream, remember it’s just as important to dig into your data as it is your soil.

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[Beginner’s Guide] How To Start Farming Business In UK

Food and drink manufacturing in the United Kingdom generates about £120 billion in annual revenue, with farming as its foundation. British farming accounts for 64% of the food consumed in the United Kingdom, an increase of 2% over last year.

So in today’s guide, we will be writing extensively on how to venture into agricultural business in the UK and all you need to know to get started as a beginner or how to ameliorate what you are doing before as a practicing farmer.

How To Start Farming In UK Beginners Guide

Table of Contents

Step 1: Decide Area Of Specialization:

These options span from cultivating an assortment of crops to raising diverse livestock. Alternatively, you could specialize in Agrotech, which encompasses tasks such as securing capital for farmers’ startups and developing agricultural equipment to streamline farming processes. The possibilities are diverse and plentiful. As you continue reading, I will provide insights into how to select your area of specialization.

Read Also:  [Complete Guide] 50 Gardening Tips For Beginners

TYPES OF FARMING BUSINESS IN THE UNITED KINGDOM

In the United Kingdom, there are two primary categories of farming: Animal Husbandry and plant cultivation.

A. Animal Husbandry:

Poultry farming:.

Poultry farming encompasses the raising of chickens, ducks, or other birds for their meat and eggs. It’s a versatile enterprise that can be pursued on either a small or large scale. Chickens are commonly raised for meat (broilers) or eggs (layers). Ducks are also raised for both meat and eggs. Poultry farming offers a relatively swift turnover, with a consistent demand for poultry products.

Aquaculture (Fish Farming):

Beekeeping (apiculture):.

Beekeeping entails the care and management of bee colonies for the extraction of honey, beeswax, and royal jelly. Bees play a pivotal role in pollinating crops, making beekeeping vital for agriculture. This pursuit can be adapted to a small scale, making it accessible even to those with limited space.

Goat farming presents the potential for profit through the sale of meat and various goat-derived products. To initiate a goat farming venture in the UK, you can follow the provided guide.

5. Dairy Farming

Additional areas include:

8. Pig Farming

11. Grasscutter Farming:

B. Plant Cultivation

1. Avocado:

The cultivation of tea holds a significant place in the United Kingdom, with the nation being recognized as a substantial tea exporter worldwide. The UK’s highlands provide an advantageous environment for successful tea farming.

3. Horticultural Crops (e.g., French Beans, Snow Peas):

Macadamia nuts have emerged as a profitable crop in the United Kingdom due to their rising demand both locally and internationally. The trees flourish in regions characterized by suitable climates.

Additional areas worth considering:

Step 2: Learn About Your Chosen Area

The next step in starting a farm comes after you’ve raised the necessary funds and chosen a location for your operation. It’s now time to do some research about the farming niche you’ve chosen.

Step 3: Get Funds to start your farm

No matter what kind of business you run, you’ll always require funding to keep it going. You can use this money for a variety of purposes, including purchasing stock, paying your employees, or fixing your farm tools and equipment .

Step 4: Buy Farmland

When contemplating the purchase of farmland, there are numerous aspects to take into account. Does it have good soil and is it easily accessible by main highways? If so, is it a good fit for your crops or animal? The list goes on.

Step 5: Draw a Business Plan

Step 6: start land preparation, step 7: start farming.

It’s now time to become serious about your farming endeavors and stick with your business objectives.

What Does the UK Farming Sector Look Like?

Farming contributes significantly to the United Kingdom’s Gross Domestic Product (GDP). While the exact percentage may vary from year to year, the agricultural sector consistently makes a notable contribution to the UK’s economy.

What Are The Licenses Needed To Start Farming In the UK?

According to the laws in place for the health and safety of both the animals and crops on your farm, you must abide by them. To get to know about these laws, you need to visit Department for Environment, Food & Rural Affairs” (DEFRA).

Planning permission:

Registration with the Rural Land Register is a requirement for land used for agricultural reasons. You must register with the Food Standards Agency (FSA) if your farm produces milk products in order to ensure food safety in the United Kingdom.

Health and safety:

Be clear on what type of product you plan to plant, and make sure you have all the necessary certifications in place if you plan to grow organically

How much money do you need to start a farm UK?

How many acres qualify as a farm uk, how much does a farmer earn in the uk, share this:, author: adewebs, you may also like:, what is farrow irrigation [all you need to know], how to start farming with no money [beginners guide], 10 agricultural cooperatives california, [beginners guide] how to start a small farm in texas, 3 replies to “ [beginner’s guide] how to start farming business in uk ”, leave a reply cancel reply.

Business Planning

Businesses with a written plan are more likely to achieve success than those which don’t. Why not use our template as a guide to help plan for the future of your businesses.

Whole Farm Business Plan Template

Farms with a written business plan are much more likely to be successful than those without one.  A good business plan will help your farming enterprise to grow and help you to identify stumbling blocks before they arise.  Why not take a look at our Whole Farm Business Plan Template and start making plans for your farm?

Whole Farm Planning Guide

Planning for the Future and Succession

Navigating your farm business and family through the process of planning for the future and succession can be tricky. If you’re looking for some inspiration on how to make a start why not take look through our Planning for the Future guide below.

Forecasting or budgeting farm finances

Forecasting outputs and costs helps to show future stability of your business and budget for future investments..

The first thing to consider as part of the financials of your business plan is how much money you need to make – for your private drawings, to pay your mortgage or landlord, and for tax or loan repayments. This will show the profit requirements for your business. Download our  profit target worksheet  to help with this step.

Outputs and incomes

Once you have an understanding of the profit you need to achieve, you can delve further into projecting the outputs (sales) required to generate these profits, to demonstrate the strength of your business. 

Forecasting your outputs and incomes is an integral part of the profit and loss account , which shows the estimated profits your business will make over three years by subtracting the costs of running the business from any sales you make. It takes into account the value of the stock that you hold, so you will need this information to hand when you complete the template.

You may have your own historical performance to use as a basis for estimating your future sales. It may be worthwhile comparing your data with the data AHDB publishes about average yields, outputs and prices as part of this forecasting. If you are starting a new business, this data will be useful. Find out more by following the links in the table below.

The profit and loss account includes a section on sundry income, e.g. rents, wayleave payments and sporting rents. It also includes your Basic Payment Scheme (BPS) and agri-environment scheme income. The BPS is only guaranteed until 2022 and may be discontinued after then. AHDB has produced a  Farm Business Review tool  which you can use to investigate the potential impact that Brexit and changes to BPS and agri-environment schemes might have on your farm income.

Sector-specific information about outputs and incomes is given below. Information is not available for horticulture due to the broad range of products grown.

Beef & Lamb

Enhancing herd genetics can improve growth and carcase characteristics and therefore your future sales.   

Estimated breeding values  

Beef carcase traits

Signet sheep breed performance

Incomes/prices

Deadweight price reports

Auction market reports

Cereals & Oilseeds

The  AHDB Recommended Lists for cereals and oilseeds 2016–2021 (RL) project provides independent information on yield and quality performance. 

The Cereals & Oilseeds New Market Data Centre allows you to access current and historical prices.

• Average milk yields
• Dairy average prices
• Cull cow prices

Finished pig and weaner prices from the GB and across the EU.

Weekly  production information about pig slaughterings for Great Britain, along with supporting information about carcase weights and back fat levels of GB pigs.

Variable costs and overheads

Once you have forecast the incomes you require to be a profitable business, you need to consider the costs involved in producing your crops and/or livestock. These are split into variable and fixed costs.

Contents  

• What is a business plan?  
• Introducing your business  
• Market analysis  
• Financial information  
• Sales and operations  

Funding requirements  

• HR structure  
• Executive summary  
• Making changes to your business  
• Talking things through  

Variable costs will tend to change proportionate to your output and are things you would stop paying if you stopped a farming enterprise. They include:

• Artificial insemination
• Vets and medicines
• Forage, feed, concentrates
• Weed/pest/rodent control
• Fertilisers
• Soil/substrate

Fixed costs or overheads are aspects which still might need to be paid if you stopped a farming enterprise. They include:

• Labour – salaries, NI, pension, tax, bonuses, training, recruitment costs
• Operations – utilities, purchase of machinery, lease of machinery, maintenance, insurance
• Property – land/building leases
• Vehicles – purchases, leases, fuel, tax, insurance, maintenance
• Sales – marketing, packaging, distribution
• Other – legal/accountancy/secretarial costs, stationery, bank charges, interest
• Depreciation

When forecasting your costs, look back at your historical data to get a better idea of what you paid in the past rather than relying on the current costs of inputs. When prices are averaged over a longer period, price extremes are smoothed out. Three- and five-year rolling averages can help you see longer-term prices and also might indicate whether prices are generally going up or down. 

Long-term pricing

Sensitivity analysis

Applying 'sensitivity analysis' for key input costs and output prices allows you to explore the effect they have on your profit and loss. These could include:

• Concentrate feed price +/- £25/t
• Fertiliser +/- £25/t
• Interest rates +/- 2%
• Fuel +/- 10 ppl
• Grain yield +/- 2 t/ha
• Milk price +/- 5 ppl
• Cull cow/calf price +/- £25/head
• Beef or lamb price +/- £0.50/kg deadweight

Machinery costs and depreciation

AHDB has produced a machinery costing calculator . This simple tool can help you calculate the cost of farm machinery, per hectare or per hour. It can also be used to compare the costs of owning equipment with the cost of hiring it or getting in a contractor. Different machinery systems can also be compared and repair costs can be calculated for budgeting purposes.

We have recently ran a webinar discussing exploring how to manage machinery costs.  Watch a video of this webinar below.

Depreciation is important because you need to reinvest in your business and this effectively allows you to set money aside to do this. It spreads the costs of purchasing an asset over its lifetime. We calculate this as a straight line 10% of the current value of the equipment and 5% for buildings, based on AHDB research.  Depreciation is calculated automatically in the profit and loss templates provided.

Profit target worksheet

Profit and loss template

A cash flow forecast estimates the flow into and out of your business over a 12-month period. It is important because it shows that the business is able to continue trading, pay suppliers and employees. It will show the expected peaks and troughs over the coming months and allow your business to plan for the costs it will have to cover over that time.

There are some ways that you can even out cash flow. If you need to purchase new machinery, can you take out finance over a few years? Are you able to receive an advance payment from your merchant for a proportion of your grain? What are your creditor and debtor terms, and can they be altered so that payments to you come in sooner or give you more time to pay?

Balance sheet

The balance sheet is vital to a business owner. It deals with the capital (all the money) invested in the business at one particular point in time, usually the last day of the financial year. It is made up of two lists – one showing the value of all the possessions (assets) in the business, and the other detailing the associated debts (liabilities). The owner’s investment or stake in the business is called the net worth (or net capital or owner equity). Net worth is the amount left if all the assets are sold and all debts are repaid at the balance sheet values.

When compared over multiple years, it can give an indication of the financial status of a business. A stable business will see an increase in net worth year on year.

Cash flow template

Balance sheet template

Useful links

Sales and operations

Executive summary

Do a partial budget

Understanding you finances

Getting finance and speaking to your bank manager

Next page: Funding requirements >>

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How to start a farm

Is it your dream to run your own farm? If so, you’ll need to have the relevant experience and be prepared to put in the work to boost the chances of your farm being profitable.  This guide takes you through the necessary steps to help you understand how to start a farm. 

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Why consider starting a farm?

You might want to start a farm if you like the idea of working for yourself and enjoy spending a lot of time outside. Although farming can be challenging, if you plan well, it’s possible to earn a decent profit. 

What’s more, there’s a wide range of different farming types to choose from. You could consider poultry farming, vegetable farming or dairy farming, for example. You could also think about growing cereals such as barley, oats and wheat, or fruits such as apples, strawberries and raspberries.

Is farming profitable?

Farming can be profitable, but you need to plan carefully. The covid-19 pandemic hit farming incomes hard and they have struggled to recover. That said, figures from the Office for National Statistics (ONS) show that Total Income from Farming (TIFF) in England for 2021 was £4.3 billion, an increase of 17.7% from 2020.

As well as the pandemic, the farming industry has also been affected by extreme weather, such as heavy rain or prolonged dry spells in recent years, as well as Brexit. Farming can be unpredictable so you need to ensure your farm is resilient, that you’re producing maximum yield and that you’re selling your crops for the highest price possible.

What skills are required to be a farmer?

If you want to be a farmer, there are a number of skills that can help set you up for success. These include:

• People skills: During your time as a farmer, you’ll need to network and build good relationships with a wide range of people.
• Organisation skills: As part of your role, you’ll need to carry out a range of tasks including working on the land, completing paperwork and manging staff. That means you need to be organised and know how to prioritise tasks. 
• Management skills: Even if you’re starting a small farm, it’s likely you’ll need to employ one or two members of staff. You might need to hire more staff as your business grows. You’ll need to be able to manage your team members and be able to motivate them. 
• Fitness: Farming is a physically demanding job so you’ll need to be fit and healthy. 

Having a driving licence will also be useful and it pays to have some technical knowledge so that you know how to handle machinery. You could even consider completing a diploma or degree in an agricultural subject. 

What are the steps to starting a farm?

Step 1: start small and expand.

Farming can be hard work, so it’s best to start out small and then expand once things are going the way you hoped. If you’re growing vegetables, for example, start by only growing something simple like tomato plants or a variety of salad of leaves, before expanding and starting a farm as your primary source of income. 

If you’re having animals on your farm, start with a few chickens or one goat and then increase the number of animals you have over time. 

Starting small means that any mistakes you make will be on a smaller scale, and learning from these mistakes means you’re more likely to have success as your farm grows. 

Step 2: Learn by doing

Before you start running your own farm, it’s worth gaining some real-life experience on a working farm so you know what you’re getting into and how the business work. Ask around to see whether you could volunteer on a local farm. 

Reading books and taking courses will also help you to learn more about the industry and, if you can, look for a good mentor who can teach you more about the job and give you valuable feedback.

Step 3: Decide on and research your niche

Decide on the type of farming you want to do and then spend time researching it in detail. If you’re only growing food for you and your family, you won’t need to spend quite as long researching. All you’ll need to think about is the fruit and vegetables you and your family eat that would be easy to grow in your climate.

However, if you want to sell the produce you grow to earn an income, you’ll need to do a lot more research. Think about how many different goods you want to produce and whether there is sufficient demand. Who are you planning to sell your produce to – restaurants , shops or consumers? Make sure you also consider which items sell for high prices and which might not be so profitable. You need to have a good idea of who your customers are and how much they will buy.

If you’re raising animals, again you’ll need to consider whether you want to rear cows and goats to produce milk for sale, or whether you’d prefer to raise pigs for pork products and so on. Consider which has the highest demand and which is likely to earn you the most profit . To help you, check out farmers’ markets, meet other local producers and speak to customers as you shop. 

Step 4: Secure your land

Once you’ve worked out what you’re going to farm, you need to decide whether you want to buy land or lease it. Buying land gives you complete control over how you use it, but it also comes with higher financial risk. It’s also likely to be more costly.

Some farmers (or other landowners) will have extra land that they are not using and might be willing to lease to you. This can be a low-cost way to get things up and running and it will be lower risk.

When looking for land, you’ll need to consider a range of factors, including whether you will have access to a steady supply of water and the quality of the soil. It’s sensible to carry out a soil test so that you can assess whether it’s chalky or sandy, or full of clay, for instance. This can help you work out whether you need to invest in certain fertilisers or other supplements. 

Also look at whether there are already any structures on the land, such as processing facilities or barns or chicken coops. Different crops and animal products will need different processing and storage facilities.

Finally, you’ll need to consider how close you are to where you’ll be selling your goods. After all, you don’t want to be driving for hours just to reach the nearest town.

Step 5: Get finance for equipment and product

Most of us won’t have the cash readily available to help get a farm up and running, so you’ll usually need to turn to finance. 

One option is to apply for a business loan with a high-street bank or online lender. This will enable you to borrow a lump sum of cash that you then repay in monthly instalments, with interest, over a set term. 

It’s also worth finding out if you’re eligible for a business grant . This is a sum of money awarded to a business to help it grow and develop and, unlike a loan, it does not need to be repaid. Business grants are usually awarded by the government or other companies and there are hundreds of different grants you can apply for across the UK. These will often be targeted to specific industries, community groups or types of business, so check carefully. 

Asset finance can also be used to help you acquire farm equipment. The two main options are hire purchase and leasing. Hire purchase means you hire the equipment from the lender and then make the agreed monthly payments. At the end of the term, the equipment is yours.  

Alternatively, leasing lets you rent the equipment from a finance provider and then pay a regular fixed fee over a set term, with interest added. At the end of the term you might be able to pay a lump sum to buy the equipment, continue to lease it, or cancel the agreement. 

Step 6: Sell and distribute your product

Once you’ve completed the above steps, you’re ready to start growing and selling your products. Provided you’ve carried out your research, you’ll know where you’re going to sell your goods and the amount you want to sell them for.

Farmers’ markets can be a good option, but you could also set up a farm shop or partner with local businesses. You could even partner with other producers to sell your products under one brand.

How to continue growing your business

If you’ve got your business off the ground, now is not the time to take a backseat. Instead, you need to start thinking about how your business will grow and what you need to do to achieve this. 

Social media can be a great way to get the word out about your business and attract new customers. Instagram and Pinterest can work well as they are visual and let people see what’s happening on your farm. But you could also consider using Twitter and LinkedIn to share articles about the farming industry and encourage discussion. Facebook Messenger is also great for responding to customer queries. 

Additionally, it’s worth creating a website for your farm so that people can easily find out more about it. Using website builders such as Wix or Squarespace can make your life a lot easier initially, but you might want to hire a web developer as your farm grows. 

Also think about attending industry events to network with other farming industry professionals, as well as advertising through radio, brochures and newspapers. You might even want to expand into new areas – you could set up a camping ground on your farm, for example, or you could start growing ‘pick your own’ flowers. 

Get started with Swoop

Finding the right type of finance for your new business won’t always be an easy decision. So if you need help, the team of experts at Swoop will be happy to talk through your options and work out the best solution. Get in touch today . 

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Home » Advice » Entrepreneur » Guide To Starting A Farming Business

Guide To Starting A Farming Business

• July 4, 2022

Learning how to start a farming business could be an excellent idea for anyone who loves nature and being outside. Although the farming industry took a hit during COVID-19 and just after the post-pandemic era, it still offers plenty of potential and options to choose from if you’re willing to work hard.

If Jeremy Clarkson’s farm taught us anything, it is how challenges can also affect the most prosperous. The absence of the EU subsidiaries and the pressure on the UK government to support farming infrastructure has been the news.

There is no denying the fact that farming has its challenges but the nature of the industry keeps predicting opportunities for innovative farmers. If you want to be a successful farmer, you must carefully calculate the initial and running costs before getting started.

This guide on how to start a farming business explains the costs of machinery, land and other factors like marketing and proximity to farm materials.

What Is The Current State Of The Farming Industry?

The post-pandemic era has been relatively tough for the farming industry. According to the ONS predictions in 2021, the total farm income was estimated to have decreased by £768 million (15.7%) from 2019. It was a record low since 2007.

Brexit also had a big impact on farmers with reports of dairy farmers experiencing losses as they were allegedly forced to pour their fresh milk down the drains. It was caused by supply chain challenges because of the scarcity of HGV drivers due to the changes in workers rights from the Brexit movement. The end result was that there were not enough delivery vehicles to pick up the fresh dairy products.

Those scenarios have now seen the UK government take action with promises to pay the senior farmers up to £100,000 to retire. It is an initiative from the latest government scheme to resuscitate the farming sector and encourage more ecological solutions. The full implementation of these government policies to assist the industry will be appreciated by the farmers who have weathered the storm of the commercial and economical challenges faced by the industry in recent years. .

What To Expect From Farming 

Prospective farmers need to understand what’s involved in farming, the skills, competencies required, and also the regulations that must be followed. It’s a tough gig.

What Qualities Do You Need To Be A Farmer?

Organisation – while farming can be fun to passionate individuals, managing a farm as a business is a serious work. From working on the soil, caring for livestock, to getting paperwork in order and supervising employees, there is so much to do. You must have good organisation skills to be able to plan activities efficiently if you want to become a successful farmer.

Management – for small farms, management is usually just you as the sole coordinator of farming and business activities. However, expansion of operation capacity and hiring employees require good management skills to choose the right people and maintain product quality.

Fitness – working on a farm is physically demanding, especially overseeing the day-to-day operations of the business. Even after hiring people for the farm work, you will still need to supervise them and move around the premises.

What Training And Qualifications Are Needed?

The following are the minimum qualifications to start a farming business:

Practical experience – you must have some first-hand farm experience before deciding to run your own farm. A real farm experience teaches the difference between theoretical expectations and what actually happens on the farm. You will learn how the industry operates and how to supervise employees when you finally start a farm.

Driving licence – driving is an essential skill required for moving items around the farm or making deliveries. Even as a farm supervisor, you must have a driving licence for emergency cases.

Formal qualifications – formal training in an educational setup is not mandatory but is hugely beneficial for the best farm management knowledge. Formal qualifications include a diploma, apprenticeship, or degree in related agricultural training.

What Regulations Do You Need To Comply With?

A complete guide to starting a farming business must contain the essential laws and regulations for any farm type you operate. Check out the relevant health and safety laws, and legislation laws that control the feeding of animals and production of food on your farm.

Planning permission – it is mandatory to obtain permission from your local government before changing the use of your farm or buildings on the land owned.

Farm vehicle registration – every farm vehicle must be registered and meet the minimum health and safety standards.

Land registry- you must register your farming location with the rural land register.

Food Standards Agency – every farmer that produces milk or dairy products must register with the Food Standards Agency (FSA) in charge of food safety in the United Kingdom.

Health and safety – it is mandatory for every farmer to comply with the agricultural health and safety regulations. That includes performing risk assessments and safety checks for farm buildings and proper storage of hazardous substances.

Food standards and accreditations – these refer to the regulations to control the quality of food and ensure compliance with recognised accreditations like the use of organic farming methods (Soil Association organic certification).

Types Of Farm Businesses

The farming industry provides a variety of options if you want an agricultural-related career. We will consider the Poultry and Vegetable farming types and some other common farm business opportunities.

How to Start a Poultry Farm – Things to Consider:

• Determine if you want to raise layers (for egg production) or broilers (for meat production).
• Consider whether the hens’ farming location is outdoor or in a controlled barn.
• Pick the type of bird(s) that you want on your farm. Chickens are the most popular but you could also have ducks, geese, and turkeys on a Poultry farm.
• Determine effective safety measures to protect your hens from predators.

How to Start a Vegetable Farm – Points to Consider:

• Determine the type of vegetables you want to cultivate and if they can grow well on the soil type you have.
• Choose an effective irrigation method to water your vegetables.
• Decide if you will be growing organic or non-organic crops. Ensure you obtain the necessary permissions if you later decide to expand production.
• Consider the number of vegetable varieties your farm can take and the number of each distinct type you want to grow.

Other Sorts of Farms Include the Following:

• Dairy farming: the practice of raising cows or goats for milk production.
• Cereal farming: growing agricultural crops like wheat, oats and barley.
• Pig farming: the practice of raising pigs either indoors or outdoors for pork (meat production)
• Fruit farming: growing fruits like apples, strawberries and raspberries.

This guide to starting a farming business has discussed the different farming types, minimum qualifications and regulations to run a successful farm. The next sections explain how to calculate the costs to run a farm as a business.

How Much Does It Cost To Start A Farm Business?

Buildings and Outbuildings – the type of farming you choose determines the farm structures you have. It is necessary to plan room for expansion when erecting farm buildings or sheds since they impact the overall costs.

Equipment – before starting a farming business, you must evaluate the type of equipment required. For a small farm, you have to consider whether to purchase new equipment or a second-hand one. Renting is another option for the very expensive or seldom used equipment types.

Land – the cost of securing a landed property to farm is one of the most expensive costs of starting a farming business. For some people, the land was inherited while many people simply acquired or rented one. The land cost consideration also includes how many acres are sufficient for the type of crops or animals you want.

How Much Does Land Cost?

According to a Carter Jonas study, the average value of arable land in the United Kingdom in Q3 2023 was £9,517 per acre. The average pasture land cost was £7,683

Insurance costs should be part of your budget to start a farm business. Essential insurance policies to consider are Content Insurance for your farm equipment and Building Insurance for your structures.

Other important types are Business Interruption Insurance for when your company is unable to operate. There is also Employers’ Liability Insurance for those that will hire employees. You can contact a legal advisor for the best insurance policies that cover your farm needs.

Potential Earnings

Calculating how much money you could expect to make versus your expected costs is a key aspect of budgeting. Consider the following areas when looking at your finances.

The following are factors that affect your potential earnings from the farm:

• The type of crops or animals you are going to raise on the farm.
• The number of district revenue streams from the farming business. You can diversify your services for more revenue.
• The availability of subsidies and government incentives to support farming costs.

Understand that your level of experience and training can affect the farming decisions you make and your revenue. Weather is another factor that greatly impacts your agricultural yield for the year. Plan for the worst and hope for the best is a good way of working in this industry.

Promoting And Expanding A Farm Business

Once a farming business is established, you can seek to make additional revenue from promoting your farming activities through marketing and expanding areas that bring in the most income.

Consider social media, online presence with a website, industry events, and strategic business management to progress the business forward.

Social Media

Starting a farming business in a local or rural area should not be a limitation to connecting with customers in and outside your neighbourhood. The use of social media gives a platform to promote your business and display what is going on at your farm. You can start with visual platforms like Instagram and Pinterest.

It is also possible to create and upload written content for text-based networks like LinkedIn and Twitter. Crafting quality posts can position you as an industry expert and increase reach to other farmers and potential buyers.

Setting up an official website page for your farming business is an effective way of promoting your brand. A website gives credibility and can increase trust from potential investors and financial institutions.

Once you’ve set up the website, the next step is to create and link business social media accounts to it. You should also include vital information about your farm like contact information, pictures of your production process and an overview of team members

There are simple website builders with affordable pricing that allow you to set up an official business page quickly. You can also outsource the design to a professional web developer.

Industry Events

Another helpful strategy when starting a farming business is to take networking seriously by attending organisational meetings and farm events. Connecting with other farmers is a good way to grow and promote your business. You’d also stay updated with the latest farming developments and policies.

Traditional Marketing

While online advertising and the use of social media promise lots of potential, you must also continue traditional marketing strategies to reach your local community.

Here are some ways to do that:

• Share brochures and pamphlets about your farm activities to community halls and other public locations
• Bid for advertisement slots in local or regional newspapers
• Create a jingle or advertisement scripts to promote your farm on radio stations and TV shows that are relevant to your target audience. It is an effective strategy to connect to remote areas without a stable internet connection.

How To Expand Your Farm Business

Once your farm business is up and running, plans of expansion and sustainability becomes the priority. Consider trying any of the following:

• Establishing a farm shop.
• Cultivate non-edible food crops such as flowers and flax.
• Livestock farming of goats, rabbits, sheep or alpacas for their fleece.
• Consider offering accommodation on the land such as an AirBnB in kooky farm buildings.

Proper planning is necessary to ensure that your farm can diversify without affecting the production of primary products. You should also ask relevant agencies for regulations that might control the production of your new output.

What Are The Next Steps?

Starting a farming business is a high-reward investment that requires a lot of self-motivation, and physical and mental input. We’ve given you some food for thought in this article, but there is so much to learn about farming it would be impossible to cover it all in one article.

Take a look into available government grants and loans from banks or money lenders to ease the cost burden and always ensure that safety comes first by following relevant due diligence on the farm and during the set up period.

Talking to established farmers in different areas to get a feel for what it’s like in practice is a great way to get first hand insight.

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Supplying the poultry industry for three decades

How to start a poultry farm business in the uk: a complete guide.

Rowan Burgess | November 27, 2020

Want to become a chicken connoisseur or a poultry master? Running your own chicken farm in the UK takes more than just agricultural knowledge. If you want to start a successful farm, you must also have a business person's mind to grow and scale a profitable farm business.

From understanding the complicated regulatory and legal requirements to planning for your farm business's cost and determining an appropriate pricing plan, there is a lot that goes into a good farm. Without taking the time to slowly and steadily start your farm business, you’re at a much higher risk of failure and losing all you’ve invested.

So take your time, build your farm business bit by bit, and use our complete guide to poultry farming in the UK below to guide you as you begin this new endeavor.

Know the Legal and Regulatory Requirements

Depending on the kind of poultry farm business you’re running, you’ll need to obtain certain licenses and meet regulatory as well as legal compliance standards. First, let’s take a look at the licenses you’ll need as a farm, and then we’ll pivot to general regulations and touch on more specific regulations based on the type of farm land you build.

Before starting your farm, you should be aware of the licenses you’ll need to obtain and the price of each. Here’s what you need to know:

• Suppose you are running a hatchery on your land with an incubation capacity upwards of 1000 or a breeding operation of 250 or more birds. In that case, you’ll need to register with the Animal and Plant Health Agency. If you’re in Ireland, you’ll need to register with the Dept. of Agriculture, Environment and Rural Affairs.
• If your establishment includes more than 350 laying hens, you’ll need to register with APHA or DAERA .
• If you are holding a broiler flock, you must notify the APHA of that.
• If your commercial property contains over 50 birds, you must be included in the Great Britain Poultry Register through the APHA.
• Suppose your land is above a certain size. In that case, you’ll need a special permit from your respective regulatory body, whether it be the Natural Resources Wales, Northern Ireland Environment Agency, Environment Agency in England, or Scottish Environment Protection Agency.

If you want to be sure you don’t miss anything important, you can find more information about what actions you need to take from your local trading standards department. They will also be able to tell you more about prices for licenses in your area.

Additionally, if part of your poultry business is preparing, selling, or storing food (including any processed eggs or meat), you’ll need a license from your local environmental health agency. To get registered, they’ll inspect your property and ensure full compliance with the Food Safety Act. Don’t worry. There’s no price to register.

General Regulations

Beyond licenses, it’s helpful to know a few general regulatory guidelines before you get started:

• Marking Regulations state that all Class A eggs must be marked with an identifying code for their source, country of origin, and production method.
• You must follow the Marketing Standards Regulations, including the time frame for when eggs may be offered for sale.
• The Environmental Protection Act places a “duty of care” on you to store and dispose of waste properly.
• Various feedstuffs legislation requires that you register with Trading Standards if you decide to mix feed on your land.

Depending on whether you’ve chosen a farm for egg production , broiler production, organic products, and more, there may be additional specific regulations that you will need to research.

Choose Your Target Market

Before you get to work on anything, you’ll first want to select the best target market by estimating current demand for the product you want to sell, looking into the options of trade sales vs. public sales, and deeply understanding the customer wants and needs.

Estimate Demand

Come up with an estimate for the number and type of customer that will buy your product. 

Typically most poultry sold in supermarkets is produced by a few large corporations with well-oiled processes and economies of scale that allow them to supply birds for retail at low prices.

It’s also worth noting that intensive egg production operates on slim profit margins when they house their birds in enriched cages. 

With that in mind, make a realistic estimate of the size and location of the market you hope to serve with your business.

Trade Sales

You’ll likely do a mix of both trade sales and public sales. Depending on how you plan to run your farm business, your trade sales may make up a large portion of your overall sales. Some of these trade clients may be:

• Local retailers
• Supermarkets
• Egg packers
• Wholesalers
• Local restaurants

You want to understand whether the price these trade clients are willing to pay will earn you enough profit to continue growing. To do this, get in touch with some of these client types and inquire about the prices they typically pay for farmer’s products.

Then, make a list of local establishments that may take your products, see what they would pay, and gauge their interest level.

You may need to plug in some numbers to see how those trade prices would fare for your upcoming farm business.

Public Sales

If you plan to sell directly to the public, you’ll want to find a realistic estimated figure of how many people would purchase from you this way. You could call around to farmer’s markets, small shops, and individuals to get a temperature reading on how willing they would be to purchase products from you. 

Keep in mind that public sales, also known as farm gate sales, don’t typically make up a large portion of poultry sales overall. 

Understanding the Customer

If you don’t know what your customer wants, you’ll lose before you even begin. To get a better idea of where they stand, you could create a survey or spend time interviewing prospective customers. Try to figure out what their pain points are, what they want to see in their eggs and poultry, and how you can solve those problems.

Plan Out The Cost Of Your Poultry Farm Business

Without a financial understanding of what your farm will cost, you’ll be going in blindfolded. Start out with a strong estimate of the costs you’ll incur, so there are no surprises along the way. 

First, determine the type of farm business you want. That plays a big factor in what your costs will be. Then, estimate your sales considering things like typical yields and mortality. 

Don’t forget to take into consideration the price of the equipment you'll need as well.

Determine Type of Business

In starting a farm business, you’re not limited to just one type of business. You may even plan to operate as more than one of the following:

• Breeding or Hatching - You may breed or hatch small chicks and then supply these to other businesses. You’ll keep a breeding flock within a temperature-controlled room and should aim for a 13:1 ratio of female to male birds. Your hens will lay eggs, which will then go into an incubator for at least 18 days. On day 21, they usually hatch and are then sold at just a day old.
• Pullet Rearing - This means you’ll supply chickens that are of age to lay eggs to other companies. This means you’ll rear the birds from chicks (either garnered from a breeding operation or bred yourself) to adults and then send them to a business that will house them while they lay eggs.
• Laying Flock for Egg Production - You may decide to be the part of the supply chain that keeps a laying flock of chickens for egg production. They will typically bring in pullets at 17 weeks and produce for around 52 weeks. There are several different methods that can be used, from free range or organic to intensive, barn, or perchery farming .
• Broiler Production - Finally, this is the production of poultry for meat. In this line of work, small chicks are brought in and fattened up as they grow old within a controlled space. Depending on the environment they are raised in, they are typically fattened for anywhere between 46 and 56 days before they are killed for consumption.

Estimating Sales

Of course, the two things that will have the greatest impact on your cost and sales will be the quantity you sell and the price you can get for each unit. The less you sell and the lower the price you earn for each unit, the more you’ll owe, and the lower your profits will fall.

The price you earn for each unit will be determined by the nature of your farm business (intensive eggs vs. organic eggs) and the demand in the market. The quantity, on the other hand, will be affected by the limits of your premises and the financing you have upfront for the costs. You may also be limited by the number of employees or how efficient your farming methods are.

Additionally, don’t forget to consider:

• The level of experience you have
• Unexpected mortality levels of the birds
• Lower egg yields or broiler growth rates than anticipated

Let’s dive in a bit deeper on those last two bullets.

Yields and Mortality

Keep in mind that, when working with poultry, you can only estimate how many eggs your birds will yield or how fast the birds will fatten. You also may overestimate how many birds will last and experience higher than anticipated mortality rates.

Here are a few helpful figures based on The Farm Management Pocketbook as you estimate:

• Enriched eggs - 310 eggs/bird/year
• Free range eggs - 300 eggs/bird/year
• Barn/perchery eggs - close to free range yields
• Chick production - 80-85% of eggs laid in a year by the flock may be suitable to hatch
• Enriched eggs - 5% mortality
• Free range eggs - 5% mortality
• Barn/perchery eggs - close to free range mortality
• Pullet rearing - 3% mortality
• Broiler production - 5% mortality

Pricing and Promoting

From pricing your items appropriately to promoting them to the right people, how you approach the sale of your products will impact the success of your farm business.

To determine standard pricing, check out the DEFRA portion of the Gov.UK website for up-to-date pricing information for eggs and poultry. For descriptive purposes, some of the figures you may expect to see include:

• Enriched eggs - 55 pence per dozen average price
• Free range eggs - 85 pence per dozen average price
• Perchery and other eggs - 75 pence per dozen average price
• Day-old chick for sale to lay eggs - 65-70 pence per dozen average price
• Day-old chick for sale to broiler - 20 pence each average price
• Pullet - £4.10 each average price
• Broiler - £1.90 each average price

Market Standards

While you may believe that your eggs or broilers are worth more than the above, your prices will be largely contained by market standards. Why should someone pay double for your product when they can get something extremely similar for half the price? Unless you’re providing a value to the customers that they won’t get anywhere else, you’ll likely face pushback if you’re trying to sell at too high a price.

If the market standards scare you away, then starting a farm business in the UK may not be the best path for you. 

Establishing the Business

With most of the thought work and paperwork out of the way, it’s time to get to work, establishing your farm. This entails things like setting up buildings, purchasing and assembling equipment , hiring employees and securing financing.

Before you can have a farm, you’ll need land. On that land, you’ll need to build out the coops, barns, or whatever infrastructure you’ll need to operate. Make sure you have enough land to handle growth still to come. Then, set up all the equipment that you’ll need and ensure each piece of equipment works properly.

In order to operate the farm, unless you plan to do everything yourself, you’ll need to hire employees to keep your processes going on your land. It’s helpful to hire those with experience, especially when you’re not a true farmer yourself.

Finally, there’s a good chance you’ll need to secure financing before you’re able to do some or all of these things. It’s rare for someone to have the capital they need to start a huge business venture like this in cash, so don’t worry if you need a loan. By securing investors or getting approved for a small business loan, you’ll be able to afford your up-front costs and make up for it on the back end with stellar profits.

With all systems in place, it’s time to start promoting your farm to drum up business about your new product. You don’t have to do everything when it comes to promotion, but you will have to do something. Some of the most effective forms of promotion for farmers today are social media, events, a solid website, and traditional marketing.

Social Media

Even if you’re farming out in the middle of nowhere, don’t let your location keep you from interacting with your target market. Social media sites, like Twitter and Facebook, are great places to find other farm businesses and individuals who may be interested in purchasing from you. 

Industry events such as trade shows are opportunities to promote your farm business to those in your field. They can connect you with other attendees that could become major trade partners or get you in touch with experts who may be able to offer advice as you grow and scale. Don’t forget to bring business cards and promotional material with you to these events.

Any business that hopes to be successful today needs a strong website to do so. On your website, people should be able to easily learn about your farm, how to contact you, what you produce, and who your team is. 

Ideally, someone interested in becoming a partner of some sort should also be able to contact you or learn more about that kind of opportunity.

Start by creating your own simple site to save on price or hire a web designer to build something that looks clean and professional.

Traditional Marketing

Don’t miss out on the value that traditional marketing can bring your farm. Use things like brochures to distribute at community events, print ads in local publications to get more eyes on your brand, and even radio placements to speak directly to your audience – especially if you live in a rural area.

Grow Your Poultry Farm

With systems in place and your promotions going swimmingly, you can begin to innovate upon your business and start to grow your farm into something thriving and successful. 

Here are a few best practices to keep you on the path of exponential growth:

• Create Reporting Systems - Log all of your sales, financial losses, and business growth. Check frequently to determine whether you’re making or losing money. From that data, adjust to improve the bottom line.
• Network - To be successful in any industry, you need to be plugged into the field and aware of other key players. Submerge yourself in this world through networking and connecting with other farming businesses.
• Seek Funding - You may need further funding down the road, and that’s perfectly fine. As you pay off your loans, you’ll build credit and may find it easier to qualify for more money at lower rates than before.

There’s no getting around the fact that starting your own poultry farm is a major undertaking. However, with proper agricultural knowledge and a bit of business acumen, you could be running a profitable business before you know it.

Use the guide above to start your poultry farm business plan and refer back to it as you grow into the next major player in the UK market.

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Five-point guide to a successful farm business plan

• Fertile Minds

There are five key elements vital to a successful business plan, says the Royal Agricultural University’s  senior lecturer in finance  Steve Thomas – and 80% of time should be spent concentrating on them.

Here he gives his advice for each of the elements. 

1. Be clear about the product or service

Be clear about how and why your product or service will stand out from the competitors and how your customers will benefit.

Remember business is dynamic and changing, so state how your business will develop to continue to meet customer needs.

See also: All the news from the Fertile Minds event

2. Market research

Lack of market research is one of the main reasons for business failure. It is important that you focus on the market segment that you wish to satisfy – for example, local customers or a particular age group.

Carry out the most extensive research you can. This is generally done through the use of questionnaires, although not exclusively.

3. Competitor research

Understand who your competitors are and what they offer. If you can find a gap between what the customers need and where this is currently not satisfied you may have found your unique selling point.

You need to explain why the customer will buy from you in the future and not from their established supplier.

4. Finances

Having written the above you are in a position to write the financials. A funder will wish to see three years of profit and loss accounts and three years of cashflow forecasts. The latter should be presented monthly for the first year and quarterly in years two and three.

The cashflow forecast will identify the level of overdraft required. The key here is that the basis for the figures should be clearly explained and must relate to the market research.

If the business is buying fixed assets these would normally be financed through a loan, with the repayment period being no longer than the life of the asset purchased. The working capital funding should be taken through the overdraft.

5. Executive summary                                                                                                                                   

Remember a lender will not be able to read all of the plans but will read the executive summary. It should be concise, show enthusiasm and be written at the end but placed at the beginning.

COW FARMING BUSINESS PLAN: How to Setup from Scratch

• by Folakemi Adegbaju
• August 10, 2023
• No comments
• 7 minute read

Table of Contents Hide

Why do you need a plan for your cow farming business, #1. executive summary, #2. business description, #3. market analysis, #4. competitor analysis, #5. product or service, #6. personnel and operations, #7. risk and uncertainty, #8. marketing plan, #9. financial plan, #10. appendix, cow farming business plan template, why should you work with an experienced business plan consulting team, how do you make a cow farm, how can i sell my milk, who sells milk is called, who is the target market for milk, how can i sell milk at a good price, final thoughts, what is the marketing of milk, what do you mean by direct marketing, what country has the best milk.

Writing a business plan can help you structure your business idea by outlining the steps you should take from the very beginning until the firm is fully operational and beyond. Successful businesses typically follow a well-thought-out strategy laid out in writing. It’s crucial you have your cow farming business plan intact before setting out to start your cow farming business. Our ready-to-use cow farming business plan template is available to guide you in writing a strong and effective cow farming business plan. Click here to download it.

Let the journey begins…

A Cow Farming Business Plan

Proper planning is crucial for achieving successful results in making adjustments. A cow farming business plan can help you deal with unexpected challenges and make the necessary adjustments by outlining your objectives, a realistic timeline for achieving those objectives, and a system for regularly evaluating your progress toward those objectives.

Also, keep your cow farming business plan as concise and targeted as you can; it doesn’t need to be hundreds of pages long.

Whether you are just getting started in cow farming or wish to expand your business, you must have an effective business plan. Business plans are also useful tools for cow farming businesses to boost their chances of success by drawing attention to their offerings, attracting investors, and planning for growth. It’s also important that you know that your cow farming business is ever-evolving, so your business plan must be updated annually to reflect these changes.

So, if you want your cow farm business to expand quickly, why not get our cow farming business plan right away?

How to Write a Cow Farming Business Plan?

Even though you’ve picked the ideal business, it’s useless without a solid business plan. It’s crucial, therefore, that you put together a solid plan for your business. Following these steps will help you craft a plan that is both effective and comprehensive. We’ll walk you through the necessary measures and procedures. Alternatively, you may use our f ree cow farming business plan templat e as a reference point for your own.

Here are the steps to follow:

Keep in mind that a lender will only examine the executive summary of your farming business plan, not the entire document. It should be brief, enthusiastic, and written last but placed first.

You should include particular details about your farm and what you do in this section.

A business description is made up of the following crucial elements:

• an objective statement;
• your history;
• your goals and objectives;
• your most important team members.

If you’ve never written a mission statement before, it’s a one-to-two-paragraph explanation of why your farm exists. It’s not merely a summary of what you do or what you sell; it’s the main reason you sell these things.

Lack of market research is one of the main reasons businesses fail. Focusing on the market sector you wish to target is essential. Make the most exhaustive amount of research possible. Surveys are often used for this purpose, however, they are not always used.

You must be aware of the products and services offered by your competitors. Your key difference may have been found if you could pinpoint a current client need that isn’t being satisfied. Give the client a reason to continue doing business with you rather than their present provider.

Give your customers a clear idea of how and why your product or service will be superior to the others. Remembering that the business world is dynamic and constantly changing, explain how your farm will expand to continue meeting customer demands

How you currently run your farm or how you intend to run it is covered in this area of your plan.

It can locate solutions to issues like:

• From where will you operate?
• How will you manage your company?
• How will your goods or services be distributed?
• Who will be in charge of the company?
• Who are you going to hire?

You’ll talk about how to handle and manage any risks that could arise on your farm. Include these queries in this part of your cow farming business plan to make your investor or reader understand you better:

• Which significant elements do you think will have an impact on your business?
• What dangers are you ready to accept, and why?
• How do you intend to reduce these risks?

The success or failure of your farm depends heavily on your marketing plan, so be sure to give it plenty of thought when developing your farming business plan. Also, include information about your cow farm’s marketing plan in your business plan. It’s time to start creating your marketing plan. To what extent do you envision yourself having progressed in your chosen field over the next five years?

A three-year cash flow prediction and a three-year profit and loss statement are required for an investor. The latter should be sent monthly in the first year and quarterly in years two and three. The cash flow estimate will choose the appropriate degree of overdraft. In this case, it is crucial that market research be integrated into and used as the foundation for the data.

The appendix should also contain any documents or resources that are relevant to your cow business plan. It’s possible that writing your cow farming business plan may be difficult for you.  So, we suggest that you ask a specialist like Business Yield Consult for advice on how to approach your cow farming business plan. Do you know? Business Yield Consult’s expert business plan writers are always available to help you.

We also have a cow farming business plan template to help you write a solid cow farming business plan for your cow farming business.

If you want to write a cow farming business plan for your farm, you’ll need to do all of the above, plus use a cow farming business plan template checklist. In addition, a checklist’s primary purpose is to assist you to remember all you need to do to open your new business successfully.

However, if you want to make sure you cover all the bases while developing your cow farming business plan, we suggest using our cow farming business plan template .

• Executive summary
• Company summary
• Products and services
• Marketing plan
• Management team  
• Financial plan

In today’s market, you may find a plethora of companies willing to help you craft a winning business plan. Unfortunately, most of them aren’t very excellent. To secure funding for your enterprise and get the ball rolling on a successful enterprise, you’ll need a business plan. While anyone can jot down a concept, very few have the expertise of a business consulting firm with years of experience in venture capital with which to evaluate it. What’s the deal? If you’re going to pitch your business plan to investors, wouldn’t you want a group of people who have experience in writing one on your side?

Our business plan writers at Business Yield Consult are experts. Seek their advice today for your business plan. Get expert assistance in writing a business plan that will captivate your target audience and keep them turning the pages.

There are various ways to make a cow farm; it all depends on the one you choose. Here are various ways you can make one:

• Plan your cattle ranch business.
• Form your cattle ranch business into a legal entity.
• Register your cattle ranch business for taxes.
• Open a business bank account and credit card.
• Set up accounts for your cattle ranch business.

Are you worried about how to sell your cow’s milk? However, you don’t need to worry because we have some ways you can follow below. Here are some ways you can sell them:

• To sell or not to sell?
• Word of mouth.
• Join organizations.
• promote other products.
• Talk to your customers.
• Talk to other raw-milk producers.

The person that sells milk is called a “Milkman”.

The target market includes final consumers; primary household shoppers (mostly households with children), healthcare professionals, and the media.

Do you know you can sell your milk at a good price by following the following steps below? Here are the steps:

• Word of mouth
• Join organizations
• Promote other products.
• Talk to your customers

If you’re looking to develop a more modern business plan, we recommend you contact BusinessYieldConsult . We are here as guidance to help you create the perfect business plan. On the other hand, you can also purchase an already-made cow farming business plan at a cost-effective rate to save yourself the stress of writing one from scratch.

There are numerous milk marketing routes in a marketing system. That marketing channel is seen as effective since the producer receives the highest share of consumers and the consumer gets the highest share of produce. The maximum possible returns on their milk are in the interest of the producer.

Direct marketing is a style of advertising that involves communicating with your target market directly to offer information about your business, product, or service.

The milk produced by New Zealand’s grass-fed cows is among the world’s best. Cows’ nutrition and environment directly affect the quality of the milk they produce. It should be no surprise that the world’s best milk is produced by cows that are pasture-fed in New Zealand and fed on our lush.

The milk produced by New Zealand's grass-fed cows is among the world's best. Cows' nutrition and environment directly affect the quality of the milk they produce. It should be no surprise that the world's best milk is produced by cows that are pasture-fed in New Zealand and fed on our lush.

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WINE BAR BUSINESS PLAN: 2023 Template, How to Write & Free Tips

Business consulting business plan: best 2023 strategies.

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Farm and Agriculture Business Plans

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• Farm Machinery Manufacturer Business Plan

Farming and agriculture are complicated businesses. To be successful, you need more than a green thumb and the willingness to get your hands dirty. You need to know how to operate your agricultural enterprise efficiently and not just forecast your crop rotations, but your cash position and revenue. To do that, you need a business plan.

How can a business plan help your farm or agriculture business?

A good business plan will help your farm or food production business grow. It can improve your chances of receiving government grants or loans, help you manage your business through hard times, and identify additional forms of revenue like tourism or consulting. Most lenders or investors require a business plan before they even consider funding a project. When you add in the numerous elements of running an agricultural business, and the factors like weather and government regulations that are often beyond your control, a business plan becomes an essential tool for effective management, strategic planning and communication across all the key stakeholders in your business.

Find the right agriculture business plan template for your business

If you’re not sure where to begin, check out our farms, food growers, food production facilities, and other agriculture-related sample business plans for inspiration.

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Dairy Farm Business Plan

High demand, an extensive marketplace, and a recurring revenue model make starting a dairy farm business a lucrative and rewarding profession.

Anyone can start a dairy farm, but you will need a detailed business plan when it comes to growing your business and raising funds for it.

Need help writing a business plan for your dairy farm? You’re at the right place. Our dairy farm business plan template will help you get started.

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Dairy Farm Business Plan?

Writing a dairy farm business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

• This section may include the name of your dairy farm, its location, when it was founded, the type of dairy farm (E.g., conventional dairy farm, organic dairy farm, farmstead dairy farm), etc.

Market Opportunity:

Dairy farm products:.

• For instance, you may include milk and milk products as dairy farm products, and organic and grass-fed and pasture-raised cattle as some of your USPs.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

• Conventional dairy farm
• Organic dairy farm
• Farmstead dairy farm
• Pasture-based dairy farm
• Describe the legal structure of your dairy farm, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

• Additionally, If you have received any awards or recognition for excellent work, describe them.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

• For instance, health-conscious individuals, specialty diet consumers, and organic shoppers would be an ideal target audience for a pasture-based dairy farm.

Market size and growth potential:

• For instance, the dairy farm industry was 59.3 billion dollars in 2022. It is extremely crucial to define the segment of your target market and its growth potential.

Competitive Analysis:

Market trends:.

• For instance, plant-fed dairy farming has a booming market; explain how you plan on dealing with this potential growth opportunity.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your dairy farming business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Milk Varieties:

Mention different varieties of milk you will offer at your dairy farm. This will include full-fat milk, low-fat milk, grass-fed derived milk, skimmed milk, etc.

Dairy products:

Mention the dairy farm products you will offer. This list may include dairy products like cheese, butter, yogurt, cream, ice cream, and much more. Also, mention the different varieties of these products you will offer.

Parts and Accessories:

Quality measures:.

• This may include ensuring animal health and welfare, milk testing and quality control, sanitation and hygiene practices, etc.

Additional Services

In short, this section of your dairy farm plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

• For example, grass-fed milk produce, organic and sustainable practices, and farm-to-table sales could be some of the great USPs for a local pasture-raised dairy farm.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your dairy farm business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your dairy farm, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

• Explain how these technologies help you maintain quality standards and improve the efficiency of your business operations.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your dairy farm management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

• It should include, key executives(e.g. CEO.), senior management, and other department managers (e.g. farm manager, herd manager.) involved in the dairy farm operations, including their education, professional background, and any relevant experience in the dairy farm industry.

Organizational structure:

Compensation plan:, advisors/consultants:.

• So, if you have any advisors or consultants, include them with their names and brief information consisting of roles and years of experience.

This section should describe the key personnel for your dairy farm services, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

• This exercise will help you understand how much revenue you need to generate to sustain or be profitable.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the dairy farm industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your dairy farm business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

This sample dairy farm business plan will provide an idea for writing a successful dairy farm plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our dairy farm business plan pdf .

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Frequently asked questions, why do you need a dairy farm business plan.

A business plan is an essential tool for anyone looking to start or run a successful dairy farm. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your dairy farm.

How to get funding for your dairy farm business?

There are several ways to get funding for your dairy farm, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

What is the easiest way to write your dairy farm business plan?

A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any dairy farm business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software .

How detailed should the financial projections be in my dairy farm business plan?

The level of detail of the financial projections of your dairy farm may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a dairy farm business plan include?

The following are the key components your dairy farm business plan must include:

• Executive summary
• Business Overview
• Market Analysis
• Products and services
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

Can a good dairy farm business plan help me secure funding?

Indeed. A well-crafted dairy farm business plan will help your investors better understand your business domain, market trends, strategies, business financials, and growth potential—helping them make better financial decisions.

So, if you have a profitable and investable business, a comprehensive business plan can certainly help you secure your business funding.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Sheep Farming in the UK, How to Start, and Facts

Table of contents, how many sheep are in the uk, where are the most sheep breeds in the uk, select a suitable farm location for sheep farming in the uk, how to start a sheep farming business in the uk, unique characteristics of sheep, tips for a profitable sheep farming in the uk, different sheep breeds in the uk, shelter and caring tips for sheep, few reasons why you should start sheep farming in the uk, feed and nutrition requirements for sheep farming in the uk, the challenges of sheep farming in the uk, sheep marketing in the uk.

Introduction of how to start sheep farming in the UK, facts, profits and breeds : The sheep farming business is a major contributor to the UK economy. Sheep were mainly raised for milk, meat, and wool for thousands of years. Sheep farming in the UK is a profitable business and sheep can attain good weight within a short time. You can raise sheep on a small scale or large scale industries for commercial purposes. Several rural-based industries use sheep wool and skins as raw materials. Sheep manure also is an important source of soil fertility. This makes the best use of the different sheep breeds, land, and weather conditions in different areas, by matching breeds and production systems to the area in the UK. If you can raise sheep in small and large scale industries and you must have proper facilities.

Sheep farming business in the UK is a profitable business and you can get your investment back within a short period. Make a proper business plan and work according to the plan before starting a sheep farming business in the UK. Sheep form an important component of the rural economy mainly in the arid, semi-arid, and mountainous areas of the country because of their multi-facet utility for meat, wool, milk, skins, and manure.

A guide to on how to start sheep farming in the UK, facts, profits and breeds

Sheep farming includes lowland, hill, and upland production. Without subsidies sheep farming business in the UK is not profitable if farmers are paid for their labor. Farmers can make money by raising their sheep breeds. Livestock farming is mostly dependent on subsidies and generates greenhouse gas emissions, the UK has a large potential for restoring and creating woodlands to help soak up carbon emissions.

Approximately, there are 22.5 million sheep in the UK. The main proportion of the UK sheep flock is found in England. About 66% of total meat production is half of the UK sheep flock residing in England comes from this region likely due to stratification.

Sheep farming in the UK is set out in a ‘stratified system’. The stratified system is unique to the UK and is designed to play the main role. One of the largest sheep flocks in Europe is the UK with around 22 million animals. Then, this can be done by using different rams for different purposes, or breeds that are suitable for breeding and meat or wool production traits.

Northern and South West England are mostly suitable for sheep farming business. This landscape has milder conditions than the hills do, but the land condition is not viable for other farming. Lowland farming is used for stockier sheep-like Texel and Suffolk sheep breeds.

Almost 50% of sheep are based in East Cumbria within the region among its stunning mountains and moorlands in the UK. Yorkshire and the Humber area are home to more than about 2.1 million. More than about 1.7 million sheep within North Yorkshire are managed 82% of those in the wider Yorks and Humber area, with the counties of Shropshire and Herefordshire home to the most sheep breeds in the Midlands.

For starting a sheep farm select a suitable location is very important. Raising sheep consider an essential facility. A good clean and fresh water source, adequate amount of greens, suitable transportation, and proper marketing are the necessary facilities for starting a commercial sheep farming business. While selecting land for your business all these are kept in mind.

In case if you miss this: How To Start Fish Farming In Canada .

Make a Proper Business Plan

Make a proper business plan for your sheep farming is a very important factor. The main business plan tips are consisting the financial analysis, marketing strategy, and income revenue calculations.

You Need to Identify a Proper Location

You must select the best suitable place to start the fish farming business. If you already have a proper location of your own then it’s good. Then, you will need to identify and choose a location for setting up the farm. The location required depends on the size of the farm and the population of the livestock you want to keep on your farm.

You Should Opt Quality Breeds

One of the main things to be remembered is to go for quality breeds that can offer you more productivity. You are advised to procure quality breeds from trusted breeders or responsible farmers. Usually, you can find numerous sheep breeds throughout the world. Though, all those breeds are not suitable for farming in all areas. You will want to procure the breeds based on the agro-climatic condition of your area.

Build a House for the Sheep

For establishing the sheep farm, construct the right housing is the most important aspect. Sheep housing can provide can protect from adverse climatic situations.

For starting a small-scale sheep farming business, it does not require much space. There is no need for constructing an expensive house for sheep. Also, you can produce the fodder trees around the shades and then use the space as grazing land. The entire house has a sufficient ventilation facility.

Construct a separate house for them to shelter them to protect them from the worst weather, pests, and diseases, and natural predators for commercial purposes. A shelter that is about 20 feet long and 15 feet wider and having a rooftop at 8 feet height is good enough for commercial purposes.

Ventilation is the method of intentionally letting fresh outside air into an indoor space to control the air quality. Air quality is regulated by diluting and displacing pollutants like dust, odors, or gases. Dust from grain, hay, and dried manure floats around in barns; and this can cause respiratory problems and worsen allergies. It is very important to be careful around enclosed areas containing manure as gases from the manure can kill people and animals.

Along with air quality, ventilation can also control the temperature levels and humidity to make the space more comfortable for you and your animal. Humidity is moisture in the air and too much of it can cause your animals’ housing to become damp, which can result in sick animals. Sheep are better off cool and dry, versus warm and damp. Also, humidity can be damaging to milking equipment and machinery. Ideally, humidity levels in the barn will stay under 75–80%.

Must Provide Proper Feeding

The last factor but it is the most important point to remember. You must provide proper feeding for the best result and you will want to provide the food according to gender and age. For your sheep’s growth, good-quality hay or stored forage is a highly productive feed.

• Excellent capability to survive over a prolonged period of drought and semi-starvation
• Sheep can produce prime carcasses on roughage alone. They are adapted to many areas unable to produce grain profitably.
• Strong herd instincts of sheep make them excellent ranch animals and simply managed flocks and do not disperse widely all over the available land.
• Less prone to extreme weather conditions, ectoparasites as well as other types of diseases
• Their visual sense is exceedingly well-developed and they can discern movement far better than humans, but cannot distinguish shapes as well as man
• Usually, sheep do not require expensive buildings to house them properly

How about this: Goat Farming In The USA .

• Follow some modern and scientific sheep rearing rules to get better profits.
• The important elements in sheep farming are purchasing sheep, lamb care, housing and shelter, keeping records, identification, and health management, etc.
• Select healthy sheep breeds and take extra care for feeding sheep. Also, maximum profit depends on proper marketing.
• So find your marketing plan, before starting. You have to do all these activities perfectly for better production and maximum profit.
• Remember that always try to take good care of your sheep. Buy healthy sheep breeds by provide them good housing, feed and always take good care of them.
• Sheep are sometimes infected by various types of diseases. Timely vaccination and proper medication can prevent types of sheep diseases.
• Sell your sheep timely when they reach marketing age. In a cage of wool production, collect wool after several periods and then sell the sheep products in the market.
• Try to visit the nearest livestock training center and learn more about the profitable raising system of sheep.
• Good caring tips for sheep can ensure maximum profit.  Therefore, always try to take good care of your animals. Try to purchase quality and productive breeds, feed them by using nutritious foods. To prevent them from several types of sheep diseases vaccinate them timely. And always keep good relation with the veterinarian, so that you can ask for help anytime.

Select a sheep breed suitable to your area and business requirements. Several sheep breeds and cross-breeds are found in the UK can be found on the National Sheep Association website. If you are farming in the hills with harsh climate conditions and a short growing season, it is advisable to choose hill breeds that are adapted for this environment.

There are different sheep breeds and crosses in the UK with each one uniquely bred to thrive in certain environments. The badger faces welsh mountain is supposed to be one of the oldest British sheep breeds.

Sheep farming is largely stratified with some breeds occupying specific environments. It is important to choose a breed suitable to your location and your business requirements.

Hardy hill and mountain sheep are kept as pure breeds.

Typical breeds – The sheep breeds in the hills are Cheviots, Rough Fell, Swaledale, Dalesbred, Derbyshire Gritstone, Welsh Mountain, Scottish Blackface, and Herdwick.

Purpose – Pure-bred breeding stock. Surplus female and wether lambs are sold as stores to lowland or upland farms to be fattened.

Where to find them – These are mainly found in the highlands and islands of Scotland, mountain areas of Wales. Hill areas have short growing seasons, relatively poor soil quality, and long winters.

The Uplands

In upland areas, there are again specific sheep breeds.

Typical breeds – Some typical breeds in uplands are Teeswater, Wensleydale, Bluefaced Leicester, Border Leicester, Devon, and Cornwall Long wool.

Traits – More prolific compared to hill breeds, and do better on the lower, easier terrain. Though, mules inherit the mothering abilities of hill relatives.

Purpose – Older ewes’ drafter from the hills can continue to breed in the easier conditions to produce ewe lambs transferred to lowland farms for breeding and male lambs reared for meat production. Ewe lambs are sold to the lowlands to be crossed with a lowland or terminal sire breed.

Where to find them – Regions of Northern England such as The Pennines and Lake District, and in the South West, on Dartmoor and Exmoor.

The Lowlands

Typical breeds – Some typical breeds are Suffolk, Charollais, Clun Forest, Romney, and Oxford/Hampshire/Dorset Down.

Purpose – Lambs are reared for meat production. Though, slower-growing lambs join the store lambs that arrived from the hill and upland regions.

Where to find them – These are mainly found in low-lying regions of Wales and England mostly in central and eastern England. Sheep become part of arable rotations, and where fields that have grown crops for many years are put to grass to help improve the soil.

Particularly sheep require protection from predators and inclement weather conditions. Housing shelter keeps you more comfortable when tending to them. Account for additional space in the barn or shelter to store tools, feed, and bedding.

Sheep mostly thrive in a wide range of shelters. New barns, pole barns, and pre-fab metal structures are expensive but they provide excellent protection. Outbuildings and barns already present on your land can make good housing and might not need much adaptation for raising sheep.

The best type of fence for sheep farming is smooth-wire electric or woven wire non-electric fencing. You could use electric net fencing for temporary paddocks. Also, rotating sheep into different paddocks keeps them on fresh pasture. In hot climate conditions, sheep need some shade from trees or an open roof structure. Make sure they have plenty of fresh, cool water during these seasons.

Sheep don’t need much protection. By using a light, portable shed allows you to move it to their current paddock. One exception is if your sheep give birth to lambs during the winter season. So, a small barn or sturdy enclosed shed is essential to protect young animals. This can be a simple chute or forcing pen. This is safer than trying to chase and catch animals to handle them. This business requires less labor for daily maintenance and care. Therefore, you can run the farm with less working capital investment. Sheep give birth to kids frequently and you can create a large size herd within a short time.

Sheep require less space for living. Even you can raise sheep with another type of livestock animal. Sheep don’t want to build expensive housing. Thus, it allows you to maintain your cost early. Sheep eat different kinds of plants. You don’t need to provide high-quality feeds all the time and sheep are very hardy animals. The products you get from sheep have high demand in the market. It is a lucrative business for entrepreneurs who want to start a livestock business.

• Sheep are relatively small and easy to handle when compared with cows, horses, and pigs.
• Sheep manure will fertilize the soil and sheep pastures can be rotated with crop planting.
• Sheep don’t need much space. Even one acre can support small flock 3 or 4 ewes and their lambs.
• For starting this sheep business, you don’t need to have huge capital. An expensive house for sheep is not required as they acquire less space for living and you can raise sheep with other livestock animals.
• Sheep frequently gives birth to kids. So, the size of your herd will be large within a short time.
• Sheep eat different kinds of plants, not like any other kinds of animals. Therefore, you can use them for cleaning unwanted plants from your garden or field.

Meat is the main product of sheep which makes them one of the most sustainable animals. Wool is an amazing product with several uses and sheep need to be sheared to keep them fit and healthy. Lamb is also packed with iron which is very important for adolescents as it helps with muscle development and growth. But adolescents are not consuming enough iron which can impact cognitive ability and behavior.

Environment –UK farmland is best suited for growing grass. It is incredible really, these animals can utilize areas of the UK that farmers never be able to use to grow fruit or veg and turn it into delicious and nutritious meat.

A sheep’s nutritional requirements will change throughout the year and will be at their highest during late pregnancy and lactation. For most of the year, they will get all they want to eat from a field of grass. Most flock owner’s start these supplementary feeding about 6 weeks before the ewe is due to lamb. Don’t worry about wastage, the sheep love this food and sniff around until they find every last piece. If there is no decent grass around by the time the ewe lambs will have to carry on feeding her. Producing milk for her lambs is even more of a demand on the system than the pregnancy.

Sheep require less copper than cows and goats, and they are more susceptible to copper toxicity than other livestock. Though, sheep still need copper and can become copper deficient if you have copper antagonists on your farm like high sulfur and iron in your well water.

The uplands of the UK are semi-natural habitats that have been formed by generations of agricultural enterprise, which has been shaped by grazing livestock. The regions of the North East, North West, and South West England include a large proportion of the upland areas of England. The uplands are unique in many ways like the climate is varied and often extreme, they are mostly at high altitudes (with some of the uplands of the South West being an exception) and they are remote. They play an important role in the sheep industry of the UK.

Sheep farming in the uplands suffers from the same difficulties as in the lowlands, which result in the uplands being a difficult place to make a living. The higher altitude, more extreme climate conditions, shorter growing seasons, topography, and low soil fertility all add to the complexities of farming. The land is marginal, with limited options for what it can be used for, thus leaving them vulnerable to price fluctuations.

Sheep raised in the UK pass through domestic livestock markets. Lambs with unhealed navels should not be transported, and not taken to market under current welfare regulations. Therefore, lambs as young as two or three days old are frequently seen in markets. Lambs can be sent for slaughter at the ages of about 3 and 10 months.

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Is there any course on sheep farming in the Uk ?

I want to start an sheep business in uk guide me how to start

Please help me in guiding the lamb fattening project Regards

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• Environment
• Food and farming

Government unveils major package of farming and food sector support

The Prime Minister has unveiled a major package of measures to support farmers and grow the UK’s farming and food sector

A major package of measures to support farmers and grow the UK’s farming and food sector has been announced by the government today (Tuesday 14 May).

The package, unveiled at the Farm to Fork Summit hosted by the Prime Minister at Downing Street today, will support domestic food production, boost innovation in the sector supporting it to reach its economic potential, and recruit the next generation of farming and food leaders.

This includes a new Blueprint for Growing the UK Fruit and Vegetable Sector , setting out how industry and government can work together to increase domestic production and drive investment into this valuable sector which is worth more than £4 billion to the UK economy.

The plan involves:

• Ensuring the sector has access to affordable and sustainable energy and water
• Cutting planning red tape to make it easier and quicker to build glasshouses
• New investment to boost innovation in the sector, where Defra will look to double to £80 million the amount of funding given to horticulture businesses when compared to the EU legacy Fruit and Vegetable Aid Scheme.

The Summit also saw publication of the first draft Food Security Index, setting out key data and trends to allow government and industry to safeguard the UK’s food security. This will allow us to monitor short-term trends across the UK.

In addition, the Government has set out how it will provide further support for farmers affected by the wet weather. Building on our commitment to extend the Farming Recovery Fund to support farmers who have been flooded, temporary adjustments will be made for farmers and land managers where the wet weather has led to difficulties carrying out the requirements of our Environmental Land Management Schemes. There will also be £75 million to support internal drainage boards (IDBs) to accelerate recovery from the winter 2023-24 storms and provide opportunities to modernise and upgrade assets that benefit and support resilience for farms and rural communities.

The government has also announced further action to ensure fairness across the food supply chain, committing to delivering regulations to improve fairness in the fresh produce and egg sectors.

The second annual Summit builds on the success of last year, bringing government and representatives from across the farming and food sector together at No.10 to help them work together and help it to grow.

Environment Secretary Steve Barclay said:

Food security is vital to our national security, which is why today’s summit is so important, bringing together government and key representatives from the farming and food sector at Downing Street. Today’s announcements will turbocharge the growth of our horticultural sector supporting the building of cutting-edge glasshouses and innovative farming techniques to put British fruit and vegetables on our plates all-year round.  We will continue to invest in and support farmers to produce the best of British food to strengthen our food security, championing innovation in the sector.

Farming Minister Mark Spencer said:

This government will always back British farmers. Food production is the primary purpose of farming, and our farmers and food producers work hard to keep the nation fed, despite challenges including flooding. Supporting our farmers and food producers is at the heart of our plans and we are committed to working with them. We are pressing on with our plan by investing in food security and resilient farming businesses, providing business advice and cutting unnecessary red tape.   It is an exciting time and we are investing in innovation, ensuring the sector has the labour it needs, further embedding fairness in the supply chain, and making sure the sector is attracting the best and brightest.

Further Information

Growing a resilient food and drink sector.

We have launched the Blueprint for Growing the UK Fruit and Vegetable Sector , setting out how industry and government can work together to increase domestic production support business growth and drive investment into this valuable sector – which is worth more than £4 billion to the UK economy. The blueprint covers:

• Access to affordable, sustainable energy and water, considering the horticulture sector’s eligibility for decarbonisation, waste heat and clean energy incentives, and future developments in energy policy.
• Cutting planning red tape to make it easier and quicker to build glasshouses, including a review of outstanding planning barriers, a commitment to reflect the importance of the Controlled Environment Horticulture sector in the new National Development Management Policies and National Planning Policy Framework, and a consultation on permitted development rights for small-scale single on-farm wind turbines.
• Investing in success, including developing a new Horticulture Resilience & Growth Offer to replace the outdated EU retained scheme to ensure that all parts of the edible horticulture sector can benefit from Government funding. Defra will look to double to £80m the amount of funding given to horticulture businesses when compared to the EU legacy Fruit and Vegetable Aid Scheme which will be replaced from 2026 onwards. This will include making up to £10m available to help English orchard growers access equipment, technology and infrastructure to support the growing of great British fruit.
• Building opportunity and adding value, including a commitment to introducing regulations to improve fairness in the fresh produce supply chain, work to explore support for long term cold storage of crops so the UK public can continue to enjoy our crops out of season, and launching on 31 May 2024 the £15 million Farm Gate Food Waste Fund to help industry ensure good food makes its way to people rather than going to animal feed or anaerobic digestion.
• Growing skills and innovation and building on our response to the Independent Review into Labour Shortages in the Food Supply Chain , including, turbo-charging automation with increased support for packhouse automation of up to £50 million to boost productivity and help the sector accelerate away from a reliance on migrant labour, and improving the attractiveness of the sector to the domestic labour force. We are also making additional investment into our Genetic Improvement Networks to boost access to more resilient crop varieties.

We have set out how we will provide further support for farmers affected by wet weather, including:

• Building on our commitment to extend the Farming Recovery Fund, we are making temporary adjustments for farmers and land managers where the wet weather has led to difficulties carrying out the requirements of our Environmental Land Management Schemes.
• Providing £75 million to support internal drainage boards (IDBs). The EA will be sending the prospectus to all IDBs next week, inviting applications to the fund. They expect to start confirming the allocation of funding from June.
• Continued Ministerial engagement with industry on wet weather impacts, bringing together government and representatives from across the farming industry to develop a shared understanding of risks and mitigations.

We will launch a new Endemics Disease Scheme with over £72m of funding and an Infrastructure Grant for Laying Hens with over £20m of funding as part of the Animal Health and Welfare Pathway. The Endemics Disease Scheme will help farmers Eradicate Bovine Viral Diarrhoea (BVD) in cattle, control Porcine Reproductive and Respiratory Syndrome (PRRS) in pigs and tackle a range of different health conditions in sheep. Meanwhile the Laying Hen Housing for Health and Welfare Grant will offer grants of between £5,000 and £500,000 to help laying hen and pullet farmers to improve the health, welfare and productivity of their flocks.

We have announced £3 million in support for new and mobile abattoirs through the Farming Investment Fund. This builds on the Small Abattoir Fund which opened last year to boost the sustainability and efficiency of red meat and poultry smaller abattoirs across England.

Alongside funding already provided to the Farming Community Network, the Prime Minister announced at the NFU conference that we would provide £500,000 funding to charitable partners to deliver projects that support mental health in the farming sector. We are now pleased to announce that Lincolnshire Rural Support Network, YANA and The Farmer Network will benefit from this funding.

We have committed to laying a Statutory Instrument to introduce a mandatory scheme for sheep carcase classification and price reporting, and the use of automated classification systems for the sheep sector. This will ensure sheep producers are paid for their livestock at slaughter in a more consistent and transparent way based on the quality of the carcase, and will incentivise producers to improve productivity and better respond to the demands of the market.

Growing an innovative food and drink sector

This month applications will open for grants to support the development and adoption of novel techniques for improving nutrient management.

We are launching the latest round of Genetic Improvement Networks, supported by up to £15 million in funding over the next five years to boost breeding research for key UK crops. It will harness the opportunities of our recent Genetic Technology (Precision Breeding) Act to help farmers and breeders produce stronger, more sustainable and resilient crops.

We have set out detail of how we will support the horticulture sector to increase the uptake of automation and robotics through our response to the Independent Review into Labour Shortages in the Food Supply Chain, reducing its reliance on migrant labour.

Growing a profitable and investible food and drink sector

Continuing our work to ensure fairness in the supply chain:

• We have published the summary of responses to the reviews into fairness in the egg and fresh produce supply chains. In both cases, we will introduce regulations which will ensure that there are written agreements between producers and buyers. We will work with industry at pace on the regulations to ensure they deliver fairness to all parties.
• We will introduce regulations to improve fairness in the pig sector as soon as possible. The regulations will bring stability and security to the pig supply chain through written contracts 

We can also confirm that Richard Thompson has been appointed as the Agricultural Supply Chain Adjudicator, who will oversee the enforcement of our Fair Dealing regulations.

Following a consultation, we will remove the 16-week derogation period for the labelling of free-range eggs produced by hens that are under mandatory housing orders due to avian influenza. This will mean that producers will no longer need to change how eggs are labelled during housing orders, saving farmers from costly labelling requirements.

We have delivered on our commitment at last year’s Farm to Fork Summit to make changes to permitted development rights to make it easier for farm businesses to diversify, with new changes set to come into effect on 21 May

We have continued to unlock trade barriers for UK companies. In 2023 we resolved agrifood barriers estimated to have a potential increase in exports of £1.4bn over 5 years. Defra have secured new market access for poultry meat and pork exports to Vietnam, an opportunity valued at around £25 million over five years.

We will cut red tape through a consultation to revoke and amend 60 pieces of food and drink retained EU law.

Growing the next generation

Delivering on a commitment we made in our response to the Rock Review into tenant farming and following a call for evidence, we can confirm that we will be appointing a Commissioner for the Tenant Farming Sector (CTFS) this autumn. The role will be a neutral and confidential advice for tenants, landlords and advisors who have concerns about poor behaviour and complaints that the Code of Practice on responsible conduct is not being followed. The CTFS will also investigate complaints to help resolve issues between landlords and tenants before they escalate to more formal dispute processes.

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Sunak’s food security plan fails to fix immediate problems, says farming chief

National Farmers’ Union president warns food production is likely to drop next year and says farmers need help right now

Rishi Sunak’s plan to improve the UK’s food security will not help build farmer’s confidence in the short-term, the head of the country’s biggest farming body has said.

Food production was likely to drop next year, said Tom Bradshaw, the president of the National Farmers’ Union, who warned that the prime minister’s plan, published during the UK’s second annual Farm to Fork summit, failed to give farmers the solutions they needed.

On Tuesday, 70 food and farming businesses met at No 10 to discuss how to improve food security, as the government unveiled a plan to boost food production and security. The plan focused particularly on fruit and vegetables, the two food types most reliant on imports from abroad.

The new policies include changing planning laws to make it easier to build greenhouses and a replacement for the EU horticulture resilience scheme that would double the funding available to £80m a year.

In a briefing after the summit, Bradshaw said overall the changes would do little to fix the short-term challenges farmers currently faced.

He said: “I think that what’s missing from today, really. Today was more about the strategic long-term plan, it’s not about putting the building blocks in place that rebuild that confidence immediately.”

Last month, an annual survey by the NFU found farmers’ confidence was at its lowest since the first survey of its kind in 2010, which followed a winter of extreme weather when many farms flooded and farmers were unable to plant crops. There are also widespread concerns about the impact phasing out the EU’s basic payment scheme subsidies will have on farmers.

Bradshaw was keen to stress the importance of the Farm to Fork summit and said it marked a change from previous governments when it came to the importance of farming. However, he said: “I believe as we go into next year, we will have less food, [a] lower food security index than now.”

“I think that the government needs to take critical steps to get the industry on to a firmer footing, and willing to start that investment cycle. If they’re not doing that, then an industry that is not investing is not preparing for the future.”

The government has published its first ever food security index, which uses official data to paint a picture of Britain’s overall ability to produce enough food for its population.

The table revealed that the UK only produced 17% of its own fruit, and 55% of its own vegetables. Lamb and milk were the most secure foods, with producers respectively generating 7% and 5% more than the country needs.

Bradshaw welcomed the index but called on the government to begin setting food security targets for different food types. Other sector figures, however, cautioned that the index was based on old data.

Tom Lancaster, a land analyst at the Energy and Climate Intelligence Unit, said: “In only running to 2022, the new food security index is lagging behind the impacts of extreme weather and climate change that we’ve seen in the last 18 months.

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“To address this, they could have done some interim analysis or even provided some interim commentary, but clearly chose not to.”

The index also outlined the main risks to future food security but the government was widely criticised for listing climate change as a “longer-term risk”.

Dustin Benton, the policy director at the Green Alliance, said: “The past 12 months have been 0.7C higher than the 1990-2020 average. Higher temperatures are associated with the sorts of extreme weather that cuts food production. Climate risks are no longer just a long-term problem.”

Rob Percival, the head of food policy at the Soil Association, said: “Absurdly, climate change is described as a ‘longer-term’ risk, despite the steady ratcheting of climate extremes and the profound effects already being felt on the ground.”

Steve Barclay, the environment secretary, said: “Today’s announcements will turbocharge the growth of our horticultural sector, supporting the building of cutting-edge glasshouses and innovative farming techniques to put British fruit and vegetables on our plates all-year round.

“We will continue to invest in and support farmers to produce the best of British food to strengthen our food security, championing innovation in the sector.”

• Rishi Sunak
• Food safety

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By Dan Whitehead, West of England and Wales correspondent

"It keeps me awake at night."

"Farming is all he wants to do," Rhodri says, motioning to his young son who is happily plodding through puddles beside him.

"The feeling that you might be that generation that loses everything is not a good one."

Across Britain, farmers are sounding the alarm...

Some are questioning their futures, while others blame the government for throwing them "under the bus"..

Horns blared. Headlights flashed. Placards were waved. Traffic in central London ground to a halt as hundreds of tractors filled the roads, headed for parliament.

Farmers gathered in Westminster in March to share their fears for their industry's future. It was a headline-grabbing moment and the culmination of years of frustration.

The problems farmers face are complex. They blame the government for pushing them out of business, pointing to the lack of affordable labour after Brexit; the need to tackle climate change - with agriculture accounting for 10% of the UK's total greenhouse gas emissions - leading to new regulations, and the growing realisation that for most people buying British is a luxury they can't afford.

THE SHEEP FARMER

"It's a perfect storm," Rhodri says, tramping across his farm in the Welsh mountains at daybreak on a crisp winter morning. The fear that he might lose this livelihood keeps him awake at night, he confesses.

While sheep clatter out the back of a cattle box into their new home, he clasps his son's hand and leads him across the grassy uplands that have been in their family for generations.

Rhodri (left), his son (centre) and Sky News's Dan Whitehead (right)

In Rhodri's case, subsidies make up 40% of his income. Before Brexit, the money came from the EU. Now, it's a devolved issue and from 2025, he'll have to dedicate 10% of his eligible farmland to trees and another 10% to natural habitat. For Rhodri, it's a loss he fears his business won't be able to sustain.

The small amount of land where he could plant trees is vital for feeding his flock; losing it could have a serious impact.

For Rhodri, it means either keeping fewer sheep, which would reduce his earnings, or buying in hay for the winter, which he fears could actually increase his carbon footprint.

'No farmers, no food'

It's not just subsidies Welsh farmers are angry about. Changes to rules on tackling bovine tuberculosis (TB) and the use of farming chemicals also sparked protests outside the Welsh parliament in Cardiff in February. 

More than 5,000 brightly coloured wellies were placed on the steps of the Senedd, each representing a farming job at risk.

Among the slogans on the signs held aloft were: "we grow ewes, not yews" and "no farmers, no food"..

After spending seven years consulting on these controversial plans, the Welsh government has set up a working group including farmers to achieve a "sustainable" agricultural sector in Wales. 

In a statement to Sky News, it emphasised its commitment to ensuring the industry's future by combining "the best of our traditional farming alongside cutting-edge innovation and diversification".

The Welsh government added that its policies are intended to enable farmers to produce the finest Welsh food to the highest standards, while safeguarding the environment and "addressing the urgent call of the climate and nature emergencies".

But the anger is not just felt in Wales.

THE PIG FARMER

Three hundred miles away in Kent, the so-called Garden of England, I'm standing in the mud with Jeff Gibson, a straight-talking pig farmer who took part in the London protest.

With pork production at a five-year low in Britain, Jeff has grave concerns for the future.

It's feeding time on the farm - as we chat he scatters food to hungry piglets.

"The British pork industry has been absolutely decimated in the last 10 years," Jeff says, as his pigs snort and snuffle in their pens. "European imports, heavily subsidised by their own governments, have flooded our markets and made pig production here pretty much impossible."

'There's an unfairness in British agriculture'

Jeff sells his pork exclusively in his own farm shop because he claims to be unable to make enough money to survive going through supermarkets.

Foreign meat can be found in all major UK supermarkets. Not just Danish bacon and sausages, but pork chops from Spain and chicken from Brazil and Poland, too.

While imports guarantee a solid supply chain, producing it abroad can be cheaper – and it's putting farmers out of business here.

"There's an unfairness in British agriculture," says Jeff, who thinks the government has thrown farmers "under the bus".

"The Brexit trade deals are absolutely atrocious," he adds.

The UK government insists deals like the one it signed with Australia and New Zealand contain safeguards to prevent British farmers from being undercut, but many fear the market is being flooded with goods that simply can't be produced as cheaply at home.

While trade deals and cheap imports are Jeff's main concerns, a few miles down the road, fruit farmer Tim has different worries.

THE FRUIT FARMER

The scale of Tim's farm is immense. A never-ending carpet of white plastic tunnels covers hundreds of hectares of land. He produces thousands of tonnes of strawberries for nearly every major UK supermarket. It's a massive operation that costs tens of millions of pounds.

For each harvest, Tim needs to bring in around 2,000 staff. Before Brexit, EU workers could stay as long as they wanted. Now, they have to leave after six months.

“They've put my hand behind my back to fight someone with a gun"

It's a source of deep frustration for Tim. After six months, he says, they've "just got good enough for me to make them an economically viable worker and then they have to go home".

Tim Chambers speaks to Sky News

As a result, Tim feels unable to compete with his European rivals. "They've put my hand behind my back and told me to fight someone with a gun. I can't negotiate fairly because the prices of the fruit coming in from abroad are not reflective of the same cost price we have."

Whether it's subsidies, imports, staff or costs; many farmers say they've had enough.

While this is about government policy, it's also about where our food comes from and whether we, the public, can afford to care.

When Sky News put the fears of farmers, such as Jeff and Tim, to the government, it responded with a statement saying that "British farming was at the heart of British trade".

"Agriculture is at the forefront of any deals we negotiate, prioritising new export opportunities, protecting UK food standards and removing market access barriers," said farming minister, Mark Spencer.

He went on to outline the ways in which the government supports the industry such as maintaining the "£2.4bn annual farming budget" and setting out the "biggest ever package of grants to support farmers to produce food profitably and sustainably". 

Other initiatives include launching a consultation to make food labelling fairer to ensure "high-quality British produce" gets the "recognition" it deserves. And setting up a new fund to support farmers affected by flooding, which will offer grants of between £500 and £25,000 to those whose land suffered uninsurable damage earlier this year.

THE NEW GENERATION

Despite the gloom and frustrations, there are flickers of hope, with a new generation of farmers bringing ideas and innovation into the industry.

In Wiltshire, 25-year-old Josie Lewis has just taken over the family's dairy farm and proudly demonstrates the new computer system she has set up to monitor the milking performance of her cows.

Josie Lewis is passionate about farming

While she hopes to still be farming in 20 years time, she acknowledges the difficulties it faces as a way of life.

"You have to love it," she says. "If you didn’t love it, why would you get up at 3am in Baltic conditions? You don't get paid very much, you might lose some animals to TB, or one might break its leg, and you just take yourself up and carry on."

So despite the challenges, Josie feels hopeful about the future.

"If you aren't hopeful, there's no point doing this… the good times always outweigh the bad times."

Reporting: Dan Whitehead, West of England and Wales correspondent

Producers: Sophie Falcon and Christine Megson

Photography : Chris Pratt, Jordan Pettitt/PA

Editing: Serena Kutchinsky, assistant editor

Production: Michael Drummond, specialist reporter

Design: Charlie Parish, designer