How to make money in agriculture and create a profitable business

Business ideas in agriculture

Today there are a huge number of promising ideas for organizing your own business in the field of agriculture. Let's consider those that can be implemented in almost any region.

1. Growing herbs and vegetables in greenhouse complexes . This type of business will require significant investments from the entrepreneur. A businessman will need to build a heated polycarbonate greenhouse. To minimize costs, you can build such a structure yourself. The size of the greenhouse complex depends on the planned volume of work and the amount of starting capital. It is advisable to equip the structure being built with an automatic irrigation system. This will minimize the time spent caring for cultivated plants.

As practice shows, the highest profits (up to 100 thousand rubles monthly) can come from growing tomatoes, cucumbers, and eggplants. A good profit (about 30-50 thousand rubles) can be obtained by growing parsley, dill and lettuce. Such types of business can provide income all year round if the entrepreneur is able to find stable sales channels for the grown products.

2. Breeding meat chickens. The demand for poultry meat is consistently high, so you can safely organize your own agricultural business to produce such products. This business will also require some investments (about 200-300 thousand rubles). The entrepreneur will need to purchase incubators, cages, and special feed for the chickens raised. In addition, he will need to study the features of caring for birds or hire an assistant who will deal with such issues.
3. Freezing vegetables and fruits. This business idea is suitable for those entrepreneurs who have their own plot of land on which apples, pears, and other fruits or vegetables are grown. As you know, there is a demand for such products at any time of the year, even in winter. If you properly organize your business of freezing fresh vegetables and fruits, you can earn a good income.

Basic costs

Initial capital is the main component necessary to organize your own farming business

The amount of starting capital directly depends on factors such as:

• the size of the land plot that needs to be purchased or rented;
• the cost of the equipment needed on the farm and its quantity;
• costs of purchasing plant seeds, seedlings or animals, depending on what the farm will do.

If the farm is engaged in livestock farming, then the cost of purchasing animal feed for at least 2 months should be included in the starting capital.

How to combine agricultural science with business

The role of science in modern agricultural business is great. In almost every region, new technologies are being developed and implemented to significantly increase the productivity of private farms and agro-industrial complexes.

To combine the science of agriculture with business, scientists have to engage in active research activities, study the principles of operation of modern equipment, which is designed to make technological processes more efficient.

New areas of scientific activity in the field of agriculture are being developed. Domestic scientists are mastering the development of new management systems for agricultural enterprises, which can be actively used in small businesses.

Other types of village business

Other areas of rural business development include drilling wells, selling firewood and plowing land.

If drilling wells is a capital-intensive activity, then plowing the land and selling firewood is not such a costly business.

You can organize a small enterprise that would provide various services: plowing land, cutting trees, installing irrigation systems - everything related to agricultural production. A business based on the sale of chopped firewood will be successful in small villages where this is in demand.

Support and development of small businesses in agriculture

The state allocates a lot of funds for the development of entrepreneurial activity in agriculture. The development of small businesses in this area is considered a priority and is strongly encouraged.

A beginning farmer can receive financial support from the local municipality to organize his own business in the field of agriculture. To do this, he must either become the head of a peasant farm or register as an individual entrepreneur. In addition, he can take part in grants for the modernization and development of the material and technical base of his micro-enterprise. The state is also developing and implementing programs to subsidize part of the down payment for the purchase of agricultural equipment on lease. Thus, you can open your own business in the agricultural sector at virtually no cost.

Where to begin?

It all starts with an idea, as well as the choice of direction of agricultural activity.

Whether you are striving for an industrial scale of production, want to enter regional markets, or your goal is to occupy the market of a certain area, become a supplier or be a manufacturer-distributor.

There are many options, and they all have their pros and cons. For example, when entering new markets, you will incur large costs associated with establishing a transport system and conquering the market.

But if you gain a foothold on a new trading platform, you will be able to make large profits and continue your expansion, gradually conquering more and more markets.

Regardless of your business strategy and development, you should decide on the type of activity. The most common directions are:

• crop production;
• fruit and berry farming;
• poultry farming;
• beekeeping;
• livestock farming;
• breeding fish, worms and crayfish.

Each direction has its own characteristics and different levels of profitability. What business to open in the village?

Can a business in agriculture be profitable and profitable?

Microbusiness in the field of agriculture can become a profitable endeavor if the farmer responsibly approaches the choice of specialization, hires workers and searches for distribution channels for his products. A novice entrepreneur needs to carefully monitor the market and find out which products are in the highest demand. This will allow him to find that niche in the agricultural sector, the development of which will allow him to receive the greatest profit.

The profitability of an agricultural business is determined by various factors, including the climatic conditions of the region in which it is launched. It is noted that the greatest profits come from farms located in the south of our Motherland or in the middle zone. Such areas have high yields of vegetables, fruits, sunflowers and other crops. Large profits can also be obtained from breeding cattle and poultry.

Objectives of the State Program

The state agricultural development program poses a number of tasks for farmers. Financing stimulates the growth of food production and the main areas of agriculture. Preventive measures are being taken to prevent particularly dangerous diseases of farm animals.

State support is also provided in the field of infrastructure of the agri-food sector, regulation of markets for the production of raw materials and finished products. Support is provided to small businesses. Management mechanisms in the agro-industrial complex and information support systems for the sector are being improved.

Innovative technologies are being developed and introduced into industry production processes. Scientific work in this direction is being stimulated. Factors influencing the profitability of agriculture and increasing this indicator are being studied. Growth constraints are being removed.

Conditions are being created for restoring and maintaining a high level of soil fertility. Funding is being allocated for the development of land reclamation. The economy needs diversification. This is also one of the objectives of the State Program. The level of employment in the industry is increasing, as well as the quality and standard of living of the population in rural areas.

The most profitable business projects in agriculture

Entrepreneurial activity in the field of agriculture is a fairly promising direction.

The following business projects have the highest percentage of profitability:

1. Pig breeding. It is not easy to start in this area, since in order to receive a significant income, the livestock must consist of at least 70-100 animals. However, the ease of caring for pigs and the high selling price of meat make it possible to quickly return the investment and reach a decent level of income.
2. Opening of a dairy plant. The implementation of this project will also require significant investments. However, a novice entrepreneur will be able to receive funds to open an enterprise from the state. Dairies sell their products at a price 2 times higher than their cost. If there are stable sales channels for products, such a business will pay off in the second year of its existence.
3. Breeding rabbits. This project can be brought to life with low investments at the start (about 200-300 thousand rubles). Rabbit meat is considered a dietary product; its average market retail price for 2020 is 500 rubles per kilogram. In this business you can earn up to 70 thousand rubles monthly.

State program

In connection with the strengthening of sanctions from foreign countries, the State Program for the Development of Agriculture was developed. It is designed for 13 years and lasts from 2013 to 2020. This program pursues several goals, the main one of which is maintaining a high level of food security in Russia, as well as its independence from imports.

The government is directing funding to increase the investment attractiveness of the industry and increase its composition of new enterprises. The state program distributes resources between agricultural sub-sectors in a certain way. This allows you to optimize the structure of the agricultural sector as a whole.

When developing the program, the state seeks to create favorable conditions for doing business in this sector of the national economy, as well as to increase the level of competitiveness of products in the domestic and foreign markets. The goal of sustainable development of rural areas is also pursued.

Open a business from scratch in agriculture

There are a number of business projects that can be implemented from scratch or with symbolic starting capital. For example, a novice entrepreneur can start growing strawberries in bags or use the technology of growing greens using hydroponics. Such a business can be organized in the context of a personal subsidiary plot or a summer cottage. Over time, the entrepreneur will be able to expand the scope of work and register a peasant farm.

In addition, you can start in this type of business as an intermediary. For example, you can engage in the resale of large quantities of grain. This will also allow you to make tangible profits.

Funding problems

The development of agriculture is carried out quite harmoniously. However, when financing individual elements of the agro-industrial complex, a number of problems and inconsistencies are observed. Thus, a significant part of the funds is allocated to subsidize livestock farming. At the same time, feed production, without which this industry cannot function properly, remains not covered by the state support program.

There is also a lack of funding in the area of ​​reconstruction of storage facilities and modernization of greenhouses. The level of credit debt of enterprises in the agricultural sector is growing. This reduces economic indicators and the stability of agricultural enterprises.

On average, the level of funding across the country is declining. Attention is paid to large projects. At the same time, small businesses remain on the sidelines. The subsidizing process is complicated by bureaucracy and the inability to obtain certain certificates and examinations. There are also many hidden conditions that are not listed in the official documentation.

Buy a ready-made business in agriculture

If a beginning farmer for some reason does not want to organize his business from scratch, he should pay attention to such an alternative option as purchasing a ready-made business. Many entrepreneurs are forced to sell their farms, factories, agricultural or greenhouse complexes due to moving to another area. In this case, the cost of the enterprise is usually very affordable, especially if the business needs to be sold urgently. If desired, the buyer can always start a reasonable bargain.

Where can I find offers for the sale of a ready-made business in the field of agriculture? An entrepreneur can see advertisements of this kind on specialized web resources (for example, on agricultural forums), on electronic boards, and also in local newspapers.

Where does the start-up capital come from?

Today there are several programs to support beginning farmers. According to the terms of these programs, it is possible to obtain a long-term loan for 5 or more years for the development of a peasant farm.

These loans have low interest rates, the condition of most of them is the payment of interest only after the first year of using the loan. Farmers can also take advantage of the opportunity to receive government subsidies.

A competent business plan, which describes in detail the steps of business development, increases several times the entrepreneur’s chances of receiving a large loan on favorable terms.

Employees of the institution providing loans and subsidies will need to submit a business plan with a detailed description of all stages of development and a complete list of existing fixed assets. In addition to these papers, you may need to apply for a loan from the head of the district in which the farm is located, or from the governor.

Leading companies producing agricultural equipment at the Agroprodmash exhibition

The latest developments in equipment for agriculture are presented at the Agroprodmash exhibition at the Expocentre Fairgrounds. As part of the event, in the Poultry Tech Moscow themed salon, budding businessmen can personally evaluate the efficiency of processing equipment:

• meat;
• birds:
• fish and seafood.

Get acquainted with installations for the production of dairy products, cheeses, drinks, vegetable oils and sauces. Conclude agreements with manufacturers and suppliers of equipment for storage (Refrigerating & HVAC Equipment Moscow showroom), packaging and transportation (PackTech Moscow showroom).

Visit and participate in interesting events and exhibitions in a month convenient for you!

Read an interesting selection of articles and useful information.

Limiting factors

The development of the agricultural market is constrained by a number of factors. Farmers are largely dependent on imported components such as seeds, feed additives, drugs for the prevention of diseases of animals and plants, etc.

Products are supplied to the domestic market. When the ruble exchange rate falls, farmers suffer losses. Therefore, an important condition for strengthening the position of the agricultural industry is the strengthening of the state currency. In this case, entrepreneurs can purchase the necessary seeds and preparations.

A particularly high level of influence of imported products is observed in livestock farming. The growth of the Russian economy as a whole will significantly improve the position of domestic farmers not only in the domestic but also in the foreign market. Exports can be delivered to different countries that are currently inaccessible to Russian agricultural products. Stimulating domestic demand while increasing the salaries of the country's citizens will have a positive impact on the entire economy.

Aquaculture

Pond fish farming has long proven profitable in our country. Modern technologies make it possible to artificially grow not only traditional varieties of fish, such as carp, grass carp bream and others, but also to produce sturgeon caviar on an industrial scale.

A very promising, but underdeveloped type of small business in our country is crayfish farming. There are plenty of reservoirs suitable for such activities in Russia, and the profit is significantly higher than traditional pond fish breeding.

Livestock and poultry farming

Poultry farming

Poultry breeding is a common activity for rural residents. Many entrepreneurs start their business by obtaining poultry meat and eggs. This type of business requires minimal start-up costs. Already 50-100 heads of poultry not only provide a family of 4-5 people with meat and eggs, but also bring some income. But this, of course, is not yet a business, but a subsidiary farm. The business starts with 500-1000 birds. What types of birds are bred in Russia today? Here is a short list of them, in increasing order of potential profitability of cultivation:

• chickens;
• ducks;
• turkeys;
• geese;
• ostriches.

Naturally, the given order is nothing more than a very rough guide. If the business is run correctly, raising chickens may well turn out to be more profitable than breeding ostriches.

Registration of your business

Russian laws allow both Russians and foreigners to open a business in the countryside for raising livestock and growing vegetables. If you decide to organize a farm from scratch as an individual, you will need a minimum amount of documents and time of about five days. You fill out an application, pay a fee to the state, present a document confirming your residence in the area. Bring a copy of your passport and a decision on your readiness to start a farm to the tax authority. This completes the registration process.

The participation of several people in the organization of the company must form an agreement. Most often, the family plans to run the farm. In this case, a home farm as a business will allow you to do something you love and make a profit together. What documents are needed in this case?

1. The head of the household, chosen by all founders, must prepare a photocopy of his passport.
2. An application is drawn up in form p21002 to open a farm. Registration is carried out precisely on the basis of this application.
3. A state duty of 800 rubles is paid and a receipt is presented.
4. All participants in the farm make an agreement. It describes the activities of the farm and indicates the share of each participant.
5. Recommendation. It is better to apply for a transition to a single agricultural tax.

When all the documents are collected, you submit them to the local tax authority and receive a registration certificate. After this, you need to obtain statistics codes from Rosstat. And for further payments you open your own bank account.