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Do Farms and Agribusinesses Need a Business Plan?

Summary

It is likely that only a small percentage of traditional farming operations have a business plan. For relatively small operations or those with a stable existence, a plan is probably not necessary. However, for larger producers or those in an expansion or transition mode, a business plan can be invaluable. It is important to point out that a financial plan is not a business plan, rather it is just a component of it. Many agricultural producers are turning to alternative crops, employing nontraditional practices, or implementing unproven technology. In these situations, a sound business plan is recommended.