Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
Partnership
for Sustainable
Communities
Urban Farm Business Plan
Handbook
September 2011 – Update
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
Contents
INTRODUCTION......................................................................................................................... 3
HOW SHOULD THE HANDBOOK AND THE WORKSHEETS BE USED? ............................................................. 4
BEFORE BEGINNING THE URBAN FARM BUSINESS PLAN .......................................... 5
USING THE URBAN FARM BUSINESS PLAN HANDBOOK ............................................. 6
OVERVIEW .................................................................................................................................. 7
INTRODUCTION .............................................................................................................................................. 7
VISION STATEMENT ...................................................................................................................................... 7
MISSION STATEMENT .................................................................................................................................... 8
GOALS ........................................................................................................................................................... 8
ORGANIZATION AND MANAGEMENT ............................................................................... 9
MARKETING STRATEGY ...................................................................................................... 10
INTRODUCTION ............................................................................................................................................ 10
MARKET ...................................................................................................................................................... 10
Customers ............................................................................................................................................... 11
PRODUCT ..................................................................................................................................................... 12
DISTRIBUTION ............................................................................................................................................. 12
SALES .......................................................................................................................................................... 13
Pricing ..................................................................................................................................................... 13
Sales Volume .......................................................................................................................................... 13
COMPETITION .............................................................................................................................................. 14
PROMOTION ................................................................................................................................................. 14
OPERATING STRATEGY ....................................................................................................... 15
INTRODUCTION ............................................................................................................................................ 15
CROP MANAGEMENT .................................................................................................................................. 15
YIELD .......................................................................................................................................................... 16
PHYSICAL RESOURCE NEEDS ...................................................................................................................... 16
HUMAN RESOURCE NEEDS ......................................................................................................................... 17
REGULATION AND POLICY .......................................................................................................................... 17
FINANCIAL STRATEGY ......................................................................................................... 19
INTRODUCTION ............................................................................................................................................ 19
EXPENSES .................................................................................................................................................... 19
INCOME ....................................................................................................................................................... 19
PROFIT AND LOSS ........................................................................................................................................ 20
FIXED ASSETS ............................................................................................................................................. 20
FUNDING REQUIREMENTS ........................................................................................................................... 20
RISK MANAGEMENT ................................................................................................................................... 21
EXECUTIVE SUMMARY ........................................................................................................ 22
APPENDIX A: LIST OF PROVIDED WORKSHEETS ...................................................... A-1
APPENDIX B: EXAMPLE WORKSHEETS ........................................................................ B-1
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
3
Introduction
As communities look for sustainable reuses for brownfield
and other abandoned properties and opportunities to provide
healthier food choices to the community, interest in
establishing community gardens and other forms of farming
has been growing in urban areas. Urban farms, however,
present unique challenges that are different from
conventional agricultural development.
Developed land often has a history of uses that may have
affected the quality of the soil (e.g., environmental
contamination, building debris and other fill material unfit
for plant growth) that may require substantial site preparation
(e.g., environmental cleanup, demolition, or placement of
topsoil) or special growing techniques (e.g., raised growing
beds, vertical gardens). Urban farms typically need to
address security issues for the crops, buildings and tools. In
many cases, urban farm development and operating practices
will have to account for the proximity of residential and/or
commercial neighbors and the compatibility of the farm
operations with these neighbors. In addition, the success of
an urban farm may depend on a diversity of products as
opposed to a single crop and volunteer labor to support the
start-up and initial operations.
As urban farming moves towards income-earning or food-
producing activities, it is important to develop a plan for the
start-up and operation of the business regardless of whether it
is intended to be a for-profit business or a non-profit
business. A business plan provides a road map that not only
serves as an internal planning tool, but can be used to provide
information to external stakeholders important to the
successful start up and operation of the business such as
investors and funding sources. It is used to map out the
strategies for the start up and operation of a business and to track progress of that business against its
goals.
Through EPA’s Office of Brownfields and Land Revitalization and the Partnership for Sustainable
Communities, technical assistance was provided to support the development of a business plan for an
urban farm in Toledo. The technical assistance was intended to support the Toledo Community
Development Corporation (CDC) in achieving its vision to reuse a two-plus-acre former industrial site as
an economically viable and accessible source of fresh locally grown fruits and vegetables, jobs and job
training, and education on growing and preserving fresh produce and improved health through better diet
for the community.
The project resulted in the development of two products that will be used in Toledo, but also have wider
application to brownfield and other communities working on land revitalization across the country that
are seeking alternative sustainable reuses that can improve access to fresh and healthy food, and related
food shed economics and market conditions in local areas:
Urban Farm Business Plan Handbook.
Urban Farm Business Plan Worksheets.
What is an Urban Farm?
An urban farm is a part of a local food
system where food is cultivated and
produced within an urban area and
marketed to consumers within that urban
area. Urban farming can also include
animal husbandry (e.g., breeding and
raising livestock), beekeeping,
aquaculture (e.g., fish farming),
aquaponics (e.g., integrating fish
farming and agriculture), and non-food
products such as producing seeds,
cultivating seedlings, and growing
flowers. It can be characterized in terms
of the geographic proximity of a
producer to the consumer, sustainable
production and distribution practices.
Urban farms can take a variety of forms
including non-profit gardens and for-
profit businesses. They can provide jobs,
job training, and health education, and
they can contribute to better nutrition
and health for the community by
providing locally grown, fresh produce
and other products. In addition, urban
farms can also contribute to the
revitalization of abandoned or
underutilized urban land, social and
economic benefits to urban
communities, and beneficial impacts on
the urban landscape.
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
4
HOW SHOULD THE HANDBOOK AND THE WORKSHEETS BE USED?
The Urban Farm Business Plan Handbook (this document) provides guidance for developing a
business plan for the startup and operation of an urban farm.
1
It focuses on food and non-food related
cultivated agriculture. The information provided is applicable regardless of whether the farm is to be
operated as a non-profit or for-profit business.
More specifically, it describes what information should be collected, evaluated, and presented in each
section of the business plan. The Handbook is designed to be used side-by-side with the accompanying
Urban Farm Business Plan Worksheets. As the Handbook describes each section of the business plan,
there are references to worksheets that should be filled out in order to fully develop that section of the
business plan. A list of all of the provided worksheets is in Appendix A. The handbook also includes
example worksheets to help users understand how to fill in the worksheets, in Appendix B. While the
example worksheets do not represent a complete set of worksheets and include hypothetical information,
they do provide a useful example of the level of detail and background research required to develop a
business plan. Blank worksheets can be found in the Urban Farm Business Plan Worksheet files,
described below.
The Urban Farm Business Plan Worksheets provides a framework in which to compile and organize
the information needed to draft a business plan. There are two files that comprise the Worksheets:
1. Urban Farm Business Plan Worksheet.doc (Microsoft (MS) Word®). This file contains blank
worksheets that when completed will provide the information needed to write a business plan.
Worksheets 1-16, 18-22, and 28-29 are contained in this file. A list of all worksheets and in which file
they are located is provided in Appendix A.
2. Urban Farm Business Plan Worksheet.xls (Microsoft (MS) Excel®). This file contains spreadsheets
with formulas to help calculate expenditures and revenue. Worksheets 17 and 23-27 are contained in
this file. A list of all worksheets and in which file they are located is provided in Appendix A.
The information presented in the following sections of this handbook is intended to be representative of
the information needed for the development of a business plan; however, the specific goals and plans for
any individual farm may require more or less information be provided for their particular plan.
The Urban Farm Business Plan Handbook and Worksheets are available on EPA’s urban agriculture
website: www.epa.gov/brownfields/urbanag/.
1
This handbook has been prepared for informational purposes only. Vita Nuova has relied upon outside sources for
information and data presented in this report. Although all best efforts were used to confirm the information and
data presented in this report and to complete this report, no representation or warranties are made as to the
timeliness, accuracy or completeness of the information contained herein or that the actual results will conform to
any projections or recommendations contained herein. All areas are approximate. Any reliance upon this material
shall be without any liability or obligation on the part of Vita Nuova LLC, SRA International, or the U.S. EPA.
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
5
Before Beginning the Urban Farm Business Plan
Before beginning the development of your business plan, think about the primary reasons for starting an
urban farm. Documenting your reasons for starting the farm will help you focus the business plan and
identify the issues, the resources and the expertise that will be needed to develop the business plan.
Finally, think about the values that you bring to the business and the values that are important to the
success of the business.
Consider the following questions:
Do you have crop growing or farm experience that will assist in your farm operations or will you
need to secure that expertise elsewhere?
Will you be involved with food production, animal husbandry, aquaculture, aquaponics, or non-
food products or some combination of products?
Do you have a property for your urban farm or are you in the process of selecting a location?
Are you developing the farm as a community-based, non-profit business that will involve
community members in the operation?
Are you developing the farm as a for-profit business and income source?
Are you developing the farm as a family-run business and source of income?
Is there a particular expertise or product that you want to commercialize?
Are you creating the farm to provide produce for another business, such as an institution or
restaurant?
Who will be part of your planning team?
Do you have the expertise to develop marketing, operating, human resource, and financial
strategies necessary for the business plan or to help in the start up of the business?
Are you going to need expertise to address environmental and cleanup issues that may be
associated with an urban property you intend to farm?
Do you need to hire expertise to develop the strategies, conduct surveys, or plan the
development?
Do you need financial resources to obtain this expertise?
Is there an economic motivation for this farm?
Are you hoping to generate a profit, break-even, or will the farm require a source of charitable
income?
Is the farm to be community-focused?
To what extent are environmental issues related to the operation of the farm a consideration, such
as organic fertilizers and resource use?
Use Worksheet # 1 (Before You Begin) to document your reasons, expertise and resource needs.
2
2
Please refer to Appendix A: Worksheet Summary List to identify the file in which each worksheet is contained.
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
6
Using the Urban Farm Business Plan Handbook
The business plan is divided into six sections:
Executive Summary.
Overview.
Organization and Management.
Marketing Strategy.
Operating Strategy.
Financial Strategy.
The following sections in this handbook address each of these sections of the business plan. In addition,
blank worksheets are provided in the Urban Farm Business Plan Worksheets (available on EPA’s urban
agriculture website (www.epa.gov/brownfields/urbanag) to help identify the information typically
required under the topics discussed in that section and to document the information needed to develop the
business plan. Example worksheets with information filled in are provided in Appendix B.
The sections in the handbook are provided in the order in which they should appear in the final business
plan, with the exception of the Executive Summary section which is developed last but should appear first
in the final business plan. The development of the business plan will not necessarily follow this order,
depending on the information readily available for each urban farm project. It is important to note that the
development of a business plan may require access to the appropriate expertise to adequately develop the
information necessary to address the topics contained in the business plan.
To begin developing a business plan, define your vision, mission, and goals of the business as discussed
in the Overview section of this handbook. The vision, mission, and goal statements provide the
conceptual outline for the urban farm business. These statements should be considered draft or
preliminary and subject to change as the completion of the remaining sections of the business plan may
suggest changes to these statements are appropriate. Next define the organization and management
structure for the farm as discussed in the Organization and Management section of this handbook.
Based on the vision, mission, and goals, discuss your understanding of the market and potential products
of the farm. In many cases, a marketing study may need to be conducted to identify the potential markets
and products most appropriate for the farm. Using the information about the market, the marketing
strategy is defined as discussed in the Marketing Strategy section of this handbook.
Building on the marketing strategy, the next step is to define the operations and human resources
necessary to achieve the marketing strategy. The information about the operation of the farm is used to
develop the operating strategy as discussed in the section of this handbook.
Finally, the executive summary section is developed to summarize the key concepts of the business plan
as discussed in the Financial Strategy section of this handbook.
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
7
Overview
The overview introduces the reader to the
business plan, provides your vision and mission
for the farm, and summarizes your goals for the
farm. The overview is divided into four
sections:
Introduction.
Vision Statement.
Mission Statement.
Goals.
INTRODUCTION
The introduction describes the purpose of the business plan and the key issues addressed by the plan. It
provides the reader with an understanding of what information is contained in the business plan and a
general description of the plan development process.
Consider the following questions:
Is the business plan an internal organizing tool, a tool for communicating outside the proposed
business, or a combination of both?
Is there information that is missing or unable to be identified at this stage of the planning process?
Who are the members of your business planning team?
Who was involved in the planning process?
What is the planned size of the company and is future growth anticipated?
What is the time frame considered in the business plan? (At minimum, the plan should consider a
5-year time frame.)
Is it to be a for-profit or non-profit business?
Are there potential risks for the start up of this business?
Use Worksheet # 2 (Introduction) to document the information to include in the introduction.
VISION STATEMENT
The vision statement is an inspirational statement that describes your vision for the future of the farm and
how your values will be incorporated into the farm. It focuses on the future and provides a direction for
the farm and the community in which it operates. It provides clear decision-making criteria.
Consider the following questions:
What economic, environmental, or community values are important to the success of the farm?
In a general sense, what products or services do you expect to provide?
How will the community benefit from these products or services?
How will operating practices enhance the environment?
Use Worksheet # 3 (Vision) to document the information to include in the vision statement.
Santa Fe Farmer’s Market, Santa Fe, New Mexico
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
8
MISSION STATEMENT
The mission statement is a simple statement that communicates the fundamental purpose and expectations
for the farm to its customers and others outside of the business. It is a set of guiding principles that
describes the overall goals of the business and serves as a benchmark. It incorporates meaningful and
measurable criteria addressing concepts such as values of the business, public image, the target market,
products or services, the geographic extent of the business, and expectations of growth and profitability. It
provides an understanding of what the business aspires to be and what the business will be known for in
the future.
Use Worksheet # 4 (Mission) to document the information to include in the mission statement.
GOALS
The goals describe what is to be achieved by the business in the future. Goals can be expressed in terms
of time, such as short-term and long-term goals. For a start-up business, short-term goals may be focused
on the startup of the business and achieving a certain level of production income. Long-term goals can
reflect plans for growth. Goals address potential products, what the farm will look like, who will be
involved in operations, and your expectations from the business. The goals reflect what you would like to
achieve and when you would like to achieve them. They do not identify how this will be accomplished.
Clearly identified goals can motivate, help to mitigate conflict, and direct limited resources.
Use Worksheet # 5 (Goals) to document the information to include in the goal discussion.
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
9
Organization and Management
Describe the ownership structure of the business and how the business will be organized and managed. If
you decide to create a corporation, a non-profit, a limited liability company, or a partnership, you will
need to register your business with the state. Check with your state’s requirements for organizing a
business and registering your business name. In addition, you will need to register your business with the
IRS and state and local revenue agencies and receive a tax identification number or permit.
Consider the following questions:
What will be the legal structure of your organization (e.g., sole proprietorship, partnership,
limited liability company, corporation, non-profit, cooperative)?
How will the business management be organized?
Will there be a single farm manager to oversee all business operations or multiple managers to
oversee various business segments (e.g., marketing, operations, finance, human resources)?
Where a multiple manager structure is anticipated, a simple organization chart may be useful to
explain the organization.
Who will be the principal or key managers who will run the business?
What unique skills do they bring to the business and what will be their duties and responsibilities?
Will there be an overseeing board or board of directors?
What will be the composition of such a board and what, if any, role will members of the board
take in the business?
How will the principals, key managers, or board members be compensated?
Are there any administrative expenses associated with the management or oversight of this
business?
Use Worksheet # 6 (Organization and Management) to document information about the organization
and management of your business.
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
10
Barn, Lynchburg Grows! Lynchburg, Virginia
Marketing Strategy
Defining a strategy for marketing and
sales is the most important part of your
business plan. If a market does not exist
or if a workable approach for getting
your product to the market has not been
identified, you will not meet your goals
or expectations. The development of your
marketing strategy will require an
understanding of the market, including
the demand for your product, the
potential customers, and the potential
competitors. In developing a marketing
strategy, you need to convince yourself,
as well as the reader of the business plan,
that there is a viable market for your
product. The marketing strategy is divided
into seven sections:
Introduction.
Market.
Product.
Distribution.
Competition.
Promotion.
INTRODUCTION
The introduction to the marketing section summarizes for the reader:
The potential customers for the farm (Market).
The products that will be produced and sold (Products).
Where and how the products will be made available to the customers (Distribution).
The competitors (Competition).
How the customers will be made aware of the farm and its products (Promotion).
It should also describe the approach that was taken in developing the marketing strategy.
MARKET
The market section provides an analysis of the market to identify your potential customers or target
market. To identify your potential customers, you will first need to have a general understanding of the
environment in which your business will operate. Describe the economic factors, such as inflation,
unemployment, interest rates, and income that affect a potential customer’s purchasing power and
spending patterns. Income, for example, will affect a consumer’s ability to purchase and the price you
will be able to charge for your product. Discuss the demographic factors that describe your potential
customers. Demographics provide information on the size, location, age, income, and other statistics
about potential consumers. Discuss the social and cultural factors that will influence or impact your
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
11
business. Social and cultural factors refer to the basic values, perceptions, preferences, and behaviors of
your potential customers. They could include preferences on the types of crops to be grown, the ease of
purchase of the product, perceptions of organic versus chemical-based production, and impact on the
immediate neighborhood. Finally, discuss any voids in the market that your farm will fill.
Consider the following questions:
What are the significant regulatory requirements that need to be addressed or that will impact
your business?
Who are your potential customers (e.g., households, commercial businesses)?
Where are your customers located (i.e., within easy transportation or long distances)?
How likely are they to buy your product (is the project unique or of superior quality)?
Is there a particular crop that you will grow that is not easily accessible to the consumer?
Is fresh, organically grown produce easily accessible to the consumer?
Use Worksheet # 7 (Market Analysis) to document information to include in the market section.
Customers
Considering the market analysis, describe the customers that your farm will target and how your offerings
will meet their needs. Where appropriate, divide the larger target market into submarkets (market
segments), such as direct marketing to individual households or business-to-business marketing. Identify
the market segments to be targeted. Describe the size and geographic location of each market segment.
For example, distance from the business, number of households, commercial establishments or
institutional establishments, and likely purchase volume. Discuss the specific characteristics or
demographics that define the target customers in each segment, such as age, gender, and income. Discuss
the attributes of the market segment related to personality, values, attitudes, interests, or lifestyles.
Describe the specific needs and preferences of the market segment that the farm will target.
Consider the following questions:
Are there trends and/or market conditions that were considered for each market segment?
Is there a specific product that will appeal to the market segment?
What motivates buying decisions in each market segment?
What evidence is there that potential customers in each market segment want the product?
Use Worksheet # 8 (Market Segments) to document information about the customers and market
segments. Complete a worksheet for each market segment.
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
12
PRODUCT
Using information developed in the market analysis about the customer values, needs, and preferences,
describe the products to be offered and how they will compete in the target market. This could be a list of
specific products (collard greens) or a list of general classes of products (greens). Product offerings
should also include the seasonal availability of the products. Describe the specific characteristics of the
product that meet the needs of the target market. For example, the market segment desires fresh,
organically grown produce from local suppliers or the specific product is not available in the current
market. Discuss why the products offered to each market segment are unique. Attributes such as locally
grown, organically produced, and price serve to differentiate a product and make it unique. Finally,
describe why the business is different from its competitors. Attributes such as being a local employer,
accessibility to customers, and partnerships with local businesses help to describe the uniqueness of your
business.
Consider the following questions:
What products will be offered?
What is the product availability (seasonal offerings)?
Why would a customer prefer your product to a competitor’s?
What differentiates your product in the target market?
How does your product differ from that of your competitor’s?
What are the strengths and weaknesses of the product?
Use Worksheet # 9 (Product) to document information about your product. Complete a worksheet for
each market segment.
DISTRIBUTION
Getting your product to the market will be a critical component of your marketing strategy. Perishable
products will need to be delivered or sold to customers within a short period of time after harvest or
stored. The quality of crops and customer perception will depend on the quality and freshness of your
product. Describe how your product will get to each market segment. Discuss the handling of the product
from harvest to sale to the customers in each market segment including any options for storage of the
product prior to sale.
Consider the following questions:
Are products to be packaged for distribution (salad mixes), secondary products (salsa or
preserves), or distributed in bulk crates or bushels?
Are products going to be stored for later distribution?
Will product be distributed direct from the harvest to the customer?
How will your product be sold?
Will the distribution be through direct marketing, such as community supported agriculture,
farmers’ markets, home delivery services, Internet sales, pick-your-own, or will the products be
marketed through an intermediary distributor (e.g., retailers, wholesalers, brokers, or
cooperatives)?
How will product quality be maintained during storage and distribution?
Why was a particular method of distribution selected for a market segment?
Are there seasonal issues that will affect the supply of product to a market segment or the
distribution of the product to a market segment?
What will you do with product that is not sold or delivered?
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
13
Use Worksheet # 10 (Distribution) to document information about your approach to storage and
distribution. Complete a worksheet for each market segment.
SALES
Using information developed in the market analysis about the average product consumption, geographic
location, and customer attributes, needs, and preferences, develop simple sales projections for each
market segment. Since various crops may be seasonal, describe when and how long product will be
available for each market segment. For example, products may be available for a market segment all year
or only on a seasonal basis.
Pricing
To develop your sales projections, consider the prevailing prices for the products to be sold and your
strategy for pricing these products. Describe the pricing strategy for each market segment and how your
strategy compares with the competition. Finally, discuss why the selected pricing strategy will be
effective in the market segment.
Consider the following questions:
What are the prevailing market prices for similar products?
What is the sensitivity of demand to price?
Will customers be willing to pay higher prices for your offering?
How will the product be priced for each market segment? Will pricing be based on what your
competitors are charging, on the cost of producing the crop plus a percentage for profit, on a price
determined by a market study, or some other form of pricing strategy?
Is there evidence that the target market segment will accept the price?
Use Worksheet # 11 (Pricing) to document information about your approach to pricing. Complete a
worksheet for each market segment.
Sales Volume
Estimate the potential volume of sales for each market segment. This discussion will require an estimate
for each market segment of the number of potential customers in your planned market area and the
number (or percentage) of these potential customers that will be needed to sustain the anticipated volume
of product. The potential sales volume will be the product of the potential number of customers times the
potential volume for each customer. Describe any assumptions that were made about the market segment
and volume estimates. Identify any research that was conducted or used to develop information about
each market segment.
Use Worksheet # 12 (Sales Volume) to document information about potential sales volumes. Complete a
worksheet for each market segment.
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
14
COMPETITION
Describe the competition for each market segment and how the business will be positioned to compete in
each market segment. Summarize the products they provide, the characteristics of their products, and
pricing for their products. Discuss the advantages your business will have over your competitors in each
market segment. Discuss the disadvantages your business will have to the competitors in each market
segment. Discuss how your business will distinguish itself from competitors. Finally, discuss whether
competitors are expected to respond to your entry into the market and how quickly and effectively the
competitors may be able to respond.
Consider the following questions:
Who are the competitors for each product segment?
Is your product of a higher quality, better meets the needs of the consumer, or is more accessible?
Are your competitors established in the market?
Do they offer a greater variety of products?
Will your pricing be competitive with your competitors?
Will product distribution be an issue?
Why will customers switch to or select this business over a competitor?
Will your business provide higher quality product, greater variety, better service, lower prices?
Use Worksheet # 13 (Competition) to document information about competitors. Complete a worksheet
for each market segment.
PROMOTION
Discuss how you will gain access to the market segments and distribution channels. Describe how you
will communicate your message about the product or business. Discuss what you want to communicate to
your customers. Discuss how much you expect to spend on advertising and communication.
Consider the following questions:
How will potential customers find out about your product?
What approaches will be used to promote your farm and its products?
Will you advertise the product, the business or company image, or both?
Will you contact potential customers directly or use display ads in magazines or newspapers,
mailings, flyers, catalogues, Internet, social media, programs promoting locally grown products,
or some combination?
Do you want to communicate your business values, the product you are supplying, product
quality, production practices (organic, local), price, availability, or some combination?
How often will customers be contacted through advertising and communications?
Why do you believe that the selected approach will be effective in reaching the target customer?
Use Worksheet # 14 (Promotion) to document information about your approach to promotion. Complete
a worksheet for each market segment.
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
15
Operating Strategy
The operating strategy is divided into five
sections:
Introduction.
Crop Management.
Size and Capacity.
Physical Resource Needs.
Human Resource Needs.
Regulation and Policy.
INTRODUCTION
The introduction for the Operating Strategy section summarizes for the reader:
The approach for cultivating and harvesting the crops (Crop Management).
The estimated production capacity of the farm (Size and Capacity).
The physical resources needed to operate the farm (Physical Resources).
The human resources needed to operate the farm (Human Resources).
The regulatory issues and requirements that need to be addressed in order to start-up and operate
the farm (Regulatory and Policy Issues).
It should also describe the approach that was taken in developing the operating strategy.
CROP MANAGEMENT
Crop management for a farm involves maximizing the food crops that can be produced on a piece of land
to meet the objectives of the marketing strategy, in terms of the type, amount, and quality of crops that are
to be produced. This involves an understanding of both the approach that will be used to produce the
crops and the schedule for planting and harvesting the crops.
Discuss your approach to crop production including the specific method to be used such as vertical
gardens, raised beds, surface planting, hydroponics, aquaponics, cold houses, or green houses.
Consider the following questions:
How will you produce your crops?
Will you use cold houses, hot houses, vertical gardens, raised beds, tilling natural soil, or some
combination?
Will your crops be produced organically?
Do you intend to be certified as an organic producer?
What will be accomplished in-house or purchased?
Brownfields to Farmers Market Shelton, Connecticut
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
16
Will existing soil be used and will actions be need to improve existing soil conditions such as pH,
organic content, nitrogen (N), phosphorus (P), and potassium (K)?
Will compost or mulch be produced on your farm or purchased?
Will seedlings be produced on your farm or purchased?
What production management alternatives are going to be implemented for issues such as weed,
pest, and disease control, soil fertility, crop rotation, tillage, water supply and irrigation, seed and
plant selection, waste handling and disposal, and crop quality control?
How will plantings be made to achieve the required crop harvest to meet the marketing strategy
(e.g., overplanting)?
Will you be planting and harvesting during multiple seasons, such as spring, summer, fall, and/or
winter?
How will your planting and harvesting schedules change over the first five years of production
(e.g., crop rotation)?
Use Worksheet # 15 (Crop Management) to document information about your approach to production
management. Use Worksheet # 16 (Planting and Harvesting Schedules) to evaluate your approach to
planting and harvesting. Use Worksheet #17 (Farm Planning) to assist in estimating the operating
expense for the farm.
YIELD
Discuss the estimate for the amount of crops that can be repeatedly produced (e.g., pounds of produce per
month for each market segment and crop type) given the crop management approach, property size, and
available resources. The output should be estimated for the first five years of operation. You may also
want to estimate a high and low case output for purposes of evaluating the range of potential output
against the objectives of the marketing strategy. These output projections should be consistent with your
plans for the growth of the business. Describe your growth plans.
Use Worksheet # 18 (Yield) to document information about the farm capacity and size. Refer to data from
Worksheet #17 (Farm Planning) to assist in estimating the size and capacity of the farm.
PHYSICAL RESOURCE NEEDS
Physical resources include land, buildings, and equipment necessary to produce and market your crops to
meet the objectives of your marketing strategy. Discuss your physical resource needs and how they will
be acquired. Describe the environmental factors related to the resources that will be needed to run the
farm, such as water, electricity, and the impacts the farm may have on the environment (e.g., waste
generation and disposal).
Consider the following questions:
How much land will you need initially and within five years?
How much land do you have available?
Will you acquire land or lease land?
Are there known or potential environmental issues on the property that will require assessment or
cleanup on the property or require specific farming techniques to address?
Has an environmental assessment and/or remedial action been conducted on the property?
Are there physical conditions that present challenges to the use of the property (e.g., concrete
foundations or floor slabs remaining, environmental restrains (e.g., land use restrictions)?
What types of buildings and other structures are required initially and within five years?
What resources will be needed for the farm, such as water, electricity, and waste disposal?
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
17
What equipment, such as roto-tillers, tractors, vehicles, or refrigerators, is needed initially and
within five years?
What tools, such as rakes, hoes, and seed planters are needed initially and within five years?
What supplies, such as fertilizers, mulch, compost, humus, seeds, crates, or labels, are needed?
What type of irrigation system such as tile drains, drip zone irrigation or sprinkler system will be
needed initially and within five years?
How will resources be acquired?
Use Worksheet # 19 (Physical Resources) to document information about your physical resource needs.
HUMAN RESOURCE NEEDS
Describe the manpower needed to operate the farm. This should include management as well as farm
labor. Estimates of the number and types of workers needed can be made by identifying the specific tasks
that will be required on a daily basis on the farm, including administrative and management
responsibilities, and estimating the number of hours per month for each task. These tasks can be grouped
by skill or experience and the total number of hours for each group estimated. As an example, tasks can
be grouped into marketing, operating, administrative, and finance.
Consider the following questions:
What are the workforce needs for the first three to five years?
What types of positions will be created for the farm?
How many workers will be required for each position?
What skills or experience will be required for each position?
Will training be required or provided?
Considering the number and types of workers needed, will the workforce consist of volunteers,
part-time workers, full-time workers, third party services, or some combination?
How will workers be compensated?
What are the typical ranges for salaries for each position (e.g., $/hour, $/year)?
Will benefits, such as vacation or medical coverage, be provided?
Use Worksheet # 20 (Manpower Needs) and Worksheet # 21 (Workforce Needs) to document
information about workforce needs.
REGULATION AND POLICY
Operating a farm business will require a number of state or local zoning, permitting, licensing, and other
regulatory issues be addressed. These regulatory requirements could have a significant impact on your
production and operating plans, as well as on start-up costs. To minimize the impacts and properly plan
production activities, identify the types of permits, licenses, or regulations and associated fees required to
start up and conduct the business. Describe the political or legal factors that will influence or limit your
activities. Your business must operate within governmental and regulatory requirements, such as zoning,
planning and building requirements, waste management requirements, and sales and other tax
requirements.
Consider the following questions:
Are there political or legal factors that will influence or limit your activities?
What regulatory requirements exist, such as conditional use permits, waste handling and disposal
requirements or permits, health and safety plans and permits, building permits and inspection
requirements, environmental permits, business licenses, and food handlers’ licenses?
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
18
Are there regulatory requirements or industry standards for handling, storing, packaging, and
distributing the products?
What conditions or issues are associated with each regulatory requirement?
Can you meet each regulatory requirement?
What fees are associated with the identified permits, licenses, or regulations?
Use Worksheet # 22 (Regulation and Policy) to document information about your approach to
regulations and policies.
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
19
Financial Strategy
The financial strategy is divided into seven
sections:
Introduction.
Expenses.
Income.
Profit and Loss.
Fixed Assets.
Funding Requirements.
Risk Management.
INTRODUCTION
The introduction to the Financial Strategy summarizes for the reader:
The estimated expenses for start-up and operation of the farm (Expenses).
The projected income for the farm (Income).
The projected profitability of the farm (Profitability).
The anticipated fixed assets (Fixed Assets).
The potential source of funding (Funding).
The potential risks to the successful operation of the farm (Risk Management).
It should also describe the approach that was taken in developing the financial strategy.
EXPENSES
Develop a five-year projection for the annual expenses for the farm including adjustments for inflation
using information such as the consumer price index (www.bls.gov/cpi/). The expenses should include the
marketing expenses, operating expenses, and human resource expenses discussed in the marketing,
operating, and human resource strategy sections of this business plan handbook. Expenses should also
include administrative expenses related to the administration and management of the farm and one-time
or initial start-up expenses, such as initial operating expenses, site preparation, environmental
investigations, and remedial actions not treated or included as part of fixed asset costs. Discuss any
assumptions used to develop the estimated expenses.
Use Worksheet # 23 (Expenses) to calculate and document the annual expenses.
INCOME
Develop a five-year projection for the annual income for the farm. The income should include receipts
from the sales of produce and other products from the farm, less any loss associated with spoilage or
product which cannot be sold. It should also include income from grants, donations, rent, or other sources
which are anticipated on an annual basis to cover operating expenses. It is helpful to break down
projected sales income by market segment to identify the contribution to income and evaluate the
performance of each market segment. Identify any assumptions that were used to estimate the income.
Consider the following questions:
Urban Oaks Farm, New Britain, Connecticut
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
20
For sources of income other than sales receipts, what are the sources of funding?
What is the anticipated amount of funding that will be obtained from each source?
What, if any, are the limitations on the use of the funding?
Use Worksheet # 24 (Income) to calculate and document the annual income.
PROFIT AND LOSS
Develop a five-year projection for the annual profit or loss for the farm. The annual profit or loss is the
difference between the estimated annual expense and the estimated annual income.
Use Worksheet # 25 (Profit and Loss) to calculate and document the annual profit or loss.
FIXED ASSETS
Develop a five-year projection for the fixed assets that will require initial purchase or construction costs.
Fixed assets normally include items such as land and buildings, motor vehicles, furniture, office
equipment, computers, fixtures and fittings, and plant and machinery. These are items that are normally
depreciated over time for tax purposes. Discuss any assumptions that were used to estimate the fixed asset
costs.
Use Worksheet # 26 (Fixed Assets) to calculate and document the fixed assets and estimated costs to
purchase and install.
FUNDING REQUIREMENTS
Describe the sources and amount of funding (capital) required to purchase and install the fixed assets
needed to start up the farm and achieve the five-year goals of the business plan. Discuss the plans for
obtaining the needed funding for the farm. Donations of equipment, such as vertical gardens or hoop
houses, should be discussed along with the value associated with the donation. Any associated expenses
should be included in the projected expenses for the farm (See Worksheet # 23).
Consider the following questions:
What are the sources or potential sources of the funding?
How much is needed?
Will some or all of the capital requirements be financed?
Are there specific limitations on the funding?
What are the critical assumptions concerning the funding?
What is the timing of the funding and how will it impact the achievement of the business plan?
Are there any expenses associated with obtaining financing or funding, such as consulting
expenses, filing fees, insurance?
Is some of the funding going to be achieved through donations of equipment, buildings, or other
fixed assets?
Use Worksheet # 27 (Funding) to calculate and document the sources of funding, the anticipated amount
of funding that will be obtained from each source, and what, if any, are the limitations on the use of the
funding. Use Worksheet # 28 (Funding Information) to document information concerning the funding
needs and sources.
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
21
RISK MANAGEMENT
Identify and evaluate potential risks that can impact the financial strategy and the success of the business
plan.
Consider the following questions:
What are the potential risks that may need to be managed, such as production risks related to
failure of a crop or unexpected low yield or environmental risks such as restrictions on land use?
What are the marketing risks related to unexpected competitive actions, such as lower than
expected competitor pricing?
What are the financial risks related to loss of funding sources or low sales volume, or labor issues
related to labor injuries or loss of the farm manager?
How likely are the risks to occur?
What can be done or what is planned to minimize these potential risks if they occur?
What are the potential impacts on the financial strategy if there were changes in the assumptions
for sales or production?
Use Worksheet # 29 (Risk Management) to document information on the potential risks that can impact
the financial strategy.
Partnership for Sustainable Communities - Urban Farm Business Plan Handbook September 2011
22
Executive Summary
With the completion of the marketing, operating, and financial strategies, the details of the business plan
are essentially complete. To finalize the business plan, an executive summary is developed. While the
executive summary is the first section of your business plan, it is typically the last section to be written.
The executive summary is a one or two page synopsis of your business plan that describes the plan and
highlights the significant information presented in the plan.
The executive summary should provide a brief overview of the farm’s:
Product(s) or service(s).
Target market(s) and marketing and sales plan.
Development plan.
Operating plan.
Management structure and key personnel.
Financial plan.
It is important to consider that the executive summary may be useful as a standalone summary of the
business plan. The executive summary, therefore, should be written as a standalone document so that the
summary, by itself, provides sufficient information for a reader to understand the business.
Appendices
Handbook Appendix A – List of Provided Worksheets A-1
Appendix A: List of Provided Worksheets
Worksheet
Purpose
1
Before You Begin
Document your reasons, expertise and resource
needs.
2
Introduction
Document the information to include in the
Business Plan introduction.
3
Vision
Document the information to include in the
Business Plan vision statement.
4
Mission
Document the information to include in the
Business Plan mission statement.
5
Goals
Document the information to include in the
Business Plan goal discussion.
6
Organization &
Management
Document the information about the
organization & management of your business.
7
Market Analysis
Document the information to include in the
market section.
8
Market Segments
Document the information about customers and
market segments (complete one worksheet for
each market segment).
9
Product
Document the information about your product
(complete one worksheet for each market
segment).
10
Distribution
Document the information about your approach
to storage and distribution (complete one
worksheet for each market segment).
11
Pricing
Document the information about your approach
to pricing (complete one worksheet for each
market segment).
12
Sales Volume
Document the information about potential sales
volumes.
13
Competition
Document the information about competitors
(complete one worksheet for each market
segment).
14
Promotion
Document the information about your approach
to promotion (complete one worksheet for each
market segment).
15
Crop Management
Document the information about your approach
to production management.
16
Planting & Harvesting
Schedules
Evaluate approach to planting and harvesting.
17
Farm Planning
Assist in estimating the operating expense for
the farm and size and capacity of the farm.
Handbook Appendix A – List of Provided Worksheets A-2
Worksheet
Purpose
18
Yield
Document the information about farm capacity
and size.
19
Physical Resources
Document the information about the physical
resource needs.
20
Manpower Needs
Document the information about workforce
needs.
21
Workforce Needs
Document the information about workforce
needs.
22
Regulation & Policy
Document the information about your approach
to regulations and policies.
23
Expenses
Calculate and document annual expenses.
24
Income
Calculate and document the annual income.
25
Profit & Loss
Calculate and document the annual profit or
loss.
26
Fixed Assets
Calculate and document the fixed assets and
estimated costs to purchase and install.
27
Funding
Calculate and document the sources of funding,
the anticipated amount of funding that will be
obtained from each source, and what, if any,
are the limitations on the use of the funding.
28
Funding Information
Document the information concerning the
funding needs and sources.
29
Risk Management
Document the information about the potential
risks that can impact the financial strategy.
Handbook Appendix B – Example Worksheets B-1
Appendix B: Example Worksheets
The following example worksheets are provided to demonstrate the type of specific information that
should be collected in order to develop a business plan. The information provided in the example
worksheets is for a hypothetical site and project scenario. The data presented in the example worksheets
demonstrate how information flows from one worksheet to another and does not necessarily reflect any
particular project assumptions. When inputting data into the blank worksheets, care should be taken to
ensure data inputs reflect individual urban farm assumptions.
Example Worksheet # 1 – Before You Begin
Think about the primary reasons why you want to start an urban farm and the expertise and
resources needed to develop the business plan.
Appendix B – Example Worksheets B-2
What are your primary reasons for starting an urban farm?
Place an abandoned industrial property into an economically viable and accessible source of fresh locally
grown fruits and vegetables to the residents, businesses, and institutions within the community.
Provide job training and educational opportunities to the surrounding community.
What expertise is needed on your planning team?
Marketing expertise to evaluate and identify the markets and products that should be the focus of the growing
center.
Operating and production expertise to evaluate and identify the growing approaches, requirement and facility
requirements, and manpower needs.
Environmental expertise to evaluate impacts of property environmental condition and appropriate actions.
Developing sources of funding and evaluating operating expense and income requirements.
What resources will be needed to develop the business plan?
Consulting support to guide the drafting of the business plan, develop a marketing analysis and
recommendation on markets and products.
Support from the Nonprofit Food Group X and Community-based Group Y to develop the operating strategy.
Funding for consulting requirements.
What values do you bring to this business that will help you define the success of the business?
Importance of food choices, healthy diets and lifestyles, and nutrition education.
Foster a sense of community by reconnecting people with locally grown foods.
Benefit public health and the environmental by cleaning up brownfields properties.
Develop sustainable reuses support community economic, social, and environmental goals by utilizing
operation and production techniques that minimize pollution and conserve resources and providing
opportunities for job training and education.
Provide affordable fresh fruits and vegetables.
Example Worksheet # 2 – Introduction
Appendix B – Example Worksheets B-3
The introduction describes the purpose of the business plan and the key issues addressed by the
plan.
What is the purpose of the business plan?
Outline the approach for the development, operation, and funding of the growing center. The business plan
will also serve as a planning tool for the longer-term growth of the growing center and provide information to
potential sources of funding for the development and operation of the growing center.
What information is contained in the business plan?
The business plan outlines the strategy for producing and marketing fresh fruits and vegetables within the
area around the growing center. It describes the market to be targeted, the crops to be produced, the method
of production, manpower needs and strategies for funding the development and operation of the growing
center.
How was the business plan developed?
The business plan was developed with the help of the business planning team, students and professors from
the University of Town X, and consultants funded by EPA and other sources.
Who are the members of the business planning team?
[Name] – Town X Community Development Corporation
[Name] – County Y Improvement Corporation
[Name] – County Y Improvement Corporation
[Name] – Assets Town X
[Name] – Private Enterprises
[Name] – The Collaborative Inc.
[Name] – University of Town X
What are the potential risks to the successful start up of the farm?
Funding for the development and expansion of the growing center.
Sufficient volunteers and community support to construct and operate the facility.
Crop yield and quality along with the timing of achieving consistent, viable, and marketable crops.
Insufficient income and the need for funding to off-set the expenses during the first three to five years.
Example Worksheet # 3 – Vision
Appendix B – Example Worksheets B-4
The vision statement is an inspirational statement that describes your vision for the future of the
farm and how your values will be incorporated into your farm.
What economic, environmental, or community values are important to the success of the farm?
Economically viable source of fresh locally grown fruits and vegetables and related products to our
community.
Productive reuse of abandoned properties, local jobs, and job training.
Benefit public health and the environment by cleaning up and utilizing operation and production techniques
that minimize pollution and conserve resources.
Providing nutrition education and job training.
What products or services (in a general sense) do you expect to provide?
Fresh fruits and vegetables.
Job training.
Nutrition education.
Who are your target customers?
Members of the community surrounding the growing center including residents and commercial food
business such as restaurants and community meal services.
What customer or market needs will your business address?
Provide fresh fruits and vegetables to residents that do not have easy access to these products or the
economic means to purchase these products.
Provided locally grown fresh fruit and vegetables to restaurants in the community.
What do you expect the business to look like in the future?
Growing and marketing fruits and vegetables to the residents and business in the community utilizing organic
and sustainable production methods generating sufficient income to off-set expenses.
How do you expect the business to be perceived by the community and customers in the future?
Community asset that provides not only fresh fruits and vegetables, but education, job training and a source
of pride for the community. It is anticipated that the community will develop a sense of ownership in the
operation and success of the growing center through volunteer efforts and purchase of its products. It is also
anticipated that restaurants and other business will prefer products grown at the growing center and proudly
advertise the growing center as the source of those products. In addition, it is hoped that the growing center
will be a model for similar operations within the Town X area and other areas of the country.
Example Worksheet # 4 – Mission
Appendix B – Example Worksheets B-5
The mission statement is a simple statement that communicates the fundamental purpose and
expectations for the farm to customers and others outside of the business.
What is the overall purpose of your farm?
Promote the production and purchase of locally grown foods and to demonstrate the viability and
sustainability of urban food production and commerce and its role as an integral part of the community
landscape.
What is the overall goal of your farm?
Provide the community with access to affordable fresh produce, jobs and job training, and education on
growing and preserving fresh produce and improved health through better diet.
What do you want your business to be known for in the future?
Quality locally grown fresh fruit and vegetables.
A source of education, training and community pride.
To who do you want the mission statement to communicate?
The social and economic benefits of urban farming and the viability and sustainability of such efforts.
Example Worksheet # 5 – Goals
Appendix B – Example Worksheets B-6
The goals describe what is to be achieved by the business in the future.
What will the business market?
The business will market fresh fruits and vegetables consistent with the cultural and dietary needs of the
community.
How will the business operate?
The business will operate under the umbrella of the Town X CDC. It is expected that within the first five
years that the facility will be producing crops over in three growing seasons – spring, summer, fall. Crop
production will be accomplished using vertical gardens and hoop houses with raised growing beds.
Marketing will be through a farm stand on the property and direct marketing to customers.
Who will be involved in operations?
The growing center will be managed by an experience farm manager and be staffed by students and
community volunteers.
What income or earnings are expected from the business?
The growing center is expected to operate at a loss until the fifth year of operation, Income and expenses of
approximately $100,000 are expected by the fifth year of operation.
What are the short-term goals (1-5 years)?
Engage the community in the growing center operations and production.
Construct the initial hoop house and install the vertical gardens with initial crops in summer 2011.
Construct the farm stand and training center.
Bring the facility to its full anticipated production capacity consisting of four hoop houses, vertical gardens, a
farm stand, a training center, and support buildings.
Sales will be to both local residents, transient residents at the farm stand, and to local food service business.
Example Worksheet # 5 – Goals
Appendix B – Example Worksheets B-7
What are the long-term goals (greater than 5 years)?
Expand the market to larger food service businesses such as nursing homes, school lunch programs and
expand the facility to meet the needs of these additional markets. This would require the acquisition of
additional property in the area of the growing center.
Incorporate aquaponics into the production operations.
Add composting operations.
Additional products such as jams, salsas, and packaged salad mixes.
The growing center will be able to off-set operating expenses with annual income and generate an annual
profit.
What goals are most important to achieving success in the business?
Engaging the community in the operation and production of the growing center. Volunteer workers are an
important component of the construction and initial operation of the facility.
Bringing the facility up to full production within the first five years.
What short-term goals are necessary for the long term success of the business?
Developing the market through sales.
Engaging the community in the growing center operations and production.
What is the priority of the goals?
1) Engage the community in the growing center operations and production.
2) Construct the initial hoop house and install the vertical gardens with initial crops in summer 2011.
3) Construct the farm stand and training center.
4) Sales will be to both local residents, transient residents at the farm stand, and to local food service
business.
5) Bring the facility to its full anticipated production capacity consisting of four hoop houses, vertical
gardens, a farm stand, a training center, and support buildings.
Example Worksheet # 6 – Organization and
Management
Appendix B – Example Worksheets B-8
Describe how the business will be organized and who will manage the business.
How will the business be organized?
The growing center will be operated by the Town X Community Development Corporation (CDC). The
facility will be managed by a farm manager employed by the Town X CDC reporting to the Executive
director. Administrative, financial, and legal support will be provided by existing Town X CDC staff.
What is the ownership structure of the business?
The growing center will be owned by the Town X CDC.
Will there be an overseeing board or board of directors? Who will be on it? What will their roles be in
the business? Will there be compensation for these directors?
The operation of the growing center will be overseen by the Executive Director and Board of the Town X
CDC.
How will the business management be organized? A simple organization chart may be useful to explain
the organization.
A farm manager will manage the day-to-day operations of the farm. Staff and volunteer workers will report
to the farm manager. The farm manager will report to the Executive Director of the Town X CDC.
Administrative activities of the farm will be managed by the Executive Director of the Town X CDC.
Who will be the key managers who will run the business?
The key managers are the farm manager and the Executive Director of the Town X CDC.
What unique skills do the key managers bring to the business?
The farm manager brings a background in agriculture, crop, and farm management. The Executive Director
of the Town X CDC provides administrative, marketing, and financial experience.
What will be the duties and responsibilities of the key managers?
The farm manager will manage the day-to-day operations of the farm. Staff and volunteer workers will report
to the farm manager. The farm manager will report to the Executive Director of the Town X CDC.
Administrative activities of the farm will be managed by the Executive Director of the Town X CDC.
How will the key managers be compensated?
The farm manager will be paid and hourly rate with certain benefits. The Executive Director will perform the
responsibilities associated with the growing center as part of the Executive Director position.
Example Worksheet # 7 – Market Analysis
Appendix B – Example Worksheets B-9
The market analysis describes the general environment in which your business will be operating.
What are the economic factors that affect a potential customer’s purchasing power and spending?
Low- to moderate-income neighborhood surrounding the growing center that is currently underserved by full
service grocery stores.
Households have lower spending power than those in the greater County Y area.
What are the demographic factors that describe who potential customers are, where they are, and how
many are likely to buy your product?
The site neighborhood is bounded by major area east-west and north-south corridors that experience
significant traffic counts. The growing center is strategically located between downtown Town X and the
University of Town X campus with the potential to capture vehicular traffic from non-residents. The growing
center’s proximity to large concentrations of consumers facilitates transportation and delivery of product.
Per capita consumption of fresh fruits and vegetables has increased steadily between 1980 and 2001, and is
projected to continue to increase through 2020. According to the United States Department of Agriculture’s
Agricultural Marketing Resource Center (2004), between 1980 and 2001, per capita consumption of fresh
fruits increased by 19% and consumption of vegetables (including potatoes) increased by 29%. The USDA
forecasts that the trend toward increased consumption of fresh fruits and vegetables will continue. Per capita
expenditures on fruits and vegetables are expected to have the highest increases among all types of foods
through 2020.
What are the social and cultural factors related to the basic values, perceptions, preferences, and
behaviors of your potential customers?
There is a growing desire among the community for easily accessible and reasonably priced fresh fruits and
vegetables consistent with the cultural make-up of the community.
What voids in the market will be filled by your farm?
Availability of locally grown organically grown fruits and vegetables for the direct to consumer and
wholesale markets within an approximate 2-mile radius of the growing center.
Example Worksheet # 8 – Market Segments
Appendix B – Example Worksheets B-10
Divide the larger target market into submarkets (market segments), such as direct marketing to
individual households or business-to-business marketing. Describe the characteristics of each
market segment. Complete a worksheet for each market segment.
Market Segment: Retail, Direct to Consumer
What is the size and geographic location?
Primary market area includes downtown and neighborhoods within approximately 2.0 miles of the growing
center.
What characteristics (demographics) define the target customers?
The market area consists of low- to moderate income with lower-than-average and educational attainment
levels.
What are the attributes of the market segment related to personality, values, attitudes, interests, or
lifestyles?
Types of crops to be grown.
Access to and ease of purchase.
Social and economic impact on the immediate neighborhood.
What are the needs and preferences of the market segment?
Easily accessible and reasonably priced fresh fruits and vegetables consistent with the cultural make-up of
the community.
What are the trends and/or market conditions for each market segment?
Per capita consumption of fresh fruits and vegetables has increased steadily between 1980 and 2001, and is
projected to continue to increase through 2020.
Growing consumer preferences for fresh, organic, local produce is driving a greater diversity of fruit and
vegetable offerings in grocery stores, and a strong increase in farmers markets.
Farm-to-consumer sales are a relatively small share of the overall “food consumed at home” market (1.1%
in 2009).
What product will appeal to each market segment?
Fresh, affordable and healthy fruits and vegetables.
Example Worksheet # 8 – Market Segments
Appendix B – Example Worksheets B-11
Market Segment: Retail, Direct to Consumer
What motivates buying decisions in each market segment?
Mobility – ability to travel to grocery store.
Easy access to the produce.
Reasonably priced (affordable) produce.
Locally produced quality produce.
What evidence is there that potential customers in each market segment want the product?
In addition to national studies that show an increasing trend in the purchase of organic, fresh produce,
surveys of 173 local residents conducted by the Toledo CDC indicate that residents in the area of the
growing center are interested in purchasing locally grown fruits and vegetables.
Market Segment: Wholesale, Direct to Restaurants
What is the size and geographic location?
Primary market area includes restaurants downtown and neighborhoods within approximately 2.0 miles of
the growing center.
What characteristics (demographics) define the target customers?
Experienced chefs with knowledge of the nutritional values of fruits and vegetables.
What are the attributes of the market segment related to personality, values, attitudes, interests, or
lifestyles?
Types of crops to be grown.
Require high quality and appearance.
Looking for cost effective product or sufficient quality and appearance to obtain premium price for fresh,
organic fruits and vegetables.
What are the needs and preferences of the market segment?
Competitively priced fresh fruits and vegetables.
Availability to meet demand.
Fruits and vegetables compatible with their menus.
Example Worksheet # 8 – Market Segments
Appendix B – Example Worksheets B-12
Market Segment: Wholesale, Direct to Restaurants
What are the trends and/or market conditions for each market segment?
Per capita consumption of fresh fruits and vegetables has increased steadily between 1980 and 2001, and is
projected to continue to increase through 2020.
Growing consumer preferences for fresh, organic, local produce is driving a greater diversity of fruit and
vegetable offerings in grocery stores, and a strong increase in farmers markets.
Buying fresh, local foods is one of the strongest trends among today’s chefs, listed among the top 10 trends
of 2010 in the American Restaurant Association’s survey of 1,800 U.S. chefs.
What product will appeal to each market segment?
Fresh, affordable and healthy fruits and vegetables.
What motivates buying decisions in each market segment?
Reasonably priced produce.
Quality and appearance.
Compatibility with menu.
Consistent supply.
What evidence is there that potential customers in each market segment want the product?
Chefs in the Town X area who currently purchase fresh produce from local farms responded positively to
the proposed Town X Growing Center concept. Several noted that they would be interested in purchasing
produce from the Town X Growing Center, once established.
Example Worksheet # 9 – Products
Appendix B – Example Worksheets B-13
Describe the products to be offered and how they will compete in each market segment.
Complete a worksheet for each market segment.
Market Segment: Retail, Direct to Consumer
What products will be offered?
Herbs – (basil, sage, dill, parsley, rosemary).
Leaf greens (collard, turnip).
Salad greens.
Broccoli.
Cucumbers.
Cabbage.
Spinach.
Berries (strawberries, raspberries, blackberries).
Potatoes (Longer term in years three to five).
Tilapia and other fish (Longer term based on implementation of aquaponics in year’s three to five).
Other crops will be added based on demand and growing capabilities.
What is the product availability (seasonal offerings)?
What specific product characteristics meet the needs of the market segment?
Fresh.
Locally grown.
Appearance.
Accessibility.
How are your products unique?
Grown locally at a facility supported by the community.
Provide job training and nutritional education to the community.
Restore a former abandoned industrial property to a productive use.
Why would a customer prefer your product to a competitor’s?
The growing center will cater to the needs of the local community with respect to crop planning and community
quality of life.
Support job training and local education.
Example Worksheet # 9 – Products
Appendix B – Example Worksheets B-14
Market Segment: Wholesale, Direct to Restaurants
What products will be offered?
Herbs – (basil, sage, dill, parsley, rosemary).
Baby vegetables (carrots and beets).
Salad greens.
Broccoli.
Cucumbers.
Spinach.
Berries (strawberries, raspberries).
Other crops will be added based on demand and growing capabilities.
What is the product availability (seasonal offerings)?
What specific product characteristics meet the needs of the market segment?
Fresh.
Locally grown.
Appearance.
Cost.
How are your products unique?
Grown locally at a facility supported by the community.
Why would a customer prefer your product to a competitor’s?
The growing center will cater to the needs of the local community with respect to crop planning and community
quality of life.
Support job training and local education.
Example Worksheet # 10 – Distribution
Appendix B – Example Worksheets B-15
Describe how the product is planned to be distributed and how the product will get to each
market segment. Complete a worksheet for each market segment.
Market Segment: Retail, Direct to Consumer
Will the product be pre-packaged? How will the product be packaged?
The product will be sold by the piece to consumers at the farm stand on the growing center or at local farmers
markets. Fruits and vegetables shipped off the growing center will be packaged in cartons, crates or bags, as
appropriate for the specific fruit or vegetable.
Will the product be stored prior to sale? How will the product be stored?
Fruits and vegetables will not be stored for extended periods of time at the growing center; however, harvested
fruits and vegetables will be stored within the storage building or hoop house on the growing center property until
sold or donated. Fruits and vegetables that cannot be sold within two to three days of harvest will be donated to
local food service providers for the homeless or elderly.
How will the product be distributed (farm stand, deliveries)?
Farm stand on the growing center property.
Community group volunteers will distribute to local churches, senior centers, and youth groups.
Produce will be hauled to select Town X area farmers markets on a weekly or bi-weekly basis.
How will product quality be maintained during storage and distribution?
As noted previously, fruits and vegetables will not be stored for long periods of time. Harvested crops will be
placed in cartons or crates as appropriate for the particular fruit or vegetable and stored within the storage building
or hoop house on the growing center property.
Why is the selected distribution approach best for the market segment?
The product of the growing center is fresh fruits and vegetables. Long term storage of the crops will not meet this
objective or objectives related to quality and appearance.
How will your business gain access to the market segment and distribution channels?
A network of community group volunteers who focus on churches, senior centers, youth and family centers.
Events and tasting at the growing center and at area farmers markets.
How often will the product be made available to customers in each marketing segment (deliveries, days and
hours of operation)?
Once or twice a week to senior groups, schools, and churches.
Example Worksheet # 10 – Distribution
Appendix B – Example Worksheets B-16
Market Segment: Wholesale, Direct to Restaurants
Will the product be pre-packaged? How will the product be packaged?
The product will be sold by the piece to chefs at the farm stand on the growing center or at local farmers markets.
Fruits and vegetables shipped off the growing center will be packaged in cartons, crates or bags, as appropriate for
the specific fruit or vegetable.
Will the product be stored prior to sale? How will the product be stored?
Fruits and vegetables will not be stored for extended periods of time at the growing center; however, harvested
fruits and vegetables will be stored within the storage building or hoop house on the growing center property until
sold or donated. Fruits and vegetables that cannot be sold within two to three days of harvest will be donated to
local food service providers for the homeless or elderly.
How will the product be distributed (farm stand, deliveries)?
Farm stand on the growing center property.
Community group volunteers will distribute to local restaurants.
How will product quality be maintained during storage and distribution?
Fruits and vegetables will not be stored for long periods of time. Harvested crops will be placed in cartons or crates
as appropriate for the particular fruit or vegetable and stored within the storage building or hoop house on the
growing center property.
Why is the selected distribution approach best for the market segment?
The product of the growing center is fresh fruits and vegetables. Long term storage of the crops will not meet this
objective or objectives related to quality and appearance.
How will your business gain access to the market segment and distribution channels?
A network of community group volunteers who will make direct contact with chefs at local restaurants.
Events and tasting at the growing center and at area farmers markets.
How often will the product be made available to customers in each marketing segment (deliveries, days and
hours of operation)?
Deliveries will be based on the needs of the restaurant; however, it is anticipated that deliveries, where required,
will be two to three times per week.
Example Worksheet # 11 – Pricing
Appendix B – Example Worksheets B-17
Describe the pricing strategy for each market segment and why it will be effective with the target
customer in the market segment. Pricing is based on prevailing market pricing and costs of
producing and distributing the product. Complete a worksheet for each market segment.
Market Segment: Retail, Direct to Consumer
What are the prevailing market prices for similar products?
Market prices vary depending on season and crop yield.
What is the likely ability of your business to set prices?
The growing center has substantial opportunity for setting prices. At the farm stand on the growing center, pricing
can reflect the lower overhead and lack of distribution costs resulting in lower that competition pricing. At farmer’s
markets, pricing can be competitive with the competition. In addition, the growing center has the opportunity to
provide fresh fruits and vegetables to neighbors of the growing center in exchange for volunteer work at the center.
What is the sensitivity of demand to price?
For the primary market of residents living within a two-mile radius of the growing center, price will be a
significant component of their decision to purchase fruits and vegetables from the growing center. Pricing will
need to be within the limits of the low to middle income range of these residents.
How will the product be priced for each market segment?
The product will be priced based on competitive pricing and local economic means. In addition, pricing will be
adjusted in exchange for volunteer labor and other activities to support the growing center.
How does your pricing strategy compare with the competition?
The growing center has an advantage in that it will have a lower overhead and distribution costs than many of its
competitors. It also has the opportunity to provide “pick your own” pricing and pricing adjustments based on
volunteer support.
What evidence is there that the target market will accept the price?
Surveys conducted by the Town X CDC indicate that if fresh fruits and vegetables can be provided at a cost equal
to or less than the current sources of these items, that the community is likely to purchase their produce from the
growing center.
Why will the selected pricing strategy be effective?
The pricing strategy is competitive and recognizes the economic requirements of the community.
Example Worksheet # 11 – Pricing
Appendix B – Example Worksheets B-18
Market Segment: Wholesale, Direct to Restaurants
What are the prevailing market prices for similar products?
Market prices vary depending on season and crop yield. Below are estimates based on 2010 market wholesale
prices:
Herbs – $10.00 to $15.00 per pound.
Baby vegetables – $4.00 - $5.00 per pound.
Salad greens – romaine $1.50 per pound; butter bib $2.00 each.
Broccoli – $0.67 - $1.00 per pound.
Cucumbers – $0.65 per pound.
Spinach – $1.75 per pound.
Berries (strawberries – $2.75 - $3.50 per pound, raspberries – $5.00 per pint).
What is the likely ability of your business to set prices?
The growing center has substantial opportunity for setting prices; however, prices will need to be competitive with
the wholesale market.
What is the sensitivity of demand to price?
Demand will be very sensitive to price; although there may be opportunity for a small premium based on the
community basis of the growing center assuming a quality product.
How will the product be priced for each market segment?
The product will be priced based on the competition.
How does your pricing strategy compare with the competition?
The growing center has an advantage in that it will have a lower overhead and distribution costs than many of its
competitors. It also has the opportunity to provide “pick your own” pricing and pricing adjustments based on
volunteer support.
What evidence is there that the target market will accept the price?
The marketing analysis indicates that if consistent quality fresh fruits and vegetables can be provided at a cost
equal to or less than the current sources of these items, that the restaurants are likely to purchase their produce from
the growing center.
Why will the selected pricing strategy be effective?
The pricing strategy is competitive.
Example Worksheet # 12 – Sales Volume
Appendix B – Example Worksheets B-19
Develop simple sales projections for each market segment using information about average
product consumption, geographic location, and customer attributes, needs, and preferences.
Complete a worksheet for each market segment.
Market Segment: Retail, Direct to Consumer
When and how long will the product be available for this market segment?
Initial crops will be available in the summer of 2011.
It is planned to provide produce over three growing seasons (spring, summer, and fall).
What is the potential number of customers for each market segment?
Residents with a 2-mile radius of the growing center.
Transient consumers.
Consumers at local farmers markets.
What is the potential volume per customer for the market segment?
Volume per customer estimate not developed.
What is the potential sales volume for the market segment?
It is anticipated that total sales volume based on farm capacity will be approximately $27,000 in the fifth year of
operation.
What assumptions were made about the market segment?
The primary, or target customer is residents of the surrounding low-income neighborhoods that have limited
access to fresh fruits and vegetables.
It is expected that sales to these customers will be made at the farm stand at the growing center, or at targeted
locations such as churches, senior centers, youth centers and schools.
Direct to customer sales will likely also be conducted from sales sites such as local farmers markets to a larger
area within County Y competing regionally with a wide variety of grocers, farm stands and other retailers.
What research was conducted or referenced about the market segment?
A Market Analysis was conducted by Firm Z for the Town X CDC.
Surveys of area residents were conducted by the Town X CDC.
Example Worksheet # 12 – Sales Volume
Appendix B – Example Worksheets B-20
Market Segment: Wholesale, Direct to Restaurants
When and how long will the product be available for this market segment?
Initial crops for this market segment the third year of the growing center operation in order to achieve the quality,
appearance and supply of product required by this market segment.
It is planned to provide produce over three growing seasons (spring, summer, and fall).
What is the potential number of customers for each market segment?
The potential market is any restaurant within the downtown area and a 2-mile radius of the growing center. The
State Regional 2010 Directory identifies over 30 restaurants and catering facilities that utilize locally grown
produce.
What is the potential volume per customer for the market segment?
It is anticipated that total sales volume based on farm capacity will be approximately $20,000 in the fifth year of
operation.
What is the potential sales volume for the market segment?
Volume per customer estimate not developed.
What assumptions were made about the market segment?
Chefs will be more likely to buy fresh produce produced in the immediate area of the restaurant.
It is expected that sales to these customers will be made at the farm stand at the growing center and direct
marketing to the restaurants.
What research was conducted or referenced about the market segment?
A Market Analysis was conducted by Firm Z for the Town X CDC including surveys of chefs in the market area.
Example Worksheet # 13 – Competition
Appendix B – Example Worksheets B-21
Describe the competition for each market segment and how the business will be positioned to
compete in each market segment. Complete a worksheet for each market segment.
Market Segment: Retail, Direct to Consumer
Who are the competitors for each market segment?
There is no direct retail competition in the immediate site neighborhood.
Larger chain grocers such as Market A and Chain Grocery Store “S” are located on the northern fringe of the
market area and there is a Chain Grocery Store “SL” located less than 0.5 miles north of the growing center at the
corner of “L” and “M” Streets.
Town X Farmers Market (downtown and suburban locations).
Natural Food Co-op.
What are the advantages of your business in this market segment?
Location within the community with weak retail competition - Over 70% of the residents surveyed in the area of
the growing center responded that if fresh local produce were available in their area, they would be very likely to
purchase locally. The highest share of those who responded positively to this question responded that they would
be most likely to purchase produce at a farmers market in the community.
Produce that is local and organic; an accessible location; highly visible; community ties and neighborhood
investment; established networks with community groups from the Town X CDC; at the source fruits and
vegetables.
What are the disadvantages of your business in this market segment?
The convenience of shopping at larger grocery stores will compete with the growing center as shoppers may favor
one stop shopping over fresh and local fruits and vegetables.
Mobility of the residents within the PMA; Consumer Buying Patterns: Produce is not as “cost efficient” as fast
food.
How will your business differentiate itself from your competitors? Why will customers switch to or select
this business?
Community based business that not only provides fresh fruits and vegetables, but provides job training,
nutritional education, and volunteer opportunities for the community.
Community supported agriculture (CSA) approach will be implemented once the crop production reaches a
critical mass sufficient to support this approach.
Customers will frequent this facility because of its accessibility, convenience, quality product.
Example Worksheet # 13 – Competition
Appendix B – Example Worksheets B-22
Market Segment: Wholesale, Direct to Restaurants
Who are the competitors for each market segment?
The growing center would compete with grocery stores, produce wholesalers and local farms for business with
local restaurants.
Area growers include:
Berry Farm, Town Y, USA (berries and berry products).
“X” Farms, Town A, USA.
“B” Farms, Town B, USA.
“C” Greenhouse and Strawberry Farm, Town C, USA.
“LK” Farm, Town C, USA.
“MQ” Orchards, Town D, USA.
“TMC” Farm, Town E, USA.
“GT” Farms, Town D, USA (strawberries only).
“Z” Farms, Town F, USA.
Area wholesale distributors of fresh local produce include*:
“AP” & Sons & Daughter Too, Town X, USA.
“C” Foods Inc., Town X, USA.
“SO” Produce Company, Town X, USA.
“S” Foods, Town X, USA.
What are the advantages of your business in this market segment?
Location within the community.
Produce that is local and organic.
An accessible location; highly visible.
Community ties and neighborhood investment.
At the source fruits and vegetables.
What are the disadvantages of your business in this market segment?
The convenience of purchasing from larger farms or wholesale suppliers.
Limited selection of fruits and vegetables.
New to the market segment.
How will your business differentiate itself from your competitors? Why will customers switch to or select
this business?
Community based business that not only provides fresh fruits and vegetables, but provides job training,
nutritional education, and volunteer opportunities for the community.
Customers will frequent this facility because of its accessibility, convenience, quality product, community
support.
Example Worksheet # 14 – Promotion
Appendix B – Example Worksheets B-23
Describe how the product will be sold and what will be communicated to customers in each
market segment. Complete a worksheet for each market segment.
Market Segment: Retail, Direct to Consumer
How will your business gain access to the market segments?
Soliciting support and ownership by the community of the growing center in the surrounding neighborhood.
Town X CDC contacts with local organizations, churches and other community groups.
Erect signs visible from “D” Avenue as well as “D” Street to direct visitors to the growing center and on the
fence surrounding the growing center.
Community recruitment and volunteers for the development and operation of the growing center.
Program participation: Supplemental Nutrition Assistance Program (SNAP), Women, Infants, and Children
(WIC) supplemental nutrition program, and Farmer’s Market Nutrition Program (FMNP).
Reward volunteer groups with snacks and/or take-away such as a share of the crop.
What approach will you use for promotion?
During the first year, the surrounding neighborhood and interest organizations will be asked to participate in a
number of promotions: tree planting, and opening ceremony, web promotions, database management, marketing
communications and program participation.
Contest to develop the logo for the growing center.
Students and artists from the surrounding neighborhood will be asked to create the signs with materials donated
to the Town X Growing Center from Habitat for Humanity or other local organizations. Competition for local
artists and students could be coordinated by a local high school art teacher.
What message will you communicate to your potential customers?
Fresh fruits and vegetables locally grown within the community.
Community volunteers needed and welcomed.
Educational and job training opportunities.
Encourage ownership in the growing center and its success within the community.
How often will customers be contacted through advertising and communications?
Regular (at least monthly) visits to local church groups, senior centers, youth centers and school classes to work
and learn during the Town X Growing Center’s first growing year.
Example Worksheet # 14 – Promotion
Appendix B – Example Worksheets B-24
Market Segment: Wholesale, Direct to Restaurants
How will your business gain access to the market segments and distribution channels?
Direct contact with chefs at local restaurants.
Requests by customers of restaurants that are also members of the community around the growing center.
What approach will you use for promotion?
Direct contact with chefs at local restaurants.
Word of mouth by customers of restaurants that are also members of the community around the growing center.
Advertising (e.g., fliers).
What message will you communicate to your potential customers?
Quality fresh fruits and vegetables locally grown within the community.
Competitively priced.
Consistent supply.
How often will customers be contacted through advertising and communications?
Regular (at least monthly) contacts or visits to area restaurants.
Example Worksheet # 15 – Crop Management
Appendix B – Example Worksheets B-25
Production management for a farm involves maximizing the food crops that can be produced on
a piece of land in order to meet the objectives of the marketing strategy, in terms of the type,
amount, and quality of crops that are to be produced, and the profitability of those crops.
What approach will be used for crop production (native soil plantings, raised beds, aquaponics)?
Crops will be grown in four 30 feet wide by 96 feet long hoop houses. Each hoop house will contain 24 – 30
four feet wide by eight feet long raised planter beds. Vertical gardens will be used during the spring and
summer growing seasons for berries. It is anticipated that one of the four hoop houses will include an
aquaponics system to be utilized for both raising fish such as tilapia and vegetables.
In year one, a single hoop house along with vertical gardens will be installed with initial plantings in the
spring. The second and third hoop houses will be erected during the first year for use in the second year. The
fourth hoop house will be erected in the second year for use in the third year with the aquaponics production
anticipated in the fourth or fifth year of operation using a portion or all of one of the fourth hoop house. The
vertical gardens will be installed and plantings accomplished in spring of the first year.
Crop production techniques will be developed with the assistance of Town X Grows, the University of Town
X, and the Nonprofit Food Technology.
In addition to crop production facilities, an 1800 square foot educational facility including a class room and
rest rooms will be constructed on the site during the first year. In addition, a free standing farm stand will
also be provided on the side with an enclosure added in the second year or third year.
Storage of tools and other equipment will be on shelves and benches constructed within the hoop houses until
a storage shed is erected in the second year.
What crop management alternatives will be implemented (e.g., weed, pest and disease control)?
All crop production will use organic growing methods to meet the criteria of a certified organic crop
production facility. Organic pest management practices will be implemented to develop and maintain healthy
soils and strong plants that can withstand pests and encourage beneficial insects by creating environments
that attract them. Crop selection will focus on biodiversity in the crops and crop varieties that are resistant to
pests and diseases. Selected approved substances will be used when necessary.
How will soil fertility be addressed (e.g., enhance existing soils, compost, mulch, fertilizer)?
Organic materials such as cover crops, crop residues, and compost will be added to soils to build soil organic
matter and improve the ability of the soil to supply nutrients to the plants. It is anticipated that composting
will be conducted on the growing center.
What type of water supply (e.g., city water, well) and irrigation system will be used (e.g., tile drains,
drip zone irrigation, sprinkler systems)?
Water is supplied by the municipal water system. Plant irrigation will initially be accomplished by hand
watering using a water spigot, hose and nozzle. Once there is a better understanding of the quantities of water
needed other methods of watering such as drip irrigation will be evaluated.
Will seeds or seedlings be used? How will seed and plant selection be accomplished?
Seeds and seedlings will be obtained from a combination of “BS” Farms, Town X Grows, and Town X
Botanical Gardens. Seedlings will ultimately be developed at the Growing Center.
Example Worksheet # 15 – Crop Management
Appendix B – Example Worksheets B-26
What waste handling and disposal will be required and how will it be accomplished?
Organic waste such as crop residues will be composted on the site. Recyclable materials such as plastics,
paper, and cardboard will be recycled. Extra crops that are not sold will be donated to community food
centers. Disposal wastes will be minimized.
What quality control measures will be needed?
Quality control will be needed for all aspects of crop production and harvesting. Quality control will need to
address soil fertility, plant survival, and the quality and appearance of the crops.
How will security for the property, equipment, and crops be accomplished (e.g., fencing, cameras)?
The property is fenced around its perimeter. An access gate for vehicles to enter the site and walk gates for
customers and workers to enter the site.
Identify any other crop management issues (itemize)?
No other issues are identified at this time.
Example Worksheet # 16 – Planting and Harvesting Schedule
Appendix B – Example Worksheets B-27
Discuss your planting and harvesting schedules.
How will plantings be made to achieve the required crop harvest to meet the marketing strategy?
An aggressive operational plan focused on highly productive cropping systems including crop rotation, succession planting, intercropping, companion
planting, and timing of plantings including removal of plants prior to full production capacity to allow for the start of a second crop to advance
production of a crop. It is anticipated that several growing seasons will be necessary prior to identification of the most productive approach for
maximum capacity.
What is your planting and harvesting schedule? Identify the year each crop will first be planted.
Crop
Year
Activity
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Broccoli
1
Plant
X
X
X
X
Harvest
X
X
X
X
X
X
Leaf Greens
1
Plant
X
X
X
X
X
X
X
X
Harvest
X
X
X
X
X
X
X
X
X
X
Herbs
1
Plant
X
X
X
X
X
X
X
X
Harvest
X
X
X
X
X
X
X
X
X
X
Cucumbers
1
Plant
X
X
X
X
X
X
Harvest
X
X
X
X
X
X
X
Spinach
1
Plant
X
X
X
X
Harvest
X
X
X
X
X
X
X
X
Cabbage
1
Plant
X
X
X
X
X
X
Harvest
X
X
X
X
X
X
X
X
Potatoes
3
Plant
X
X
Harvest
X
X
X
X
X
X
Carrots
3
Plant
X
X
X
X
X
Harvest
X
X
X
X
X
X
Beets
3
Plant
X
X
X
X
X
Harvest
X
X
X
X
X
X
X
X
Strawberries
1
Plant
X
X
Harvest
X
X
X
X
Note: Estimates are based on three seasons of production. These estimates are provided for evaluation purposes and need to be
reviewed and updated by the Farm Manager based on actual crops and planting and harvest schedules.
Example Worksheet # 17 – Farm Planning
Appendix B – Example Worksheets B-28
Estimate the operating expense and size and capacity of the farm.
Business Name
Town X Growing Center
Hoop House
Total Length
96
ft
Total Width
30
ft
Width of Row
1.5
ft
Footpath Area
30%
percent
Tool Storage Area
25
ft2
Composting Area
25
ft2
Other
50
ft2
TOTAL GROWING AREA
1916
ft2
TOTAL BED LENGTH
1277
ft
Growing Medium (For Raised Beds)
Depth
18
inches
TOTAL SOIL VOLUME
958
yards
Hoop House
Crop
Percent of
Total
Growing
Area
Crops
Inputs
Distance
Between
Plants
(ft)
Time to
Maturity
(from
seed)
(days)
Yield
(per
plant)
(pounds)
Yield
(per foot
of row)
(pounds)
Market
Price (per
pound)
($)
Seed/ Starter
($/plant)
Nutrients
($/ft2/day)
Pest Control
($/ft2/day)
Water
($/ft2/day)
TOTAL
COST OF
INPUTS
($/ft2/day)
Broccoli
15%
2.0
60
1.50
0.8
$ 1.69
$0.010
$0.001
$ 0.001
$ 0.001
$0.003
Leaf Greens
25%
0.5
45
0.38
0.8
$3.00
$0.010
$0.001
$0.001
$0.001
$0.003
Herbs
5%
0.3
60
0.02
0.1
$3.00
$0.010
$0.001
$0.001
$0.001
$ 0.004
Cucumbers
15%
1.0
45
1.20
1.2
$ 0.65
$0.010
$0.001
$0.001
$0.001
$0.003
Spinach
25%
0.3
45
0.13
0.4
$1.75
$0.010
$0.001
$0.001
$0.001
$0.004
Cabbage
15%
2.0
75
3.00
1.5
$0.69
$0.010
$0.001
$0.001
$0.001
$0.003
Total
100%
Example Worksheet # 17 – Farm Planning
Appendix B – Example Worksheets B-29
Data Calculations and Outputs
Hoop House
Crop
Percent
of Total
Growing
Area
Total
Length of
Row (ft)
Expected
Annual Yield
Value of
Annual
Yield
Annual Cost
of Inputs
Growing
Seasons
3 Season (lbs)
4 Season
(lbs)
3 Season
4 Season
3 Season
4 Season
Broccoli
15%
192
656
874
$1,108
$1,477
$243
$ 323
3
Leaf Greens
25%
319
1457
1943
$4,371
$5,828
$452
$602
3
Herbs
5%
64
15
19
$44
$58
$92
$122
3
Cucumbers
15%
192
1399
1865
$909
$1,212
$254
$338
3
Spinach
25%
319
777
1036
$1,360
$1,813
$481
$641
3
Cabbage
15%
192
1049
1399
$724
$965
$241
$322
3
100%
1277
$8,515
$11,354
$1,762
$2,349
Example Worksheet # 18– Yield (Size and
Capacity)
Appendix B – Example Worksheets B-30
Describe the production capacity and plans for future growth. Complete one worksheet for
each market segment. Farm Planning worksheets are provided in Appendix B to assist in
estimating the size and capacity of the farm. An electronic version is available, upon request.
What is the estimated output for each crop for this market segment during the first five years of
production (e.g., pounds of produce per month)?
Market Segment: Retail, Direct to Consumer
Crop
Year 1
Year 2
Year 3
Year 4
Year 5
Expected Output
Broccoli
656
1,345
1062
1316
1135
Leaf Greens
1,457
2,990
2124
2631
2271
Herbs
15
30
35
44
38
Cucumbers
1,399
2,870
2265
2807
2422
Spinach
777
1,595
1133
1403
1211
Cabbage
1049
2153
2549
3157
2725
Potatoes
0
0
1133
1403
1211
Carrots
0
0
944
1169
1009
Beets
0
0
1416
1754
1514
Strawberries
600
600
600
600
600
What are the plans for growth of the business for this market segment?
Initial sales for this market will be through the onsite farm stand and local farmers markets. Growth in this
market will be through increased crop production and variety and the establishment of a Community
Supported Agriculture (CSA) approach for the farm. In addition, acceptance of Electronic Benefit Cards
(EBT) cards and participation in resident assistance programs will also be pursued.
Note: Estimates are based on three seasons of production. These estimates are provided for
evaluation purposes and need to be reviewed and updated by the Farm Manager based on
actual crops and planting and harvest schedules. Strawberry production assumes 20 vertical
units with five growing pots and four plants per pot.
Example Worksheet # 18– Yield (Size and
Capacity)
Appendix B – Example Worksheets B-31
What is the estimated output for each crop for this market segment during the first five years of
production (e.g., pounds of produce per month)?
Market Segment: Wholesale, Direct to Restaurants
Crop
Year 1
Year 2
Year 3
Year 4
Year 5
Expected Output (lbs)
Broccoli
0
0
295
501
1,022
Leaf Greens
0
0
590
1,002
2,044
Herbs
0
0
10
17
34
Cucumbers
0
0
629
1,069
2,180
Spinach
0
0
315
535
1,090
Cabbage
0
0
315
535
1,090
Carrots
0
0
965
1,292
1,938
Beets
0
0
965
1,292
1,938
Strawberries
0
0
0
0
0
What are the plans for growth of the business for this market segment?
Entry into this market is not anticipated until crop production techniques and product quality objectives for
this market segment have been achieved. This is expected in the third year of operation. Growth in this
market segment will be achieved through direct marketing to local restaurants and expansion of the crop
variety to meet the needs of this market.
Note: Estimates are based on three seasons of production. These estimates are provided for
evaluation purposes and need to be reviewed and updated by the Farm Manager based on
actual crops and planting and harvest schedules.
Example Worksheet # 19 – Physical
Resources
Appendix B – Example Worksheets B-32
Physical resources include land, buildings, and equipment necessary to produce and market
your crops to meet the objectives of the marketing strategy. Describe your physical resource
needs and how they will be acquired.
List the resources needed
Describe the physical resource and how it will be acquired. Describe
any issues which may affect the use of or access to the resource (e.g.,
suspected or know environmental contamination on the property).
Land
1646 Town X Avenue, Town X,
USA.
Two plus acre former industrial property has been acquired by the
Town X CDC. Environmental issues consistent with the former
industrial use of the property were identified and environmental
assessment and remediation activities conducted on the property.
Approximately 60% of the property is covered by concrete
associated with the floor and foundation of the former building
located on the property. Soil on the property is not suitable for
growing. The concrete pads must remain in place as a condition of
the environmental remedial action.
Buildings
Four 30 feet by 96 feet hoop houses.
Educational facility (1800 square
feet).
Storage building.
Hoop houses will be purchased as a kit and erected on the site.
Lumber and additional hardware will also be purchased.
The educational facility and storage building will be designed for the
specific purposed and constructed on site.
Other Structures
Vertical gardens.
Raised beds.
Farm stand.
Vertical gardens have been donated by Nonprofit Food Technology
and will be erected on the site.
Lumber and other hardware for construction of the raised beds will
be purchased.
The farm stand will initially be an “open air” stand located on the
property. An enclosed farm stand is anticipated in the fourth or fifth
year of operation.
Example Worksheet # 19 – Physical
Resources
Appendix B – Example Worksheets B-33
Equipment
No specific equipment has been
identified for the initial years of
operation.
Once crop production reaches the full capacity of the facility, it is
anticipated that a vehicle may be needed to deliver product. This is
not anticipated until at least the fifth year of operation.
Tools
Gardening tools.
Construction/maintenance tools.
Gardening tools include racks, shovels, hoses, spray nozzles. Tools
will be obtained through donations or purchased as needed.
Construction/maintenance tools include hand tools such as hammers,
screw drivers, wrenches and power tools such as saws and drills.
Tools will be obtained through donations or purchased as needed.
Supplies
Soil.
Compost.
Soil and compost will be needed initially to establish the raised beds
and initiate crop production. Soil and compost will be obtained
through donations or purchased as needed. Compost is anticipated to
be produced on site in the future.
Utilities
Water.
Electric.
Sewer.
Natural gas.
Utilities will be purchased from local suppliers. Water lines with
frost proof spigots will need to be run to each hoop hose and the
vertical gardens as they are constructed. Electricity for lighting and
weather proof electrical outlets will also need to be run to each hoop
house and the vertical garden as they are constructed. Water, electric,
sewer, and natural gas will need to be provided to the education
facility and electricity will need to be provided to the storage shed
and farm stand on the site as part of the building construction.
Other Resources (Itemize)?
Composting facility.
The type of facility will be evaluated once anticipated production
quality and productivity has been achieved and the amount of
composted needed has been determined. In addition, a source of
organic material other than crop residue generated on the site may be
needed.
Example Worksheet # 20 – Manpower Needs
Appendix B – Example Worksheets B-34
Identify the labor tasks and estimate the number of hours per week and weeks per year required for each task.
Task
Year 1
Year 2
Year 3
Year 4
Year 5
Hours/ week
Weeks/ year
Total
Hours/ week
Weeks/ year
Total
Hours/ week
Weeks/ year
Total
Hours/ week
Weeks/ year
Total
Hours/ week
Weeks/ year
Total
Marketing
Sales/deliveries
10
30
300
10
30
300
20
30
600
20
30
600
30
30
900
Promotion
10
5
50
10
5
50
10
5
50
10
5
50
10
5
50
Marketing Total
20
35
350
20
35
350
30
35
650
30
35
650
40
35
950
Operations
Farm Manager
40
52
2080
40
52
2080
40
52
2080
40
52
2080
40
52
2080
Farm volunteers (Crop
management)
60
52
3120
60
52
3120
60
52
3120
60
52
3120
60
52
3120
Farm volunteers
(harvest)
60
30
1800
90
30
2700
90
30
2700
120
30
3600
120
30
3600
Construction volunteers
(Hoop houses)
240
2
480
240
2
480
240
2
480
240
2
480
Operations Total
400
136
7480
430
136
8380
430
136
8380
460
136
9280
220
134
8800
Example Worksheet # 20 – Manpower Needs
Appendix B – Example Worksheets B-35
Task
Year 1
Year 2
Year 3
Year 4
Year 5
Hours/ week
Weeks/ year
Total
Hours/ week
Weeks/ year
Total
Hours/ week
Weeks/ year
Total
Hours/ week
Weeks/ year
Total
Hours/ week
Weeks/ year
Total
Administrative
Administrative services
(Town X CDC)
4
50
200
4
50
200
4
50
200
4
50
200
4
50
200
Administrative Total
4
50
200
4
50
200
4
50
200
4
50
200
4
50
200
Financial
Financial services
(Town X CDC)
4
50
200
4
50
200
4
50
200
4
50
200
4
50
Financial Total
4
50
200
4
50
200
4
50
200
4
50
200
4
50
200
Note: Manpower will need to be re-evaluated by the Farm Manager and Director of Town X CDC as the farm is brought into
production. Initial manpower needs may be higher in order to set-up the facility and begin operations.
Example Worksheet # 21 – Workforce Needs
Appendix B – Example Worksheets B-36
Describe the manpower needed to operate the farm. This should include management, as well as farm labor.
Position description
What skills or experience are
needed?
How will positions be filled (e.g.,
full-time, part-time, volunteer,
service contractor)?
What benefits will be
offered?
Typical salary
range
Farm manager.
Knowledge of farm management,
three season growing using hoop
houses and vertical gardens, and
organic farming techniques.
Full-time.
?
$35,000 to
$40,000 per year.
Farm workers.
No specific skills or experience
required.
Part-time volunteers.
None.
None.
Promotion.
Knowledge of advertising and
graphics.
Part-time volunteers.
None.
None.
Sales and distribution.
Experience in sales, drivers
license and vehicle.
Part-time volunteers.
None.
None.
General workers.
Basic skills in construction for
assembly of hoop houses.
Part-time volunteers.
None.
None.
Administrative support.
Basic administrative skills.
Part-time – will be filled by existing
Toledo CDC employees.
Existing benefits.
Existing salary.
Financial support.
Basic financial skills.
Part-time – will be filled by existing
Toledo CDC employees.
Existing benefits.
Existing salary.
What training will be required and how will it be accomplished?
Training will be accomplished by the farm manager for all farm workers. Sales, promotion, and delivery training will be provided by Town X CDC.
Example Worksheet # 22 – Regulation and Policy
Appendix B – Example Worksheets B-37
Identify the type of permits, licenses, regulations, or certifications and associated fees required to start up and conduct the business.
What regulatory requirements exist? What conditions or issues are associated with each requirement? What fees will be incurred? Can the
requirement be met?
Regulatory Issue
Requirement
Conditions or Issues
Fees ($)
Can it be met?
Planning.
Planning approval is required and has
been received.
No conditions.
No Fees.
Yes.
Zoning.
Property zoning includes agricultural
uses.
No conditions.
No Fees.
Yes.
Waste handling and
disposal.
No specific waste handling
requirements; however, composting
may require approvals.
Health.
Safety.
Federal and state worker safety will
need to be considered for employees
and labor.
Yes.
Building.
Building permits will be needed for all
structures.
Yes.
Inspections.
Inspections will be required for new
construction.
Yes.
Environmental.
Environmental issues have been
addressed through the State Voluntary
Action Program. Site assessment and
remedial action are complete.
Native soil cannot be used for crop
production, concrete pads must remain.
No.
Yes.
Example Worksheet # 22 – Regulation and Policy
Appendix B – Example Worksheets B-38
What regulatory requirements exist? What conditions or issues are associated with each requirement? What fees will be incurred? Can the
requirement be met?
Regulatory Issue
Requirement
Conditions or Issues
Fees ($)
Can it be met?
Food handling
(handling, storing,
packaging, and
distributing).
Business operations.
Sales tax.
Other (itemize).
Note: Additional information will need to be obtained in order to identify regulatory issues.
Example Worksheet # 23 – Annual Expenses
Appendix B – Example Worksheets B-39
Estimate the annual expenses for the farm.
Detailed Expenses
Year 1
Year 2
Year 3
Year 4
Year 5
Assumptions
Assumption for annual adjustment for
inflation percentage.
Direct Farm Operating Costs
Identify any additional assumptions used to
develop the expense estimates.
Annual setup and removal
Hoop house-temporary
-
-
-
-
-
Hoop houses to be permanent - One-time
cost for installation.
Vertical garden
100
100
100
100
100
Vertical gardens will be installed by
volunteers or farm manager, cost for
miscellaneous items for set-up.
Other
Total annual setup and
removal
100
100
100
100
100
Repairs and Maintenance
Repairs and Maintenance
1,000
1,000
1,000
2,000
2,000
Minor repairs to hoop houses and raised
beds.
Total repairs and
maintenance
1,000
1,000
1,000
2,000
2,000
Equipment and Tools
Fuel
-
-
-
-
-
No fuel use is anticipated.
Equipment leases (long-term)
-
-
-
-
-
No leases anticipated.
Rentals (short-term or daily)
-
-
-
-
-
No rentals anticipated.
Processing equipment
-
-
-
-
-
No processing equipment anticipated.
Tools
100
100
100
100
100
Annual expenditure to replaced worn or
broken tools.
Tractor
-
-
-
-
-
No tractor anticipated.
Example Worksheet # 23 – Annual Expenses
Appendix B – Example Worksheets B-40
Detailed Expenses
Year 1
Year 2
Year 3
Year 4
Year 5
Assumptions
Truck
-
-
-
-
-
A truck or delivery vehicle may be needed
but not anticipated in first five years.
Other
Total equipment
100
100
100
100
100
Seed & Soil Materials
Fertilizers and pesticides
100
200
300
400
400
Soil condition and pest control is anticipated
through soil management techniques.
Seed/seedlings
100
200
300
400
400
Seeds and seedlings will be donated or
seedlings started at farm.
Soil preparation
-
1,000
1,000
500
500
Assume compost will be generated on site in
later years.
Supplies
900
1,000
1,500
1,800
2,000
Other
Total materials
1,100
2,400
3,100
3,100
3,300
Human Resources & Personnel
Direct Farm Payroll
Manager salaries
31,200
31,200
31,200
31,200
31,200
Assumed $15.00 per hour for 2080 hours per
year.
Hourly payroll
-
-
-
-
-
Additional labor is assumed to be volunteer.
Temporary workers
-
-
-
-
-
Additional labor is assumed to be volunteer.
Benefits
1,560
1,560
1,560
1,560
1,560
Assumed to be 5% of salary.
Workers compensation
insurance
1,872
1,872
1,872
1,872
1,872
Assumed to be 6% of salary.
Payroll taxes
6,240
6,240
6,240
6,240
6,240
Assumed to be 20% of salary.
Payroll service fees
-
-
-
-
-
Assumed to be covered by Town X CDC.
Volunteer expenses
2,000
2,000
3,000
3,000
3,000
Miscellaneous costs for volunteers.
Administrative payroll
-
-
-
-
-
Assumed to be covered by Town X CDC.
Example Worksheet # 23 – Annual Expenses
Appendix B – Example Worksheets B-41
Detailed Expenses
Year 1
Year 2
Year 3
Year 4
Year 5
Assumptions
Training and professional
development
500
500
500
500
500
Cost to attend conferences/training session
for Farm Manager.
Professional
Accounting
-
-
-
-
-
Assumed to be covered by Town X CDC.
Consulting
-
-
-
-
-
Assumed to be covered by Town X CDC.
Contractors
-
-
-
-
-
Assumed to be covered by Town X CDC.
Legal
-
-
-
-
-
Assumed to be covered by Town X CDC.
Other
Total human resources
43,372
43,372
44,372
44,372
44,372
Sales and Distribution
Delivery
-
-
-
-
-
Assumed to be handled by volunteers.
Fuel, travel & vehicles
300
300
300
400
400
Volunteer fuel reimbursement.
Packaging materials (crates, bags)
1,000
1,000
1,500
2,000
2,000
Bags and/or crates for produce.
Storage
-
-
-
-
-
No storage anticipated.
Rent
-
-
-
-
-
No rent anticipated.
Other
Total sales and
distribution
1,300
1,300
1,800
2,400
2,400
Marketing and Advertising
Advertising
300
300
300
300
300
Marketing materials.
Direct marketing
300
300
300
300
300
Marketing materials.
Mailing and advertising supplies
300
300
300
300
300
Marketing communications.
Postage
500
500
500
500
500
Periodic mailers to 1000 plus.
Public and press relations
Signs
150
150
150
150
150
New and replacement signs - materials only -
labor assumed to be volunteer.
Example Worksheet # 23 – Annual Expenses
Appendix B – Example Worksheets B-42
Detailed Expenses
Year 1
Year 2
Year 3
Year 4
Year 5
Assumptions
Web site and web advertising
Assumed to be maintained by Town X CDC
and volunteers.
Licensing
Other
500
500
500
500
500
Volunteer expense reimbursement.
Total marketing and
advertising
2,050
2,050
2,050
2,050
2,050
Utilities
Electric
2,000
2,000
2,000
2,000
2,000
Telephone
1,200
1,200
1,200
1,200
1,200
Cell phone for farm manager.
Water
500
600
750
800
800
Sewer
600
600
600
600
600
Heat (oil, gas)
1,000
1,800
1,800
1,800
1,800
Total utilities
5,300
6,200
6,350
6,400
6,400
General and Administrative
Bank Charges
-
-
-
-
-
Computers
-
-
-
-
-
Insurance
Liability
2,000
2,000
2,000
2,000
2,000
Property & Casualty
2,000
2,000
2,000
2,000
2,000
Licenses, permits, and fees
Miscellaneous
Office equipment
-
-
-
-
-
Postage
500
500
500
500
500
Rent and leases
-
-
-
-
-
Supplies
500
500
500
500
500
Taxes - entity or corporation
Taxes - property
Example Worksheet # 23 – Annual Expenses
Appendix B – Example Worksheets B-43
Detailed Expenses
Year 1
Year 2
Year 3
Year 4
Year 5
Assumptions
Other
Total general and
administrative
5,000
5,000
5,000
5,000
5,000
One-Time or Start-up Costs
Deposits with public utilities
Promotion for opening
1,550
Community recruitment, opening ceremony
(Based on Market Study estimate).
Signs
150
Initial signs and log development (Based on
Market Study estimate).
Web ordering system
Other
Site Cleanup, shrub and
tree removal
1,000
Initial Soil/Compost for
beds
5,000
5,000
5,000
5,000
-
Initial cost for soil/compost to set up beds in
new hoop houses.
Total start-up costs
7,700
5,000
5,000
5,000
-
Non-cash expenses
Depreciation
Total non-cash expenses
-
-
-
-
-
Example Worksheet # 24 – Projected Income
Appendix B – Example Worksheets B-44
Detailed Income
Year 1
Year 2
Year 3
Year 4
Year 5
Assumptions and Limitations
Farm Sales
Retail
10,315
19,275
28,877
32,658
27,170
Assumed 100%, 100%, 85%, 75%, 65% of sales in year
1, 2, 3, 4, 5, respectively.
Wholesale
-
-
5,096
11,219
15,707
Assumed 0%, 0%, 15%, 25%, 35% of sales in year 1, 2,
3, 4, 5, respectively.
Other programs
-
-
-
2,000
2,000
CSA Income from retail sales.
Less: Spoilage
103
193
340
459
449
Assumed to be 1% of crop.
Net Projected Sales
10,419
19,468
34,313
46,336
45,326
Other sources of Income
Grants
USDA Grant
35,000
30,000
25,000
20,000
15,000
Initial year based on Market Research proposal.
Assumed reduce funding in subsequent years.
Local Grants
10,000
5,000
5,000
5,000
5,000
Initial year based on Market Research proposal.
Assumed reduce funding in subsequent years.
Donations
Special Events
3,000
3,000
3,000
3,000
3,000
Initial year based on Market Research proposal.
(Source)
Interest income
-
-
-
-
-
Rental income
-
-
-
-
-
Total other income
48,000
38,000
33,000
28,000
23,000
Example Worksheet # 25 – Income and
Expense
Appendix B – Example Worksheets B-45
Estimate the annual profit or loss for the farm.
Profit & Loss Projection
Year 1
Year 2
Year 3
Year 4
Year 5
Income
Projected Sales
10,419
19,468
34,313
46,336
45,326
Grants and other income
48,000
38,000
33,000
28,000
23,000
Total Income
58,419
57,468
67,313
74,336
68,326
Direct Operating Expenses
Annual setup and removal
100
100
100
100
100
Total repairs and maintenance
1,000
1,000
1,000
2,000
2,000
Equipment and Tools
100
100
100
100
100
Seed & Soil Materials
1,100
2,400
3,100
3,100
3,300
Human Resources & Personnel
43,372
43,372
44,372
44,372
44,372
subtotal
45,672
46,972
48,672
49,672
49,872
Indirect Operating Expenses
Sales and Distribution
1,300
1,300
1,800
2,400
2,400
Marketing and Advertising
2,050
2,050
2,050
2,050
2,050
Utilities
5,300
6,200
6,350
6,400
6,400
Total Operating Expenses
54,322
46,850
49,200
50,850
51,050
Net Operating Income(Loss)
4,097
946
8,441
13,814
7,604
General and Administrative
5,000
5,000
5,000
5,000
5,000
One-Time or Start-up Costs
7,700
5,000
5,000
5,000
-
Net Income Before Non-Cash Items
(8,603)
(9,054)
(1,559)
3,814
2,604
Depreciation and other non-cash expenses
-
-
-
-
-
Net Income Before Taxes
(8,603)
618
8,113
13,486
12,276
Income Taxes (if any)
Example Worksheet # 25 – Income and
Expense
Appendix B – Example Worksheets B-46
Profit & Loss Projection
Year 1
Year 2
Year 3
Year 4
Year 5
Net Income (Loss)
(9,672)
(9,672)
(9,672)
(9,672)
Example Worksheet # 26 – Projected Fixed Assets
Appendix B – Example Worksheets B-47
Estimate the fixed assets for the farm.
Fixed Assets
Year 1
Year 2
Year 3
Year 4
Year 5
Assumptions
Identify any assumptions used to
develop the expense estimates.
Initial Cash Outlay for Fixed Asset
(Building and site prep estimates based
on January 2011 preliminary project
cost estimate.)
Land (Purchase or Lease)
-
-
-
-
-
Site preparation
188,000
Hoop house (including construction
labor)
3
16,000
16,000
16,000
16,000
-
Labor assumed to be performed by
volunteers.
Raised beds/planters
2,250
2,250
2,250
2,250
-
Labor assumed to be performed by
volunteers.
Vertical garden hardware
4,500
-
-
-
-
Labor assumed to be performed by
volunteers.
Buildings and other structures
(Itemize)
297,000
Educational Facility.
Sales shed or farmstand
40,000
162,000
Enclosed farm stand, Shed.
Equipment (Itemize)
Other
5,000
1,000
1,000
1,000
Installation of electric and water for
hoop houses, repair of fences and
installation of gates.
Total outlays for fixed assets
512,750
19,250
59,250
181,250
-
3
It is assumed that four Hoop Houses will be built on the site over four years as outlined under Example Worksheet #5 – Goals.
Example Worksheet # 27 – Projected Funding
Appendix B – Example Worksheets B-48
Estimate the funding sources for the farm.
Available Capital
Year 1
Year 2
Year 3
Year 4
Year 5
Assumptions and Limitations
Identify any assumptions used to develop
the expense estimates or limitations on the
use of grants, donations or other funds.
Grants
County Port Authority
28,500
10,000
10,000
Development and Administration grant.
State Community Development
Finance Fund
20,000
10,000
20,000
Received – Site preparation, building
construction, storage building.
Local Foundation Grant
35,000
Potential – Purchase of hoop houses.
CDBG
437,000
106,000
Potential – Site development, education
center, farm stand.
USDA Grant: Community Food
Project
10,000
15,000
20,000
Potential – Provide funding for capital
improvements, hoop houses.
Donations
Nonprofit Food Technology
7,000
15,000
15,000
Donation of vertical garden equipment,
hoop houses.
Local donations and Fund raising
events
10,000
10,000
10,000
10,000
10,000
Offset portion of farm manger salary.
Loans
Investment
Financing
Other sources of capital
Total available capital
537,500
20,000
60,000
181,000
10,000
Example Worksheet # 28 – Funding
Information
Appendix B – Example Worksheets B-49
Describe the sources of funding (capital) to purchase and install the fixed assets needed to start
up the farm and achieve the business plan.
What are the potential sources of funding?
Funding for Site preparation, hoop houses, education facility and storage building - Department of Housing
and Urban Development (HUD) Community Development Block Grant (CDBG).
County Port Authority.
Nonprofit Food Technology.
Local donations and fund raising events.
Are there specific limitations on the funding?
HUD CDGB funds can be used for the improvement of communities through assistance to low- to moderate-
income persons and addressing slum and blight.
What are the critical assumptions concerning the funding?
Funding is available and can be obtained within the time constraints for construction.
HUD CDGB funds will be invested in public facility activities that will spur further economic investment
and maximize job creation/retention.
What is the timing of the funding and how will it impact the achievement of the business plan?
It is essential that funding be obtained in late fall in order to ensure that improvements are in place for the
growing season.
How will the funding be obtained?
HUD CDGB funding will be obtained through a grant application to Town X.
Funding applications will be submitted to appropriate funding source.
Fund raising events will be held on the farm at area community facilities.
Are there expenses associated with the funding?
There will be administrative expenses in developing the information needed for the applications and
preparing the applications for the grant funding.
There will be costs for fund raising events.
Example Worksheet # 29 – Risk Management
Appendix B – Example Worksheets B-50
Identify and evaluate potential risks that can impact the financial strategy and the success of
the business plan.
What are the potential risks
that may need to be managed?
How likely is the risk to
occur (high, medium,
low)?
What is planned to minimize potential
risks if they occur?
Production: Crop failure or
unusually small yields.
High - Smaller than
planned yield rates are
likely during the first few
years.
Farm Manager’s primary objective during
the first few years will be to implement
cultivation techniques that minimize
overhead and maximize production. This
will be accomplished with support from the
University of Town X, Nonprofit Food
Technology, and Town X Grows.
Marketing: Unable to sell full
production.
Medium.
Focused promotion and marketing approach.
Utilize volunteers to interact with potential
customers.
Financial: Unable to obtain
sufficient funding to sustain the
first three to four years and to
fund growth.
High.
Incorporate fund raising using events at the
farm and focus effort to obtain federal, state,
and/or private funding.
Labor: Unable to find sufficient
volunteers and maintain
consistent labor force.
Performance of Farm Manager.
Medium.
Utilize educational activities at local high
schools and trade schools, and the University
of Town X, and solicit neighborhood and
community groups for support and volunteer
time.
Other.
US EPA Region 5
77 W. Jackson Blvd.
Chicago, IL 60604
www.epa.gov/brownfields/urbanag
EPA-905-K-11-002
September 2011- Update