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Organic Farm Business Plan

Freedom Farm

Submitted for Commerce 492.3, University of Saskatchewan

2001

Rosalind Ball
Heather Hack
Murray Nelson
Myles Thorpe

Executive summary

Introduction

Organic farming in Canada, and Saskatchewan in particular, has steadily increased especially in recent years. Reasons for the increase in organic food production are: market premiums of 2 to 2.5 times the conventional market price; an expansion in the consumer sector willing to pay the higher prices demanded by organic food; an expansion of markets in the developed world where Saskatchewan farm exports traditionally are targeted; and lower input prices due to organic production. This document is a proposed business plan, with a financial model, for setting up and operating an organic grain farm in Saskatchewan. The business is new, and is named Freedom Farm. Financial performance is projected for a ten-year period from 2002 to 2012. To sell organic produce at premium, Freedom Farm will obtain organic creditation from the Organic Crop Improvement Association (OCIA). The mission statement of Freedom farm is: To provide quality organic produce to suit customer demand while maintaining soil fertility and crop productivity.

Operations Plan

The proposal is for the establishment of a new organic grain production business in Kipling, South East Saskatchewan. The proposed business is a sole proprietorship that obtains financing from two sources: the owner putting $350,000 and a loan for $350,000. The land will be purchased near Kipling, SK, buildings and storage facilities will be constructed. Farm machinery will be purchased as used. The owner will hire seasonal help at peak times of the year. The farm will run a seven-part rotation on a total of 1920 seeded acres, with cropping from...

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