Is it profitable to be a farmer in Russia? How to choose a profitable business in agriculture Is it better to engage in mixed farming?

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One of the least expensive and profitable business ideas for aspiring entrepreneurs is agricultural activity.

In this industry, every product produced is in demand by the buyer, so you should not be afraid of competition.

Farming as a business idea for beginners is a great start that requires little financial investment, but requires concentration and attention.

Choice of activity

Farming or agriculture can be divided into two areas:

plant growing;
animal husbandry;

City dweller or countryside has an equal opportunity to start entrepreneurial activity.

There is no need to buy a large plot of land or rent premises. At the initial stage, you can organize a mini-farm in a private house or in the country.

What you can do:

Livestock - breeding pigs, chinchillas, rabbits, sheep, cows.
Poultry farming involves the cultivation of turkeys, chickens, broilers, geese, ducks.
Beekeeping for the sale of honey.
Fish farming - breeding carp, pike, sturgeon.
Gardening - growing fruits and berries.
Mushroom - growing honey agarics, champignons.

Certain activities provide the owner with a double benefit. For example, the maintenance of a rabbit farm profits from the sale of dietary meat and valuable skins.

Where to start your business

First you need ready-made business plan farms. First of all, you should decide on the direction.

Livestock does not require a large plot of land if poultry or small animals are to be raised.

With plant growing, the situation is more complicated, the larger the plot, the greater the yield. This is a seasonal activity and the plants can only be grown during the summer season.

To grow and market plant products all year round, greenhouses are needed.

The cost of building greenhouses is quite high, and the start-up capital should be more than one million rubles.

It is more expedient for a beginner inexperienced entrepreneur to start small. Good example- home poultry farm.

Sources of financing

Even small businesses require material costs for the construction of cages, the purchase of animals or plant seeds, feed or fertilizers. Not everyone has the necessary amount of money available.

There are several options:

Save up or borrow from relatives. In the first case, you will have to wait a long time, in the second, you need to warn the lender that money from the sale of agricultural products will not appear immediately.
Bank loan. But in this case, the same thing: the loan must be paid regularly, and the profit will appear after some time.
Governmental support. For budding farmers, the state provides loans for business development. The amount is small, only 50,000-60,000 rubles.
Investor search. This is not such a difficult task if you provide a competent business project.

There is a very long, but less costly way - it is to start a business from scratch, for example, grow greens or strawberries at home.

Invest the proceeds from the sale in development. Thus, after 2 years, you can safely go through the procedure state registration and expand the scale of production.

registration

The farm must be registered with the tax office.

It is much easier for an individual entrepreneur to sell his products than an ordinary farmer.

The registration procedure is quite simple: you need to contact tax office at the place of residence, fill out an application, hand over notarized copies of personal documents and pay a state fee of 800 rubles.

After receiving the registration document, you must register with the insurance and pension funds, open a bank account.

Financial questions

In addition to the initial investment, regular expenses should also be taken into account.

The upfront costs are those cash that are necessary for organizing a business: registration, equipment, construction of premises, purchase of seeds or a tribe.

Fixed costs are fertilizers, feed, utility bills.

It is necessary to draw up a detailed plan with calculations.

Income from the activity can be obtained only after the completion of the cultivation process.

Although some activities, such as quail farm, pay off very quickly. It will generate income from the sale of eggs almost immediately after the purchase of adult birds.

When drawing up a plan with calculations, you need to take into account income and expenses in two options: favorable and unfavorable.

After all, plants and animals are not always able to meet the farmer's expectations, the harvest may not be as rich as planned, the animals get sick, which entails additional costs for veterinarian services. There are many options for difficulties that can be encountered.

Any enterprise requires constant development in order for a small business to acquire a larger scale.

For example, you can purchase additional land plots that can be equipped with greenhouses or pens for animals.

Your entrepreneurial spirit is your success

And the last point is the assessment of competitiveness. It is better to take care of the sales market in advance.

For a particularly large farm, it is more expedient to open its own store or rent a place in the market.

It is a little more difficult for small farms to sell their products; wholesale buyers and shops prefer to enter into contracts only with large suppliers.

Therefore, if there are enough small farms in the region, it will be difficult to capture your share of the market. You can come up with new ideas for farming that are not developed in the region.

Farming as a business idea for beginners depends only on the entrepreneurial spirit of the businessman.

Starting your own business from scratch is difficult. You should plan out each step in as much detail as possible.

At the same time, agricultural activity in Russia today is not so well developed, so every newcomer has every chance to organize a profitable enterprise.

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Vladimir Slezko. Photo: AiF Bryansk / Olga Momot

Vladimir Slezko three times a week brings goat milk, cheese, sour cream, butter and cottage cheese to Bryansk from Kletnya, made in a small family backyard. For some time now it has been the only source of income for his large family. However, despite the fact that the demand for organic and natural products is growing in most large cities, the farmer has some problems with marketing.

Horned nurses

Olga Momot, AiF Bryansk: Vladimir, tell me, how did you decide to start your own business during the crisis, besides, the dairy industry is not the most profitable in agriculture?

Vladimir SLYOZKO, an aspiring dairy farmer, was born and lives in Kletna. He is married and has three daughters.

Vladimir Slezko: Actually, the crisis spurred me to start doing subsistence farming. Previously, there was no such need, the goats were kept only for themselves. He constantly traveled to Moscow to earn money, but now it has become difficult to work in the capital, and in the countryside, except for your work, you will not earn anything else. So we had to revive the traditions of our ancestors. My wife and I thought about it and decided to open a small family farm. They built a spacious barn, bought goats with savings. Of course, keeping the farm afloat is not easy, but we are not complaining yet.

- Why goats and not cows?

My father kept goats all his life, he himself made cheese, sour cream and cottage cheese from milk. You can say that I grew up on these home products, so, probably, I never got sick. I took these animals for myself in the courtyard when I already had children of my own, and they, as it happens, began to catch colds often. But as soon as goat milk products appeared on their menu, all problems immediately receded. In addition, goats are less hassle. They are not as capricious as cows, easier to graze and less burdensome to maintain.

Modern food industry taught us to flavors, thickeners, additives, preservatives, do people generally remember the taste of natural milk, cottage cheese?

Several generations really know only the taste of powdered milk. And only those who grew up in the countryside, who had their own farm, understand the full value natural product... Most city dwellers only begin to realize the difference over time. Although, if you objectively look the truth in the eye, there are no useful substances in store milk or meat for a long time - solid chemicals, and for our money. And to the detriment of health.

Made with love

Most farmers now complain not about production problems, but about marketing difficulties. Is it really to sell finished products really nowhere?

There is nowhere and no one. For example, in Kletná, there are goats in almost every household, and everyone carries the surplus to the market. For Bryansk dairy producers, such a concept as a sales market has long ceased to exist. And no one is doing anything to solve this problem. Maybe, of course, the situation is the same in other regions, I don’t presume to argue, but we have neither specialized fairs, nor bazaars, nor have we ever had it. So everyone survives as best he can. For example, I tried several times to negotiate deliveries to local stores, but I was offered a very ridiculous price, not even at cost. And I also need to feed my family. I know that I am far from the only one who faced such a problem. Such examples are common.

- It is probably difficult to maintain a whole courtyard together with your wife, how does your day usually begin?

We still have a modest farm - only 20 goats. Each needs to be milked, fed, so we get up early, about six o'clock. Then, based on the milk yield, we begin to calculate where and how much milk we need. For example, to make one kilogram of natural cheese, you need nine to ten liters of whole milk. With an average milk yield from one goat of two liters, you cannot count on much. Fortunately, cheese is not the most popular product; more often people come for milk.

- How are you familiar with the technology of making cheeses, does this require special knowledge?

In times of free internet access, this is not a problem. In addition, it is difficult only the first two or three times, and then you fill your hand, look at what is missing, and correct mistakes, if any. Of course, when we started producing cheese, cottage cheese and sour cream for sale, all technologies were already improved.

Earn trust

- Why do you think we now have so many counterfeit products on the shelves, echoes of sanctions?

I think it's not so much about the sanctions as about the attitude of manufacturers to their products. Mass production is always a profit hunt, which often goes to the detriment of quality. For example, I am ashamed to sell milk, which does not suit me myself. Plus, if I start to make a fake - I will lose much more - the trust of my clients, which I have won for so long. In addition, I am a believer and I try to do everything conscientiously so that people are satisfied and come to me again.

- Have you tried to apply for state support?

Tried it, but what's the point? Further development is not a problem, any farmer will tell you this, but this growth needs to be justified. In other words, while the sales market in the region does not work and it is unprofitable to sell a “native” product, why increase production?

Recently, the agricultural industry has been developing at a rapid pace. Large companies are actively buying up land in order to create farms on them. The state in every possible way supports entrepreneurs who have chosen this direction of activity. In this regard, we can say with confidence that farming as a business idea for beginners is the most the best way for those who want to start their own business.

Market analysis

Agricultural products are always in great demand among the population. But, unfortunately, the existing farms cannot fully satisfy it, since they produce small volumes of products. Before the crisis, farming in Russia developed poorly, because the market was overflowing with products from European suppliers. After the imposition of sanctions, many unfilled segments appeared on the market, and the percentage of unmet consumer needs increased. High demand for agricultural products and the lack of competition served as an impetus for the development of farming in Russia. This is quite an attractive idea for aspiring entrepreneurs who are taking their first steps in business.

If you have made a decision, I want to start farming, and are thinking about where to start and how to start a farm from scratch. We recommend starting by choosing a business line. This is very important point for any novice businessman. Experts recommend opening a mixed subsidiary farm at first. Thanks to this, you will be able to study the demand for a particular product in practice, after which you can move on to a narrower specialization.

Livestock

If you are attracted to the business idea of farming, you can try to go into animal husbandry. In this case, you will be able to produce such popular products as meat, milk, eggs, etc. Entrepreneurs who are not limited in financial capabilities can increase profits by:

Production processing products;
Guided tours of the farm;
Rural cafe or healthy food restaurant.

In addition, you can breed purebred young animals for their subsequent sale. Consider several options for organizing a livestock farm:

Pig farm. This is one of the most best business ideas of 2019 with minimal investment especially if you will be raising Vietnamese pigs. In order to open a modern farm with a thoroughbred livestock of 100 individuals, you will need from 2 to 5 million rubles;
The easiest way to start your business from scratch without money is poultry farming. If you don't have your own start-up capital, start raising laying hens. Of course, you will need a certain amount of money to purchase young animals and feed, but it is so insignificant that anyone can find it;
It should be noted that farming as a business also includes such an area of activity as beekeeping. To implement this idea, you do not need any special knowledge or large financial investments... To understand the course of the matter, it is enough to read the thematic literature or talk with experienced beekeepers. Such activities do not require significant monthly expenses, and the initial investment pays off in literally one year;
You can also go in for raising rabbits, sheep or fish farming. We've covered a few popular ideas. Where to start farming? The choice depends on your preferences and financial capabilities.

Plant growing

The most popular areas of activity:

Cultivation of grain crops. This business is closely related to animal husbandry, as cereals are the main ingredient in animal feed. In addition, crop products can be sold in bulk to food, pharmaceutical and perfume businesses;
If you want to start farming from scratch, you can start by growing flowers. Another promising direction is the cultivation of berries (strawberries, raspberries, currants, etc.). So that the development of the business is not influenced by seasonality, you can build several greenhouses or greenhouses. Vegetable growing also brings good profits, for example, growing garlic as a business. But for this business you will have to rent a large plot of land and a vegetable store.

When running a mixed subsidiary farm, you can significantly expand the range of products and thereby increase the profit margin.

Where can I get the money?

Entrepreneurs who want to start farming from scratch can count on government assistance. There are many government programs for business development. How to start farming in Russia and how to find money, we will talk in this section.

Beginning farmers are provided loans with a reduced interest rate for up to 5 years. In addition, under such programs, loan payments can be made only from the second year. In addition, you can try to issue a government gratuitous subsidy. To do this, you need to develop a business plan for the future farm with detailed calculations. In order for the commission to make a positive decision, it is advisable to attach to it a petition from the head of the district. Unemployed citizens can register at the employment center and receive assistance from the state to open a small farms in the amount of 50-60 thousand rubles.

Business registration

Now let's talk about how to arrange farming in Russia. Newbies often ask the question of how to start farming from scratch and at the same time avoid serious mistakes? Experienced businessmen recommend first of all to register their activities officially. It should be noted that a farm can be organized not only by citizens of our country, but also by foreigners. It can consist of three families, and all members of the organization must conclude an agreement with each other. Before registering a farming, consult a specialist so as not to lose sight of all these nuances.

Registration process:

Pay the state fee;
Write a statement and have it certified by a notary;
Take the package of documents to the tax office;
After registering the company, register with all funds;
Obtain the required codes from the statistics department;
Open a current bank account.

If you plan to wholesale your products in the future retail chains, you can't do without registration.

Now let's talk about where to start farming in Ukraine. In principle, there are no significant differences here. In Ukraine, you also need to go through the state registration procedure and register with the tax office.

Before you start farming from scratch, read useful tips shared by experienced businessmen:

In order to start farming from scratch, you need a land plot on which you organize your farm. Of course, you can start small, for example, from your own vegetable garden of 5-10 acres, but if you want your business to bring good income, you will have to think about buying or leasing land;
Farming is family business, which requires a responsible approach and full dedication. Hired workers will not put all their strength and soul into your farm. Their main goal is to work as little as possible while making more money. If you work with the whole family, everyone will be interested in making the business flourish. Each family member should have their own responsibilities and an area for which he is responsible;
Farming is time consuming. If you have own store, you can temporarily close it and go on vacation. The farm cannot be left for a minute. During the season, farmers work from morning to night seven days a week, since animals and crops require constant care. If you want to start farming from scratch, think again if you are ready for this lifestyle;
Experience comes with time, so you shouldn't rush and open a large-scale business right away. Before starting farming, get a cow and dozens of poultry. You can also plant a small plot of land to see in practice how things will go. After you get your hands on it, you can start expanding your business;
If you are thinking about how to start farming without money, you should not fully rely on government programs to develop the agricultural sector. Most often, they imply a partial repayment of interest on a loan, or a small financial aid. Of course, such programs should be used, but you should not rely on them too much;
At small volumes production you do not have to pay taxes. The legislation provides for the organization of small peasant farms that produce products for their own needs. Its surplus can be sold on the market and made a profit without paying any taxes.

The farming business is very relevant in today's market conditions. But it also has its pitfalls. Therefore, it is necessary to carefully study the specifics of activities, possible risks, to determine the direction and method of farming.

Features and benefits of a farming business

Consider key features business in agricultural production:

registration as an individual entrepreneur;
with livestock farming, you must have your own veterinarian;
in crop production, an agronomist is needed, because without a specialist, you can simply not notice the death of your crop due to various pests;
it is necessary to look for buyers in advance of the sale of crops or animals;
at a dairy farm, buyers are sought before purchasing animals.

The advantages of starting your own farm are as follows:

Fresh air
Environmentally friendly products
Running a family business
Possibility to choose different business areas: livestock, poultry, plant growing, fish farming, beekeeping, etc.
Preferential taxation and registration regimes.
State support programs.

Per last years the population's interest in environmentally friendly products has sharply increased.

Analysis of the situation in the field of agriculture in Russia

For more details on the market situation, see this video:

Today, the situation in the agricultural market, against the background of external economic factors, is very favorable for starting this type of business.

Due to many factors, including the gradually depreciating ruble against the dollar, sanctions for Western producers and subsidies for agricultural production, this sector of the economy is now considered profitable for entrepreneurs.

Having studied the situation in the regional market and compiling detailed business plan you can fill an empty niche and ensure the organization has a successful start.

Competitiveness of domestic producers relative to foreign

Over the past decade, the positions of domestic farm producers have significantly strengthened in comparison with foreign ones.

With the current state policy aimed at comprehensive export substitution of agricultural products, and with the active support of the state, the opening and development of new niches in the field of farming is more than relevant.

Competition with European suppliers, which was the main constraint, fell to a minimum. The main question for the farmer is the choice of direction and product for farming.

Calculating the approximate costs of starting a business

Investment depends on the initial conditions for development. If the farm is organized on the basis of an existing household, then the costs will be lower. In this case, there are already land and outbuildings.

If a business starts from scratch, then here the amount of investments depends on the direction of activity, the value of land, animals, plants, etc. On average, 5-6 million rubles are needed to open a farm.

Accordingly, they are needed. When looking for an investor, you should use all possible methods, not skipping those that seem unpromising.

The payback also depends on the chosen direction. For example, the pig farm will begin to pay off in 4-5 years. If breeding of chickens is chosen for the activity, then the profit will begin to flow in 8 months, because these products are in high demand.

Potential risks and profitability of organizing a farm

It is necessary to open a farming business with a clear understanding of the possible risks, since this is a very risky activity. There are many "enemies" here. In the field of animal husbandry, these can be epidemics, quarantine zones, diseases that can lead to the complete death of livestock. In the sulfur of plant growing, these are insects, natural factors, etc.

Business profitability directly depends on the choice of activity and the quality of the approach to your company. If you organize a farm competently, clearly taking into account all the nuances and risks, then, as a rule, any farm is quite profitable.

Where to start a business

Business organization is a long, painstaking process.

First of all, a novice entrepreneur who has firmly decided to organize his own farm (whether it be animal husbandry or crop production), it is necessary to solve the following topical issues:

Determine the direction of activity. For example, you can be engaged in crop production or animal husbandry. Much here depends on what kind of profit is planned in the future - seasonal or off-season, as well as on financial capabilities, experience, market situation. For example, if plant growing, then you will need it.
Draw up a detailed business plan. In it, you need to calculate in detail the costs and expected income, determine the payback period of investments. It is important to take into account the specifics of the situation on the regional market.
Purchase the necessary land, machinery, livestock, etc. In this case, it is better to consult with experienced specialists, to study all the nuances of the chosen industry Agriculture.
Go through the state registration procedure. Depending on the line of business, you can register the company as an individual entrepreneur or as an LLC. It is necessary to develop and maintain supporting documentation, obtain the necessary permits.
Apply for government support and possible with financing of activities. The state offers lucrative loans to agricultural enterprises, and many banks are ready to issue loans on favorable terms.

It is important to remember that a confident and successful start decides a lot in agriculture.

It is much more difficult to find a job in the countryside than in the city. The government expects that the Russian countryside will be brought back to life by farming, and is trying to support this type of small business in the countryside.

What is a peasant farm (KFH)

A peasant farm (KFH) is formed by representatives of one family who are personally involved in animal husbandry and crop production. Relatives are considered husbands-wives, parents or grandparents, children or grandchildren, siblings and their spouses and children. The age when you can become a member of a farm is over 16 years old. It is allowed to hire no more than 5 strangers.

The video is an example of the successful development of farming in the Kaluga region:

A peasant farm operates without forming a legal entity, as an individual entrepreneur, and is considered a commercial organization. Without a power of attorney, a peasant farm can be represented by its head, who is responsible for all legal, financial, accounting issues of the enterprise. For debts, a farmer, like an individual entrepreneur, is responsible with all his property.

Legislation regulating the activities of peasant farms

Federal Law "On the peasant (farm) economy" dated 04.12.2006 No. 201-FZ. Describes how to set up a farm and what rights and responsibilities the members of the farm have.
Federal Law "On the Development of Agriculture" dated December 29, 2006 No. 264-FZ. Tells what state support agricultural producers can count on.
Land Code, Federal Law "On the turnover of agricultural land". They regulate the acquisition of land plots and establish the reasons why land can be taken away.
Federal Law "On the quality and safety of food products", "On environmental protection", etc. Determine the parameters that the farming of farmers must comply with (ecology, product quality).
Tax Code of the Russian Federation; Federal Law "On state support in the field of agricultural insurance" and so on. Regulate financial issues.

The legislation governing the activities of peasant farms is often reviewed and revised.

How to get land for farming

If you own a plot of land, it is worth remembering that it must be used. If a field has been empty for more than 3 years, it may be taken away. Also, agricultural land must be treated with care - environmental violations can also cause the seizure of the site.

How to start a farming business from scratch - how to register a farm

To get into the register of peasant farms, it is required to draw up an agreement signed by all its members. The agreement specifies all the important points of activity: who is the head and members, what they can and should do, how property (land, buildings, equipment, animals) is used, how income is distributed.

Farms are registered with the tax office in a separate register. In this case, an application is filled out and an agreement is provided with the attachment of documents confirming the relationship (marriage and birth certificates).

As a rule, employees of the Federal Tax Service of the Russian Federation provide all the necessary explanations and provide assistance when submitting an application.

Is it profitable to do it

Agricultural activities

When organizing peasant farms, it should be understood that you will have to work in agriculture personally. The head of a farm is not a director, he, like everyone else, plows, removes manure, and so on. It may not be the easiest way for a city dweller to make a living, but for a peasant accustomed to such work, the farm can be a worthy alternative to other employment options.

When choosing a direction, it is worth considering that animal husbandry is less dependent on the season, but it pays for itself longer than crop production. For a start, it is more profitable to grow vegetables.

Most of the territory of Russia belongs to the zone of risky farming. That is why it is difficult to compete with European, Chinese and other foreign manufacturers. Fortunately, for several years now it has been possible to insure agricultural risks, including death from drought, the occurrence of epizootics, in which it is necessary to slaughter livestock, etc.

Nobody canceled the problems with implementation for farmers. Trade is increasingly shifting to networks, and they are interested in volumes that exceed the capabilities of farms. The way out is the cooperation of farms and the promotion of products through their channel.

Additional industries

Peasant farms can process grown products (for example, wash potatoes, ferment cabbage or make cheese), transport it, as well as feed, fuels and lubricants, etc., store their goods, sell them directly to consumers.

In addition, it is possible, for example, to sell manure, provide equipment, organize a cafe, etc. But maintaining the status of an agricultural producer with all subsidies and benefits is possible only if the share of income from livestock and / or crop production in the total income is more than 70%. The same manure applies to chemical production, not agriculture.

State support of peasant farms

What can you count on

In the area of agricultural production, peasant farms can receive funding from the state, for example, subsidies for the purchase of fuels and lubricants, a special tax regime with a 5-year vacation, government orders, regulation of prices and tariffs, antimonopoly measures, information and consulting support, participation of representatives from farmers in policy formation.
Subsidies are possible through small businesses and directly from peasant farms, as a rule, from the regions, in particular, leasing payments for special equipment or subsidies for the implementation of projects that are priority for the region (construction of greenhouses, cultivation of certain species, etc.).
As part of supporting the village, there are programs for the construction of housing, the attraction of young specialists (teachers, doctors, veterinarians - an important infrastructure for the life of a farm family), the development of kindergartens, schools, sports complexes, etc.

Successful farmers can receive grants from the state even for 5 million rubles, but beginners are given much less.

What does it take to get

To obtain state support, it is necessary to comply with the conditions of the selected programs, collect a package of documents and write an application to the structural unit of the administration of the constituent entity of the Russian Federation or its region responsible for agriculture.

Video - reportage about an optimistic farmer:

The conditions and documents in different programs are different - you can find out their lists through legal systems on the Internet or at consultations provided by state information centers for agricultural producers or small businesses.

Usually, documents are required confirming compliance with the conditions of the program, for example, the fact that at least 70% of income is received from the production of agricultural products. Also, the deadlines for submitting applications can be rather tight (2-3 weeks), and it is better to apply first, otherwise the budget may not be enough for everyone.

Agricultural franchises, associations and others

In order to withstand the competition from large manufacturers, it is beneficial to unite in unions and associations. They allow you to organize a slaughterhouse, an elevator, a sales channel, legal protection, consultations. Sometimes membership in at least some union is a condition for receiving state support.

Farmer assistance centers, usually regional and municipal, in addition to advice on everything from growing technology to taxation, can help with the preparation of documents. Small business support centers sometimes offer microfinance, i.e. loans up to 1 million rubles, which are difficult to obtain from banks. Farming schools, forums, seminars, often free of charge, allow you to learn how to farm.

A farm is a good choice for a peasant, especially from a remote village. In fact, it is necessary to do everything that a peasant family already does, but there is an opportunity to update equipment and equipment, find new buyers, and insure risks on favorable terms.

Video - about one of the Moscow region peasant farms: