Relatively recently, a pressing issue arose - import substitution. Meat, vegetables, fruits - all agricultural products at the moment are urgently needed, and therefore - a relevant product. In this regard, aspiring entrepreneurs have increasingly begun to wonder about opening their own farm.

How to open a farm? In this guide, we will take a comprehensive look at this issue.

This area has not lost its relevance and will never lose it. There are millions of potential consumers of final products living in Russia. Meat processing plants are more interested in quality meat suppliers than ever before. But such a large scale is not always achievable for a beginning entrepreneur.

The primary task for a potential farmer should be to provide his own region with products, and as production grows, one can begin to think about entering the federal market.

Main types of farming activities

A farm can engage in the following activities:

• Livestock breeding;
• Vegetable growing;
• Plant growing and seed production;
• Production of products from our own natural raw materials.

The undoubted advantage of this type of activity is all kinds of government benefits and subsidies, which are relatively easy for a beginning entrepreneur to obtain.

How to legally register a farm?

Federal Law No. 74 “On Peasant (Farm) Farms” is responsible for regulating this type of activity. This type of business is registered as a peasant farm (peasant farm).

It involves certain social benefits and support from the state. After registration, the head of the farm receives , and information about peasant farms is entered into

Any capable person over 18 years of age can create a farm. There are no citizenship requirements. Family members of the head of the farm are accepted into it when they reach the age of 16 years. No more than 5 unrelated persons can be part of a farm.

This does not mean a ban on hiring workers or any limitation in their number!

The procedure for registering a peasant farm is very simple and will require collecting minimum package of documents.

Documents for creating a peasant farm

1. Agreement between members of the farm on its creation. Not required if the farm is organized by one person. The sample can be downloaded here: http://www.blankbuh.ru/blank/39
2. Application for farm registration (Form 21002). See an example of filling here: http://dombiznesa.ru/files/doc2/obrazec_primer_zap…
3. Passport or photocopy applicant's passport.
4. Receipt for in the amount of 800 rubles. An important nuance is that the head of the farm must pay for the receipt using his own data, otherwise the tax office will simply not accept it.
5. Statement on the transition to a special tax regime.

Documents for registration can be submitted in person, sent certified copies by mail, or using the registration procedure itself takes a standard 5 days, after which you will receive a ready-made package of documents for individual entrepreneurs.

Important! If the head of the farm is already registered as an individual entrepreneur, then it will no longer be possible to register a peasant farm under his name.

What to do to receive subsidies for starting a farm from scratch?

To receive subsidies for starting a farm at the initial stage, you will need to come to the Employment Center and register. There is no need to register an individual entrepreneur before applying.

Under the self-employment program, aspiring entrepreneurs are provided with a subsidy to start their own business. in the amount of 60 thousand rubles.

To apply for a loan (if there is such a need) You should choose banks with government support. The best choice is Rosselkhozbank, which has special loans issued for agricultural development.

The only thing is that the entrepreneur must own the land plot on which the farm will be located. To receive large sums you will need to provide collateral

We'll talk more about the costs of starting your own business below.

There is also an option to attract investors - they can act as members of a farm, and based on the share of their investments (which are determined by an agreement between members of the farm) they will receive a share in the profit.

And now - about the main thing. Let's consider several areas of activity for peasant farms with numbers and calculations.

Farming: business plan with calculations

Rabbit farm business plan

Rabbits are relatively profitable farm animals. They produce skins and meat, which is considered dietary and sells well. Frequent illnesses are their greatest drawback.

If several rabbits fall ill, almost the entire population eventually dies, which is a serious problem. You can protect yourself from this by regularly vaccinating your livestock, and by mandatory compliance with the conditions for keeping rabbits.

Basic Rules

It is forbidden:

• Allow overcrowding and overcrowding of rabbits in cages;
• Buy animals from unverified breeders;
• Add new rabbits to the main stock without prior quarantine;
• Neglect mandatory vaccination;
• Keep rabbits in damp, poorly heated and ventilated areas.

If these simple rules are followed and feeding is correct, problems with breeding should not arise. For breeding, you should choose rabbits of direct meat breeds (not mixed and not fur). These include: white giants, Californian breed, New Zealand - white and red.

These breeds are characterized by a high growth rate, as a result of which young animals can be slaughtered by 4-5 months. Rabbits of these breeds reach a weight of 4-5 kg ​​by 5 months.

Costs for equipment for a rabbit farm (business plan) with a productivity of up to 1000 animals per year

Purchase of breeding stock	30 females + 2 males	15,000 for 3-month young animals
Purchase of feed	Feed, hay, mineral supplements	150,000 per year
Vaccination	Veterinary drugs	10,000 rubles per year
Veterinary service	Preventive inspection of livestock	5,000 rubles per year
Shed or barn structure	Materials + work	From 10 to 25 thousand rubles
Purchasing cells	Based on 60 cells	From 30 to 60 thousand rubles
Hiring	1 person (as needed)	180,000 rubles per year
Equipment for slaughtering and waste disposal		From 20 to 50 thousand rubles
Refrigeration equipment	For storing carcasses	From 20 to 40 thousand rubles
Other expenses		50,000 rubles per year

Profit from a rabbit farm

Calculation of net profit: 1,300,000 – 345,000 = 955,000 rubles per year. You can reduce costs without hiring staff, then the net profit will be 1,135,000 rubles per year from a small herd of 30 females.

The advantage of rabbit breeding is that the number of livestock can be increased very quickly, due to which profits will also begin to grow. It should also be taken into account that tanned rabbit skins are purchased in large volumes at a higher price.

Dairy Farm Business Plan

Consider the plan for a small dairy farm with 10 cows. The sale of milk has been and will be a relevant area; in addition, cows and calves also provide meat. Average cost of fresh veal – 200-300 rubles per kg (wholesale prices), beef - 200-250 rubles.

Many people are of the opinion that life in the village and farming are irrelevant. But think about it - after all, every day on store shelves we see the products of small private farms. In rural conditions, it is sometimes easier to earn money than in the city. By combining different types of agricultural production, you can get by with relatively low costs.

How to become a farmer? This business is not limited to simply raising pigs, chickens and cows and growing vegetables. It's a whole system. It implies the presence of a business plan for a farm with official registration of activities. In addition, there is a well-thought-out system for regulating expenses and income.

Farming from scratch: how to start?

As you know, a business always starts with an idea - regardless of the scale. Anyone who has decided to open their own farm must, first of all, decide on a suitable direction. On a farmstead you can engage in both crop production and livestock farming. The main thing is to think through everything correctly and create a successful combination.

That is why a thorough study of the characteristics of the production of various crops and raising animals will be required. Before becoming a farmer, you should learn about the incompatibility of individual areas. In particular, the cultivation of certain fruit crops is strictly contraindicated near areas where cattle are kept.

Having decided where to start farming, you will need to think about the material and monetary resources that the future business will require. Everything should be provided for - from initial financial investments to the arrangement of premises for keeping animals, the organization of the farm territory, the purchase of feed and fertilizers. In addition, future farming will require mandatory registration. Most often, such activities are carried out in the form of individual entrepreneurs.

Farming: types of activities

If you decide to open a livestock farm, the farm will provide you with meat, milk, eggs and leather. In addition, no one will prohibit combining raising animals, crop farming, fish farming or beekeeping. The main thing is to remember that all animals will require care of the proper quality and adherence to sanitary standards.

Let's take a little closer look at exactly what directions can take place for an individual entrepreneur in a peasant farm.

We breed piglets

Pork is always in demand on the market and costs a lot. This business is quite profitable, because if you take this area seriously, you can, with good care, get up to 30 piglets from one sow within a year. Each adult pig is about 200 kilos of meat and lard.

For breeding, piglets are usually purchased at one month of age. They are less susceptible to disease and adapt well to new conditions. The room for them (pig sty) should be kept clean, insulated in winter and be sure to be equipped with vents. Crowding is contraindicated for animals. They are fed according to a schedule, with pauses not exceeding eight hours.

The food is greens (in large quantities), meat and dairy products and special feed for pigs. One pig can be purchased for an amount from 3,500 to 5,000 rubles. It depends on its breed, age and area of ​​animal husbandry. You can breed pigs by starting with purchasing a pair of healthy piglets.

Goats, cows, horses and sheep

In summer they are all able to feed on grass. For the winter they will need good quality soft hay. For feeding, horses are given oats, and cows are given mixed feed.

The yield of a good dairy cow is up to 30 liters of milk daily. From one goat you can get from 5 to 8 liters, and the cost of goat milk is higher, since it is considered a delicacy.

Horses are most often used as draft power. Sheep are bred for their meat, which is also considered a delicacy. As for sheep, their wool has long been considered the most valuable material. Breeding both goats and sheep is one of the most popular and profitable types of business in agriculture.

Rabbits

Both fur and meat are obtained from them. At the same time, the animals are quite unpretentious in terms of keeping and breeding. A rabbit farm is a system of enclosures, cages, pits or sheds. The choice of premises for keeping is a personal matter for the farmer. However, certain conditions must be adhered to:

• Protect animals from direct sunlight and drafts.
• Provide adequate feeding.
• Don't forget about timely vaccination.
• Maintain cleanliness in the cages and provide the animals with high-quality drinking water on time.
• Remember the optimal temperature regime.

The diet for rabbits combines a large amount of fresh fruits and vegetables in season with concentrated dry food. Hay and grass are quite suitable for feeding them.

Fish farming

These days this business is one of the most profitable. But doing it requires certain knowledge, as well as considerable investment. Agricultural enterprises such as fisheries are most often set up on the basis of artificial ponds, which can be of different types. It depends on the volume of production and preferred types. Due to the need for a large area to construct a pond, the costs of this business may be prohibitive for a beginning farmer.

Who can you most often meet in an artificial pond? Carp, crucian carp, pike perch, silver carp, carp and tench. Although pond fish are able to provide themselves with food, they still cannot do without feeding. Bran, cake, and mixed feed are used as it.

Starting around May, the fish are fed on “feeding tables”, which are heavy square-shaped wooden trays measuring approximately 50 x 50 cm. Each hectare of pond will require at least four of these “feeding tables” for fish.

Beekeeping

With the right approach, the profit from an apiary can be quite good. In addition, bees pollinate fruit plants. How are such agricultural enterprises organized? The location for the apiary is selected based on the principle of being deserted and remote from roads, close to the areas where honey plants are grown.

Then it is necessary to install hives with 12-24 frames, as well as an omshanik (winter hive). The beekeeper can buy hives or make them himself. To do this, the beekeeper will need a workbench, hand or power tools. Bees can be purchased both in bee packages and in full families.

Poultry breeding

It can be the most common - in the form of chickens, geese, turkeys and ducks. Or quite exotic for our area. We are talking about breeding partridges, pheasants, guinea fowl, peacocks and even ostriches. The choice of breeds depends on the market in which the farmer wants to establish himself.

Where to start farming if you decide to start poultry farming? The most unpretentious option is the usual raising of chickens. These birds are inexpensive and unpretentious. From them you can get environmentally friendly eggs and high-quality chicken meat. There is somewhat less demand for ducks, geese and turkeys, but their cost is several times higher.

If you are thinking about breeding guinea fowl, pheasants and peacocks, then know that this is quite an expensive activity, and you will most likely have to sell them to private buyers or restaurants.

To raise poultry, you will need to acquire an incubator, special winter-insulated enclosures, feeders, trays, as well as a certain space for walking. Most often, farmers purchase couples for divorce, or a certain number of young offspring, which are subsequently raised. Another option is to purchase eggs and put them in an incubator. Each method has its own advantages and disadvantages.

To feed young chicks you will need cereals, boiled eggs, greens, cottage cheese, insects, as well as special feed mixtures. The diet of adults is almost the same. Their menu is dominated by grain - wheat, barley, oats. Vitamins and minerals should be added to the feed mixture.

Growing plants

Crop farming has always been and remains one of the current areas of rural business. After all, vegetables, fruits and berries are an irreplaceable component in the diet of any person. In addition, it is quite possible to grow flowers in farm conditions. The flower business has high profitability (from 70% to 300%).

The approximate amount of initial investment is from half a million rubles. With them you can rent land, purchase cuttings, incandescent lamps for greenhouses, which must maintain a constant microclimate and have well-fertilized soil.

Returning to the cultivation of herbs and vegetables, it is worth noting that their choice for farming is very diverse. Unpretentious species, such as potatoes, beets, carrots, radishes, etc., do not require any special conditions. If you plan to grow greens, cucumbers, eggplants, peppers, tomatoes and zucchini, you cannot do without greenhouses during the cold season.

Their construction, along with renting land, will require quite serious investments. The cost of seeds will be relatively small. In addition, in subsequent years you will provide them for yourself. The payback period for vegetable growing is quite fast. Already this year you can get your first serious harvest. If you can’t decide where to start farming, vegetable growing may be the best option.

We grow mushrooms, berries and fruits

For mushroom farming, the most unpretentious (albeit expensive) are truffles. And the most common are champignons and oyster mushrooms. Mushrooms are bred in a special room where an even microclimate is maintained, in bags filled with mycelium and straw. You will spend from one and a half to two thousand rubles on truffle seedlings. Much cheaper you can buy a base for growing champignons and oyster mushrooms.

If you are going to grow strawberries, you cannot do without greenhouses. A number of varieties are also grown in open ground. Such a business will require starting capital of about 100,000 rubles. Add another quarter of that for monthly expenses.

Raspberries are grown according to a different principle. Seedlings are purchased for it and the site is prepared. It is practiced in the summer season; in the winter, the bushes are buried in order to protect them from frost.

Cherries, sea buckthorn or apples are grown in specially designated garden plots. You will need to purchase seedlings and a special film for covering for the winter. You will expect a harvest from young trees next year at best. The fruit and berry business is profitable at a level of about 60-100%.

How to register your activity

Where to start farming legally? Every business needs registration, and agricultural is no exception. The stages of the procedure consist of paying the state fee, notarizing the corresponding application, preparing and submitting a package of documents to the Federal Tax Service. Next, you should wait for the finished documents to be issued, go through the registration procedure with the necessary funds and receive a letter from Rosstat containing statistics codes. Of course, you should also take care of opening a bank account.

We rent land

Rent of a land plot can be arranged before the legal registration procedure. The rental application is submitted to the local administration. After the case is reviewed, you will receive information about where the proposed site is located. You will need to call representatives of the land management organization there. They will conduct land surveying and determine the exact boundaries of the site. Then the land is registered in the cadastral register and a corresponding passport is issued.

After this, the documents are again sent to the administration, which issues a decision on the transfer of the site. In addition, registration of the lease agreement will be required.

The state will help us

In recent years, helping young farmers has been a priority for the state. Now it is easy to get a grant for the development of such a business, the amount of which can range from one to four million rubles. It may be intended specifically for the creation of a farm or have a lump sum payment for a household device.

This money is purposefully given to a beginning farmer to rent or purchase land, develop a project, purchase the necessary equipment, carry out the required utilities, as well as purchase materials for planting, animals, feed and fertilizers.

Who can claim such a payment?

Money is paid to citizens of the Russian Federation of working age, heads of farms and peasant farms whose registration period is less than 24 months. In this case, it is necessary to have education and at least three years of experience in the field of agriculture.

The package of documents that needs to be prepared consists of a business plan for the farm, a breakdown of expenses with prices. The amount of your own funds that will need to be invested in this case must be at least 10% of the grant amount. The recipient is required to create three or more jobs and spend the funds issued within 12 months from the date of issue.

Grants are issued based on the results of competitions, during which young entrepreneurs must prove the profitability and relevance of their future business. Such support can be considered an excellent way to solve the problem of initial capital investment. If payment is refused, there are other options for assistance from the state - in particular, in the form of a farm loan. In addition, various government subsidy options are possible.

Summing up

Modern business in the field of agriculture is not at all the same as the idea of ​​​​which is firmly rooted in the heads of many (a hard and dirty job, low-income and thankless). These days, farms are equipped with the most advanced equipment. The most advanced technologies are used in raising animals and plants. It is quite possible to maintain cleanliness and the desired microclimate in premises for breeding birds and livestock. Most operations can be automated, which will greatly facilitate farm work.

Financial support from the state is especially important in the current crisis. It allows farmers to develop their business. In addition, due to the widespread development of a network of cafes, restaurants and numerous private shops, as a rule, there are no problems with the sale of finished products.

There are several reasons to start raising cattle. Some do this to sell it, others to have their own milk and sell it. There are people who breed livestock for display at various exhibitions and festivals. Today, many families decide to own cattle to meet their own needs. Whether you want to raise livestock and sell them, or you just want a couple of cows for your own use, here are some tips for starting your own herd.

Steps

Think about your business plan. The first thing you should do is conduct a swot analysis of yourself and the cattle industry. Decide what kind of cows you want to have, without thinking about the breeds and type of farm you want to have.

• Start small . Don't spend all your money at once when buying or inheriting a farm. If repairs need to be made, start with the essentials. Don't buy new equipment, buy it from auctions. It is best to buy only the equipment you need. You will be able to buy everything you consider necessary within 5-10 years after opening your farm.
• Try to produce a cheap product. You will be able to get into the market easily and it is a great way to start making money.

1. Find the best location to raise livestock for the next 10 to 30 years. It is very important to choose the right location for your farm. You should feel comfortable and confident there.

   • You can choose a location for your farm anywhere in the world. You'll want to consider factors such as climate, market, topography and vegetation when choosing a location for your farm.

2. Once you have found the right location for you to open your farm, it is time to look for land to purchase. If you cannot pay the entire cost of the land right away, you will have to take out a loan.

   • As a rule, the greater the demand for land, the more expensive it is. The price may also be affected by the number of residents in the area.
   • Try to buy a farm that already has everything necessary for raising livestock - barns, fences. This way you will spend much less than if you buy a farm, which will then need to be specially rebuilt for keeping livestock.

3. Find out more about the place where you want to buy land. Find information about land quality, vegetation, storage prices and pasture capacity, market demands, etc. You can ask locals about the area.

   • As a rule, local residents can provide more reliable information than specialized agencies.

4. Before purchasing equipment, study all the necessary information. Study your financial situation and try to buy only what you need. necessary (not that I want to). You will definitely need fencing, waterers and feeders, which are more important than anything else. You'll also need a tractor, haymakers, trailers, and handling equipment.

   • If you decide to start a dairy farm, you will need a lot of buildings and a milking parlor. In addition, you will need a calf barn and a barn where you will keep cows that are not milked.
     • When you are deciding which machine to buy for milking your cows, there are a couple of things to consider. First, are the cows accustomed to the milking process? It is better to use the machine they are used to. If you decide to raise your own cows, find out all the information you need about the different types of pens so you know what's best for you.
   • If you raise beef cattle, you will need fencing, a barn, and plenty of water. This is all! Especially if you raise calves yourself. You can buy grain for the cows for the winter or keep the cows in a pen, but this will raise the cost of the farm.

5. Depending on your finances and goals, decide what type of farming you want to bring. The most popular farms are dairy and meat. Keep in mind that starting a dairy farm will require more resources and effort than starting a meat farm. In addition, legal requirements are much more stringent for dairy producers.

   Study all existing breeds of cows. Choose a breed based on what you want to do, not what you like best. Remember that each breed has its own pros and cons that you will have to work with.

   • If you decide to start a beef farm, choose a breed that has a good temperament and doesn't require a lot of care. Some such breeds are Hereford Beef, Kalmyk Beef, Red Meadow Beef, Galloway Beef and others.
     • If local market demands require you to raise Black Angus cattle, be very careful in your selection of cattle. Very careful.
   • If you decide to start dairy farming, the best breeds for this are Jersey Dairy, Dutch Dairy, Red Danish Dairy, Guernsey Dairy and others.

6. Start with a small number of cows. Don't buy as many cows at once as you can fit on your farm. Buy good cows, with good temperament, good mothering qualities and good feed digestion. Avoid skinny cows that are about to fall over. You can buy heifers, as long as you don't mind waiting a couple of years before you can sell their calves. You can also buy pregnant cows or a cow with calves, but you will still have to wait before you can sell the calves. Remember that experienced cows are easier to handle than heifers.

   • If you want to breed cows, only buy a bull if you have 10 cows or more and do not want to resort to artificial insemination. Artificial insemination is a good solution if you only have 2-5 cows, as it is cheaper than a bull, but, unfortunately, it is not always effective. If you want to artificially inseminate cows, you can rent a bull or negotiate with another farmer who has a bull to keep your cows until they are impregnated.

7. Make sure your pasture is sufficient for the breed you decide to buy. Otherwise, you will have to rent more land.

   • Decide in advance whether you will grow hay for your cows or whether it will be purchased. Try to buy the best hay for your cows.
   • Keep in mind that cow hay accounts for nearly 26% of total farm expenses. By having pastures for your cows to graze on during the summer months, you can cut down on a lot of expenses. To avoid buying or making hay in the winter, you may want to consider purchasing winter pasture.

8. Constantly monitor your financial condition and the condition of your cows, your purchases and sales and other actions. The most important thing is your financial status, because from it you will be able to understand if your farm is giving you income or not.

   The most important thing is that you enjoy it. Raising cattle is a demanding job, but you'll always learn something new and always have something to do.

• Try to have as few expenses as possible. Try to think ahead about your annual plan. If possible, try to keep your cows on pasture all year round rather than in pens.
• Monitor your finances and the health and condition of your cows.
• Start small. Start with a couple of cows or heifers, and once you gain enough experience, start adding to your herd.
• Ask and find out as much as you can about your business, and always have the phone number of a local veterinarian ready in case your livestock becomes ill.
• Plan everything in advance! Plan ahead which cattle are right for you, plan ahead which farm is best for you and how you want to manage it. Write down all your successes and failures, all your thoughts and arguments.
• Buy more hay than you need. There is no such thing as excess hay.
• Check your food for nutritional value. Know when your cows will need to take the maximum amount of nutrients and when they won't.
• Keep an eye out for equipment sales.
• There is no such thing as the best breed. Angus can be an excellent solution if the local market requires this breed. For higher temperatures, you should choose the Brahman breed.
  • Keep in mind the standards that are decided by local farm organizations. Always select and buy the healthiest cows and make sure they have good temperament.
• Don't keep your first heifer calves. They will be worse than the calves of older cows.
• Avoid buying a bull. Artificial insemination was created to avoid the difficulties and injuries of keeping a bull.
• Consult your veterinarian about all cattle health programs immediately after purchasing livestock.
• Fencing, water and food should be the very first thing you purchase, and you should be sure they are working properly before purchasing livestock. Buy waterers based on the needs of your area. For example, if winter in your area lasts from 4 to 6 months, you should buy automatic heated waterers to prevent the water from freezing.
  • Make sure livestock have constant access to water. In winter, make sure that the water does not freeze.

Warnings

• Remember Murphy's Laws, namely this one: “If something can go wrong, it will.” The laws of meanness have not been repealed.
• Don't take on what you can't do.
• Always be on the lookout for bulls. Even if they look like real lambs, be on your guard.
• For the first time, it is better not to buy sick animals, even if you really want to “save” them. It’s not for nothing that such animals are sold straight away to butchers; sometimes they simply cannot be saved.
• Keep your ears open when working with cows and bulls. Be able to understand the mood of the cattle and its intentions.
• Keeping livestock is not a temporary job. You will have to work 24 hours a day, 365 days a year. Cows don't have holidays or days off, and therefore you won't have them either.
• Try not to spend all your money in the first two years and don't buy new and expensive equipment, otherwise you will go broke too quickly.
  • In other words, try not to have debt.
• Cattle are stronger and faster than you. Cows can be very dangerous when protecting their calves, and bulls are very unpredictable and dangerous animals in their own right. Bulls are most dangerous when they are near a herd of cows, as well as during the breeding season, since they will consider you, the farmer, a rival.
• Working with cattle is difficult and tiring work. You will have to go through a lot of stress, you will have to deal with blood, and there will be times when you will begin to regret starting this business.

Demand for raw milk in Russia exceeds supply. The profitability of production in the southern regions of the country reaches 37% 3–5 years after the start of the farm operation and repayment of loans.

 

For a long time, milk production in Russia was considered profitable only for large agricultural complexes. The constant shortage of raw materials has forced processors to pay attention to small producers, moreover, they offer goods at competitive prices and of higher quality. The dairy farm as a business for small entrepreneurs and peasant farms has become especially attractive after the introduction of state support.

To assess the prospects of investing effort and money in this labor-intensive and difficult production, let’s consider:

1. product demand, market trends;
2. Feasibility study for opening a dairy farm;
3. manufacturer support programs;
4. examples of successfully operating peasant farms.

Brief overview: how much milk do you need and where to get it

Milk is included in the list of the National Food Security Doctrine and is a strategically important product. Its consumption in 2015 was 230 kg per person, which is 2 times less than the recommended norm. According to the Russian Food Market magazine, its sales in 2015 increased by 7%, and in general, dairy products are increasing every year by 2.5%, despite prices.

Almost the only importer today is Belarus, and the total share of imports last year was about 16%. According to Soyuzmoloko, processing production capacities are only 60-70% loaded.

Economists always compare current indicators with the “pre-perestroika” level of 1990. By comparison, milk consumption fell steadily until 2000, when it reached an all-time high: just 51% of the volume consumed per capita in 1990. After that, the trend changed and there is constant growth. If there is enough milk in stores, then the same cannot be said about other products derived from it. Already in 2011, domestic cheese production was 65% of the base year 1990 level, and butter production was only 26%.

The bulk of milk for processing is produced by agricultural organizations. Households receive approximately the same amount of it, where it is consumed, and a small part is sold on the market. The share of peasant farms and small farms is only about 7%, but it is steadily increasing from year to year. In 2015, farmers overtook agricultural enterprises in all indicators: increase in the herd, its productivity, and marketability of products (Fig. 1). The average number of cows is 40 in peasant farms, and about 300 in organizations.

Milk production is very uneven across regions (Fig. 2). The leaders are Tatarstan, Bashkortostan, Altai and Krasnodar territories, Rostov region. In total, 15 regions of the country provide 50% of production. In 2015, 91.5% of the planned volume in the country was produced, while the deficit is about 30%.

The distribution of commercial milk is very different from the general picture; for example, in the Siberian District it is only half the volume. The distribution of government subsidies depends on this indicator. Who received the most government money in 2015 can be seen from the diagram - these regions are more likely to receive real support (Fig. 3).

How much does a dairy farm cost: financial and economic justification

When organizing a farm, you need to focus on modern technologies for keeping and feeding livestock, and new means of mechanization. Good profitability is shown by farms that use high-quality roughage and succulent feed, robotic installations that provide milk yield accounting, automatic filtration, and cooling. Such devices are equipped with a washing and disinfection system, which allows you to obtain high-quality milk. Here are two investment calculations. They were compiled for completely different regions of the country, however, the main indicators are very similar.

Table 1. Vologda region. Korobov family farm, 6 people. Share land plot of 100 hectares, own production of hay, haylage and silage.

	Basic expenses, rub.		Source of funds, rub.
Purchasing cows	3,000,000 (50 heads)	Loan funds (Rosselkhozbank, 13% for 3 years)
Purchase of milking equipment, mechanization equipment		Subsidy under the Vologda region program
Construction of premises		Own contribution
Sales of products	Delivery to processing plant
Loan repayment	2,223,800 per year
Total profit
Profitability
Profit after taxes

Table 2. Krasnoyarsk Territory, Republic of Khakassia. Peasant farm Malykhina, 3 people, 100 hectares of land.

Indicators	Expenses, rub.		Attachment source
Purchase of livestock	1,600,000 (30 heads)	Grant from the Ministry of Agriculture of the Republic
Buying a truck for transporting feed		Loan from Rosselkhozbank (14% per annum)
Construction of a barn using a self-sustaining method		Your funds
Sales areas	Retail trade: markets, individuals
Planned revenue per year
Net profit
Payback period and profitability	48 months

The level of investment in dairy production is high, so a well-thought-out business plan is needed. It is required both to receive subsidies and preferential loans. The advantages of small farms are that they produce environmentally friendly products, ensuring relatively low costs due to labor efficiency. Profitability increases many times if the entrepreneur himself is engaged in milk processing.

Support and lending to milk producers

1. Programs of the Ministry of Agriculture.

The main types of assistance are provided under the state subprogram “Development of Dairy Animal Husbandry”.

• Subsidy per liter of commercial milk sold. Provided to all producers; since 2015, only the highest grade is subsidized. It is determined by the processor. Regional authorities can introduce their own conditions: the number of offspring of calves, the percentage of fat and others. To receive a subsidy, you need to apply to the local administration department in charge of agrarian issues.
• Subsidizing interest on loans. Support is provided through accredited banks. The state repays part of the interest in the amount of 100% of the refinancing rate, regional authorities up to 3% of the borrowed amount. Due to this, banks reduce interest rates for agricultural producers, and the loan is cheaper.
• Reimbursement of part of expenses for business projects. The application is submitted through the administration of the district or region. Provides for the return of funds for new investment projects, expenses for modernization and re-equipment - up to 40%, for the purchase of highly productive dairy cattle breeds - up to 50%. Money is transferred to the producer’s account no earlier than 2 years after the start of the project, provided that it reaches its designed capacity. When purchasing animals - no earlier than the 5th year.

Three examples of successful work of dairy farms

In 2002, he organized his own farm, took out a loan from Rosselkhozbank, registered a peasant farm in 2012 and received a development grant. Now he keeps 70 cows, cultivates 150 hectares of land, and delivers 150 tons of commercial milk per year for processing. In comparison with a large farm located in the neighborhood, the cost of milk is several times lower due to complete autonomy (own feed) and labor efficiency (2 people).

Alexander is only 25 years old. He created his own farm in 2012. The farm has 38 dairy cows and 100 hectares of land for rent. Milk is sold fresh through its own retail outlets in the markets of the city of Abakan. He receives 300 liters per month from one cow, and 3,900 in revenue. He dreams of changing the herd, buying a Simmental breed of cows, and dramatically increasing milk yield. He believes that without its own food supply, milk production will be unprofitable.

Established in 1992, in 2004 there were 50 heads of cattle, now there are 122 cows on the farm. In 2006, the farm was reconstructed, German milking machines and a mini-milk processing plant were purchased. They produce 10 tons of milk per day, package it on their own equipment, supply it to stores in their city and Yekaterinburg, and supply catering plants, schools, and kindergartens.

conclusions

There is a demand for milk, it is growing and exceeds supply. Especially considering the policy to increase the production of its cheeses and butter. Accordingly, a dairy farm as a business looks like a profitable business in the long term.

The risks are also high: crop failure leading to a shortage of feed, rising prices for seeds and breeding animals, seasonality of milk production, delays in the payment of subsidies - these must be taken into account when planning.

The growing popularity of healthy eating entails an increase in demand for natural farm products. The increase in the number of farm stores once again proves this trend, which means that the demand for the products of their suppliers (farms) will only grow.

According to statistics, the share of small farms from 2006 to 2016 increased from 47.35 to 67 percent. This confirms the trend of development of small enterprises in agriculture.

In addition, market analysis shows that the sanctions imposed against Russia became an impetus for the development of this segment of the economy. This, in turn, has affected the market situation, as over the past two years there has been a steady increase in competition.

Farming is a fairly profitable type of business if properly organized. There are a number of reasons for this: firstly, the tax burden in this industry is lower than in many others. Secondly, if you wish, you can receive subsidies for starting a business, since the state is interested in the development of farms. Thirdly, our country has the necessary natural conditions for starting a business in this industry.

The initial investment amount is 6,552,500 rubles.

Break-even point is reached on sixth month of work.

Payback period: 24 months.

Average net profit: 280 831 rubles

2. Description of the business, product or service

Before starting a project, you need to decide on the direction of your activity. The following options are possible:

• raising young cattle for meat sale;
• production and sale of milk;
• production and sale of straw and hay;
• growing fruits, vegetables or mushrooms;
• growing grain crops;
• fishing;
• beekeeping.

This business plan will consider a business that operates in the following areas:

• raising cattle and selling meat;
• production and sale of milk.

Farm hours are daily; workers can live on the farm (with the exception of freelancers).

3. Description of the sales market

Farm products are sold to the following groups of buyers:

• large processing companies in the region;
• wholesale companies;
• farm shops;
• population.

The target audience of the farm is wholesale stores and farm stores, since with a small business size it will be quite problematic to produce products in gigantic volumes. At the same time, within the framework of this project there will be no sale of goods to the public, because for this you need to have your own retail outlets, which are not included in our project.

4. Sales and marketing

5. Production plan

Let's look at the main stages of starting a farm.

Registration with government agencies

Peasant farming is a form of individual entrepreneurship; the state duty for its registration in 2018 will cost 800 rubles. To sell your products in markets and other retail outlets, you will need to provide documents such as:

• a certificate from a veterinarian (since animals will be bred on the farm);
• conclusion of the SES;
• certificates for product compliance with quality standards.

Also, in order to sell products to retail outlets, you will need:

• Permits from Rospotrebnadzor.
• Permission from fire inspectors.

It is most profitable to use the Unified Agricultural Tax (USAT) as a taxation system. It is 6% of the difference between income and expenses of a farm.

When registering a company in our example, you must indicate the following types of OKVED:

OKVED 01.41.1- Breeding dairy cattle;

OKVED 01.41.21 - Production of raw cow's milk

Searching for land and preparing it for exploitation

Business begins with searching for a plot of land. To implement the project, the company will need:

• administrative buildings;
• utility buildings.

A farm of our type needs at least 1500 sq. m of land, land prices vary greatly depending on the distance of the land from the city, in our case, 1 sq.m will cost 30 rubles. On this territory it is necessary to place a hangar for keeping cattle, a warehouse for storing feed, a summer pen for animals, as well as an administrative building for employees, which will also house a warehouse for storing feed. Finding a ready-made farm with ready-made structures will be problematic, so prepare for the fact that all the necessary buildings and communications will need to be carried out yourself.

It is advisable that the site be located as close as possible to meadows and pastures (this is the natural food supply for cattle), otherwise the work on stockpiling feed will be very expensive. In addition, there is a need to locate the site near transport routes, because products will have to be transported, and being too far from the road can negatively affect the cost of transportation.

Next, it is necessary to bring communications to the structures (hangar). Electricity, water and gas connections will be required. These procedures can take a long time, so you need to take care of them in advance. This stage can last up to 6 months, the cost of implementation will cost the businessman 100 - 200 thousand rubles.

Purchase of necessary inventory and equipment

To work you will need the following list of equipment:

Name	Quantity	Price for 1 piece.	total amount
Farm equipment
Milking machine
Loader
Conveyor for removing manure and debris
Feed mixer
Stationary feeder
Containers and pallets
cooling chamber
Slaughter equipment
Total:			2 755 000
Communication equipment
Lighting system
Heating system
Ventilation system
Total:
Staff equipment
Microwave
Computer
Total:
Total amount:			3 297 500

A large amount of work on farms is done with the help of machines, this will save your time and money, so you should take care of purchasing milking machines, a loader and a conveyor.

Purchasing animals

The costs of this item may vary significantly depending on the type of animals you will purchase. A dairy cow (2-3 calvings) will cost at least 60 thousand rubles, a heifer from 3 months will cost 10-15 thousand rubles, but she still needs to be raised, and the receipt of finished products can be delayed for about a year. As part of this project, 30 heads of dairy cows, 20 bulls and 20 heads of young animals will be purchased. Thus, the cost of purchasing animals is at the level of 3,200,000 rubles.

Personnel search

If there are not enough peasant farm members, you will have to hire employees. You will need:

• Vet.
• Slaughterer;
• Support workers;
• Accountant.

Concluding contracts with buyers

Sales of finished products are an important stage of farming, on which all profits depend. The most favorable development of the event will be the conclusion of an agreement for the supply of products for a chain of stores. Depending on the chosen niche and form of production (individual entrepreneur or LLC), it is possible to use various wholesale and retail sales channels.

Project launch schedule

Stage/duration of execution, weeks.	1	2	3	4	5	6	7	8	9	10	11	12
Registration of peasant farms
Search for land
Preparing the site for operation
Purchase of inventory and equipment
Purchasing animals
Search and hiring of employees
Concluding agreements with suppliers

6. Organizational structure

On a farm you will need the following employees:

• Vet. His responsibilities include carrying out measures to prevent diseases and deaths of animals, observing animal hygiene rules, examining animals, providing therapeutic treatment, purchasing medications, and conducting veterinary and sanitary examinations. The veterinarian comes to the farm 3-4 times a week, is on the staff and receives a salary of 30,000 rubles;
• The slaughterer performs all operations during slaughter and processing of meat products. Basic requirements for this specialist: at least 5 years of work experience, knowledge of meat cutting technology, ability to work with a lift and other tools. The slaughterer receives 25,000 rubles, the employee appears on the farm when necessary;
• An auxiliary worker is an irreplaceable personnel that is always required on farms. Such people must monitor the cleanliness of the farm territory and in the sheds, control the availability of food for animals, walk livestock, take animals for mating, and prepare equipment for obtaining dairy products. You will need at least 3 workers, the salary of each is 22,000 rubles.
• An accountant can be hired on a freelance basis, the salary of this employee is 8,000 rubles. An accountant compiles data on the company’s indicators, prepares reports for government agencies, calculates the tax base, and advises the director on optimization of certain indicators.
• Director - this employee is responsible for the distribution of responsibilities, participation in exhibitions, concluding contracts, searching for clients, obtaining all kinds of permits, purchasing equipment, and distributing cash flows. The director's salary consists of a salary (25,000 rubles) and a bonus in the amount of 5% of revenue.