The final products can have the form of raw materials (raw meat, furs, fresh fish, vegetables, fruits) or include the processing stage (canning, pasteurization, cleaning, vacuum packaging, deep freezing and others). The scale of the agricultural enterprise also varies from a small farm, where 5-10 people work, to a multi-stage agricultural complex with more than 1000 employees.
The concept of an «agricultural enterprise» covers the widest range of activities of commercial, agrarian, livestock, and processing industries. Often, the agricultural producer unites several of them in one enterprise, for example, growing cattle and processing meat, wool, milk; the extraction of fish and the production of semi-finished products, canned food; plant growing and breeding of animals on their own fodder.
Thus, in order to open an agricultural enterprise and promote this business, it is necessary to determine the direction of activity, the stages of production and the types of final products. Consider a more complex business scheme, including raw materials and processing industries. For example, take a small farm, which can be organized without huge financial investments – growing vegetables, fruits, greens with a processing plant.
Since we are considering the option of opening an agricultural enterprise in the medium-sized business segment, we will calculate the amount of investment in the farm, where 1 hectare of land is allocated to the vegetable field and the garden. To handle this area, it is more expedient to purchase mini-technology. Having bought 3 mini tractors instead of one ordinary one, you can process vegetation at once on 3 sites, and not in one place. This is very important in the agricultural sector, as it often requires large-scale processing in the shortest possible time (insect invasion, harvesting, spraying of fertilizers, etc.). In addition, installation of auto-irrigation, drainage system, lighting, equipment of tracks and platforms for vehicles will be required. For the agricultural sector, it is necessary to provide soil ennobling.
The initial costs are approximately the following:
- Arrangement of the field – 300 000 rubles.
- Arrangement of the garden – 300 000 rubles.
- Construction of facilities – 2 500 000 rubles.
- Purchase of equipment – 3 000 000 rubles.
- Purchase of seedlings, seeds, seedlings – 200 000 rubles.
- Registration of documents – 20 000 rubles.
Total: 6,320,000 rubles.
Note that these figures are very relative, since the cost of the seed can vary depending on the varieties, the equipment – on its number and varieties. In addition, some prefer to buy used equipment, gradually replacing it with a new one. An excellent option is to take the equipment in long-term leasing. Soil also varies in the degree of fertility, acidity and other characteristics. Accordingly, you will need a different amount of investment to bring it back to normal. On the territory there may be already built, but destroyed objects, the good in Russia many abandoned since the collapse of the collective farms of buildings, then construction and repair estimates will be significantly reduced.
Step-by-step instruction
Having decided on the direction of activity (in this case it is the cultivation and processing of agricultural products), it is necessary to rent or acquire land ownership and register your business. Then you can proceed with the arrangement of areas. On the territory of such an agricultural enterprise should be:
- A field for growing vegetables.
- Orchard.
- Greenhouses for greenery and seedlings.
- Warehouse of raw materials.
- Finished goods warehouse.
- Shop for canning.
- Garage for equipment.
- Administrative block.
The latter can be part of the canning shop and occupy 1-2 rooms. There should be a cabinet where the computer and documentation relating to business will be located. The location of objects should be carefully thought out, so that it would be convenient to transport the products from one to the other. The warehouse of finished products is better located near the canning shop, near the exit for the territory. Greenhouses are more rational to place next to the field and so on.
In the canning shop you need a compartment with an automatic dispensing line, a juice squeezing room and a primary processing of fruits and vegetables, a cleaning, cutting, cooking section. It also requires a storage area for containers for finished products: glass and tin cans, boxes and bottles for juice, packages for freezing and dried fruits, other packaging materials. Despite the vast number of zones, each of them can be diverted from 15 to 40 meters, depending on the type of processing chosen. After the construction and finishing of premises, equipment is imported, seeds are purchased and workers are hired.
To work at the agricultural enterprise in question it will be necessary to hire: workers in the agricultural sector, automotive technicians, technologists, employees for the processing shop, driver, agronomist, security guards. Electrician, cleaner, accountant can be coming and not enter the staff, working as wage workers under an employment contract or upon the fact of treatment.
A place
The place where the land will be leased or bought for the opening of an agricultural enterprise must be carefully chosen. On this depends the sale and cost of implementation. If you plan to focus on fresh vegetables and herbs, it is advisable to equip the agricultural enterprise at a distance of no more than 50 km from the city, because daily supplies of products will be necessary, and transportation at a great distance will require additional expenses for gasoline and may affect the freshness of the goods.
Enterprises based only on the production of canned products, may not worry about remoteness from the place of sale, but we must not forget about the workers who will need to be delivered to the workplace. Having organized the enterprise far from roads and settlements, you will have to bring workers on your vehicles, which will constitute an additional expense item.
An important factor in the future profitability is the remoteness from harmful industrial production. Nobody will want to buy apples, cucumbers and parsley grown near a silicate or chemical plant. The distancing of such dangerous neighbors will give you an additional advantage. If you do not spray your vegetables and fruits with harmful pesticides at this location, you can declare about environmentally friendly production, which is especially appreciated in our times. Eco-friendly products are always in demand and are sold more expensive.
Documentation
You need to register your agricultural enterprise, register with the tax authority as an IP, LLC or CJSC. Small businesses with a small working capital in most cases, formalized as IP or a farm with the use of taxation UTII. More large-scale enterprises, including growing and processing products, are more often registered as LLCs.
For OOO and ZAO, the following package of documents will be required:
- Protocol for the creation of LLC.
- Charter.
- Copy of the founder’s passport.
- Application for registration.
- Receipt for payment of state duty (2000 rubles).
Always be available to a tax or other inspection body:
- Copies of constituent documents certified by a notary.
- Passport data of the general director and accountant.
- Certificate of the size of the authorized capital.
- Document about the location of the enterprise.
- A document on the number of shares and their value.
- Certificate from the bank about opening a settlement account.
- OKVED codes.
- Certificate of registration.
- Requisites of the bank of the legal entity.
- A letter from the State Committee on the assignment of codes.
- Medical books of workers of the canned shop.
- Journal of Fire, Electrical and Industrial Safety.
- Accounting and tax reporting.
- Permission from SES.
The optimal tax regime for agricultural producers is ECCN. In order to switch to it, you need to engage in the production and sale of agricultural products, while the income from sales should be at least 70%.
Check-list of opening
- Choice of business direction.
- Definition of production stages.
- Drawing up of the list of assortment.
- Search for a place.
- Execution of documents.
- Rent or purchase of land.
- Construction or repair of facilities.
- Clearing the area under the garden and field.
- Import of ingredients for soil fertility.
- Installation of irrigation system, communications.
- Conducting security and electrical systems.
- Delivery and installation of equipment.
- Purchase of agricultural machinery and equipment.
- Commissioning works.
- Hiring of employees.
- Purchase of inoculum.
- Advertising and setting up a sales market.
- Opening of an agricultural enterprise.
Is it profitable to open
Agricultural products, including food, are highly competitive among domestic and foreign producers. At the beginning of your business, you should not aim at export and large-scale sales. To begin with, it is easier to master the local market. This will help to establish cost-effective production, take into account shortcomings, and learn how to use the achievements of the modern scientific and technical base. The agricultural business is good because it can expand, adding both territories and directions. Nobody can prohibit the breeding of animals, the cultivation of mushrooms, the harvesting of herbs or berries with the purchase of them from the local population, and so on, to add to the existing activities.
The profitability of such a business can range from 50 to 100%. The success of the enterprise will depend on many factors, including: yield, implementation activity, modernization level, effectiveness of security measures, and so on. It should be borne in mind that payment of electricity, utility bills and wages at an agricultural enterprise of this type will be the main expense item.
Agricultural production is actively supported by the government and banks. You can rely on financial assistance, profitable equipment leasing, own resources for the production of seed. Under such conditions, the benefits will be significant. However, it is necessary to take into account the high risk, seasonality of this business, be able to quickly rebuild the work of production, when it will be more profitable to change the range. To profit was in the winter, and production and sales did not stop, you have to think about it in advance and prepare long-stored products for the winter period. A great way to make money will be the arrangement of greenhouses, where you can grow vegetables and greens in winter. In February, you can start growing seedlings. With a reasonable approach and intelligent planning, investments will pay off in 1-2 years and will bring good profits.
