A whole-farm plan connects business decisions with the family priorities they affect. It includes more than a standard business plan: production and finances, but also retirement, succession, estate and investment planning. Start with family conversations, then build the operating plan and budgets around agreed goals. The 11-step framework below is attributed to David Marrison in the original Agriculture.com article.
What a whole-farm plan should cover
A business plan describes how the farm will operate and make money. A whole-farm plan places that business plan inside the larger picture: family values, individual goals, retirement needs, transfer of management and assets, estate arrangements, investments and unexpected events. As Marrison puts it, “A whole-farm plan encompasses the breadth and width of your farm family’s business.”
The format should fit the farm and the plan’s purpose. A plan for internal decisions may need different detail from one prepared for a lender, a USDA program or a transition discussion. USDA describes a farm business plan as a roadmap for start-up, profitability and growth, and as a foundation for conversations about its programs (Farmers.gov business planning guide).
Before drafting: hold a family business meeting
Talk through the farm’s history, priorities and concerns before filling out worksheets. Invite the people whose work, ownership or future plans are affected. The aim is to understand where views align and where decisions remain open—not to force agreement in one meeting.
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- Review family and farm successes, disappointments and important turning points.
- Identify shared values and individual goals, including the needs of people who may retire or take on greater responsibility.
- Take stock of family and individual assets, farm resources, skills and responsibilities.
- List questions that need professional, lender, legal, tax or program-specific advice.
The 11 steps to build the plan
- Reflect on the past. Discuss the farm and family history, what has worked, what has not, and the values the family wants future decisions to reflect.
- Assess the current business. Describe the farm’s position today: its enterprises, resources, management, finances, customers and challenges. Use records and financial statements rather than relying only on impressions.
- Set future business and individual goals. Agree on the direction of the farm while making room for each person’s aims. Consider whether the family has the skills and capacity to pursue those goals, and what training, labor or management changes are needed.
- Write a mission statement. State the farm’s purpose and the principles that should guide decisions. Keep it grounded in the family’s actual priorities.
- Write the business plan. Set out production, operations, marketing, personnel, finances and risk management. Marrison describes a business plan as a way for a family to develop an action plan for production and operating practices.
- Plan for retirement. Estimate what retiring family members will need and consider what role, if any, the farm’s income or assets will play in meeting those needs.
- Plan the transition. Map how assets, management control, knowledge and responsibilities could move to the next generation. These are related but distinct transfers; specify who is preparing for each role and what decisions remain unresolved.
- Make an estate plan. Address how farm assets are to be distributed. Coordinate this work with the family’s transition goals and obtain qualified legal and tax advice for the relevant jurisdiction.
- Outline an investment plan. Consider which investments—such as land, machinery, livestock or off-farm assets—fit the farm’s capacity and the family’s goals.
- Set measurable goals and review them. Give each planning area short-, mid- and long-term targets. Assign responsibility and dates for checking progress, and revise the plan as circumstances change.
- Prepare for unexpected events. Develop plausible what-if scenarios for each major area. For each one, identify the likely effect on production, cash, labor, family needs or transition plans, and consider actions or resources that could help.
Build the operating and market plan
The operating plan should show how the farm will produce and deliver what customers want, using resources it can access. USDA’s planning prompts cover business history, mission, vision and goals, management and organization, marketing, operations and finances. Its marketing questions include products, target consumers, demand, production cost, price, timing of expected profit, distribution, transportation, food safety and licenses.
Production, customers and sales
- Specify what the farm will produce and the production system or scale planned.
- Identify target customers, demand, competitors where relevant, pricing, sales forecasts and how products will be promoted, packaged and distributed.
- Estimate production costs and when revenue is expected. A sale can be profitable on paper but still arrive too late to cover bills due earlier.
- Account for applicable food-safety practices, licenses, permits and other policies.
People, land and equipment
Explain who manages the business and who is responsible for key tasks. Identify workers, skills and training needed. Record access to land, equipment, physical resources and capacity, along with conservation practices and other operating requirements. The UF/IFAS business plan overview likewise describes common components such as company description, marketing, operations, human resources and finances, while noting that plans vary with the business and their purpose.
Choose budgets for the decision at hand
Budgets turn goals into estimates that can be tested before committing resources. The four common types answer different questions; a farm may use more than one. Virginia Cooperative Extension explains these approaches in its farm business planning budget guidance.
| Budget | Scope and basis | Best question to answer |
|---|---|---|
| Enterprise | Revenue, expenses and profit for one enterprise, often on a per-unit basis such as an acre or livestock head. | What does this crop or livestock enterprise cost and earn per unit? |
| Whole-farm | Planned production and resources across the farm, with expected costs, revenues and profitability for its enterprises. | How might a major change affecting several enterprises influence the farm overall? |
| Partial | Compares the current situation with a proposed limited change, isolating the factors that change. | What is the financial effect of making this specific change? |
| Cash-flow | Projects cash inflows and outflows over time. | When will funds be needed, when are receipts expected, and can borrowing and repayments be managed? |
A whole-farm budget can be simple or detailed and can cover the coming year, a typical year or a transition period. Match its time horizon and level of detail to the decision. Profitability estimates alone do not show whether cash will be available on the dates bills and debt payments fall due.
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Financial statements and USDA worksheets
USDA identifies FSA-2037 as a balance-sheet worksheet for assets and liabilities, and FSA-2038 as a worksheet for projected or actual income and expenses. Maryland Extension also provides business-planning worksheets and case studies and advises completing financial worksheets annually. A detailed plan is required for certain FSA loan-related applications; check the current instructions for the specific loan or program rather than assuming one worksheet meets every requirement.
Include conservation and risk planning
Conservation belongs in the operating and financial picture: resource needs, costs and a schedule for improving land health can affect both production decisions and budgets. USDA notes that Natural Resources Conservation Service staff at local USDA Service Centers can help with conservation planning.
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Risk planning should be practical rather than a promise that losses can be prevented. For each scenario—such as a production disruption, delayed receipts or a change in available labor—write down what it could affect, what decisions would be needed and which resources may help. USDA points farmers to crop insurance and Whole-Farm Revenue Protection among resources for unforeseen challenges; eligibility and terms depend on the applicable program, so check current details.
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Set a regular date to revisit goals, budgets, responsibilities and assumptions. Review sooner when a major change affects the farm or family. A plan is useful when it informs decisions; it need not be a fixed document that ignores new conditions.
For help, USDA recommends contacting a state beginning farmer and rancher coordinator or visiting a USDA Service Center. Cooperative Extension offers education and locally relevant guidance; Virginia Cooperative Extension’s whole-farm planning module includes concepts, worksheets and examples. Use resources suited to your state and enterprises, and confirm current lender and program requirements for the application you intend to make.
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