Is It Feasible To Invest In Commercial Alfalfa Plans?

Date: 12/10/2020 08:47:18 From: feed-pellet-plant.com Clicks:

How to start a business of growing alfalfa for hay? What income does an entrepreneur expect from a business? How to build a business in order to get more than 700,000 rubles in profit from fields of 25 hectares? Read the business plan for growing alfalfa with calculations.

Content:

• Alfalfa business plan
• We evaluate the idea
• Technicians and workers
• Alfalfa cultivation technology
• Alfalfa marketing and business registration
• Expenses and income - we calculate profit
• Conclusion

Alfalfa Business Plan

Alfalfa is a popular crop grown for forage purposes in the form of hay and pellets. High yields show good business income. If the farmer is willing to take on most of the work, then profit margins will be high.

We evaluate the idea

Growing alfalfa is a serious business with tons of details. To draw up a business plan with calculations, we will go the following way: an entrepreneur or a farmer takes on most of the work.

In the business plan for growing alfalfa, first of all, we evaluate the idea, answering the questions:

1. Where to grow alfalfa, and how much? - fields can be rented, and volumes are determined by demand.

2. Buy or rent equipment? - you can buy a tractor with all the accessories, or rent equipment.

3. Who will do the work? - without agrotechnical knowledge, an agronomist is needed, as well as workers for equipment.

4. What are the goals of the alfalfa business? - hay, feed meal, pellets for sale or use on your farm.

5. What risks should be foreseen in business? - financial, productive, risks with unskilled workers or lack of the necessary equipment to carry out a number of works.

After answering the basic questions, consider the pros and cons of growing alfalfa.

Pros:

1. Perennial.

2. Alfalfa is drought tolerant.

3. You can mow several times per season.

4. Not a complicated technology for growing alfalfa.

Minuses:

1. Risks in the process of doing business.

There are risks in any agricultural business. To avoid them, you need a business plan with calculations for growing alfalfa, a responsible entrepreneur and a reliable headquarters of workers.

To reduce costs, equipment is rented, and 2-4 people are needed from workers. If it is impossible to rent equipment, a tractor with removable accessories is bought - a harrow, a mower, a seeder, a rake, a baler, a trailer. The cost of equipment will amount to 2,000,000 rubles. With an annual lease, the costs will be about 300 thousand rubles.

Hangars will be needed to store hay. We also need buildings for equipment, workers.

From the staff, an agronomist is needed first of all. He will oversee the process from soil preparation to crop processing. You will have to pay 100,000 rubles for services per year. We also need a worker for equipment - 200,000 rubles a year. Services of a mechanic, handymen per year 100,000 rubles. The entrepreneur takes over the rest of the work.

Investment in equipment 2,000,000 rubles. The annual payment to workers is 400,000 rubles.

Alfalfa grows best in fields where beets and corn were previously grown . Alfalfa is not grown in heavy clayey and swampy lands. Groundwater should be no closer than 1.5-2 meters. Fields are selected with neutral acidity, not less than 5.5 pH. The fields are rented at a cost of 2,500 rubles per hectare.

It is advisable to fertilize the fields with manure at the rate of 30 tons per 1 hectare. For plowing, the fields are fertilized with phosphorus. Boron and nitrogen are applied in early spring. All proportions are calculated by the agronomist, starting from the current state of the soil.

Alfalfa Planting Technology:

1. Peeling in the fall to a depth of 7 centimeters;

2. Deep plowing 30 centimeters. Herbicides are applied in the presence of weeds;

3. Harrowing in the spring. If the fields are not clogged, alfalfa can be planted;

4. Cultivation to a depth of 3 centimeters in clogged soils;

5. Rolling the soil, and after sowing to a depth of 1-2 centimeters;

6. Compaction of the soil again after sowing.

For planting, use alfalfa seeds of class 1 and 2. When planting under cover, sow 8-10 kilograms of seeds per hectare, without cover 10-15 kilograms. For alfalfa seeds, before planting, air-heat treatment is carried out, which improves the quality of seedlings. Seeds are sown at positive temperatures.

Alfalfa

The main care for alfalfa is weed, disease and pest control. It is important to remove alfalfa from the fields in time. Alfalfa carries with it 0.4 tons of nitrogen, 0.8 tons of phosphorus and 0.4 tons of potassium per hectare. Therefore, with annual cultivation in one place, fertilizers are applied in the specified amount in the fall and spring.

For hay, alfalfa is mowed during the flowering period. At the same time, humidity should not fall below 60%. If alfalfa is grown granulated or for flour, then the bevel is at the beginning of budding. After mowing, the alfalfa is sent for processing. Alfalfa flour is stored in plastic bags at a moisture content of 10%.

Council number 1. Take care of the timely sale or storage of hay.

For planting 25 hectares of land, an average of 300 kilograms of seed will be needed. The cost of 1 kilogram is 200 rubles. The amount of 300 * 200 = 60,000 rubles will be spent on seed.

The initial cost of fertilizers is 350,000 rubles, and the seed is 60,000 rubles. Annual costs for fertilizers 50,000 rubles, lease of fields 62,500 rubles.

Sales are carried out either directly from the fields, or in finished bales or granules from warehouses. The main sources of customer income:

Sale to farmers;

1. Advertising in the local newspaper;

2. Advertising on message boards;

3. Implementation at agricultural fairs.

4. The business is registered as a farm. A peasant farm pays 6% of its income when choosing an unified agricultural tax. The collection of documents is carried out before the opening of the case.

Business registration 5,000 rubles. Annual expenses for advertising and fuels and lubricants 100,000 rubles. Payment of taxes 90,000 rubles.

Expenses and income - we calculate profit

Cost graph for starting a case:

The first investments will amount to 2.5 million rubles. Seed material is purchased every 4-6 years. The equipment wears out, and in 5-7 years it is possible to buy new tractors and combines.

Annual costs:

Annual costs for the first 4-7 years will amount to 730 thousand rubles. Before making a profit, investments in the business will amount to 3 million rubles.

We count the profit

With a successful planting of alfalfa hay will yield from 10 to 20 tons per hectare. With an average yield of 12 tons, the total yield will be 12 * 25 = 300 tons of hay.

The selling price is 5,000 rubles per ton. The income from growing alfalfa will be 300 * 5,000 = 1,500,000 rubles.

The yield of alfalfa per hectare is 12 tons, and the income is 60,000 rubles.

The annual profit from growing alfalfa for hay is 1,500,000 - 722,500 = 777,500 rubles. The profitability of a business on growing alfalfa is 50%. The business will pay off in 3-4 years.

The harvest can reach up to 20 tons per 1 hectare with the construction of an irrigation system. You can also grow other herbs for hay . You can also engage in plant growing , growing flax , wheat , sunflower , oats, soybeans . Consider a vegetable growing idea .

Conclusion

Even with minimal yield indicators, the profit comes out good. But this is in the event that there are serious savings on personnel. Consider all risks when building a business. Experience and responsibility will allow an entrepreneur to get a high income from growing alfalfa for feed.

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