Wilson Family Peach Farm

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Peach and Apricot Farm Business Plan

Company Summary

The Wilson Family Peach Farm is a start-up venture for Dr. Jared Wilson and his wife, Susan. The Wilsons will be retiring from their regular professions starting in the spring of this year. The farm is intended to provide the Wilsons with an opportunity for post-retirement work and income, plus an opportunity for both of them to continue their individual research programs on agriculture and nutrition. Approximately 80 acres of prime stone fruit growing land is to be acquired, with 60 acres being bought outright using owners equity and a federal farm assistance loan. The other 20 acres will be rented. All farmland will be centrally located. The farm will be jointly owned by Dr. and Mrs. Wilson and will be set up as a Limited Liability Company chartered in Georgia.

2.1 Start-up Summary

Farming is a capital intensive industry that requires significant investment in long-term assets such as land and farm equipment. In addition, farming by nature is a highly seasonal endeavor that experiences a profit during only a few months of the year, while expenses are spread out over the entire twelve months. Therefore it is necessary to have a significant amount of cash and cash equivalent assets at the start.  The farm will be financed with a farm assistance loan and a significant amount of owner's equity. This will provide sufficient cash flow for the farm until it can start making a profit.

Start-up Funding
Start-up Expenses to Fund $57,000
Start-up Assets to Fund $268,000
Total Funding Required $325,000
Non-cash Assets from Start-up $140,280
Cash Requirements from Start-up $127,720
Additional Cash Raised $0
Cash Balance on Starting Date $127,720
Total Assets $268,000
Liabilities and Capital
Current Borrowing $25,000
Long-term Liabilities $100,000
Accounts Payable (Outstanding Bills) $0
Other Current Liabilities (interest-free) $25,000
Total Liabilities $150,000
Planned Investment
Dr. and Mrs. Wilson $175,000
Other $0
Additional Investment Requirement $0
Total Planned Investment $175,000
Loss at Start-up (Start-up Expenses) ($57,000)
Total Capital $118,000
Total Capital and Liabilities $268,000
Total Funding $325,000
Start-up Expenses
Legal $2,000
Repairs to facilities/equipment $15,000
Insurance $5,000
Rent $5,000
Research and development $5,000
Expensed equipment $20,000
Herbicides/pesticides $5,000
Total Start-up Expenses $57,000
Start-up Assets
Cash Required $127,720
Start-up Inventory $0
Other Current Assets $0
Long-term Assets $140,280
Total Assets $268,000
Total Requirements $325,000

2.2 Company Locations and Facilities

The Wilsons have made the down payment/rent on 80 acres of prime fruit growing land approximately 3.5 northwest of Gainesville, Georgia. This is one of the best areas in the state for growing peaches and other stone fruit. The acreage being sought has been a successful peach farm in the past and gets plenty of sunlight, especially early morning sunlight that dries the dew from the trees, thereby reducing the incidence of diseases. In addition the area has excellent drainage and an optimum soil pH of around 6.0.

The farm itself comes with a century old house, in good condition, barn and storage area, including large refrigeration facilities, and excellent irrigation equipment. Georgia has two commercial peach-growing regions. The central region is the largest with about 70 percent of the peach trees and 83 percent of the state's production. The northeastern region has about 23 percent of the trees and produces 17 percent of the state's harvest. The location of the farm is ideal as it straddles both regions.