Dairy Farming Business Plan
What You Should Consider?

Many people think of Dairy Farmers as small family businesses; and in some cases they are. But sometimes they are bigger ones.

But as with any business, they require money to start and to operate. They must turn a profit to stay in business. There is more to it than owning a piece of land and a few cows. 

In order to begin a dairy farm, you need a Dairy Farm Business Plan. A business plan shows your investors the plans you have. 

It shows how well you know your business and how prepared you are for the unexpected. A solid dairy farm business plan requires much planning.

Below are some points that will be addressed in order to help you establish a plan.

Consult An Expert

Unless you have owned a dairy farm in the past, you need to speak to someone who has a successful dairy farm business.

You need to get an overall view of what is involved. You need to determine where your strengths and weaknesses are. 

You then will determine if you can survive with those weaknesses. If not make changes now so you can avoid the pitfalls of those weaknesses.


How many cows will you have?

What will you feed them?

How will you milk them?

Where will you market the milk?

How many employees will you have?

After expenses how much money will you need for payroll?

Crops and Feeding Program

Cattle need crops to eat. You may need help and hire professionals to manage your crops. Your plan may mean you grow your own crops as many dairy farmers do. 

This will require farm equipment, buildings, and possibly seasonal help. Make sure all these things plus insurance are covered in your Dairy Farm Business Plan. 

Building Your Equity

One size does not fit all when it comes to this business. Be careful how you begin and consider how much you will invest. If you are “all in” from the gate, you may lose it all if things take a turn.

Many dairy farmers purchase their cattle first and rent their farm land. This makes good sense if you are planning on a long term career. 

As you reap profit from your cattle, you can invest in your own future by purchasing land and then building on it. 

Waste Management Program

Cattle produce a lot of waste and you need to have a plan to dispose of the waste. Manure makes a great fertilizer for crops.

But unless you plan on growing double crops you will have more waste than you have use for. Putting in a double crop solves both problems. 

You have additional crops to sell which makes you more money. But it also takes more time. This issue will take a great deal of planning on your part.

You will need to be prepared to show how you will manage your waste products.

Once you have addressed these issues you will be ready to prepare your business plan. There are sample plans available that will show you each area your investor or bank will expect to be listed on your plan. 

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