Urban & Small-Scale Farming

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Executive Summary

Green Block Farm is a small urban farm in our city growing mixed vegetables, herbs and salad greens on leased land. We sell weekly subscription boxes (called CSA shares), and sell at farmers markets and to local restaurants. People want fresh, local food, but many cannot find it close to home, and many city neighborhoods have little access to fresh vegetables. Small farms can fill that gap, but farming is hard work with thin margins, and many new farms struggle with land, time and pricing. We will win customers by growing high-quality food, delivering it reliably and building a loyal base of members. Here is what our numbers show. We expect sales of about $65,600 in Year 1, growing to about $263,600 by Year 5 as we add CSA members, market and restaurant customers and seasonal farm workers. We expect losses of about $19,300 in Year 1, $13,600 in Year 2 and $2,700 in Year 3 while we build our customer base, then a profit from Year 4 (about $29,000), growing to about $49,200 by Year 5. We need $69,500 in total. That covers $26,000 in startup costs (a hoop house, irrigation, raised beds, a cooler and wash station, opening seeds, soil and water testing, insurance, a market stand and a land lease deposit) and a cash cushion of about three months of bills. I am putting in $10,000 of my own money, and I am asking for $46,500 as an SBA microloan, plus $13,000 from an investor or partner. I will deliver boxes in my own vehicle, so no truck purchase is needed. I am Brian Perry, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Green Block Farm will be a limited liability company (LLC) in Mississippi, owned by Brian Perry. We will work from a leased half-acre lot, with tools stored in a locked shed on the property. What we believe. Grow food with care, be honest about how we grow it, deliver what we promise and be a good neighbor. What we offer:
- Weekly CSA boxes of fresh vegetables during the growing season. - Farmers market stands. - Wholesale to restaurants and small grocers. - Seedlings and herbs. - Farm tours, workshops and volunteer days. Licenses and insurance. Urban farming rules vary. We confirm that zoning allows farming on the land, get a written lease, register the business and follow the local rules for selling at farmers markets. Larger farms must follow federal produce safety rules, but many small farms are partly exempt, and we follow good practices regardless, including safe water, clean harvest tools and handwashing. Our zoning allows farming on vacant lots with a permit, and farmers markets require a vendor permit and liability insurance. We test soil for contaminants such as lead before growing in the ground, use raised beds where needed and do not call our food organic unless we are certified. Where things stand today. I have farmed on a friend's land for two seasons, I have signed up 20 CSA members and I have found a half-acre lot to lease.

Problem & Opportunity

Neighbors near us want fresh, local food, and many have few places to buy it. 1. Limited access. Many neighborhoods have few places to buy fresh vegetables. 2. Long supply chains. Food often travels far and loses freshness. 3. Hard for new farms. Land, water and startup costs are barriers. 4. Uncertain income. Weather and pests make farming risky. How we know people want this. Twenty neighbors signed up for a CSA last season, and two restaurants asked for regular deliveries.

Products & Services

What we sell. 1. CSA boxes. Weekly boxes of fresh vegetables for members during the growing season. Our plan assumes an average of about $38 per box in Year 1, rising to about $43 by Year 5. Growing and packing costs run about $9 per box. We expect about 600 boxes in Year 1 (about 30 members for 20 weeks), growing to about 2,426 a year by Year 5. 2. Farmers market and wholesale sales. Vegetables, herbs and seedlings sold at markets and to restaurants. Our plan assumes an average of about $5 per item in Year 1, rising to about $5. Growing and handling costs run about $1 per item. We expect about 9,000 items in Year 1, growing to about 30,330. Our prices. CSA box $38 a week. Market vegetables $3 to $6 an item. Restaurant wholesale at market price. How it works for the customer:
1. An easy sign-up for a CSA share, with a clear season and price. 2. A weekly box, picked up at a convenient spot or delivered. 3. A newsletter with what is in the box and how to cook it. 4. Seasonal events, farm visits and a renewal offer. Gross margin, explained. "Gross margin" is the share of each sale left after paying for materials and direct job costs. Our plan shows about 75% in Year 1. That money pays the owner and crew, vehicle costs, insurance and other bills.

Market Analysis

Who will hire us:
- Families and individuals who want fresh, local vegetables. - Restaurants and small grocers who want local produce. - Neighbors who shop at farmers markets. - Schools and community groups that want garden programs. Where we will work. Customers in our city, with pickup spots and markets in two farmers markets and three neighborhood pickup spots. Season. Farming is seasonal. Growing and selling runs from spring through fall, and a hoop house extends the season. We use the winter for planning, seeds, repairs and winter greens. Our plan is careful on purpose. About 30 CSA members in Year 1 is a size that one grower can serve well on a small plot.

Competitive Landscape

Other choices customers have:
1. Supermarkets. Fresh Fields Market (a made-up name) sells produce at about $4 a pound; known for convenience, but not local. 2. Other farms and farmers market vendors. We differentiate on freshness and variety. 3. Home gardens. Free, but not everyone has space or time. How we will win customers: freshness, quality, reliable delivery, a friendly relationship with members and a story people care about.

Marketing & Sales Strategy

How people will find us. - A simple website with online CSA sign-up, and a free Google business listing. - A farmers market stand with a clear sign and samples. - Social media photos of the farm and the harvest. - Partnerships with restaurants, schools and community groups. - A referral reward for members who bring a friend. Marketing budget. Market and delivery costs are about $4,000 in Year 1. The brand, market stand and website are paid for from startup costs.

Operations Plan

How the business runs day to day. Growing and selling. The owner plans crops, grows, harvests, packs boxes, sells at markets and delivers. In Year 1 the owner works alone, with volunteers. We add one seasonal worker in Year 2 and grow to three by Year 5. Each season has a crop plan, a planting calendar and a weekly harvest and delivery schedule. Equipment. About $18,000 to start: hoop house (high tunnel); irrigation system; raised beds, soil and compost; hand tools and wheelbarrows; cooler or cold storage; harvest and wash station. We set aside about $3,000 to $4,000 a year for repairs and replacements. Upkeep. Tools and the hoop house maintained regularly, irrigation checked weekly, soil tested and amended and the cooler and wash station kept clean. Safety. Safe handling of tools and heat, hydration and sun protection, safe water and clean harvest practices for food safety, and careful storage of any inputs. Running costs in Year 1: seeds, soil and growing supplies about $8,000, land lease and irrigation about $9,000, market and delivery costs about $4,000. Scheduling and billing. Online CSA sign-up and billing, with members paying for the season in advance or in two installments.

Management & Organization

Who runs the business. Brian Perry, owner. As owner I will grow, harvest, pack, sell and deliver, manage members, market the farm and handle the money side of the business. I plan to pay myself $38,000 a year in salary in Year 1. Crew. Seasonal farm workers at about $22,000 a year each (or part-time pay): none in Year 1, one in Year 2, two in Year 3, two in Year 4 and three in Year 5. People who will help us: a bookkeeper or tax preparer, an insurance agent, and a free mentor from SCORE or the Small Business Development Center (SBDC). Nicole Torres serves as a key volunteer advisor.

Milestones Narrative

Our goals and when we plan to reach them. - Before starting: sign the land lease, test the soil and water, register the business, get insurance, build the beds and hoop house and open CSA sign-up. Target start: February 2027, before planting. - First year: grow for about 600 CSA boxes and sell about 9,000 items at markets, for about $65,600 in sales. - Year 2: add a seasonal farm worker, about $102,300 in sales, and a loss of about $13,600. - Years 3 to 5: grow to three seasonal farm workers and about $263,600 in sales by Year 5. Growth depends on hiring good people and winning the work, so treat the later years as goals, not promises. What we check every week: harvest, boxes delivered, market sales, waste, weather, and cash in the bank.

Funding Request

How much we need and how we will use it. Total needed: $69,500. The Funding Need Calculator in this plan shows a minimum, and we plan to raise a little more than that so the loan payments in the early years are also covered. The calculator's number adds up: - Startup costs of $26,000, listed item by item in the Startup Costs section (about $18,000 for the hoop house, irrigation, beds, tools, cooler and wash station, $2,500 for opening seeds, transplants and amendments, $300 for the business license and farm registration, $2,100 for insurance and soil and water testing, $600 for lease review and bookkeeping, $1,500 for the brand, market stand and website, and $1,000 for the land lease deposit). - A cash cushion of about $43,500: the deepest cash dip in the early months plus about three months of bills, so slow weeks do not put the business at risk. Lenders call this "working capital." - Together that comes to about $56,500 (rounded up to the nearest $500), which is the minimum the calculator shows. We are planning for $69,500, which adds room for the early loan payments. Where the money comes from: - My own money: $10,000. - Amount requested: $46,500. - From an investor or partner: $13,000. Kind of funding we are looking for: an SBA microloan through a local community lender, plus investor or partner money, which is not paid back with interest but gives that person a share of the business. How we will pay it back. We expect losses of about $19,300 in Year 1, $13,600 in Year 2 and $2,700 in Year 3 while we build our customer base, then a profit from Year 4 (about $29,000), growing to about $49,200 by Year 5. With this funding, the business has money in the bank every year of the plan. The loan is planned at 13% interest over 6 years, the top of the usual range for SBA microloans, so payments of about $933 a month are already included in our cash flow. What we are offering the lender: our equipment and my personal guarantee A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan: - Phase 1: start with a small plot, a handful of CSA members and a market stand while keeping your current job. Startup can be under $2,500. - Phase 2: once you have regular customers, add more land, a hoop house and a cooler and follow this plan. To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match. All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or certificates. - A personal financial statement (a list of what you own and what you owe; lenders usually provide a form). - Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov). - Proof of insurance, or a quote. - Your land lease or letter of intent, and soil and water test results. - A crop plan and a sample CSA agreement. - A list of market and restaurant customers, if you have them. If you don't have any of this yet, no worries - let's continue. The assumptions behind our numbers (change them in the Financials section to match your own):
- CSA Subscriptions: about $38 per CSA box in Year 1, rising to $43; about $9 per CSA box in direct costs; about 600 CSA boxes in Year 1, growing to 2,426. - Farmers Market & Wholesale Sales: about $5 per market item in Year 1, rising to $5; about $1 per market item in direct costs; about 9,000 market items in Year 1, growing to 30,330. - Owner salary: $38,000 a year. Crew: $22,000 a year each, from none in Year 1 to three in Year 5. - Other yearly costs in Year 1: seeds, soil and growing supplies about $8,000, land lease and irrigation about $9,000, market and delivery costs about $4,000. - Tax rate: 21%. - Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs