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Potato growing business - a practical guide for beginners. Business plan for growing potatoes
Industrial-scale production of root crops requires serious financial investments. Before starting such a business, you need to draw up a plan consisting of the following actions:
- find and rent a plot of land of the required size;
- register the farm, having previously collected all the necessary documents;
- buy equipment for planting and harvesting;
- hire staff;
- purchase material for planting.
There are two ways to grow tubers for sale:
- Winter cultivation in greenhouses. The profit from this method is greater, but costs also increase due to payments for electricity and heating.
- Growing potatoes in summer.
If you are a beginning entrepreneur, then the second method is much preferable - the costs are minimal, simple agricultural technology that does not require specific knowledge.
There is a certain technology, the observance of which guarantees success in this business.:
- tractor – 900 thousand rubles;
- potato planter – 320 thousand rubles;
- potato digger – 430 thousand rubles;
- hiller - 300 thousand rubles;
- sorting line – 410 thousand rubles.
In addition, you will need a special room in which this equipment will be stored in the winter - dry and well ventilated.
Vegetable store
A room that will help preserve tubers until spring with minimal losses. It is worth noting that it is in spring that the cost of second bread almost triples. The equipment of this premises will cost approximately two million rubles.
Staff
In order for potato growing to proceed without delay, the help of workers will be required.:
- two machine operators;
- one mechanic;
- three guards;
- general workers who will help harvest the crop in the amount of 10 people.
Some functions can be taken on by the farm manager - accounting, searching for a market.
Cost price
Before creating a potato production business, you need to assess how profitable the enterprise will be, and to do this, estimate the cost of the process. Determine how much money will have to be spent on purchasing equipment, planting material, paying staff, and so on.
Cost of equipment for working with seed minitubers
This is a unique installation that can be used both outdoors and indoors. It is intended for obtaining a large number of minitubers from one plant.
If you use the installation in the spring-summer period, then energy costs are significantly reduced, since artificial lighting is not required for production. The cost of this equipment is 180 thousand rubles.
Tuber costs
The cost of planting tubers varies from 8 to 30 rubles per kilogram, depending on the purchasing season. So if you buy tubers in the spring, their price will be maximum.
But it is not advisable to make a purchase in the fall, since it is unclear how they will be stored during the winter. Therefore, for calculations it is better to take the average price - 25 rubles.
To avoid large consumption of planting material, large and medium-sized tubers are cut into pieces weighing 40-50 g - so that each piece has 2-3 sprouts. In years of warm, not very wet spring, the yield from them is no lower than from whole tubers of approximately the same weight.
Buying or renting land
This is one of the important stages in creating a potato growing business. On average, one hundred square meters of land costs 5 thousand rubles. If we take into account that we need 0.3 hectares, then the investment will be equal to 80 thousand rubles. But at the first stage, the only option is not to spend money, but to lease the land for 49 years from municipal organizations.
If we take into account that such an area will be allocated somewhere in the countryside, then the cost will not be high. As soon as the business is established and begins to generate constant profits, you can think about purchasing a plot of land.
Profitability
Production of potatoes for sale is a profitable and relevant business. In our country it is eaten daily. The advantages of this business are that:
- Potatoes are easy to grow; you don’t need any skills or special knowledge;
- there is no seasonality in the demand for root vegetables; they are eaten all year round;
- at the first stage you do not need to invest a lot of money in the business;
- quick payback - with a competent approach, the first profit will be received at the end of the first season.
Minuses:
Despite the disadvantages, it is profitable to plant potatoes for sale; even summer residents, having a sufficient area of land in their property, have a small but stable profit every year.
Is it profitable to grow for sale?
Let's look at the costs involved in starting a business selling potatoes.:
- land rent within 200 thousand rubles;
- purchase of planting material – 300 thousand rubles, assuming that 10 hectares of land will be planted;
- fertilizers – 100 thousand rubles;
- questions about organization – 100 thousand rubles;
- purchase of equipment – 2.5 million rubles;
- construction of a vegetable storage facility – 2 million rubles.
If we take into account that a farm for the industrial production of potatoes is being created with a land area of 10 hectares, then the investment will amount to around 5.2 million rubles.
If we assume that 250 tons of tubers can be collected from 10 hectares in a harvest year, then we can assume that the profit in one season will be 10 million rubles (read about the secrets of agricultural technology for growing large root crops, and from this you will learn how to get a rich early potato harvest). Let us subtract from this amount the initial capital of 5.2 million and monthly expenses of 864,000 rubles, then the net profit for the season will be 3.936 million rubles.
The amount of investment is considerable, so it is better to start with smaller territories, and then expand your enterprise.
Production project for 1 hectare in Russia
Before starting to implement a project, it is necessary to draw up a business plan, which must be detailed. This will help not only calculate the amount needed to start a business, but will also allow you to calculate the approximate profit from the enterprise. In addition, you need to understand how much money you will have to spend on monthly expenses.
First of all, let’s calculate the one-time investment:
- acquisition of land – 50,000 rubles;
- equipment – 970,000 rubles;
- fertilizers and seeds – 42,000 rubles;
- paperwork – 15,000 rubles;
- Fuel and lubricants – 10,000 rubles;
- warehouses for rent - 30,000 rubles.
The calculation shows that at the first stage we will need 1.117 million rubles.
Now let's calculate the monthly costs of running a business:
- utility bills – 25,000 rubles;
- rental of premises – 30,000 rubles;
- taxes – 20,000 rubles;
- payment to staff – 100,000 rubles;
- depreciation of equipment – 15,000 rubles;
- Fuel and lubricants – 10,000 rubles;
- unforeseen expenses - 10,000 rubles.
So, production costs will amount to 216,000 rubles monthly.
The next step is to calculate the possible profit. With an average yield, 25 tons of potatoes can be harvested from a given area; naturally, not all of it will be suitable for sale; in the aisles, 2.5 tons of tubers will be discarded. You can sell 22.5 tons.
Let’s say we sell the harvest at retail at a price of 40 rubles per kg. As a result, it turns out that we will sell 900 thousand worth of potatoes. Net profit 252,000 rubles. Over time, you can expand production and thereby increase your net profit.
Conclusion
If you decide to start a potato growing business, then you need to approach this issue rationally. Don't run to the bank for millions of loans, start small. Rent half a hectare of land and try your hand at this business. Make a profit - expand your enterprise. The potato growing business is labor-intensive, but profitable, and you can gradually expand to large areas.
All over the world, organic products grown in natural conditions without adding chemical substances. It is popular in many industries: cosmetics, agriculture and others. The main one is the food industry, which will always occupy a leading position in the hierarchy of human needs. Therefore, food is one of the most profitable market niches, which will help every entrepreneur earn their first million. Potatoes have always been and remain the most popular food product, so a business plan for growing potatoes is the very project that will be profitable under any conditions. And 5 tons of harvest from 1 hectare of field are impressive indicators that force start-ups to act immediately and make their dreams come true. This business plan for growing potatoes with calculations contains detailed analysis market and step by step instructions implementation of the project, taking into account all the nuances and possible risks.
Market analysis
For most Russians, potatoes are one of the main and most important vegetables. According to statistics, every citizen of the country eats about 85 kg of potatoes annually. This means that the demand for this product remains stable.
The best varieties of potatoes are considered to be “Ryabinushka” and “Radonezhsky”. Both varieties are resistant to climatic conditions and diseases and produce about 5 tons of yield per 1 hectare of field, which is three times the yield of other vegetable varieties. A distinctive feature of the Radonezhsky variety is its ability to produce 2 harvests per year.
The most popular technologies for growing potatoes are the Dutch method, growing potatoes under straw, and the Mittlider technology. Potatoes grown using Dutch technology produce the largest and healthiest harvest.
The yield of a potato field is influenced by several factors: the choice of plant variety, the fertile qualities of the land and the efficiency of the technology for growing the vegetable. In addition, it is important to timely fertilize the soil with high-quality humus, water the garden, and control pests. However, even if you follow all the rules and regulations for planting potatoes, you should not expect 100% yield, because The harvest can be influenced by natural factors beyond human control.
Project Summary
Starting capital: 7,000,000 rubles.
Organizational and legal form: peasant farm.
Services provided: marketing of grown products (potatoes).
Planting material: potato variety “Golubizna”.
Technologies used: Dutch method of growing potatoes.
Estimated annual income: 2,500,000 rubles.
Payback: 2.5 years.
When implementing a project, you first need to find and rent a plot of land with an area of 10 hectares. In this case, the lease agreement is concluded for a period of 50 years with the right of subsequent purchase. It is advisable to locate the land plot near the city (up to 100 km). This will ensure a stable sales market and savings on rent (about 250 thousand rubles annually).
We choose peasant farms as the form of management. The most profitable taxation system in these conditions is the Unified Agricultural Tax with 6% of profits.
After registration, the entrepreneur must purchase equipment, select personnel and purchase planting material.
When starting the main part of the project, growing potatoes, the business owner must take care of processing the soil and preparing it for sowing, and then carry out sowing work. All of the above measures must strictly comply with the Dutch technology of growing vegetables.
During plant growth, it is important to carry out processing and watering work in a timely manner.
Ultimately, all employees must harvest the crop and carry out work to effectively market the product.
Equipment
| № | Name | Amount, rub. |
| 1 | Tractor | 900 000 |
| 2 | Potato planter | 400 000 |
| 3 | Sorting line | 400 000 |
| 4 | Inter-row tillage machine | 350 000 |
| 5 | Potato harvester | 450 000 |
| Total: 2,500,000 rubles | ||
Personnel composition
| № | Job title | Number, persons | Salary, rub. | Amount, rub. |
| 1 | Machine operator | 2 | 11 000 | 22 000 |
| 2 | Handyman | 4 | 7 000 | 28 000 |
| 3 | Manager | 1 | 17 000 | 17 000 |
| 4 | Mechanic | 1 | 13 000 | 13 000 |
| 5 | Security guard (summer) | 3 | 5 000 | 15 000 |
| 6 | Accountant (outsourcing company) | 1 | 5 000 | 5 000 |
| Total: 550,000 rubles | ||||
Agrotechnical aspects
On a land plot of 10 hectares, the elite potato variety “Golubizna” will be used as planting material, the cost of which reaches 40 rubles per kg. The purchase of seedlings will cost the entrepreneur 800,000 rubles.
The construction of a storage facility for potatoes, which will allow storing vegetables in marketable condition until the spring season, when the price of the product increases several times, will cost about 3,000,000 rubles.
Potato growing technology
The Dutch method involves growing vegetables in natural conditions with minimal costs. The peculiarity of this method is the minimal use of mechanical impact on the plants and the field as a whole.
Soil aeration is another distinctive feature of the method, which allows you to create natural ventilation of the soil in order to mix ground and atmospheric air. To do this, the soil is loosened and the potatoes are placed in ridges. It is important to make wide spaces between rows of plants.
Thanks to this technology, about 2 kg of potatoes can be obtained from a grown bush. The resulting fruits can easily tolerate long-term storage in special conditions.
There are nuances that must be observed when using Dutch technology in order to obtain a good harvest, namely:
- Tubers must be large and have at least 5 eyes.
- Before planting, potatoes must be heated in a bright place (temperature up to 180 degrees).
- Before the sprouts reach a height of 20 mm, you need to reduce the room temperature to 8 degrees.
- Before planting, it is advisable to divide the potatoes in half to increase the yield.
- Planting of seedlings should occur as soon as the soil becomes well warmed up.
Planting potatoes
Forming beds for planting is an important stage in the process of growing vegetables. To ensure that the bushes are evenly illuminated, the beds are formed from north to south. The row spacing is 750 mm. The depth of the holes is 850 mm, the clearance between them is up to 300 mm.
Seeds must be placed in the holes with the sprouts up. An embankment about 100 mm high is made on top. The embankment is increased gradually, depending on the growth of the bushes.
It is important to follow the rule: no more than 600 plants can be planted per 100 square meters.
Care and harvesting
It is necessary to water the plants three times during the entire period of their growth: when the first shoots appear, before flowering and after it.
It is better to start pest control before the plants flower. To do this, potato tops are treated with products that are sold in specialized stores.
Harvesting begins in early August (to select seed material), and by the end of the month the harvest is harvested for food purposes. It is important to remember that 10 days before harvesting it is necessary to remove the tops.
This technology contributes to good yield and preservation of products.
Storage
The storage room for potatoes should be dry and cool, protected from the sun, with a temperature of up to 5 degrees and air humidity of up to 90%. After harvesting, the product should be kept in a room with a temperature of up to 17 degrees for 2 weeks. After this, the temperature in the place where the goods are stored is gradually reduced, bringing it to 5 degrees.
Low indoor humidity can cause potatoes to change color. Green potatoes may be suitable for planting, but are contraindicated for consumption.
This storage method promotes the healing of fruit lesions that may have occurred during harvesting of the land.
Sales of goods
Sales of grown potatoes can be carried out through the following channels:
- Cooperation with large retail chains.
- Conclusion of a contract with wholesalers.
- Selling products at fairs and food markets.
- Sales of goods to grocery stores.
- Sales of products to processing organizations.
Solving issues with long-term storage of potatoes can facilitate their sale during the winter season at a higher price.
The environmental qualities of the product being sold can also affect its price and significantly increase the demand for the product.
Financial plan
Start-up costs
| № | Name | Amount, rub. |
| 1 | Site design | 200 000 |
| 2 | Purchasing seedlings | 800 000 |
| 3 | Purchase of equipment | 2 500 000 |
| 4 | Construction of storage for vegetables | 3 000 000 |
| 5 | Purchase of fertilizers, soil treatment products | 100 000 |
| 6 | Business registration | 100 000 |
| 7 | other expenses | 300 000 |
| Total: 7,000,000 rubles | ||
Annual expenses
| № | Name | Amount, rub. |
| 1 | Rent of land | 240 000 |
| 2 | Employee salaries, tax deductions | 700 000 |
| 3 | Expenses for soil treatment products | 165 000 |
| 4 | Combine harvester repair | 100 000 |
| 5 | Depreciation | 100 000 |
| 6 | Costs for fuels and lubricants | 200 000 |
| 7 | Vegetable storage costs | 130 000 |
| 8 | Accounting expenses | 80 000 |
| 9 | Other expenses | 50 000 |
| Total: 1,765,000 rubles | ||
Income
The annual profit from the business will be about 4,500,000 rubles. However, minus annual expenses, it will be 2,735,000 rubles. Taking into account tax deductions under the Unified Agricultural Tax, the net profit from the project will be: 2,735,000 – 164,100 = 2,570,900 rubles.
The predicted profit will become real only in the case of 100% sales of grown products. Under such conditions, the payback of the business will occur already in the 3rd year of the enterprise’s fruitful operation. Considering the possible risks, it is worth noting that in practice, the payback of the business will come after 4 years of hard work in the field.
Risks
Before implementing this business plan, it is necessary to conduct a thorough analysis of the risks that an entrepreneur may encounter along the way.
The most common risk in this industry is investment risk. This is the risk associated with the occurrence of unexpected monetary losses due to the unstable investment conditions of the project.
In addition, there are other factors that can in one way or another affect the profitability of a business:
- Crop failure. To avoid large financial losses, it is necessary to include crop insurance costs in the baseline assumptions.
- Inexperience. To avoid this risk, you must strictly adhere to the chosen growing technology, and if you have questions, contact specialists for help.
- Price instability. This risk can be dealt with by entering into long-term supply contracts in advance.
- Competition. A thorough analysis of the work of competitors will help to take a leading position in the market (it is necessary to use the weaknesses of a competitor in favor of the work of your own enterprise).
Eventually
This example of a production plan demonstrates the cost of business at first. But when implementing it, it is worth remembering that potato growing is a win-win option for starting a career, which will not lose popularity over the years. This means that the profitability of the business is extremely high, and the business is able to generate income for many years.
The potato growing business itself is a profitable business. However, the amount of profit depends on the skillful implementation of the project. Therefore, emphasis must be placed on the quality of grown products. It must be remembered that an environmentally friendly organic product is valued many times more than a product created using chemicals. Of course, the investment in an organic product is quite large. But the income from these products will not be long in coming.
Business on agriculture can be very profitable, but it needs to be approached wisely. Beginning entrepreneurs very rarely pay attention to growing and selling potatoes. Although this product is very common and is always in great demand, the business itself requires a lot of time, effort and financial costs.
Advantages and disadvantages of the potato business
Growing potatoes as a business has special advantages that play an important role when starting this business.
The profitability of the business is very high and amounts to 160%, since the product is in great demand, especially in large cities where there are no land plots or they are very small in size.
To conduct business, special equipment is used for growing potatoes and cultivating the land. Just a few small tractors will be enough here.
But there are also difficulties here, that is, the amount of harvest directly depends on the quality of planting material, as well as weather conditions and the degree of protection from pests.
Do not forget that the soil where potatoes are planted needs rest and regular fertilizers, and tractors need fuel and lubricants. But profitability very quickly covers all costs.
And you can start a potato business on a small plot; even from an area of 3 acres you can harvest about 250-300 kg of crop. In addition, growing the product does not require special knowledge.
The disadvantages include the low price for selling potatoes and the fact that they can only be grown in the warm season.
How to grow potatoes
Before you start doing business, you should study the plan for growing the product, since the future harvest directly depends on proper planting and care.
Potatoes are one of the most weather- and climate-sensitive vegetables. It can be grown using two methods. The first is early ripening varieties that are planted in greenhouses and go on sale in early spring, and the second is open ground and goes on sale in the fall.
The first method has greater profitability, but also requires high costs for arranging greenhouses. But the second method is less expensive and ideal for beginners with small initial capital.
Potatoes are an early ripening crop and take about 4 months from planting to harvesting. The cultivation technology is very simple and includes only a few main stages of work:
- preparing seeds for planting;
- site preparation and planting;
- hilling and fertilizing;
- pest control;
- cleaning and storage;
- packaging and sale.
Seed potatoes that are purchased must have all the required documents confirming the variety and high resistance to disease, as well as productivity. The planting material must meet strict requirements; the size of the tubers is about 3-5 cm in diameter. When planting tubers of different varieties, it is not recommended to mix them.
The vegetation of such plants should be at least 100%, and the yield should be stable and very high. If the reproduction of the product does not reach degree 2, then it is not advisable to use it on seeds.
Seed preparation is carried out in the autumn, the potatoes are sorted. Only healthy tubers that have no spots or sores and are not damaged in any way remain for the seeds. After careful selection, they are greened up; for this, they are laid out in the light for about 3 weeks. But direct rays are prohibited for them, only diffused light.
After gardening, the seeds are stored in a warehouse at a temperature of about +3 degrees and a humidity of at least 80%.
After storage, 30 days before planting, the seeds are taken out and transferred to a warm and bright place for germination. The sprout of potatoes ready for planting should be 1 cm. If you come across large tubers, then they are carefully divided into 2 parts, leaving sprouts on both halves; there should be about 4 of them. To prevent the cut tubers from rotting, it is recommended to treat the sections with tree resin.
But when potatoes are grown industrially, they are not sorted manually; the whole process is completely automated.
The timing of planting depends entirely on weather conditions, that is, in the south, potatoes can be planted in March, in the middle zone at the beginning of May, and in the north only at the beginning of summer. The temperature of the finished soil should be more than 12 degrees.
The soil is prepared in advance; for this purpose, small areas are dug with shovels, and large areas are plowed with a tractor. During preparation, the soil is loosened, as a result the plant will have enough air and moisture.
The material is planted in rows with a distance of at least 1 meter. This distance is required for the full development of bushes and easy processing and harvesting using special equipment.
When working with milling units, roots will not be damaged at this distance. If you save on distance, then even with manual cultivation, the roots can be damaged and the growing season will slow down significantly.
Tubers are planted to a depth of about 8 cm, and a ridge about 10 cm high is formed on top. According to the standard, 30 bushes should be planted per square meter.
14 days after planting, all weeds are removed from the site, and the sprouts undergo the first hilling, and an additional 10 cm of ridge height is created. The soil on the ridge is only soft and loose, since new tubers will form in it.
If there is no rain, watering is carried out 2 times every seven days. If there is a severe drought, watering is carried out every day. If the weather is cloudy and there is high humidity outside, then it is advisable to reduce the number of waterings.
Potatoes are very fond of fertilizers; for this, horse or cow manure must be added to the ground before planting.
When the bushes begin to bloom, they must be treated with products against the Colorado potato beetle and prevented from possible late blight. Treatment of plants against pests should be carried out about 5 times per season, but with strict adherence to the requirements of treatment intervals from the manufacturer.
Harvesting is carried out in the autumn after the tubers have fully ripened. This will significantly increase shelf life and all beneficial features product. For storage, special rooms are used in which the required temperature and humidity are maintained. 
How to organize a business
In order for the potato growing business to become profitable, you should not only learn the technology for growing the product, but also take care of the paperwork.
If you plan to grow goods on your own plot, then it is not necessary to prepare documents. But here difficulties will arise with the sale of products; it will be possible to sell only independently.
If you plan to conduct a large business, you must register with the tax service as an individual entrepreneur. To do this, select the OKVED A. 01,13,21 form and the Unified Agricultural Tax taxation system, that is, as an agricultural entrepreneur.
When registering a potato business, you should take into account that large buyers and retail chains prefer to work with individual entrepreneurs rather than with private small businesses.
Selling Features
A business selling potatoes will have high income if you find permanent sales points. For this purpose, market monitoring is carried out. You can start offering products to large retail chains.
You can also sell at the market, especially if the sale is carried out at a time when potato prices are rising. In this case, you can find wholesale buyers.
But it is worth remembering that the product must only be of high quality without damage and with the correct shelf life.
A potato growing business can bring high yields. When planting one ton of seeds per hectare, you can harvest about 20 tons of crop. And you can get a high income for such a volume only if you have a permanent point of sale. 
Financial investments in business
A business plan for growing potatoes requires certain costs. Financial investments will be required for:
- purchase of seeds;
- purchase of fertilizers and pesticides;
- rent or purchase of equipment for growing potatoes;
- purchasing packaging for potatoes;
- rental of storage space;
- salary if workers are hired.
But if you follow all the cultivation technology, then all these costs will quickly cover. You can increase your profits only with effort and marketing.
Costs are reduced if you have your own warehouse, or a place to build it, as well as your own agricultural machinery.
Profit from the potato business
The potato business requires initial cost calculations and approximate profits.
The costs include setting up a business, purchasing equipment, seeds and everything necessary for growing.
It is also worth indicating the worker’s salary, the cost of renting a stall, the amount of tax deductions and transportation costs.
Calculations are being carried out, that is, approximately 350 thousand were spent on creating the business, and the total harvest amounted to 16 tons. After the goods have been sorted and approximately 2 tons of defects have been removed, 14 tons are spent on sale.
That is, when selling potatoes at a price of 50 rubles per kilogram, the total income will be 700,000 rubles. The net profit in this case is 350 thousand.
Although the potato business has high costs and a large investment of effort and labor, with the right approach it brings high income in a short time, since cultivation is carried out in just one season.
Business plan for growing potatoes: detailed financial calculations + 7 basic steps for establishing a successful business.
Capital investments: 90,200 rubles.
Payback period: 4-5 months (period from planting to harvesting).
Growing potatoes - business?
This question was asked by many of those who at least once grew potatoes with their own hands.
We answer with confidence that yes, and quite promising.
The main thing is to take the first steps correctly.
There is no need to talk about the popularity of potatoes once again; they can be called the real master of the table for hundreds of years.
The Indians of Latin America discovered its secret 7,000 years ago.
Then the Spanish conquerors brought it to Europe, and later, thanks to the efforts of Peter I, it ended up on our tables.
Considering the popularity of the vegetable, it can be assumed that growing potatoes is still a business, and a promising one at that.
However, you must be aware that, as in any other type of activity, in order to achieve success, you need to make some efforts, think through everything carefully and act based on.
Of course, like all business endeavors, it will require certain costs.
Their size depends on what volumes you are going to “swing”.
Where does a business plan for growing potatoes begin?
Like any project, it begins by drawing up a business plan for growing potatoes.
It is carefully thought out based on what you have:
- acreage for cultivation;
- financial opportunities for business;
- choosing technology for growing potatoes;
- capital (initially necessary) investments;
- everyday or current expenses;
- expected results from the business.
So, having decided for yourself that growing potatoes is the business to which you decided to devote your efforts and time, you need to carefully conduct analytical work.
Business analysis is as follows:
- Find out the average price for seed.
- Determine and clearly understand what equipment you will need and its price.
- Which planting technology is most suitable for your climate zone.
- Average yield and ways to increase it in your region.
- Average price for fertilizers and fuels and lubricants.
- Average wholesale and/or retail selling price of the harvest obtained.
- Legal aspect and nuances of taxation.
Including a legal issue in a potato business plan
Since we are talking about entrepreneurial activity, it is necessary to include in the business plan for growing potatoes such an item as legal registration of your relations with the state.
If you decide to limit yourself to your own subsidiary plot, then with a clear conscience you will be able to sell the crop on the market without any registration, according to the legally valid concept of “personal subsidiary plot” (LPH).
But if the planned scale of production is higher, then (indicating the OKVED code A.01.13.21).
In this case, the most beneficial for you will be the Unified Agricultural Tax system, deductions for which will also need to be included in the list of future expenses.
Business plan for growing potatoes: necessary equipment and devices
This is one of the most expensive items in your business plan, but sooner or later you will have to come back to it and decide.
To achieve success in this type of business, it is necessary to gain complete autonomy from the beginning to the end point of the potato growing process.
Of course, when we are talking about a subsidiary plot with a plot area of 6 to 10 acres, then, although this is not easy, it is quite possible to cope with the muscular strength of family members and a primitive shovel.
And if you came out onto the vastness of a plot of, say, 30 acres?
Without any doubt, mechanization is necessary here.
There are two ways: buying a mini-tractor or renting.
As for rent, you should know that the price of the service is on average in the country 400-500 rubles per hundred square meters.
The price of your own “horse” is about 30-60,000 rubles.
Here the amounts vary depending on the type, power and capabilities of the unit.
If your farm has a horse and an old peasant plow with a cart, then this is also a good option for mechanizing labor at the initial stage:
What technologies are used to grow potatoes?
Speaking about growing technology, it should be said that there are quite a lot of options.Which one to choose is up to you to decide, based on the information collected on the feasibility of the method for your region and based on the expected final result.
It is worth considering that, like any business, growing potatoes must rely on the most advanced technologies.
In this regard, we will introduce you to a relatively new, but already successfully tested technology for growing potatoes in Southern Patagonia (Argentina).
The climate of that area is similar to central Russia, and closer to the south it is even harsher.
It should be noted that this method is successfully used at all latitudes of the country, up to its subtropical part, and gives good yield.
For planting, flower pots made of organic material 60 cm deep are required (this type of pot is well known to gardeners who plant tomato seedlings).
Soil is poured into them, the top layer of which is mixed with manure and a small amount of sand and water.
6 weeks before planting, the selected potatoes are planted and left in a cool place with natural light.
When preparing planting material, we decide on the size of the fruits of the future harvest.
If our plans include medium-sized potatoes with a lot of fruit, five sprouts are left.
If our plan is to obtain very large tubers (with fewer), then we leave 3 sprouts.
Growing potatoes in this way requires fertile, well-drained soil rich in organic matter (prepared before planting) with a hole depth of about 60 centimeters (according to the dimensions of the planting pots).
Holes (planting holes) in the ground are made at a distance of 40 cm from each other.
Potatoes are planted directly in pots.
Two weeks before harvesting, the above-ground part of the plant is cut off just above the root, leaving 5 - 10 cm above the ground.
2 weeks after removing the plants, we can harvest.
The yield and quality of potatoes with this method are simply fantastic.
Potatoes are resistant to rotting and can be stored for a long time, maintaining their original appearance.
It should be added that the described technology is more expensive and troublesome, but gives a minimum yield of 450-500 kg per hundred square meters, which is twice the average yield in Russia (250-300 kg).
What personnel are needed to include potato growing in a business plan?
This question is not as clear-cut as it seems at first glance, and depends on several factors.
As a rule, growing potatoes is a family affair and is 90% mechanized, even on a small scale.
Moreover, if a person has taken up the implementation of a business idea for growing potatoes, possessing the necessary skills for this.
That is, he knows the technology of cultivation, has the skills of a machine operator, automation of the process of planting, processing and harvesting of sown areas.
Then it will not be difficult for him to cope with crop areas in hectares.
But during the harvesting process, you will still need helpers for picking potatoes after the tractor (up to 20% of the harvest, or even more, remains in the field), sorting, packaging, etc.
Experienced farmers attract a number of workers.
As a rule, they are hired for several days (for calculations, let’s take 6 days for harvesting and sorting), and their number is determined by the area of the crop area and the amount of harvest.
On average in Russia, payment for a workday of field work is 400-600 rubles/day, and is regulated by an employment agreement.
How much money do you need to invest to grow potatoes?
Investments in a potato growing business consist of several points: determining the price of seed, fertilizer and fuels and lubricants, as well as purchasing equipment.
Start-up investments in business
Summarizing everything in the final table, I would like to note that in the future the costs will be much lower, because the acquired equipment and devices will last for many years.
Price for seed
Prices for planting potatoes vary and depend on the variety, region and place where you purchased them (station or market).To understand what prices are relevant in Russia, pay attention to the table of average prices for all regions for the main varieties of seed.
These data must be reflected in the business plan for growing potatoes.
Costs for fertilizers and fuels and lubricants
A business plan for growing potatoes includes another significant expense item - pesticides, fertilizers and fuels and lubricants.
In the calculations above, we assumed that our cultivated area is 35 acres.
Based on the average statistical indicators for the fuel consumption of an average mini-tractor, the amount of fertilizers and chemicals for processing one hundred square meters, for such an area the costs for this item will be 15,000 rubles.
The video below provides a list of features of growing potatoes:
Expected net profit from potato growing business
Interesting fact:
Today the price of potatoes is not high, but a kilogram of the most expensive potatoes in the world is not so cheap. The "La Bonnotte" variety is grown by hand on the French coast and is valued at 500 euros per kilogram. During the gold rush, potato tubers saved against scurvy, and in prospecting circles they were valued more than gold.
The most important point for a future entrepreneur is, of course, information about the profitability and profitability of the business:
Based on the data in the table, we get the figure for net profit from the business:
262,500 - 90,200 = 172,300 rubles.
For those who are just starting or are thinking about starting a potato growing business, there is good news.
Statistics and economic analytics indicate that in terms of payback and profitability, growing potatoes is one of the most effective types of business of this type.
The full cycle from planting seeds to harvesting takes, on average, 4 months, and the level of profitability, according to conservative forecasts, is 150-200%.
As seen, growing potatoes– business, which is worth pursuing.
If we take subsequent years, then to the net profit received we can safely add the costs of purchased equipment minus the funds that will be spent on Maintenance and repairs (usually about 15% of the cost of equipment).
It turns out to be a good amount of stable profit, so it’s really worth engaging in this activity.
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Potatoes have always been and will continue to be in high demand, which means that a business based on the cultivation of this particular crop will be profitable. We will tell you how to start it correctly in the article.
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Decor
In the modern world, only two organizational and legal forms of organization are defined for such a business:
- Private household plots- homestead personal farming. This form is suitable for entrepreneurs growing a small amount of potatoes on their own plot of land. There is no need to register such an enterprise; taxes are not collected from it. The final product of the enterprise can be sold on the market wholesale or retail.
- IP- individual entrepreneur. This form is suitable for owners of private household plots who decide to expand their production and apply other schemes for selling goods. A farm engaged in growing potatoes must be registered under code 1.13.21 “Production of agricultural products.” Registration under this code will allow the entrepreneur to use a more favorable taxation scheme such as the Unified Agricultural Tax (only 6% of net profit).
What do you need to get started?
A businessman who decides to seriously take up the cultivation of this crop must not only register the enterprise. He needs to provide the enterprise with the following necessary resources.
Earth
Of course, in order to plant potatoes, you need to know not only how to do it, but also where to plant them.
To organize your own agricultural business, an entrepreneur can use the following methods:
- buy the required plot of land;
- rent land.
Planting material
The key to the success of the created business and a large harvest lies, first of all, in the correct choice of material for planting. Planting potatoes must certainly be of high quality, then the entrepreneur will be able not only to grow a good harvest and seed material for the next planting.
You can buy tubers using the following sales points:
- shop.
The purchased variety can be planted for several years until the variety degenerates. The purchased tubers must be the same size and shape.
Hilling up potatoes Equipment
If we consider an agricultural company growing potatoes in non-industrial quantities, but only for personal use and sale on the market, on a plot of about 0.3 hectares, then the following set of machinery and equipment will be required:
- mini-tractor or simple walk-behind tractor;
- plow;
- tractor body;
- hiller;
- an additional device for a mini-tractor that allows you to dig up potatoes.
The cost of purchasing equipment will be about 60 thousand rubles.
Fertilizers to ensure soil fertility
Without soil fertilization, it is impossible to grow a good crop with sufficient tuber size and heavy weight.
Fertile black soil is not present on every piece of land, so farmers fertilize the bud with the following substances:
- ammonium sulfate;
- potassium sulfate;
- potassium superphosphate;
- potassium permanganate;
- litter;
- vermicompost;
- ash.
The purchase of such a set of fertilizers will cost about 17 rubles per 1 square meter of land.
Pest protection
The main enemy of potatoes is the Colorado potato beetle, but farmers do not recommend spraying the bushes ahead of time, due to the effect of chemicals on the growth of the bushes. But, despite the fact that you cannot spray, you will have to constantly check the bushes for pests. An entrepreneur will spend about 2.5 thousand rubles for every 30 acres to purchase products to combat this pest.
Stages of growing potatoes
Growing potatoes is an agricultural business with a high return on investment. The time it takes for a crop to go through a full growing cycle is only 4 months.
The growing process itself consists of the following main stages:
- preparing tubers for subsequent planting;
- preparing the soil for planting crops;
- disembarkation process;
- hilling of planted tubers;
- soil fertilization;
- pest control activities;
- harvesting of grown crops;
- storage of collected tubers;
- packaging of final products;
- sale of potatoes.
Peculiarities
A business based on growing potatoes requires strict adherence to the cultivation algorithm. The volume of the harvest certainly depends on various factors, including air temperature and natural precipitation, which are independent of the farmer. If the farmer can compensate for the lack of moisture, then excess sunlight simply cannot be excluded. A lack of sunlight, of course, will not kill the crop, but will make it small and deprive it of its marketable appearance.
Choose a site for planting potatoes taking into account such unregulated factors.
Preparing the site for planting
Before planting, which occurs in Russian latitudes in May, the soil is loosened and all weeds are removed. Similar processing is done with a shovel or using a plow with a tractor as draft force, depending on the size of the area.
Preparation of seed material
Planting tubers must be greened by placing them in a bright place for 20 days. This method improves the ability of sowing to germinate, and also protects the material from rotting without growth.
After germination, the tubers are transferred to a dark place for 1–3 days at a high level of humidity and a positive air temperature of no more than 3 degrees.
Before planting, green tubers must be removed from a dark room and allowed to germinate. The size of the sprout must be more than 10 mm before planting.
If large tubers are planted, they must be cut into pieces, each of which will have two eyes or more. The cutting is made right before germination begins, and the cut areas should be sprinkled with ash, which will prevent contamination of the planting material.
Planting potatoes
In Russia, in its central zone, planting begins in May, but in warmer regions this process may occur in March or April. In northern latitudes, tubers are planted in June. Before planting, the soil must warm up and its temperature must reach 8 degrees.
I plant the tubers to a depth of 10-15 cm. The distance between the bushes should be at least 10 cm, the gap between the rows should be about 0.8-1 m.
Plant care
Care procedures include the following:
- 14 days after planting, weeds are removed from the beds. The bushes are earthed up, making sure that the soil ridge above the planting material is no more than 10 cm.
- During the flowering period, the bushes must be sprayed with chemical solutions in order to protect the greenery from the beetle.
- Watering the area is done 2–3 times a week, provided there is no natural moisture.
- During drought periods, watering is done daily.
- In order to maintain soil fertility after harvesting potatoes, it is sown with clover, sunflowers or corn.
- Harvesting occurs immediately after ripening.
- The harvested crop should be stored in dry rooms specially designed for this purpose.
Marketing of harvested crops
To sell potatoes, you can use one of the following methods:
- Sell the product yourself on the market. This option is the most profitable for an entrepreneur, but it will take up a huge amount of time, which farmers already lack. In this case, you can go two ways:
- appoint one of the employees responsible for product sales;
- store the harvest until autumn and sell it in winter, when there is practically no work on the land. In winter, the price for such products is much higher, but this method is only possible if the farmer has suitable warehouses.
- Give the grown products for sale or sell everything at a wholesale price sellers who have been selling agricultural products for a long time. This method is fast, convenient and often quite profitable.
- Sales to wholesale buyers or procurers. If the harvest obtained after harvesting is sufficiently voluminous. Despite the fact that the price in this case will not be so high, the farmer will be able to sell everything in one fell swoop.
- Selling goods directly to stores. The most profitable way of implementation. In this case, clean, washed potatoes, packaged in bags, are especially valued.
If the farmer has a fairly large plot, then he should take care of the sales markets in advance by contacting wholesalers and discussing the terms of cooperation with them. After entering into such agreements, the farmer devotes himself to cultivation without worrying about marketing problems.
Financial side of the issue
Starting this type of growing business involves some material investments that will go towards:
- purchase of planting material 0.5 tons – 700 dollars;
- purchase of fertilizers and chemicals– about 200 dollars;
- rental of equipment for soil development– 10 dollars per hour;
- packaging of the final product– 75 dollars;
- fuel- 500 dollars;
- employee salaries- 500 dollars;
- rental of warehouse premises– 1000 dollars per month.
Thus, the total starting costs will be 3.5 thousand dollars. With high-quality planting, proper care and flowering of the crop, a farmer can get about 20 tons of potatoes, which will cost 5 thousand dollars, and maybe even more.
Pros and cons of the potato business
The advantages of this type of farming include:
- in the case of growing a small batch of potatoes, there is a complete absence of tax deductions;
- fertile village soil may not need to be fertilized at all;
- low cost of organic fertilizers;
- the possibility of using bush greens for processing and application to the soil as fertilizer;
- low utility bills;
- unpretentiousness of potatoes to growing conditions;
- low cost of pesticides;
- streamlined, simple and understandable growing technology;
- the demand for potatoes is not seasonal, but year-round;
- payback period less than six months;
- small starting capital.
This type of activity also has its disadvantages:
- the harvest directly depends on weather conditions, which the farmer is not always able to correct;
- pests can destroy crops, but the modern market offers many inexpensive means of combating them;
- poor-quality planting material can destroy the entire crop;
- the business is seasonal, so the farmer and his employees will need winter part-time work.
