How to Start Agricultural Business? Importance of Agriculture, SWOT analysis, & many more. (421)

How to Start Agricultural Business? Agricultural business is variety of businesses, ranging from mining to farming to manufacturing. The challenges of starting an agricultural business are finding buyers and employees within a small area, traveling greater distances for supplies and inventory, and finding support services. Government organization can support for the great interest of a country to develop agricultural business.

What will you find here?

01. How to Start an Agricultural Business?

02. How to Increase Productivity in agriculture?

03. Importance of Agriculture – Agriculture Play a vital role in economy

04. SWOT Analysis for Agriculture Industry

05. Strength & support need for ICT to be succeed in Agriculture

06. How to make the best flour?

07. Type & Production Ratio of flour in factory

08. Tools Used in farming or Agriculture

How to Start an Agricultural Business?


  1. Decide what type of agri business you want to start based on your circumstances. Agricultural businesses can sell livestock, grow crop, produce wine. Each option has its own list of regulatory requirements from the U.S. Department of Agriculture (USDA). The USDA is also responsible for rural development nationwide. The agency promotes economic development by granting loans from banks for small businesses that helps to make agricultural businesses.


  1. Contact your state’s Government revenue department. Each state has its own set of business and tax requirements regarding agricultural businesses. These agencies also may provide funding opportunities.


  1. Develop a business plan on the basis of your financial ability. Weather and increased transportation costs are primary considerations for most agricultural businesses. Be sure to address mitigation and cost-reduction strategies in your financial forecast. Remember, for all types of planning probability and future assessment is necessary.


  1. Feasibility study, SWOT analysis, Break-even point calculation may help you greatly to success in your business. Whatever your idea is, it is wise to start a small version of it. If you want to sell cow, try renting space before buying your own facility. If you want to sell corn, start with a small crop and find buyers for this crop before expanding.  If you want to start a greenhouse, ask someone who already owns one if he can help you to manage yours.


  1. Use business networks and contact to find support services and potential employees. Contact your local labor or unemployment office for cheap manpower and guidance.


  1. Think more about product pricing, it is very important and critical. Many agricultural businesses sell commodities which is a product that is raw or primary.  These commodities often are traded on an open exchange. If this is the case, you can determine pricing for your product by looking at the current market rate. Commodities also will have a future market rate, may be sold as an option. Buyers needing raw goods can purchase them at a set price in the future.


Develop an accounting system suitable to agricultural cycles and trends.  Don’t underestimate the need for a sound accounting/bookkeeping system. Software such as QuickBooks may include a specific module for agricultural and farm-related businesses. Focus 5, Tally etc. also can be used if it is fit for that business.


How to Increase Productivity in agriculture?

Agricultural productivity must be increased to 70 percent by 2050 in assurance of feeding an estimated global population of 9.1 billion, according to the United Nation’s Food and Agriculture Organization. Improvement in agricultural production already underway, include labor, seed and feed, energy, fertilizer, and pest and disease control. Other variables affecting productivity are public policy, research and development, education, management and infrastructure. Major negative factors are depletion of resources, water, land degradation, ecosystem loss and reduction in ocean source food.  Natural disaster is also obviously affecting agricultural productivity.


  1. Increase educational opportunities:

Only 33 percent of farmers were high school graduates in 1964; by 1990, the number was 67 percent. Farmers will need to deal with increasingly complex agricultural practices and systems. So, they need to be more educated.

2. Continue Agriculture development:

Consistent development of disease-resistant seed and plants and do more research on pesticides. From 1948-1996, pesticide use increased 6.42 percent per year, resulting in increased crop yields.

3. Aware of impacts:

Farmers should be aware of both positive and negative impacts on productivity. Fertilizer has increased crop yields but there are now more than 400 dead zones in the oceans where fish cannot live because of oxygen depletion, primarily caused by plant fertilizer contamination.

5. Take care of agricultural land:

More than 20 percent of the world’s cultivation areas have severe land degradation caused by nutrient depletion, erosion and loss of water retention capacity. Reforestation and improved management is bringing some degraded lands back into productivity in North America, Europe and China. (according to the Food and Agriculture Organization – FAO).



Importance of Agriculture

 Agriculture Play a vital role in economy

Agriculture usually plays a vital role in the economy of every nation where exists. Not only for the reason that it tends to feed the entire population of a country but also in the respect that agriculture correlates and interacts with all the related industries of that country. A country is usually considered to be a social and politically stable nation if it possesses a very stable agricultural basis.

Food security

A stable agricultural industry ensures a country of food security. Food security is considered to be one of the primary requirements of any nation. No nation can effectively grow with a stable agricultural base while harboring a nation of “hungry people”, as these hungry people can do nothing what-so-ever towards helping develop their country. Food security prevents starvation which has traditionally been considered one of the largest problems being experienced by the small developing nations. Most countries like Bangladesh depend upon agricultural products and related industries for their major source of income. Even the newly developing countries will find that they depend upon and can benefit greatly from their agricultural industry.

Main source of employment

Aside from the crops and animals that are produced by the farmers who make up a country agricultural sector, the agricultural field represents the main source of employment within most countries. The larger farms usually find it necessary to hire additional hands in which to successfully cultivate the lands and to take care of the related farm animals. Most of these large farms have processing plants located in nearby facilities for finalizing their agricultural products and developing the by-products. It goes without saying that these sub-industries employ considerable man-power within their operations. Most of the modern farms and agriculture-related industries make good use of today’s modern equipment as well as the principles of science and technology.

Modern farming technology

The use of technologies in farming is determines by the competence of the various farmers towards coping with these advancements relating to the technologies. The country’s farmers who can utilize the modern technologies involved with farming can assure a good production of their products which benefits their country as a whole. Modern farming technologies would be useless if the farmers are not competent enough to use any of the technology that they have available to them.

Principles of Agriculture

Most of the older industrialized cites have begun their growth primarily through the development of agriculture. These cities have done well on an agriculture basis before they fully begun to embrace the industrialization process. Most of the principles currently in use within our modern businesses have their roots stemming from the principles of agriculture. Bulk manufacturing is one of the practices that have been patterned from the seasoned harvesting often found in the area of agricultural practices. This method has saved many ancient cities from destruction during times of plague and drought. During the ancient times the countries harvested crops which were not merely used for immediate consumption but were often harvested and stored for future use. The same thing is practiced within the modern business procedures to ensure its stability.

Modern technology make it possible to farm in urban areas

Agriculture is usually common in rural areas which have the most arable lands, however with the modern technologies involved in farming agricultural activities are totally possible even in the urban areas. These activities can be accomplished to sustain personal or family needs or even for commercial purposes.

SWOT Analysis for Agriculture Industry


SWOT analysis is a structured planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved business.

E-Agriculture involves the conceptualization, design, development, evaluation and application of innovative ways to use information and communication technologies (ICT) in the rural area with a primary focus on agriculture.

Rural development

Rural development can’t be thought without the radical development in the agriculture sector. Monsoon driven agriculture sector itself is loggerheads with its traditional styles and financial crunch. Proper dissemination of the technology can serve a blessing in disguise to revive agriculture sector. Over the years developed nations have used technology as tool to take a leap ahead of other and become self sustained. On the other side of the coin the challenges that face the digital divide, especially in a rural livelihoods context, problems go beyond just technology.

Multi-faceted problem

It is a multi-faceted problem of ineffective knowledge exchange and management of information content, as well as the lack of human resources, institutional capacity, and sensitivity to gender and the diverse needs of different groups. Problems are many and solutions are few but there is still a ray of hope in this collaboration.


E-Agriculture is one of the action lines identified in the declaration and plan of action of the World Summit on the Information Society (WSIS) through Geneva (2003) and Tunis conventions (2006).

Efforts concentrated on finding solutions and reaching agreements in the fields of Internet governance, financing mechanisms, and follow-up and implementation of the documents.

Rising demand of food grains

Many countries are facing a rising demand for food grains that may not be fully met by the supply side. The situation is becoming more alarming due to the alternative uses of food crops for bio-fuels. The rising oil prices led to exploring alternatives like bio-fuels that are being seen in many quarters as attractive substitutes for imported hydrocarbon fuels. Many countries need to shift at a higher pedestal of Green Revolution.

Strength & support need for ICT to be succeed in Agriculture

Government can come up with “Suitable Policies” and “Incentives” for the farmers so that they may be motivated and encouraged to give their best.

Digital Divide is hindering

Though there is a “Digital Divide” that is hindering the capacity and productivity of rural agricultural activities carried out by the marginalized farmers; the situation of marginalized farmers of rural area can be improved on shear basis of strengths of the governmental system support towards capacity development initiatives:

(a) Unbiased Legal Framework.

(b) Simple and Farmer Friendly Governmental Regulatory Measures.

(c) Governance and Institutional Reforms through banks, financial institutions and various governmental bodies.

(d) Transparency in democratic dealing.

(e) Fixing of Accountability and strengthening  of local body system of governance.

(f) Policy and Strategy Reforms.

ICT can play a significant role in maintaining the above mentioned properties of information as it consists of three main technologies. They are: Computer Technology, Communication Technology and Information Management Technology. These technologies are applied for processing, exchanging and managing data, information and knowledge. The tools provided by ICT are having ability to:

  • Record text, drawings, photographs, audio, video, process descriptions, and other information in digital formats.
  • Produce exact duplicates or triplicates of such information at significantly lower cost.
  • Transfer information and knowledge rapidly over large distances through active communication networks.
  • Develop standardized algorithms to large quantities of information rapidly & efficiently.
  • Achieve greater interactivity in communicating, evaluating, producing and sharing useful information, knowledge & ideas.

How to make the best flour?

Flour is the most significant foodstuff

Flour is one of the most significant foodstuffs around the world including Europe and America. Several essential food products are made from flour. The most common is the bread. Other products include the use of flour crackers, pasta, cakes and pastries. Wallpaper paste is made from white flour.  That is why the flour can issue a major problem throughout history. But most of us don’t know how and where flour is produced. Flour can be produced from different types of seeds & beans. But we are talking about the flour made from wheat that is usually used in everywhere.

Being a General Manager of a Flour Mill I was lucky enough to get ideas about its production and ingredients.  To make good quality flour “Buhlar”, Switzerland is a world famous auto machine.  But there are big and small, many types of normal machines are available in China, Italy, India and so on.  The best quality flour is made from the wheat of Canada, Australia and Ukrain.  Wheat quality is ascertained by its gluten, moisture, size, color, tightness & free form dust.


How to Process flour in factory?

At first wheat is kept in a hopper which is 4/5 feet down from the surface.  Then by air pressure and conveyor bucket it goes up and dust goes out of net by a high pressure blower and wheat remain inside.  It passes through then a separator where a magnet kept behind that attracts and separates the iron and other magnetic elements.  Now other separator takes out all other stone, soil piece, bean etc. from the wheat.  The wheat goes for wash and water are used here as per the moisture and tightness of wheat.  When it comes for crashing, looks very fresh.  Different types of wheat are mixed hare for the best quality and control the cost.  After mixing as per the preselected ratio it goes through different roller and sieves, crashed in various stages and comes out through 6 individual channels.  In our country we names them maida, atta, suzi, bran 1, bran 2 and dust.

Type & Production Ratio of flour in factory

In our country wheat is divided into 6 parts after crashed and comes out through different channels.  The ratio of production is as follows:

  1. Maida – ( Flour type 00) – 68%


Fine powder of flour used for baked item like crackers, pasta, cakes and pastries.  It is top quality of flour.

2. Atta –  (Flour type 0) – 7%


Coarse powder of flour used for normal baked item like biscuits and bread, at home or in ordinary shop.

3. Suzi – (Flour type 1) – 5%


Small particles used for paste and Halua and also for very simple baked items.  It is the middle part of wheat.

4. Bran 1 – (Flour type 2) – 6%


Fine bran used as Fish feed.  It is the outer part of wheat contains most protein of the flour.

5. Bran 2 – 12%


Coarse bran used as Cows feed.  This is also outer part of wheat but bigger in size and some husk of flour will be there.

6. Wastage – 2%


Husk, dust, bunch of wheat and other useless materials are there which comes with the wheat.


The above 5 products are classified based on the thickness or size of flour particles. And this size depends on the holes of sieves through which the flour comes out.


Ingredients of flour

Flour contains starch, fiber, fat, and protein.  We’re especially worried for the protein which comes out in two forms: glutinin and gliadin.  These proteins ascertain the three attributes of flour:  strength (W), elasticity (L), and resistivity (P).  To evaluate these three features, we use a simple machine called a Chopin alveograph. The Strength is significant because it determines the amount of water the flour can absorb.

Tips and warning regarding flour uses


  1. Flour dust is flammable, not to be suspended in the air.  In the middle age, candles and lamps are prohibited in the flour mill to prevent accidents.  Deadly explosions had occured in the past.  In 1878, Washburn, a mill in Minneapolis, the largest mill in United States, destroyed by explosion.


  1. Flour carries a large concentration of starches, or composite carbohydrates (sugar).  In Auto Flour Mill most of the protein goes with the bran 1.  So, if you wish to get better flour rich with protein then I suggest you to make wheat by small machine (Chakki Machine- small in size and grinding by stones) where flour does not divided into 6 parts.  But wash it nicely anyhow before crashing.  In our Army camp they take flour and bran 1 (fine) from us and mix up before making bread to get maximum food value.

 Tools Used in farming or Agriculture

A good technician always works with proper tools.  Proper tools for different firms boost the production of farmers. The choice of tools should be based on the type of farming activity.  A livestock farmer will use the tools different from a crop farmer.  Farming tools reduce the work load of the farmer and help to increase the farm’s productivity.


Fish farms can be set up in areas with indirect access to a large water body such as a sea or ocean.  Or it can be in ponds of different sizes and areas.  Fish need to have an environment similarity of natural habitat.  So to make environment resemble, special tools are required for fish farming such as a fish feeder, fish grader and aeration systems.


A fish feeder injects food at selected intervals and spread it all over the areas.

Fish graders are sieves or nets of different sizes restricting the movement of fish lager than the size of a sieve/net to pass through from one partition to another.

An aeration system is used to continuously supply oxygen in overcrowded fish ponds.


Water injector is a pump machine that used to create an artificial flow of water in the pond of closed water.  It improves the movement of fishes that helps to grow fast.

Other tools & equipments are fishing boat, fishing net, fish measuring machine, water tester(PH), feed preparation bucket, snake and frog catcher etc.


Tools for Dairy Farm


A wide array of cattle farming tools is required to handle and maintain the livestock.  The main tools of diary firms are:

A milking machine reproduces the suction of a calf to increase its milk productivity. An auto scraper is used to wash away cattle waste along tracks and to clear the way to prevent clogging. An ear notch is used for ownership identification. Other tools and equipments are rope, first aid box, food mixing bucket etc.


Garden Tools


Garden tools are used to work on the land and fall into several categories: cultivating tools, harvesting and medical tools. Cultivating tools include hoes and mechanized tractors that are used to plough land, and sallow machine (pump) are used to water in the plant.


Harvesting tools include the sickle that is used to cut grasses such as wheat, paddy and corn, or the combined harvester for large scale harvesting of grains. Farm medical tools include a sprayer which is used to administer medicine to plants on small scale; airplanes are used for large scale administration.

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