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Starting an Agricultural Business

Having your own business is often the dream of most people. By using their own business, they can use their skills and abilities to earn income either for themselves or their families, while hoping for the business to continue to grow and thrive. Before starting a business, it is important for an entrepreneur to choose the right type of business. give a return. Many entrepreneurs venture into agriculture without studying and evaluating first whether the business is suitable to run. This causes many people to face various problems in business management. Starting a plantation business is not as easy as one might think. However, persistence,Agriculture is Business  is an effort of the Department of Agriculture to attract customers to be active in the field of agriculture on a small scale as well as large scale. Customers who are interested and want to venture into this field of business there are several steps that need to be taken to help to implement the field of agriculture in a more organized manner are as follows:

Soil is one of the most important basic factors. Ways of land ownership are available such as:
  1. Owned land;
  2. Rent;
  3. Lease;
  4. Status of land approved by the relevant Authority such as TOL.
Capital is the second most important basis for running this agriculture. Capital is also available through:
  1. Personal savings;
  2. Family loans;
  3. Local bank loans like AgroBank.
Technology that is up-to-date and applicable with appropriate location, adequate capital and proper post-harvest management.
Crop Technology  can be followed according to the  Crop Calendar  for each commodity. Crop selection as well, should be according to the suitability of the soil in an area to be carried out.
 Quality Seed Technology also plays an important role. Currently the crop seeds are no longer produced by the Department of Agriculture, they are available at MARDI.
Agricultural Machinery Technology  can be seen as follows:
  1. Technology and Innovation  latest in agriculture.
Logically, all businesses prioritize profit. However, the profitability of the plantation business recorded on paper is not necessarily equal to the cash balance spent. Actual expenses incurred not from profits but surplus cash. Therefore, inflows and outflows are more important than profits because real profits from credit sales have not yet been earned. The cash flow for each crop commodoti listed  here  can help to make crop selection correctly, accurately, quickly and with lucrative results.
MyGAP and MyOrganic certification
An important step in planning a marketing strategy is to know and understand the needs and wants of customers. These factors will enable entrepreneurs to formulate effective marketing plans that are able to stimulate and meet the needs and wants of customers. A good marketing plan contains an explanation of the target market, market size, competition, market share, sales forecast, marketing strategy and marketing budget. The agency that can assist in small and large scale agricultural marketing is the Federal Marketing Authority of Malaysia (FAMA).
There are one (1) guidelines for incentives implemented by the Department of Agriculture, namely:

Incentive / Incentive Application Guidelines under Section 127, Income Tax Act 1967.

Business Planning Plan Format

1. Front page
2. Table of contents
3. Executive summary
    a. Name of main mooring company & project proposal
    b. Project management
    c. Project finance
    d. Markets and economics
    e. Project cost / viability
    f. Equity and loan requirements
    g. Collateral
    h. MOA.Inc support
4. Introduction
    a. The purpose of the project business plan
    b. The purpose of the project
5. Project Background
    5.1 Company
    a. Names and numbers
    b. Address
    c. No. phone and no. fax
    d. Company bank
    e. Company secretary
    f. Company auditors
    g. Capital is given and capital is paid by the company
    h. Company Board Member (Profile)
    5.2 Project
    a. Current location and status
    b. Technical and technological
  • Soil suitability
  • Agroiklim
  • Water resources and quality
6. Markets and Economics
    a. Market analysis and marketing plan
    b. Product prices in the market
7. Financial
    a. Financial statements and profit and loss statements
    b. Financial flows, financial resources of equity companies and IRR, B / C Ratio etc.
    c. Capital return point, delay period
    d. Loan repayment schedule
8. Organization and Management
    a. Organizational structure / chart
    b. Human resources and labor needs
    c. Human resource management strategies now and in the future
9. Recommended Evaluation / Monitoring
10. Justification