What is a farm operating plan?
An operating plan is a written description of what your farm will produce, how you will produce it, where you will sell it and what it will cost. FSA's application materials ask for information of this kind, and the application guides on Farmers.gov outline the general contents.
Think of it as a story with numbers. The reader should finish knowing who you are, what you grow or raise, and why the income will exceed the costs.
Writing the plan also forces useful decisions. Many farmers discover, while drafting, that one enterprise earns far less than another, or that labor in a certain month is not available. Better to learn that on paper.
What should the plan include?
There is no single required format in this article, and you should ask your county office what they expect. Most strong plans cover the same ground, so you can start drafting before the meeting.
Aim for a few clear pages. A long plan full of vague claims is weaker than a short plan with specifics.
- Farm description: location, acres owned and rented, buildings, equipment
- Your experience and who does the labor
- Enterprises: what you raise and expected production
- Marketing: who buys, at what price, and how you know
- Production practices and risk management, including insurance
- Financial projections tied to the above
How detailed should the production section be?
Detail should match your enterprise. A cow-calf producer explains herd size, breeding season, calving percentage, feed sources and sale timing. A vegetable grower explains beds or acres, crop mix, succession plantings and harvest labor.
Use your own records where you have them, and cite a source for any outside benchmark. Extension budgets for your region are a reasonable starting point if you label them as such.
If your operation is changing, describe both where you are now and where you plan to be in a few years. Reviewers like to see that the first-year request fits into a longer path.
How do I write a believable marketing section?
Reviewers want to know who will buy what you produce. Name your outlets: a sale barn, an elevator, a cooperative, a farmers market, a restaurant or a CSA membership list. If you have contracts, orders or a past sales history, mention them.
Avoid claims such as there is plenty of demand. Instead say what you sold last year, to whom, and what price you received.
Keep a simple list of customers with contact details and what each buys. You do not have to share every name, but being able to produce evidence on request matters.
How do I connect the plan to the numbers?
Every statement in the plan should tie to a line in your budget. If you say you will add twenty ewes, the budget should show purchase, feed, vet costs and lamb sales. If a number appears in the budget with no explanation, a reviewer will ask about it.
Use conservative assumptions for yields and prices, and consider showing a lower-income scenario so the reader sees you have thought about risk.
Round numbers can look like guesses. If your hay cost is based on a quote or an invoice, say so in a short note beside the line.
What risks should I address?
Every farm faces weather, price swings, equipment failure and personal challenges. Naming the main ones and describing your response shows maturity. Crop insurance, diversified sales, savings and a backup labor plan are common answers.
Do not hide weaknesses. If your experience is limited, describe the mentor, class or advisor you will use to fill the gap.
- Production risk and insurance
- Price and market risk
- Labor and succession risk
- Financial risk and reserves
What questions should I bring to the loan office?
Ask whether the office has a template or checklist, how they prefer to receive documents and who your contact will be. Also ask how your plan will be used in the decision.
Free help may be available from your land-grant extension office or from a farm business management program such as the Center for Farm Financial Management at the University of Minnesota. Using it is a sign of preparation, not weakness.
Finally, read the plan out loud or hand it to a friend who is not a farmer. If they cannot follow it, a busy reviewer may struggle too.
Key takeaways
- A good operating plan describes what you will produce, how you will sell it and what it costs, with numbers to match.
- Use your own records and conservative assumptions.
- Name your risks and how you will handle them.
- Ask the county office for its checklist and get free planning help from extension.
Sources and official links
Last reviewed: November 12, 2026. Written by the Farm Money & Grants Editorial Team. Educational only, not tax, legal or financial advice. See our editorial policy.