BUSINESS PROPOSAL

FOR

RICE FARMING/PROCESSING

LOCATED AT
TATARA/KONDORO WARD, KARU LOCAL
GOVERNMENT AREA OF NASARAWA STATE

PREPARED BY
MRS. MARY F. TANKO

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INTRODUCTION

Everyone knows that rice farming is an important sector of the economy of Nigeria. Due to
urbanization, change in employment patterns, rapid population growth, change in diets of
Nigerians on account of income expansion, rice has become a staple food to the average
Nigerian leading to an increase in the demand – standing at an annual growth rate of about
five percent.

EXECUTIVE SUMMARY

We will be recognized crop production and processing farm to be located in Karu LGA,
Nasarawa State – Nigeria. We have done our detailed market research and feasibility
studies and we were able to secure a well – situated and suitable farm land to start our
commercial rice farming business.

Our commercial rice farming business is a going to be standard commercial rice farm hence
will be involved in both commercial rice cultivation and processing and packaging of rice.
We will be involved in both organic commercial rice farming and non – organic commercial
rice farming.

We have put plans in place that will help us launch a standard rice processing and
packaging farm within the first three years. We will process and package rice and ensure
that they are supplied to Nigerian markets.

We want to compete favorably in the market, which is why we’ve secured ten (10) acres of
farming land. We are looking forward to securing most of the farming equipment and
machines and hired experienced farmers so as to be able to fit into the ideal picture of the
21st century commercial rice farming and rice processing and packaging workforce that we
want to build.

We are going into the commercial rice farming business because we want to leverage on
the vast opportunities available in the commercial farming industry, to contribute our
quota in growing the Nigeria economy, in national food production, raw materials

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production for industries, to export agriculture produce to other countries and over and
above to make profit.

We are well positioned to become one of the leading commercial rice farms in the Nigeria,
which is why we have been able to source for the best hands to work with. We have put
process and strategies in place that will help us employ best practices when it comes to
commercial rice farming and rice processing and packaging as necessary.

PRODUCT OFFERING

We are going to be world class commercial farm that is committed to cultivating organic
and non – organic rice for the Nigerian market and the global market (processed and
packaged rice).

We will also ensure that we operate a standard rice processing and packaging plant as part
of our complimentary business.

We are in this line of business to make profits, and we will ensure that we do all that is
allowed by the law of Nigeria to achieve our business goals and objectives. These are the
areas we will concentrate on in our commercial rice farming business. If need arises we
will definitely cultivate related crops;

 Cultivation of short-grain rice, medium-grain rice and long-grain rice (organic and
non – organic)
 Standard rice processing plant (rice production and packaging)

MISSION AND VISION STATEMENT

• Our Vision is to become one of the leading commercial rice farms and rice
processing and packing brand not just in Nigeria but also on the global stage.
• We are a world class commercial rice farms that is in business to cultivate rice in
commercial quantities both organic and non – organic and process and package rice
for both the Nigeria market and the international market.

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 • We want our well – packaged rice to flood every nooks and crannies of Nigeria and
other countries of the world.

Sponsorship

The farm will be financed and owned by Mrs. Mary F. Tanko and with the assistance from
government and non-governmental organization (EPIC) grand. The farm is directed and
managed by Mrs. Mary F. Tanko, who has extensive knowledge in the field of rice farming
and production. Other experienced agro-allied specialists will also be hired.

BUSINESS STRUCTURE

Our commercial rice farm that intend starting small Nasarawa State, but hopes to grow big
in order to compete favorably with leading commercial rice farms in the commercial
farming industry both in Nigeria and on a global stage.

We are aware of the importance of building a solid business structure that can support the
picture of the kind of world class business we want to own which is why we are committed
to only hiring the best hands in and around Nigeria.

We have decided to hire qualified and competent hands to occupy the following positions;

• General Farm Manager

• Administrator / Accountant
• Rice Processing and Packaging Manager
• Sales and Marketing Executive
• Field Employees
Job Roles and Responsibilities

General Farm Manager

• Ensures that farming goals desired result are achieved, the most efficient resources
(manpower, equipment, tools and chemicals et al) are utilized and different interests
involved are satisfied.
• Defines job positions for recruitment and managing interviewing process
• Responsible for training, evaluation and assessment of employees
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 • Oversees the smooth running of the daily farming activities across the various
farming sections.

Administrator / Accountant

• Responsible for training, evaluation and assessment of employees

• Responsible for preparing financial reports, budgets, and financial statements for
the organization
• Responsible for developing and managing financial systems and policies
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Rice Production Manager / Supervisor

• Responsible for managing the rice processing and packaging(rice production)

section of the commercial rice farm
• Supervises other workers within the department
• Works closely with the General Manager to achieve the organizations’ goals and
objectives

Sales and Marketing Officer

• Identifies, prioritizes, and reaches out to new partners, and business opportunities
et al
• Identifies development opportunities; follows up on development leads and
contacts; participates in the structuring and financing of projects; assures the
completion of relevant projects.
• Writes winning proposal documents, negotiate fees and rates in line with company
policy
• Responsible for handling business research, marker surveys and feasibility studies
for clients

Field Workers / Contract Staff

• Responsible for preparing farm lands for rice cultivations

• Handles farm implements and machines as instructed by the section manager /
supervisor
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 • Assists in transport working tools and equipment from the farm and back to the
designated store room

SWOT ANALYSIS

STRENGTHS

Rice is a staple food for over half of the world’s population, and the demand for rice is
expected to increase in the future. This guarantees a ready market for rice farming
business. It is also generate high profits especially when the company does its own
branding and engages in rice exports.

WEAKNESS

The setup cost for rice farming is high, including the purchase of seeds, land acquisition,
and other farming equipment, making it difficult for new entrepreneurs to enter the
business. It also depends on weather and seasonal variability and natural disasters such as
floods, storms, and droughts can destroy or reduce the crop yield.

OPPORTUNITIES

Due to the high demand for rice globally, there is an opportunity for the business to export
rice to other countries and earn foreign exchange.

The business can offer value addition services such as milling and packaging, thus
increasing the value of the rice products and creating a unique selling point.

THREATS

The rice farming industry is highly competitive, with many new entrants may find it
difficult to capture market share.

Rice crops are vulnerable to natural disasters like floods, droughts and pest that can result
in crop loss and affect the overall.

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TARGET MARKET AND SALES PROJECTION

With the large market for rice both domestically and internationally, our target scope is
considerably wide. Apart from those along the rice value chain we will be targeting
domestic consumers that include households, eateries, hotels, schools and also export
these to rice consuming countries across the world.

We have come up with a 3 year projected sales from research conducted. The results show
promising growth for our sales. This uses current economic realities. It, however, discounts
unforeseen factors such as sudden inflation and natural disasters. The chart below
summarizes the findings of the research conducted on our sales projection;

COMPETITIVE ADVANTAGE

Our competitive advantage is the world-class marketing department we will establish. This
department is manned by experts in marketing with years of experience in the agro-
industry. With the vital contribution they will make, our rice farming business will be
propelled into the big league within the shortest possible time.

GOVERNMENT SUPPORT AND REGULATION

The project conforms to the economic diversification objective of the government. It also
supports foreign exchange and import reduction conservation of government. It creates
economic opportunities, market access, and improved income for farmers and support food
security objective of government. The project will benefit from government intervention
fund in the agriculture sector. The project will also benefit from the favourable policy of
zero duty for agricultural and equipment import. The project will contribute significantly to
employment, output increase, stable price and stable exchange rate.

PROJECT TIMELINE

The project will be completed within 11months between February and December for
benefits of low humidity that aids land clearing during that period.

FINANCIAL PROJECTIONS AND COSTING

We will need a good amount of capital to ensure that your employees are well taken care of,
and that your farm is conducive enough for workers to be creative and productive.

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As for the detailed cost analysis for starting a commercial rice farm; it might differ in other
countries due to the value of their money. Below are some of the basic areas we will spend
our start – up capital in setting up our commercial rice farm;

• The Total Fee for incorporating the Business in Nigeria – N250,000

• The total cost for payment of insurance policy covers (general liability, workers’
compensation and property casualty) coverage at a total premium – N200,000
• The amount needed to acquire / lease a farm land – N10,000,000
• The amount required for preparing the farm land – N300,000
• The amount required for purchase of the first set of rice seedlings et al –
N1,800,000
• The amount required to set up a standard rice processing plant within the farm
facility –
N10,000,000
• Operational cost for the first 3 months (salaries of employees, payments of bills et
al) – N500,000
• The Cost of launching an official website – N500,000
• Additional Expenditure (Business cards, Signage, Adverts and Promotions et al) –
N500,000
• The cost of digging borehole (both farm land and Angwan Tanko Community) and
overhead thank et al – N10,000,000
• The cost of fencing/office and store building – N5,950,000

Equipment
Going by the report from detailed research and feasibility studies conducted, we will need
an average of N40,000,000 to start a standard commercial rice farming with rice
processing plant business in Nigeria.
These are some of the equipment that we would need to fully launch our commercial
plantain farm,

• Tractor
• Soil cultivator
• Plough
• Planter
• Transplanter
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 • Sprinkler system irrigation
• Mower
• Sickle
• Truck

Basically, the nature of commercial rice farms does not require an office space; most people
that run commercial farms operate directly from their farms. But we have decided to open
a small liaison office; a place where administrative jobs will be carried out on behalf of the
business.

SOURCE OF REVENUE

Our source of revenue generation will come from our income-generating activities which
include the commercial cultivation of rice, in addition to the processing of the same which
will be sold to the open market consisting of both domestic and international.

FUNDING MECHANISM

We have been able to acquire hectares of land and we are at the final stages of obtaining a
grand facility from our NGO. The silos and other heavy machinery will be bought with
money from the grand.

CONCLUSION

This business plan sample has made available rice farming business plan sample, targeting
specifically entrepreneurs with little to no experience in writing a good business plan. This
sample provides the necessary guidance, and although it can be used as a guideline, the
contents should solely consist of the farmers/entrepreneur’s unique business realities.