A growing number of farmers are turning entrepreneurs and earning profits from something they offered free to friends and relatives – a healthy and relaxing weekend to unwind in lush green farms, drive a tractor, ride a bullock cart, milk a cow and pluck fresh fruit from orchards. When the allure of nature combines with the simplicity of farm life, the result is the birth of a new type of business venture that brings a smile not only to the entrepreneur but also to the customer. Who doesn’t crave to be far from the madding crowd? The answer is everyone. And many smart entrepreneurs have utilised this tendency to set up successful businesses associated with the tourism industry.

Agri-tourism is the latest trend gaining popularity in the country. The Farm-stay is part of a growing trend in “agritourism” that involves family farmers using their land, food supply and livestock to attract guests to the farm. A Farm-stay is a lodging facility available to paying guests on a working farm or managed forestland. Beyond this, a Farm-stay can take many forms: a farm family may convert a room in their farmhouse to accommodate overnight guests, repurpose an outbuilding into a sleeping cabin or build a new structure specifically for guests. A Farm-stay offers people an escape to the country and provides urban individuals an opportunity to experience a rural lifestyle and gain a glimpse inside life on a farm.

Agritourism can be understood as the marriage between agriculture and tourism. In the world of climate change and pandemic, people are now keener towards finding their roots and going back to nature. Agritourism is already immensely popular in the western belt of Maharashtra and the concept is gradually taking momentum across the Indian states like Uttarakhand, Punjab, Rajasthan, Karnataka etc. The market for agritourism was estimated to be worth $42.46 billion globally in 2019 and is anticipated to grow to $62.98 billion by 2027, with a CAGR of 13.4%. In India, agritourism revenue is increasing at a pace of 20% annually.

Buoyed by the growing popularity of homestays in India, farm-stays (essentially a homestay on a farm) are blossoming across the country. They provide an authentic and interactive experience of rural life, in the delightfully fresh country air. In the last two years, many agricultural farms have come up in and around the cities. Many schools have been organising trips to such places where children are made to understand rural life by spending time with farm animals like cattle, horses, birds and even reptiles. Some also do dairy farming and agriculture. Similarly, many urban families are taking their children to day-long tours to such agro-tourism farms where families get to spend quality time together. Many corporate firms have also started to turn towards this, instead of resorts, where at economical rates, team building and de-stressing activities can be carried out.

This is why Farm-Stays are now blossoming in India. The farm holiday has the potential to rebound faster following the COVID-19 pandemic than many other forms of tourism. This potential is due to two elements that are abundant in the location of holiday farms: Fresh Air and Sunlight. Fresh air is all we seek today and these are places where we can repair our polluted lungs.

A Project Report is not only essential for obtaining financial assistance from Bank/ Financial Institution/Funding Agency but also the most important document either to participate in the development schemes of MSME Sector/ Department of Industries or in completing various time consuming government formalities connected with planning and commercial operation of the proposed business project.

This Detail Project Report (DPR)/ Business Plan has been developed in a well-structured PDF Format (Easy to Download, Convert into MS WORD through www.pdftoword.com, Edit for Personalised Customisation and Finally Printing the Report) to be presented as a Ready Project Proposal immediately thereby saving precious time of the promoter in the process of completing requisite formalities in anticipation of setting up the business project. Accordingly, following Project Templates has been deliberately left blank in order to facilitate customisation by the perspective entrepreneurs based on personal requirements and furnish necessary information on actual basis.

§ Project at a Glance                               :             To be Filled Up as per Personal Requirements.

[Total Capital Expenditure, Working Capital, Estimated Cost of the Project, Amount of Bank Loan, Amount of Equity Capital and Amount of applicable Margin Money Subsidy – (Urban/Rural /General Category/ Special Category)].

§ General Information and Location       :             To be Furnished in the Blank Space.

[Name of the Unit/Firm, Address of the Proposed Project Location, Size of the Space Available and Occupancy under Ownership/Lease Agreement].

§ Promoter’s Background                        :             To be Furnished in the Blank Space.

[Name of the Promoter, Age, Communication Address, Educational Qualification, Work Experience and Special Training Attended, if Any].

The Project Report/ Business Plan so presented include all the important aspects containing the following details;

CONTENTS

1. Project at a Glance
2. Highlights of the Project
3. Project Introduction
4. The Project Proposal
5. Prospect for Investment
6. Potential Target Customers/Market
7. Market Entry Plan
8. Process Details and Technical Aspect
9. Installed and Operational Capacity
10. Raw Materials and Consumables
11. Power and Utility
12. Tentative Implementation Schedule
13. Basis & Presumptions
14. Capital Investment Estimates with Detail Project Economics
15. Computation of Working Capital Requirement
16. Estimated Total Project Investment
17. Proposed Means of Project Financing
18. Estimated Annual Sales Turnover
19. Projected Profitability Statement
20. Calculation of Interest Amount
21. Depreciation Schedule
22. Term Loan Repayment Schedule
23. Debt Service Coverage Ratio
24. Break-Even Analysis
25. Projected Cash Flow Statement
26. Projected Balance Sheet
27. Internal Rate of Return
28. Pay Back Period

The presentation also supplements with important facts and useful information covering the areas as indicated below;

LIST OF ANNEXURES

1.   Basics of Farm-Stay Business

2.   Scope of Agro-tourism in India

3.   Statutory Permits and Business Licenses required for Farm-Stay Business

4.   Beginner’s Guide to Start Farm-Stay Business

5.   Smart Tips to follow in Farm-Stay Business and

6.   Marketing Strategy and Promotional Ideas to Boost the Sale of Farm-Stay Business.

LIST OF ENCLOSURES

ENCLOSURE-1: NATIONAL STRATEGY AND ROADMAP FOR DEVELOPMENT OF RURAL TOURISM IN INDIA - AN INITIATIVC TOWARDS ATMANIRBHAR BHARAT, MINISTRY OF TOURISM, GOVT. OF INDIA.

ENCLOSURE-2: HOW TO DEVELOP A FARM-STAY.

Thus the information provided would help in identifying in advance the infrastructure/resources required for the Project and approach the concerned government agencies accordingly. Hence, it becomes a complete document for further action towards realising the dream of becoming an entrepreneur.