We are an agricultural development company in the state of Virginia and have been in this business for the past 10 years. Our expertise lies in developing, selling, and buying agricultural lands in all the promising locations. Completing projects on time is our pride and we assure you that you will not be disappointed.
Our proposal details are attached to this letter. If you give acceptance to our proposal, we can start working on the details right away. We are known for our extraordinary professional services at reasonable prices.
We want you to take a look at our proposal and let us know if you have any queries.
Thank you for your consideration.
Regards,
John Smith
Agricultural Investment Proposal for [ABC]
Company Introduction
For the past 10 years, XYZ has been providing excellent agricultural services without compromising on the quality of our products. We aim to introduce the latest technologies of the modern world in the world of agriculture. Our mission is to actively contribute to the sustainable development of the state of Virginia by working together with companies and providing exceptional services and products for consumers. Our team of experts works hard to reach the best results by getting higher production volumes by utilizing the maximum potential of the unit area.
Problem Statement
XYZ is looking to grow the business and ABC has been investing in businesses to provide them with this opportunity with flexibility and guidance. We have a team with all the relative experience in the field. We want your company to invest in this project and we will be providing professional help and a dedicated team to organize and maintain all the agricultural needs of the land. It is quite a vast land and we want your esteem company to be an investor. We suppose that this project will broaden our horizons and give a substantial financial benefit to both the companies.
Situation Analysis
Virginia is an agricultural state and its major crops are maize and cotton. Recently the main focus of the state has been on the development of small businesses. We want to cultivate and grow crops on vast land by introducing the latest agricultural techniques which currently lack in the region. A lot of foreign companies are also interested to set up business in Virginia and soon the competition will get very aggressive. This is the right time to invest in such an area with so many prospects. We aim to provide all the agricultural needs to our partners with an experience of over a decade, without them having to go through all the trouble.
Objective
We want XYZ to be one of the top companies, producing a variety of fresh organic agricultural products meeting international quality standards. Also, we want:
- To extend the 25% market share of maize at the end of two fiscal years.
- To upgrade agricultural practices with new farming technologies.
Land Location
The land is located southwest of XYZ and is near XYZ Bridge. It is 900 ha of land. Our main emphasis will be on the development of this agricultural land for the production of crops. There is a river near the property and this can be our main source of water supply in the field. We are planning to irrigate maize and cotton.
Timeline
Our proposal is to complete the project within two years. As you see the area is vast and is currently a virgin, we would have to prepare the soil before irrigation. A cautious timeline is provided below:
0-6 Months: Focus on the infrastructural development
6-12 Months: Focus on land development and crop production
Year 2: Continue land development and cultivation
Year 3: Focus on the project working beyond capacity
Phases
This project will be completed in 5 phases. The details of the phases are provided below:
Phase 1:
Our team will inspect the land and compile a report regarding the status of the soil.
Phase 2:
Next, we will start the landscaping phase. We will test the soil and prepare it for cultivation.
Phase 3:
We will add fertilizer to the soil and use pesticides to prevent them from damaging the land.
Phase 4:
Harvesting is the next phase in which we harvest and cultivate.
Phase 5:
Later, when the crop is ready, it will be packaged and made ready to be transported.
Investment
The property currently belongs to Mr. XYZ and he is willing to sell it. The asking price is approximately $25,000. There is a need to build the infrastructure on the land as well. The whole process and project will require an investment of:
Capital Investment: $110,000/-
Total Investment: $111,500/-
Cost
The details of the project cost are provided below:
Capital Investment
Description | Time(years) | Cost |
Property | 1 | $25,000 |
Infrastructure | 1 | $10,000 |
System for irrigation | 2 | $50,000 |
Machinery | 1 | $14,000 |
Miscellaneous | 1 | $1,000 |
Total Investment
Description | Time(years) | Cost |
Cost Variable | 1 | $10,000 |
Cost Fixed | 1 | $1,000 |
Overheads | 1 | $500 |
Total Investment requirement | $111,500 |
Approval
The commencement of the project depends on your approval and we will start working on the terms and conditions.