Proposal Letter for Agriculture Business

A proposal letter for the agriculture business is a letter, which is written by an individual or an organization, that is seeking investment and capital for the business. It can be addressed to an individual investor, an investor organization, or a government body, that provides funds to support agriculture. In this letter, the addressee explains his proposal, states his experience and skills, and tries to convince the investor to lend him the money.

To add a personalized touch, a proposal letter is often attached with a comprehensive proposal document, which is sent to the potential investor. In addition, this letter is also used because it serves the purpose of a marketing tool, and the person seeking the investment can advertise his experience and expertise as well as convince the investor through this letter.

When the content of this letter is being selected, the factors that affect the choice include:

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  • The priorities of the individual or organization, that is seeking the investment,
  • The requirements of the investor,
  • The amount of the capital required,
  • The size of the business,
  • The business idea,
  • The probability of success, etc.

However, generally, the following details are included in such letters:

  • Details of the addresser and addressee.
  • The proposal of the agriculture business, with all the relevant details.
  • Mention any attached documents.
  • Convincing statements and benefits to the investor.
  • Request for the capital.
  • Return policy of the investment or offer profit/loss sharing.
  • Show openness for any discussion.
  • Show hope of a positive response.

An agriculture business cannot be started by a naïve and amateur person. If the individual gets successful in convincing the investor through this letter, that he has the right knowledge and expertise, the investor will release the funds, and invest in his business. However, if the investor is not impressed by the letter and the proposal, he would reject it and would deny investing in the business. In that scenario, the individual may have to search for another potential investor and convince him through another proposal letter.

Sample Letter

Dear Mr. Smith,

I am writing this letter to propose to you my business idea of the agriculture business.

I belong to a family that has been in a small farming business since forever. Although I came to the city for my education, I have always been involved in agricultural practices, and have a deep-rooted knowledge of all the techniques. Now, that I have graduated, I have decided to start my own business. As I understand an agriculture business, I have selected that field. However, I lack the capital for it.

The detailed proposal is attached to this letter. The total required investment is $[X]. I am planning to buy two farms of [X] acres in the ABC area and initially plan to grow three all-seasonal crops, which are [X], [Y], [Z].

I want to request you to consider my proposal and invest in my promising business. I am predicting that my business would start yielding profit in the second year. I can offer you a 50-50 profit/loss sharing ratio. If you do not want a profit/loss sharing option, I can return your money in installments over a five-year period. If you are interested in my proposal, we can finalize the repayment schedule and interest rate conditions.

Please, go through the proposal, and let me know if you have any questions. Looking forward to your positive reply.

Thank you.

Regards,

Paul Wilson.

Proposal letter for agriculture business