Setting up an equestrian business : from dream to reality

First step : organising and giving structure to one’s ideas.

Competencies

Start by questioning yourself on your expectations and means. Do I have the competencies, the right qualifications ? For example : the BPJEPS (Professional Certificate for sports educators) enables you to teach horse riding. If you are going to need additional training, it should be thought through at the start of your project.
Experience is the other thing to consider, especially in the fields that one wishes to develop. Is my technical level relevant to the activities I wish to implement ?
One should also give thought to one’s interpersonal skills, equestrian activities often involve a clientele.

Financial considerations

Do I have the financial capacity to set up a project ? What means do I have ? What investments have I planned ? These considerations are very important, as often this type of installation is a life time project.

Quality of life

What are my expectations regarding my income ? What aims do I have regarding my quality of life ?

The business project office (point accueil installation ) is the compulsary step for any agricultural business. It enables you to establish a self diagnosis. It is a good starting point to put things into perspective, and to then carry out the steps in the correct order.

2nd step : finding land and premises suitable for the project

For an equestrian installation, location is strategic. Consideration should be given according to the activities one wishes to develop.
If the activity is breeding, one needs to find land and fields so as to have one’s own supply of grass and hay. The premises can be located further away from the more populated areas, as clients will only come occasionally. On the other hand, if the activity planned is instruction, the location is crucial. Ideally one should be able to set up near a populated area, with a road network giving easy access to the structure.

Who can help with the search ? Having a clear project, and defining one’s search criteria will help in implementing the steps. The SAFER (rural property and land development authorities) , rural sollicitors, estate agents, the regional directory for installation ( www.repertoireinstallation.com) found at the Chamber of Agriculture, classified ads.

A word from a counsellor : « In a context where ther is competition for access to land, it is important to appear credible to the people you will encounter. In addition to training and experience, the clarity of the project, the precise criteria for its implementation, its technical and financial coherence will be scrutinised and perceived as a proof of the legitimacy of the project with the sellers, the professional representatives, or the local elected representatives. »

Therefore, it may be relevant to meet the SAFER at the start of the project. This authority is a regulating body for the buying and selling of land. Its task is to improve farming land layout, and to make it easier for candidates wishing to set up agricultural businesses. Sollicitors have a duty to report any property sales to the SAFER. The SAFER then has a two month period in which it can exercise its right of refusal. Any refusal must be motivated and generally activated by a local farmer or a project developer to whom the sale would cause prejudice. If the SAFER deems it necessary, it can freeze the sale and can then put out a call so that the candidates can present their claims. Its technical committee can then decide to allocate the property to the most compatible project.

3rd step : measuring the economical viability

Market study

This is essential as it will enable to have a good knowledge of the competition and the activities offered in the neighboring area. Can I offer different activities ? What price policy should I implement ? It is vital to match the offer to the demand in the target area.
I should also take into account the context of the activity I wish to develop. For example, at present, the number of members of the equestrian federation is dropping slightly. This information should be taken into account when deciding on the size of the riding lessons, or of the livery yard.

Estimating the projected budget

To get an idea of one’s turnover, you will need to determine the volume of services provided and the corresponding prices to be applied, as well as the corresponding expenses.

Estimating the investment needs

Whether investing in land or in buildings, improvements or extension projects, it is important to estimate the investment from the outset.

Who can help with this step ? Chambers of Agriculture, management centres (particularly agricultural) and training centres if you are already following a training programme with a view to setting up your business.

A word from a councellor : « One should rely on the work of the REFErences network. It is a network of knowledge of the economy of the horse sector. The works of the REFErences network : concrete case studies, videos, simulation tools, operating models, all enable a project carrier to benefit from objective technical and economical references to build their estimated project budget. This network includes the Breeding institute ( Institut de l’élevage), the Chambers of agriculture, the Federation of horse committees and the IFCE ».

Step 4 : ensure the compliance of the project with the regulations in force.

Agricultural regulations

Most agricultural installations are subject to an autorisation or a declaration to farm (file to be filled in and returned to the Local territorial authorities). The file is examined by a committee and establishes the project, and the competencies of the farmer. This file must be completed at the start of the installation, so as to ensure obtaining the necessary autorisation.
The regulations regarding storage of manure must also be complied with.

General regulations

Regarding any project involving building, the regulations concerning safety and urbanism should be respected.

Spécific regulations

Teaching horse riding for a fee requires a diploma.Educational and boarding establishments are establishments which receive from the public (ERP). They must therefore comply with accessibility regulations. Regulations related to keeping animals and the practice of horseback riding (declaration to the Departmental Directorate of Social Cohesion and Protection of Populations, etc.) must also be considered.

Who can help with thos stage ? Territorial authorities, Chambers of agriculture, management centres, the local social cohesion and population protection authorities (DDCSPP, previously the DSV, sanitary veterinarian authority), equipedia fact sheets and the Ifce.

Step 5 : preparing the company’s birth and life

From a legal point of view

One should choose the form the future business will take : company status or individual business ? One should get advice from a jurist to choose the most suitable form.

From a fiscal point of view

The fiscal system to be applied, including the VAT rates for each of the activities should be determined

From a social point of view

The MSA (Agricultural social mutuality) should be contacted to establish the affiliation status as a farmer (primary or secondary director of the business, or as a solidarity contributor).

Who can help with this step ? Jurists, tax advisors, management centres, the MSA, Chambers of agriculture.

Step 6 : financing the project

It is always easier to obtain a bank loan, when the project carrier has a self-financing capacity. It is therefore important to assess from the start the amount of one’s own financial resources available for the project. Then the banks can be approached to request a loan.
One should also establish the aids and grants one is entitled to :
•   Regional or local grants to help both with the installation and with the investment;
•   Agricultural grants, accessible o all agricultural productions : CAP grants etc … ;
•   « Young farmer aids » (JA in French) : providing the project carier is under the age of 40, is in possession of an agricultural diploma, and of French nationality, a request can be submitted for administrative and financial support. A business plan will be set up with the Chamber of Agriculture management centres to enable to set up the business. Another advantage is that a «JA » young farmer installation gives priority for land acquisition.

Who can help with this step ? Horse committees are the intermediaries with the regional and local authorities for the aids to the horse sector, the chamber of Agriculture , management centres, regional and local councils.
A word from a councellor : « One should approach several banks. They should be put in competiton to obtain several different posibilities of obtaining a loan. »

Final step : Installation

After a year or 2, sometimes more, for the purchase of land, and the installation process to run its course, with the financing, legal status, and the farming autorisation, the final step is to declare the business to the CFE (Centre for company formalities at the Chamber of agriculture). They will incorporate the company and will send the information to the INSEE who will in turn attribute a SIRET number. The information will also be sent to the tax office, for the company to be recognised as such, and to the MSA for affiliation.

A word from a councellor : « If the Structure farms surfaces of land, as from the first year , a CAP declaration should be made (before the 15th of May). After requesting a CAP number, the declaration is made to the Local territorial authority »

To remember

• A well prepared installation is a successful one !
• Assessing one’s competencies, consistency, financing the project but also …. passion !
• The process may appear long-winded, but all the steps are vital to build a solid viable project. A project needs to mature with time, and the steps should not be hastened, as this will enable to confirm one’s choices.
• There are numerous partners to accompany you in the process, and you should not hesitate to sollicit their help.