Business Proposal · Prepared for the bank

Levande Äng — premium beef near Stockholm

A proposal for the financing of a farm property and the establishment of a direct-sales beef operation, prepared in response to the bank's request for expected revenues and costs, the equity contribution and its source, the applicant's background, and planned investment in livestock and machinery.

This is a draft. Do not send it as it stands. Three things must happen first:
  • Fill every highlighted field. They are the facts only you have — the property, your equity, your background. They are styled to stay visible when printed, so a blank cannot slip through.
  • Resolve two figures that are known to be stale. The calf price used here is below a 2021 published figure in a market that has roughly doubled since, and the 250 SEK/kg selling price needs to be confirmed as ex-VAT or including moms. Both are flagged in the assumptions table. A credit committee will forgive an estimate; it will not forgive a number you could not defend when asked.
  • Decide what you are actually proposing — the operation as modelled runs on leased land. If the proposal is to buy, say so explicitly and use the buy-or-lease model for the debt-service section, because the numbers differ substantially.

Print to PDF when it is complete. The layout is built for it.

1 · The proposition in short

What the business is and what is being asked for.

The business. Buy weaned beef-breed calves at about six months, raise and finish them on pasture near Stockholm, and sell the meat directly to households as premium subscription boxes rather than to an abattoir at commodity prices. No breeding herd, so no calving and no year-round cows — a simpler and lower-risk operation than a suckler herd, and cash arrives roughly a year sooner because each animal is owned for about fifteen months rather than a two-and-a-half-year breeding cycle.

Why it works. Swedish beef production is in a documented supply squeeze: production fell 8% in 2025, self-sufficiency is down to 54%, and the producer price has roughly doubled since 2020. At the same time, greater Stockholm puts about a million households within an hour of the farm gate, and farms already selling meat boxes direct charge 200–340 SEK/kg. Selling 50 animals a year requires roughly 300–450 subscriber households — about 0.03% of the region.

The ask. [ FILL IN — the loan amount sought, split between property, machinery and livestock ]

Applicant: [ name, personal or company ] · Property: [ designation and municipality ] · Purchase price: [ SEK ] · Equity offered: [ SEK and source ] · Proposed structure: [ e.g. property held personally, operations in a limited company leasing the farm — subject to adviser confirmation ]

2 · The applicant — background and experience

The bank asked specifically about background and experience in agriculture and livestock farming.

Agricultural and livestock experience. [ FILL IN — practical experience with cattle, any dairy or livestock background, courses, time worked on farms, and who will do the daily stockmanship ]
Commercial track record. [ FILL IN — the previous company scaled from zero to roughly 40 MSEK: sector, your role, years, and what you personally were responsible for ]
Advisers and support. [ FILL IN — accountant, agricultural adviser, veterinary practice, and any mentor or experienced stockperson supporting the operation ]

Why this matters to the plan, stated honestly. The decisive skill in this business is not stockmanship — it is selling. The margin exists only because the meat is sold direct, and the workload analysis behind this proposal puts about 1,500 hours a year into the business at 50 animals, of which roughly 60% is cutting, packing, delivering and selling rather than livestock work. An applicant whose proven strength is building a customer base is well matched to where the risk actually sits, provided the stockmanship side is covered by experience or by advice.

3 · The property

The bank finances against its own valuation, which it notes is often close to that of specialists such as Areal.

Property: [ designation, municipality, distance from Stockholm ]
Total area: [ ha ] — of which arable [ ha ], pasture / semi-natural pasture [ ha ], forest [ ha ]
Buildings: [ dwelling, barns, storage — with condition ]
Asking price: [ SEK ] · Taxeringsvärde: [ SEK, and the dwelling/agricultural split ]
Water supply: [ well, mains, watercourses — and what it yields in a dry August ]
Existing fencing: [ what stands, and its condition ]

Regional context for the valuation. Official statistics put Swedish arable land at an average of 122,400 SEK/ha and pasture at 51,100 SEK/ha in 2024. Brokered sales in the Mälardalen region — Stockholm, Uppsala, Södermanland and Västmanland — averaged 204,000 SEK/ha for arable in 2024, a fall of 26% on the year, recovering to about 243,000 SEK/ha in 2025.

How the land is used by this business. The herd needs grazing through the summer and conserved forage for a winter of roughly 200 days. At the stocking rates used here, finishing 50 animals a year means carrying about 63 animals at any moment and requires in the order of 60–70 hectares depending on how much is semi-natural pasture, which carries roughly half as many animals per hectare as cultivated grass but earns a higher grazing subsidy and supports the premium product story.

4 · Expected revenues and costs

Steady state, from Year 3 onward, at 50 animals finished per year. All figures SEK, ex-VAT, owner-operator basis.

How to read this. The owner-operator net blends salary and profit — the operator's own labour funds part of it. The figure excluding subsidies is shown because roughly a third of the net is public support, and the business should be judged on whether it stands without it. It does.

The build-up

Year 1 carries purchases but almost no sales, because an animal bought in one year is finished and sold in the next. The operation turns cash-positive in Year 2 and reaches full payback by Year 3.

Land cost is shown separately and deliberately excluded from the figures above, because it differs entirely between leasing and owning. Section 6 sets out debt service; the buy-or-lease model holds the comparison.

5 · Equity contribution and its source

Total equity offered: [ SEK ]
Source: [ cash savings / sale of property or shares / family / other — with timing and any conditions ]
Available from: [ date ]
Other financing sought: [ e.g. Tillväxtbolaget top-up loan — amount, if any ]

On top-up financing. Tillväxtbolaget — owned by Lantmännen, LRF, Scan Sverige and Växa Sverige — provides top-up loans alongside a bank mortgage. This proposal treats any such facility as debt rather than equity: it raises total borrowing and annual debt service and therefore reduces debt-service cover. Section 6 shows cover both with and without it.

Public investment support. Swedish investment support can fund a share of qualifying assets such as fencing, water and buildings. This proposal does not assume the grant in the debt-service calculation, because it is competitive rather than automatic and because eligibility on leased or newly purchased land needs confirmation from Länsstyrelsen. Any grant received improves the position rather than being required to make it work.

6 · Debt service and cover

What the operation can carry. Complete this from the buy-or-lease model once the property price and the bank's indicative terms are known.

The test the bank set. The proposal must show the operation covering operating costs, interest and repayments. On the figures above, operating surplus before land cost is about 1.4 MSEK in steady state, and the question is simply how much debt service that will carry at a comfortable margin. The model behind this allows the property price, loan-to-value, rate and amortisation to be varied, and reports the cover ratio and the maximum price the business could support.
Indicative terms assumed: loan-to-value [ % ] · interest [ % ] · amortisation [ % or plan ] · fixing period [ ]to be replaced by the bank's own indicative offer.

7 · Planned investment in livestock and machinery

The bank asked for planned investments with expected purchase costs, to size the overall financing requirement.

Livestock is working capital, not a fixed asset. The herd value is the money tied up in animals on the farm at any moment — roughly 63 animals at a purchase price plus part-grown costs. It recycles as animals are sold, but it must be funded from the first purchase onward, and it is the single largest financing need after the property itself.

8 · Principal risks and how they are managed

9 · Assumptions, and how well each is established

Stated plainly, because a plan whose weak points are visible is easier to lend against than one that hides them.

10 · What is being asked, and what happens next

Financing sought: property [ SEK ] · machinery and equipment [ SEK ] · livestock and working capital [ SEK ] · total [ SEK ]
Equity contributed: [ SEK ] · Loan-to-value sought: [ % ]

Proposed next steps.

  • The bank's own valuation of the property, and an indicative offer with rate, amortisation and fixing period.
  • A meeting to walk through the operating model — every figure in this proposal is backed by a working model that can be varied live.
  • Structure advice from a qualified adviser on holding the property personally against an operating company leasing the farm, as the bank suggested.
  • A market validation season now under way, described below, whose results will be shared before any purchase commitment.

On timing, stated openly. Before committing to a property, this business is running a deliberately small market test: pre-selling meat boxes to households and delivering a first cohort, at a cost in the order of 40,000 SEK. The purpose is to prove the demand assumption on which the whole plan rests before, not after, taking on debt. The financing conversation and that test run in parallel — the intention is to come to a purchase decision with evidence rather than with a forecast.

Prepared [ date ] by [ name ]. Figures are indicative planning estimates in SEK, ex-VAT unless stated, built from public Swedish sources including Jordbruksverket, Livsmedelsverket, Hushållningssällskapet, Gård & Djurhälsan and published farm price lists, together with the operating models referenced throughout. Steady-state figures apply from approximately Year 3; Years 1–2 are an investment phase. Land price statistics are regional averages and are not a valuation of any specific property. Assumptions marked as unverified in section 9 have not yet been confirmed with suppliers or authorities and are stated as estimates rather than commitments.