Your business plan should include a cash flow plan that will help you set reasonable expectations for your expenses and cost of production. Every dairy needs a manure management plan and, depending on the size of your farm, a nutrient management plan may be required. Dairy farming requires a large capital investment. Land, buildings, equipment and cows are expensive. The dairy farm is dependent on the cow’s ability to live a healthy life, produce milk, and have calves that can become the next generation of the farm.