Farm Financial Plan

Key Revenue & Costs

The revenue drivers for Veggie Good Vegetable Farm are the CSA membership subscriptions, sales from the farmers markets, and revenue obtained from selling vegetables to local restaurants at the wholesale price.

The cost drivers will be the overhead costs required in order to staff the team of four support farmers, farming equipment, supplies, seeds, tools, boxes, and packaging goods. Other expenses will be the payroll cost, rent for the leased farmland, utilities, and marketing materials.

 

Funding Requirements and Use of Funds

Veggie Good Vegetable Farm is seeking $300,000 in debt financing to launch its vegetable farm. The funding will be dedicated towards securing the 10 acres of farmland and purchasing farm equipment and supplies. Funding will also be dedicated towards three months of overhead costs to include payroll of the staff, rent, and marketing costs for the website development, and working capital. The breakout of the funding is below:

• Farmland and facility build-out: $100,000
• Farm equipment, supplies, and materials:  $100,000
• Three months of overhead expenses (payroll, rent, utilities):  $75,000
• Marketing costs: $10,000
• Working capital:  $15,000

Key Assumptions

The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.

• Number of Initial CSA Membership Subscriptions Per Month: 25
• Average Fees per Month: $50,000
• Farmland Lease per Year: $300,000

Financial Projections

Income Statement

 

Balance Sheet

 

Cash Flow Statement