This dynamic and customizable model greatly benefits individuals interested in starting an apple grove or any type of fruit, tree plantation, or general commercial orchard. This financial model allows users to explore the feasibility of becoming an investor/ developer in this specific business. The model was built with consideration to various sources of revenue and cost.
Users have a lot of flexibility when adding assumptions, with the ability to tailor the model to their specific needs, i.e., cash flow is generated based on user’s specific situation.
Key features of this model include: up to 50 years projected profits and loss, 20+ customizable inputs, and a return sheet. Computations that are generated based on user inputs include: IRR, total and net cash returns, annual percentage yields, a survival analysis, break-even year, and a chart showing running cash flow over time.
Users are able to customize total acres used for cultivation over various time frames, how many harvests are done per year, enter up to six fruits/ bundles with changeable costs, add up to five extra costs per year, and choose specific time frames when costs occur.
Deep consideration was used when developing this model in relation to initial costs, first viable harvest, and operating costs. Over time, financing aspects created will allow users to see generated cash flow based on how much of the orchard is financed.
Financial assumptions are included which allows users to specify what percentage of the initial costs need to financed vs. provided in equity.
Overall, this model is a useful tool that will show users how returns are impacted over time when investing or developing a tree farm/ fruit orchard.
Note: I am not a financial advisor and this is not financial advice. Use this template at your own risk.