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Financial Planning for Farming Success
Aquaponics Association 2019 Conference
JD Sawyer – The Aquaponic Source
So many considerations…2
Site ConditionsFresh water sourceWater quality test, flow rate, reliability, refresh rateElectrical service, reliabilityPropane or natural gasRoad accessEquipment delivery methodInfrastructureLocally available construction, plumbing materialsSun orientation, obstructions, winter/summer light availabilityLocal zoning, permitting and regulatory requirementsRenewable energy systemsGrading, fillSite drainage, water dischargeSanitary sewerUtility locatesWash station, restroomsSite security
Business and EnvironmentalClimate Zone DesignationLocal laborPermitted SpeciesOutlet for fishLocally accepted CropsMarket PricingProximity to marketsCompetitionDistribution methodsPublic access, tours, classesSecurityFood Safety RegulationsLicensing, wholesale, processingInsurancesBusiness Plan
FinancialMarketingOperations
Just a few variables that influence plant production, loss rate & profit! Startup
Nutrient Deficiencies
Operator skills, Management and Training
Business & Marketing Plan (lack there of)
Customer & price volatility
Available light
Plant species
Culture time in system
Pests
Fish Species
Temperature and Environment
Quality of Starts
Product Handling
Monitoring and Control Systems
Food Safety Management
Supply chain
Water Quality
Startup and Working Capital
• City and County Entitlement Fees • Site Development – Arch, Engineering, Permitting, Utilities, Water
Tap• Greenhouse – Foundation, Structure, HVAC, Installation• Aquaponic System, “Turnkey” Kit or DIY, Installation and Startup
Supplies• Farm Fixtures and Equipment – Sinks, Work Surfaces, Office,
Refrigeration• Working Capital – Covering operating deficit, how long? • Payback
Back of the Napkin Production Planning
Deep water culture makes planning and estimating easy
Be realistic – Create best case/worst case scenarios
Spreadsheets can be dangerous
Crop Specific Planning
Allocate products based upon your market research, demand and best value products. Just because they want it, doesn’t mean it’s cost effective to grow
Adjust density, culture time and loss rate per product
Crop Specific PlanningSeasonal variations can affect yield times, product choices and pricing
The more specific you can be the more accurate your production and financial forecasting will be
Variable Cost of Goods & Revenue
Understand your cost per plant. How you are packaging and distributing has a major impact on your bottom line. Market and price your product at a premium because it’s the best
Two Identical Farms will not perform the same
Scenario Planning
Aquaponic Farm Production and Financial Planning ToolUse code AA2019. Available on our website at www.theaquaponicsource.com
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