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