Financial Model for Apple Orchard

This was another fun model that I went for. It is looking at the feasibility of an apple orchard. At first it looked pretty easy. However, the complications with the excel logic that needed to go into making this thing useful to prospective apple orchard investors/developers was intense. Little did I know there is a lot of things to consider and a good amount of varying sources on costs/revenues when looking into growing your own fruit bearing trees.

$45.00 USD

The template will be immediately available for download after purchase. This is included in the industry-specific financial model bundle.

Recent Updates: Added a fully integrated 3-statement model (Income Statement, Balance Sheet, Cash Flow Statement) and a cap table, capex with dynamic depreciation specific to the orchard industry, and better overall global assumptions.

So, what I did is tried to assume as little as possible and give the user as much flexibility in developing their own assumptions so that each person using it would be able to figure out what the cash flows look like with their specific situation and all the caveats that may come with that.

Key financial model features:
  • Model up to 50 years.
  • 20+ inputs to really give you something that is useful.
  • Return sheet:
    • IRR
    • Total/Net cash returns and annual % yields
    • Survival analysis
    • Chart showing running cash flow over time
    • Break even year
  • Ability to change the total acres you are cultivating over various time-frames of the project.
  • Change how many harvest you do per year.
  • User enters up to 6 types of fruit/bundles with varying costs.
  • Up to 5 extra annual costs available to play with.
  • Choose over what time-frames you want to apply various costs.
  • Financing assumptions have been fully integrated.
I have truly tried to read as much as I possibly could into developing your own apple orchard so that everything was thought of in terms of initial costs, time it takes to start getting sellable fruit, and operational costs.

Sometimes I have a hard time appreciating the financial models I do because it is always on to the next thing, but this is really something that is sticking in the forefront of my mind going forward and I don't think you will find anything as useful across the entire Internet within the farming/orchard industry.

Like I said in the video, over time there will be a financing aspect created so you can see what the cash flow looks like based on financing a certain % of the orchard.

To really pull this thing together, I have added financing assumptions. This allows you to say what % you want to finance of the total costs and then it will project out the cash flows and return %'s based on this data. If you don't want any financing, just put 0%.

One interesting thing about leverage is it allows you to get more with less starting capital. You will see less total cash and net cash returns because you have to pay debt service, but it makes the cash requirements much easier to manage up front when you are trying to get everything up and running.

Obviously you have to make the operation make money, but it is nice to see how much it will impact your returns over time.