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Banana Tree Farm – Financial Feasibility Study Model Template

This Excel financial model template helps in assessing the financial feasibility of a banana tree plantation. It forecasts the growth derived from land under management, yield, harvest area, harvest volume, and costs structure in a comprehensive and detailed 10-year projection. You can also use this when presenting to banks and investors for fundraising.

This model helps analyze profitability if you plan to grow banana trees or an existing banana farmer. It uses a bottom-up approach starting from lands under management, harvested areas, expected yields, price projection, and costs assumptions to establish a 10-year financial forecast.

A monthly budget for Year 1 to Year 3 on how to plant banana trees is prepared to have a detailed assessment of the financial feasibility. A banana gestation period differs for various banana plant types. It takes between 8 months to 1.5 years, from planting to harvesting. So, having a detailed monthly analysis during the growing stage and banana plant care in Year 1 and 2, the established figures on Year 3, provides a better evaluation of the project.

The financial model template comes with the comprehensive Income Statement, Balance Sheet, Cash Flow Statement, Financial Ratios, Profit Analysis, Monthly Budget, Fixed Asset Schedule, Debt Schedule, and Executive Summary (equipped with charts and graphs).

This model provides a detailed evaluation of banana plant propagation and its performance in the coming years. You can run various simulations such as the lands under management, yields, costs, and prices and assess how it will affect the viability of your farm. The financial metrics used are the Net Present Value, Internal Rate of Return, Payback Period, and other necessary metrics.

The debt schedule is specially prepared for funding purposes to be presented to banks and investors. It contains financial ratios the banks and investors want to see when evaluating a project’s feasibility. The debt schedule comes with two debt facilities options and adjustments for drawdowns and repayments.

Banana Plantation Spreadsheet Template Structure

This Excel template has instructions and formulas that are simple and easy to follow. It includes the elements enumerated below:

Instructions

A worksheet that contains the cell color codes, instructions on working around in the workbook, and the terms and abbreviations used.

Executive Summary

This spreadsheet summarizes the projected financial statement, costs breakdown, break-even analysis, and charts to understand your Banana Plantation’s financial prospect better. Also presented in the executive summary are the Internal Rate of Return, Return on Investment, Payback Period, Net Present Value, and average cash on cash yield. These financial metrics are calculated using levered and unlevered Free Cash Flows.

Assumptions

All the necessary assumptions needed for your banana tree farm’s financial modeling are presented here, where you can input assumptions applicable to your farm.

In the general setting, you can edit the currency, first and last years of operation, crop type, areas (hectare, acre), and volume (lb, kg, ton).
Land under management, acquisition year, planting years, and ownership (owned or rented)
Planting to the first harvest, expected yield, yield ramp-up, and selling prices
Assumptions for price and cost inflation rates, depreciation period, taxes, working capital, interest rates, and dividend policy
Planting, growing, harvesting costs, processing costs, operating expenses, and capital expenditures
Uses and sources of funds
Exit and Valuation assumptions such as the Investment Period, Discount Rate, and Exit Valuation Multiples

Lands under Management

This spreadsheet contains up to 20 areas of expansion schedule for lands under management, land owned/rented, newly planted area, harvest area, and harvest volume.

Operating Model

It contains calculations of the annual production volumes, selling prices, revenue, direct costs, operating expenses, capital expenditures, and fixed assets schedules.

Debt Schedule

The Debt Schedule uses up to two layers of financial debt and adjustment based on drawdown and repayment of these two debt facilities.

Financials

This Excel worksheet contains the Financial Statements (Income Statement, Balance Sheet, Cash Flow Statement), Financial Ratios, a Standardized Income Statement, Profit per Hectare (or Acre) analysis, Free Cash Flow calculation – unlevered and levered, debt schedule, dividend policy schedule, and other critical metrics.

Budget

The budget sheet contains three years of monthly revenue, costs, and profit margins calculations. You can compute the monthly budget by distributing the annual revenue and costs based on the months they occurred. Also presented are the Monthly Cash Flows (unlevered and levered) and Projected Cash Balance.

Prepare Now your Next Banana Tree Farm Financial Model!

This banana tree plantation financial model serves as a financial planning tool for evaluating your banana farm’s financial feasibility and fundraising prospects. You can test various scenarios and assess how it affects your project’s viability. You can then decide whether to invest in a banana plantation based on your financial analysis and key metrics.

Both startups and existing farms can be assessed using this financial feasibility template. It is also helpful for presentations to banks and investors in acquiring funding.

The model comes in two versions, a fully editable 10-year forecast in MS Excel that includes a three years monthly budget; and a Free PDF Demo Version containing the details of the model structure.

The latest model version is 1.61

File types:
.xlsx (MS Excel)
.pdf (Adobe Acrobat Reader)