Financial model templates that are related to businesses in agriculture such as dairy farming, rice farming, shrimp and fish farming, forestry, and many more sub-industries. The Excel templates provide a framework to prepare solid financial plans and financial analysis of businesses within the Agriculture Industry.
Agriculture models which assist you in making your business successful!
Agriculture - Crops, Vegetables, Fruits, Dairy, etc.
Agribusiness – Investing and Starting an Agriculture based Business
Agribusiness is the business of agricultural production, encompassing farming and farming related commercial activities. This involves steps required to send goods to markets such as production, processing, and distribution. It is an important component of the economy of different countries due to its potential for exportation.
Cultivating a vast land, breeding animals, planting vegetables, and other medicinal plants, to help provide and enhance life; that is Agriculture. Investing or building an agriculture-based business is a huge project which needs attention to every detail including the financial aspect, especially those who are planning to start a business in Agriculture or any kind of Agribusiness.
Venturing in the Agriculture industry not only helps the economy grow, but it also helps with providing the people with plentiful of supplies needed for their household and other businesses such as restaurants or food chains. The food industry usually partners themselves with farmers or farming companies for a constant supply. Hence, the relationship between the two industries goes side by side, continuously growing and benefiting the agriculture-based businesses.
Why you need Financial Model – Factors that affect Businesses in Agriculture
A business is a business no matter what form. That goes without saying, preparing for the unknown and other factors that might affect the business is very important. Hence, the need for creating a financial model is existent. Especially for businesses in the Agriculture industry, where there are several factors that need to be addressed, such as:
Physical Factors – something that is out of human’s control and is a matter of nature
- Climate – It is a fact that one of the greatest factors that would be detrimental for businesses in Agriculture is the climate. Some companies might be able to resolve minor issues with advanced technologies but that usually costs too much and not applicable for every entity. Thus, dealing with scenarios such as Temperature change, Season change, Altitude of location, Rainfall, and Wind, will need preparation ahead of time. Realizing assumptions for these factors in the financial model will be really helpful in determining the after-effects of such cases, then prepare financially on how to recompense if such scenarios will be encountered.
- Landscape – Location is everything, especially for Agriculture based businesses. Not only does it demand good quality of soil, in cases for farms, but also the slope of the land needs to be factored too, for this will greatly affect the yield and in some cases, avoid natural problems like soil erosion or flooding. For cases that need a vast land of fields e.g. a pasture, ranch, barn, etc., the land must be suitable for animals’ health and growth. Hence, it is advisable to plan ahead of time, to factor in the demands for a better yield in the future.
Human Factors – something that involves humans and interaction
- Land tenure – Nowadays, it is not uncommon to find businesses owning the land, while some settle for being tenants. Owners will, of course, be able to expand even more, further improving and developing the business as it keeps on growing. For tenants, on the other hand, will be limited to what is agreed between the owner and will most likely remain at a disadvantage. Without the proper security of tenure, the possibilities of future investments will come to a stall. It is best to see it in a financial view where you can reassess the situation and plan a strategy on how to yield more based on what is possible.
- Market – In every business, there is always a target market and demand, otherwise, it’s bound to fail. But in this case for the businesses in Agriculture, the demand is very high and so does the market range. Though, this does not equate that they get off scot-free from several factors that will affect their business due to numerous factors with changes in conditions in the marketplace, such as:
- Changes in society – e.g. movement against eating meat, vegetarianism, etc.
- Health reasons/scares – e.g. sudden increase in demand due to health trends
- Religion – e.g. some religions don’t allow meat consumption
- Marketing – e.g. promoting products against many competitors
With these factors in the market that could potentially affect the business, good or bad, it is critical to realize ahead of time to either take advantage of certain possibilities or avoid certain scenarios.
- Transport – Another important factor is a transport network. With new ways to transport goods nowadays, the market range is wider and thus, the possibilities of a large distribution network will help lead businesses to success. Especially for farm types, planning ahead of time to either cut down some expenses for transport or to have a better handling of perishable goods by being close to their target market. With a financial model, you’ll be able to do a projection on certain advantages like these or spot possibilities that you can add to help your business grow even more in the future.
- Capital – It is undeniable that Agribusiness and businesses in Agriculture related sectors are capital intensive, highly mechanized, and labor intensive. The vast land needed, types of equipment required, hired hands to operate and do manual labors, etc., that’s just a few of the major factors that demand funding. With not enough funds to operate, the business might become insolvent or worse, shut down. Thus, to avoid this, creating a financial model is needed to attract business executives, entrepreneurs, venture capitalists, and banks. A financial model can also act as a budget plan to help with financial management, ensuring that the business will grow with a steady stream of yield.
- Technology – With the ever-changing and advancing technology, a rise in demand for better equipment or facilities developed. Since advanced technology increases the work efficiency and yields, it is considered as one of the factors that need to be taken note of, especially for the Agriculture Industry. But, as always, technology costs a lot of money. Thus, even more, funding is needed to be set aside for technology. Creating a financial model will greatly help with allocating properly the financing needed for the business.
- Government – Depending on the government policies, it can greatly affect the operation of businesses in Agriculture. These could be circumstances such as setting aside some of your yields or demands to increase the productivity to ensure a stable supply of goods with fair pricing. To prepare a financial plan ahead of time to oversee what needs to be done to recompense scenarios like this will be a great help for the stability and solvency of the business.
All factors aside, the need to make a financial plan for a business is undeniably a must, whatever kind of business you may have. To have a better understanding of your business operations, planning and strategizing, or if you’re planning to invest on businesses or projects, a financial model is your friend and ally to help you make better decisions.
Financial Planning – Downloading Agribusiness Spreadsheet Templates
Just like in every business, financial planning is an important part of the business plan to see if your business is financially feasible in the upcoming years. Without planning or creating a concrete model of how your business is going to be, there might be circumstances that will affect your business. So, preparing a financial plan is critical.
You are given a choice of either creating a financial model from scratch, the traditional way, or you can choose the convenient and more efficient way; downloading ready-made Agribusiness Spreadsheet templates that’s easy to edit for you to use. It is too time-consuming to create the spreadsheets or financial model, which you have the option to avoid by trusting financial modeling experts, ready-made and easy to use financial model templates.
Usually, we, in our financial model templates for Agribusiness or business in Agriculture and its related sectors, provide the following key elements that you need for a financial model, such as:
- Executive Summary section (with charts and key financials)
- Yearly forecast (5 – 10 years projections and depending on the templates, it can go on longer)
- Operating Assumptions
- Income Statement
- Balance Sheet
- Cash Flow Statement
- Fixed Assets and CAPEX
- Cost structure in USD/lbs (usually adjustable to your preference)
- Farming assumptions
- Feed conversion ratio
- Mortality ratio
- Hatchery/Harvest ratio
- DCF Valuation
- Sensitivity analysis (only available for full versions)
Basically, we molded the financial model according to what is needed generally in a specific business industry, which is in this case, business in Agriculture.
Above is our list of Financial model templates specially made for businesses in Agriculture that are available in our inventory. If you can't find the financial model template of a specific Agriculture based business, feel free to comment here: Missing Financial Model Templates, so that our Vendors will pick up that project and will soon add in our still growing inventory.
If you found the template but need help with customization of your preference, we also offer financial modeling services which you can avail here: Custom Financial Modeling Service.
We would be really grateful if you also rate our products and leave a review, comments, suggestions, or any kind of feedback, about our financial model templates, for this will greatly help us shape our templates to be even better in the future.