This Excel model spreadsheet template was developed to model the operations and financial results for a single crop coffee bean farm, which plants its coffee beans on several land pieces. These lands are modeled to reflect different years’ outcomes when acquired, different tree ages, harvest yields, and cost structures. The model then calculates a monthly schedule with complete financial statements, which are then aggregated yearly. The financial feasibility can be assessed by analyzing the relevant return metrics (IRR, NPV, Payback Period) and financial ratios over the forecast period (5-10 years depending on the model version).
The components of the Excel spreadsheet in the form of a financial feasibility model template include the following:
• Executive Summary with a variety of tables and charts, including
• Financial Overview
• Various Breakdowns
• Project Metrics such as Internal Rate of Return (IRR), Net Present Value (NPV), Payback Period based on unlevered and levered cash flows
• Uses and Sources of Funds Tables
• Time to Break-Even
• Assumptions Section
• General assumption sections which allow specifying the model’s currency, units for weight and volume to be used throughout the model, the first forecast year, applicable income tax and interest rates, applicable net working capital assumptions, and other
• Yield Assumptions including the modeling of anticipated annual changes in yields
• Yearly price assumptions for coffee beans as per 4 different quality levels
• Direct cost assumptions for planting, tree care (growing), harvesting, and processing costs
• Labor cost assumptions including the forecast of required annual Full-Time Equivalent (FTEs), salary levels for indirect labor, and hourly rates for direct labor.
• Assumptions for OPEX (operating cost) budget
• Assumptions CAPEX (capital expenditures) budgets
• A table which keeps inventory of the available lands under management (up to 20 different land areas)
• Year of land acquisition and type (if owned or rented)
• Land acquisition costs
• Rental expenses (if applicable)
• Planting schedule
• Schedule when growing and tree care activities will start
• Schedule when the first harvest can be expected
• If planting will be a new planting (no revenues from that piece of land before) or a re-planting (land plot can have yields and revenues before year/month of planting)
• Yield table, which specifies what annual yield can be expected for which piece of land and in which months of the year
• Monthly harvest schedule
• Annual yield index
• Harvest volumes
• A growing cost table specifies the months the different costs such as fertilizers, herbicides will be spent, and the annual expected total costs per hectare and total cost basis. Costs can be adjusted for each piece of land under management or left to be linked to a specified general assumption.
• Exit value assumptions based on either EV/Sales, EV/EBITDA, or EV/Hectare multiples
• Detailed Monthly Forecast includes tables for lands and trees under management, monthly planted areas, monthly harvested areas, monthly harvest volumes, prices, direct monthly costs, OPEX, and many other Key Performance Indicators (KPIs). The monthly sheet also includes a detailed financial statement to understand Profits, Balance Sheets, Cash Flows.
• Annual Forest which aggregates the monthly figures into annual figures and includes the following:
• Income Statement
• Balance Sheet
• Cash Flow Statement
• Financial Ratios
• Key Performance Indicators such as Lands Under Management, Planted Area, Harvested Area, Harvest Volumes, etc.
• Fixed Asset Tables
• Debt Schedule
• Standardized Income Statement (as % of Sales)
• Profit per Hectare
• Direct Cash Flows
• Project Valuation
• Free Cash Flow Forecast
• Uses of Funds Calculation
• Break-Even Analysis on a per Hectare Basis (Pro Version only)
• Instructions guide on how to work with this model
• Terms & Abbreviations Table
• Model Structure Outline
In case this model (monthly forecast) is too complex or you feel requires too many details to enter, kindly check out the alternative model template – Starting or Buying a Coffee Farm (only includes annual forecast but simpler).
This financial feasibility plan template comes in two versions, a Standard and a Pro Version both fully editable in MS Excel. The Standard version includes a 5-year forecast horizon, while the Pro version comes with a 10-year forecasting period and a break-even analysis on a per hectare basis. Free PDF Demo Versions containing the model structure is available for download as well.
.xlsx (MS Excel)
.pdf (Adobe Acrobat Reader)