Indoor farming promises a triple bottom line. This means profit. Join us for a closer look at the financial performance of indoor farming operations.
3:06 Intro to local food markets
4:28 Defining the size and scale of your market
6:01 An 1,800 square foot indoor farm, built to supply wholesale restaurant and retail locations
6:48 Safe Harbour Statement
7:21 Production estimates
8:26 Exammple of an internal rate of return
9:41 Ready, set, let’s do some business planning!
10:11 Start with net income (profit and loss statement)
10:43 Capital budgeting for an 1,800 square foot indoor facility (example)
11:10 Operating expenses (example)
13:22 Profitability study: 10% Basil, 28% Lettuce, 22% Mini-head of Lettuce, 40% Kale
19:50 Net income and IRR for year 1
24:52 A closer look at the assumptions for this scenario – pricing and production numbers
26:07 Identifying the most productive and profitable crops to grow
26:52 How increasing herb production can increase profitability
30:02 Additional costs associated with a new line of business
31:18 (Example) How to optimize your crop selection for profitability
33:03 A 5 year IRR of 29%
36:53 Audience questions
About Bright Agrotech
Bright Agrotech provides hardware, software, and services for controlled environment agriculture (CEA) industry. The company provides distribution globally, with locations in Australia, Canada, China, Europe, Singapore, South Africa, and Trinidad and Tobago.
Learn more at www.brightagrotech.com/zipfarm/
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Please watch: “Leaders of Local Food: An Indoor Vertical Farm in Edina, MN”
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Video Rating: / 5
$91,000 in energy costs……………………………solar panels should be considered……..Right?
you can put a lot of numbers on paper… can you show some actual numbers from farms?
Play AC/DC and watch your plants die!! it has been proven that plants do not thrive in that crappy music!
Hamburgers cost a 1 dollar at McDonalds. You want a good one with real ingredients you can pay up to 13 dollars including service. Maybe 7 dollars net. That is 7x.
Free land?
The usual way to analyze cashflow and investment returns is to make the outflow/investment as year 0 and the net cashflow each year without the amortization of the debt. The IRR is not a yearly number, it is a return over a period of 10 years in your example. Annual returns are simple returns. What is the denominator that are being used to show the yearly IRR that you show in the chart. This is not normal finance.
Any recommendations for a building for this example?