Added by on 2017-02-28

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 -~-~~-~~~-~~-~- Please watch: “Leaders of Local Food: An Indoor Vertical Farm in Edina, MN” -~-~~-~~~-~~-~- Video Rating: / 5 Related PostsInvesting in Indoor Farming (Replay) | Let’s Talk Indoor Farming!The Evolution of Indoor Farming | Let’s Talk Indoor Farming!Startup Costs and Financing Strategies | Let’s Talk Indoor Farming!Economics of Indoor Growing (Live) | Let’s Talk Indoor Farming!LED’s, HVAC, & Breakthrough Innovations | Let’s Talk Indoor Farming![Electro House] DJ Hydroponic X5 : Lets Get Started

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  • Chris Shepherd 10 months ago

    $91,000 in energy costs……………………………solar panels should be considered……..Right?

  • hollistertr31 10 months ago

    you can put a lot of numbers on paper… can you show some actual numbers from farms?

  • Bee Free 10 months ago

    Play AC/DC and watch your plants die!! it has been proven that plants do not thrive in that crappy music!

  • Chris Cook 10 months ago

    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.

  • Various Curious 10 months ago

    Free land?

  • H. Lum 10 months ago

    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.

  • Daniel Millner 10 months ago

    Any recommendations for a building for this example?