Looking for an agricultural consulting business plan? You're in the right place.
A consultancy that sells advice to growers earns most of its money in one half of the year and spends in all twelve. A lender, a landlord or a co-founder will want to know how much cash covers the winter, how many acres have to sign before the season, and what happens in a bad crop year. A blank template will not show what sensible answers look like.
In this article we walk through a complete sample plan for a crop and farm-business consultancy in Denver, section by section, from the executive summary and SWOT analysis to the full five-year financials.
Here is what you can take from it:
- The executive summary: see how to put acres, fees and funding on one page so a reader knows the ask within a minute
- The market section: learn which Census of Agriculture figures size a consulting market, and which ones overstate it
- The SWOT analysis: name a seasonal firm's weak points without putting a banker off
- The start-up budget: find out how much a firm with two trucks and no season income yet needs to hold in reserve
- The first year, month by month: spot the nine months that lose money before you reach them, and plan your cash around them
- The marketing plan: see what it costs to win 14 new farm and lender relationships, and which channels carry the load
- The five-year profit, cash flow and balance sheet: understand how each hire, price rise and mile of fuel shows up in the numbers
- The dry-year downside: have an answer ready for "what if revenue comes in 20% short?", with the owner's steps in response
If you are setting up an agronomy or farm-advisory firm, read this before you write yours. The firm is fictional, so keep what fits and change the rest.
In this plan
To turn this example into your own agricultural consultants business plan, use the agricultural consultants business plan template.
The Plan at a Glance
O'Connor & Partners is a Colorado consulting firm that opens in the Denver metro area on January 1, 2027. It sells three things to growers, lenders and agribusinesses on the eastern plains and the Front Range: crop and irrigation advisory by the acre, fixed-fee farm business, succession and conservation plans, and day-rate work for ag lenders and input or processing companies. Founder Brian O'Connor, a certified crop adviser, owns 100% of the firm.
The firm raises $245,000: $140,000 of Brian's savings and a $105,000 bank term loan. Of that, $78,000 buys two used trucks and the field kit, $7,000 fits out the office, $20,500 pays for legal work, licensing and the launch events, and $139,500 is held as the winter reserve.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $344,800 | $655,000 | $921,000 |
| Net income after start-up costs | ($85,022) | $68,421 | $76,873 |
| Closing cash | $38,554 | $68,551 | $96,673 |
Seven farms with 6,000 acres sign before launch, and five more bring the book to about 11,000 acres by April. Year 1 loses money because an agronomist is on payroll from February while season fees only start in April. Operating profit is positive in August, September and October and negative in the other nine months. Year 2 is the first profitable year, and profit stays positive through Year 5.
A dry-year case cuts revenue by 20% in every year. With later hires, a smaller marketing budget, a 20% pay cut for Brian and no distributions, the firm still ends every year with cash.
The pitch is a small one. A single firm covers the field, the farm's finances and the lender's questions, and the same people who walk the rows help write the plan the bank reads.
The Firm
Legal name: O'Connor & Partners, LLC, a Colorado limited liability company. Owner: Brian O'Connor, 100%. The name anticipates senior advisors becoming partners later; none are partners at launch. Base: an 800-square-foot office in the Denver metro area, with two trucks that work the eastern counties. Start date: January 1, 2027, ahead of spring soil sampling. Stage: pre-launch. The lease is in draft and seven farms have signed letters of engagement for 6,000 acres.
Why the firm exists
Growers get agronomy advice from many places, but the person who recommends a fertilizer rate may be paid by the company that sells it, and the person who understands the farm's loan rarely walks the field. O'Connor & Partners sells independent advice that connects the two.
Where the firm wants to be by the end of 2028
- About 18,000 advised acres across 18 farms, up from 11,000 across 12.
- $655,000 in revenue and a profit after tax.
- A team of four full-time people, Brian included, plus the seasonal scout.
- Loan repayments on schedule from mid-2027, and owner distributions starting in 2029.
What the firm sells
| Line of work | How it is priced | Year 1 share of revenue |
|---|---|---|
| Crop and irrigation advisory | $16 an acre per season | 51% |
| Farm business, succession and conservation plans | About $8,500 a project | 32% |
| Lender and agribusiness engagements | $1,500 a day | 17% |
Licensing and professional standing
Brian holds the Certified Crop Adviser credential, which the American Society of Agronomy administers; the program sets the continuing-education and renewal terms, and Brian confirms them each cycle. The firm confirms with the Colorado Department of Agriculture whether any state license applies to its recommendations, pesticide advice in particular, before it gives any, and carries professional liability insurance in the meantime.
Colorado Farms and Who Advises Them
The size of the farm economy
The 2022 Census of Agriculture counted 36,056 farms in Colorado on 30.2 million acres, with $9.2 billion of products sold and $8.2 billion of production expenses. The average farm covered 838 acres. Only 5,147 farms, 14% of the total, sold $100,000 or more; almost half sold less than $2,500. The firm's market is the larger operations, so the 14% is the relevant count, and this profile does not break out irrigated farms. The plan targets farms of 500 or more irrigated acres on the South Platte and Arkansas basins.
What advisers are paid
The Bureau of Labor Statistics put the median pay of agricultural and food scientists at $81,970 in May 2025 and projects 6% employment growth from 2025 to 2035. The group is broader than field agronomists, and the plan pays its agronomists $74,000 to $78,000 for that reason. Advisory fees in the plan are the firm's own prices. Published rates for crop consulting vary widely by crop, region and service level, and none is quoted here.
Who a grower could hire instead
| Alternative | What it offers | Why a grower picks it | Where the firm differs |
|---|---|---|---|
| Input-retailer agronomists | Scouting and recommendations, often bundled with product sales | Often no separate fee | Advice paid for by the grower, with no product to move |
| University extension | Research-backed guidance and field days | Typically low cost | Per-field visits and a named adviser through the season |
| Independent certified crop advisers | Scouting and field plans | Long relationships, local knowledge | Farm business and lender work under one roof |
| Farm management and accounting firms | Tax, records and financial planning | Already trusted with the books | Agronomy on the same engagement |
| Lenders' in-house ag staff | Credit review and some advice | No fee to the borrower, typically | Independence from the lender, which matters to growers and to the lender's own file |
The table describes the categories and does not rank them. Prices differ by provider and are not quoted.
SWOT
| Strengths | Weaknesses |
|---|---|
| A certified founder with fourteen years in agronomy and agricultural lending | Four-fifths of Year 1 revenue arrives between April and December, so winter cash is thin |
| Seven signed farms before opening | No brand outside Brian's network |
| Three revenue lines that buy from different parts of the calendar | Year 1 loses money and draws on the reserve |
| Opportunities | Threats |
|---|---|
| Succession planning, which many owners put off | A drought or price slump pressing growers' budgets |
| Lenders and co-ops wanting independent field checks | Input retailers offering advice as part of product price |
| Conservation program paperwork that growers lack time to do | Losing the founder or a lead agronomist mid-season |
Who Hires an Agricultural Consultant
The irrigated grower
The core client runs 500 to 2,000 acres of corn, alfalfa or other irrigated crops, employs a few people and makes the agronomy decisions personally. He or she is in the field before sunrise and in the paperwork after dark. Revenue is large, margins are thin, and a wrong fertilizer or irrigation call costs a season.
The estate and transition client
An owner in their sixties with land, equipment and children who may or may not farm. This client buys a succession plan, and often an advisory contract for the buyer or heir afterward.
The lender or co-op
An ag lender or a cooperative wants an independent view of a borrower's fields, inputs and records. They buy days, not acres, and they buy again.
What pushes a grower to call
A bad yield, a lender asking for a plan before renewing a line, a neighbor's sale of land, a conservation cost-share application with a deadline, or a trusted adviser retiring.
What clients ask of the firm
Someone who shows up in the field when it matters. Recommendations that are written down. A fee that does not depend on what gets sold. Plans a bank accepts.
Winning Farm and Lender Accounts
From first meeting to engagement letter
A kitchen-table or office meeting, a field walk where Brian reads the soil and irrigation records, a written proposal within three working days and an engagement letter before the season. The firm takes on no more farms than its agronomists can cover, so proposals state the number of visits.
The Year 1 book
Twelve advisory farms end Year 1, seven of them signed before launch. The firm wins 14 new relationships in the year: five advisory farms, six farms that buy a plan only, and three lender or agribusiness accounts.
| Source | New relationships | Share |
|---|---|---|
| Referrals from growers and neighbors | 5 | 36% |
| Lender and co-op introductions | 4 | 29% |
| Field days and regional meetings | 3 | 21% |
| Website and email | 2 | 14% |
How fees are set
Advisory is priced per acre and per season, from $14 for simple, single-crop ground to $20 for intensive rotations with sampling and irrigation scheduling. The $16 average reflects most clients falling in the middle. Plans are fixed-fee after a scoping call. Lender work bills by the day. The $16 is a launch rate for the first season and the average steps to $17.50 in 2028, then rises by about $0.50 a year. The fee on a project does not change once the engagement letter is signed.
Staying and growing
The plan expects about one farm in ten to leave each year. Advisory farms that also buy a plan stay longest, so the proposal for a new farm quotes both.
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Advised acres (approximate) | 11,000 | 18,000 | 23,500 | 28,300 | 31,500 |
Growth is limited by agronomists, not by demand. Each hire arrives in February or March, ahead of the season it covers. Year 2 needs about seven new advisory farms after the expected departures, from the same four channels.
Seven farms before opening
Seven farms signed letters of engagement before launch. They are personal introductions from Brian's years in the area. Together the seven letters cover about $96,000 of season fees, 28% of Year 1 revenue, and each is an annual letter that either side can end on 30 days' notice. Brian reviewed the non-solicitation terms in his old employment agreement with a lawyer, and none of the seven is a former employer's account.
Reaching Growers
What marketing costs and what it buys
Year 1 marketing is $32,000: $14,000 of launch spending paid from start-up capital and $18,000 of running costs. That is 9% of Year 1 revenue, falling to 3% in Year 3 and 2% in Year 5 as referrals take over. Across 14 new relationships, Year 1 costs about $2,300 for each.
| Channel | Year 1 spend | Purpose |
|---|---|---|
| Website and brand (launch) | $5,500 | Service pages for growers, estates and lenders, with a booking link |
| Three launch field days (launch) | $4,500 | Free soil-health and irrigation sessions near Greeley and Fort Morgan |
| Regional meeting sponsorships (launch) | $4,000 | Introductions at growers' and ag-credit gatherings |
| Regional meetings and field-day sponsorships | $5,500 | Repeat presence at the same gatherings in the season |
| Lender and co-op relationship program | $3,000 | Quarterly meetings with credit officers and co-op managers |
| Case studies and demonstration plots | $2,000 | Results from a cooperating farm, published with permission |
| Trade show booth | $2,500 | One regional farm show a year |
| Website content | $3,500 | Seasonal guides on soil sampling, irrigation scheduling and succession |
| Direct mail and email | $1,500 | Reminders ahead of sampling season and the winter planning months |
Marketing milestones
- January 2027: website live, seven farms onboarded for sampling.
- April 2027: 12 advisory farms and 11,000 acres under contract.
- May 2027: first lender account starts at three days a month.
- December 2027: 13 plans delivered in the year and two succession plans in draft.
Running the Field Season
The office and the trucks
An 800-square-foot office in the Denver metro area, about $32 a square foot a year ($25,600 in Year 1), serves for planning, lender meetings and writing. Field staff work from two used pickups. The firm moves to about 1,050 square feet in Year 4. Fuel, repairs, mileage and lodging cost $20,000 in Year 1, and leased vehicles join the fleet from Year 3.
How a season runs
January to March: soil sampling, field plans and the first plans for each farm. April to October: scouting visits every week or two, irrigation scheduling, written recommendations after each visit. November to March: the plan season, when growers have time for succession and financial work. Lender days fit in around these.
Data and tools
Farm management and field-mapping software, a drone for stand counts flown by a staff member who holds an FAA remote-pilot certificate (current requirements to be confirmed with the FAA) and a cloud drive for each client, at $11,000 in Year 1. Soil and tissue samples go to commercial labs, whose fees are the main direct cost.
Who does the work
Brian and one agronomist at the end of Year 1, with a seasonal scout from April to September. Four full-time people at the end of Year 2 (a second agronomist and a business analyst), five at the end of Year 3 and six at the end of Year 4, plus a part-time coordinator from Year 3 and a second seasonal scout from 2030. Each agronomist carries about 9,500 acres in season with scouting help, Brian about 3,000 from Year 3 and the second senior advisor about 2,000, which leaves roughly 6% headroom in Year 5. In the quiet months from November to March the agronomists draft the analysis for plans, which keeps Brian's winter hours manageable. The downside case shows which hires slip.
Insurance and standards
Professional liability for crop advice, commercial auto on two trucks, general liability, workers' compensation, cyber and key-person cover, $19,000 in Year 1. Written recommendations only, with the data they rest on. The firm declines to recommend products it or its staff sell. Lender and agribusiness work follows a conflict rule: no engagement bears on the loan decision of one of the firm's own advisory clients, and every engagement letter discloses other work for the parties involved.
Labs and advisers on call
Two commercial soil labs, a CPA for the firm's own books and a lawyer for engagement letters and land transfers. All are replaceable.
Founder and Team
Brian O'Connor, founder and principal advisor
Brian has fourteen years in agronomy and agricultural lending. He spent eight as an agronomist and then regional manager for an input retailer in Weld County, and six as a senior credit analyst for a regional ag lender. He holds an M.S. in agronomy and the Certified Crop Adviser credential. His $140,000 is his savings. He is leaving a salaried post to run a firm where he still walks the fields himself.
Where the team is thin
Brian has never sold advisory fees on his own account, has not run payroll and has little experience with water-rights questions. The plan covers these with the lender relationship program, a payroll service from day one and a standing referral of water-rights work to a Colorado water attorney.
If Brian is out
The Year 1 agronomist can run the field program alone for a few weeks. A second certified agronomist joins in month 15. Key-person cover on Brian is part of the insurance budget.
Outside help
A retired farm-business consultant reviews the numbers each quarter. Brian also uses the Colorado Small Business Development Center network for pricing questions.
Ownership and the bank
Brian owns 100% of the firm and gives the bank a personal guarantee. The loan carries a covenant to deliver quarterly accounts. The bank also arranges a $50,000 operating line, undrawn in the base case.
Funding and Financials
The tables below come from one five-year model that the engine runs month by month for 2027 and year by year afterward. Operating figures come first so each line of the forecast can be traced back to a price, an acreage or a salary.
Trucks, instruments and the winter reserve
| Use of funds | Amount |
|---|---|
| Two used pickup trucks for field work | $62,000 |
| Soil probe, moisture sensors, survey drone, rugged tablets, GIS laptops | $16,000 |
| Office fit-out and furniture | $7,000 |
| Business licenses, CCA credential fees, FAA remote-pilot certificate for the drone and a licensing check with the state agriculture department | $1,500 |
| Legal: entity set-up, client agreements, lease review | $5,000 |
| Launch: website, field-day events, regional meeting sponsorships | $14,000 |
| Cash reserve to carry the winter before season fees arrive | $139,500 |
| Total uses | $245,000 |
| Source of funds | Amount |
|---|---|
| Brian O'Connor's savings | $140,000 |
| Bank term loan | $105,000 |
| Total sources | $245,000 |
Brian O'Connor puts in $140,000 of savings, 57% of the total, and the firm borrows $105,000 from a bank over seven years at 10.5%, interest-only for six months, secured on the trucks and instruments with a personal guarantee. The rate is a planning figure and not a quoted offer. The two trucks and the field kit take $78,000 of the money. The $139,500 reserve is sized to the winter: most advisory fees are billed from April, while the payroll for an agronomist starts in February. A $50,000 operating line is arranged with the bank alongside the term loan as a standby for the winter of 2028. The model does not draw on it, and because Years 2 to 5 are spread evenly it does not show that winter either.
Operating figures behind the model
- Crop and irrigation advisory is priced per acre per season: $16 in 2027 as a launch rate, then $17.50, $18, $18.50 and $19 from 2028 to 2031. About 11,000 acres are under contract in Year 1, then about 18,000, 23,500, 28,300 and 31,500. Billing runs 15% in January to March for soil sampling and field plans and 85% from April to October.
- Year 1 holds 12 advisory farms: seven that sign before launch (6,000 acres) and five more by April. The model expects about one farm in ten to leave in a given year, usually after a sale of the land or a change of operator.
- Capacity: an agronomist carries about 9,500 acres in season with scouting help. The founder carries about 1,500 in Year 1 and about 3,000 from Year 3, and the second senior advisor about 2,000 from month 44, which leaves roughly 6% headroom in Year 5. Hires land ahead of each season: the second agronomist in month 15 (March 2028) and the third in month 27 (March 2029).
- Farm business, succession and conservation plans are fixed-fee projects, about 55 hours each. Fees average $8,500 in Year 1 across 13 projects, then $8,800 across 25, $9,700 across 33, $9,900 across 40 and $10,300 across 44 as larger transition plans join the mix. Most land between October and March, when growers have time.
- Lender and agribusiness work bills at a day rate of $1,500 in Year 1, rising to $1,750 by Year 5: about 39 days from month 5, then 75, 108, 130 and 145 days.
- Direct costs are lab fees and sampling supplies: 8% of advisory revenue and 2% of plan revenue, or 4.7% of Year 1 revenue overall. Advisory is invoiced monthly on net-30 terms and plans on delivery, but some growers settle late in the season and lenders and co-ops can take 45 to 60 days, so the model uses an average of 50 days. A bad debt allowance of $3,000 rises to $9,500.
- Payroll adds 27% to wages for payroll taxes, health cover, Colorado paid-leave premiums, workers' compensation and a retirement match, and 15% for the seasonal scout and the part-time coordinator. Agronomists are paid $74,000 to $78,000, a little under the $81,970 median that the Bureau of Labor Statistics reports for the wider group of agricultural and food scientists (May 2025). Annual pay raises of 3% are charged as a separate line from Year 2.
- Field costs are real money: $20,000 in Year 1 for fuel, repairs, mileage and lodging on trips to the eastern counties, rising to $44,000 as acres grow. Insurance covers professional liability for crop advice, commercial auto on two trucks, general liability, workers' compensation and cyber cover, at $19,000 in Year 1, a planning figure to be confirmed with a broker.
- Rent covers 800 square feet in the Denver metro at about $32 a square foot a year, then about 1,050 square feet from Year 4. Equipment replacement is budgeted from Year 2. The two purchased trucks stay in service, and added vehicles are leased from Year 3 ($7,000 rising to $16,000 a year), a line that also covers replacing the oldest truck. A second seasonal scout is added in month 40.
- The model taxes the firm as a corporation, at 21% federal and 4.4% Colorado, with the Year 1 operating loss carried forward. An LLC taxed as a pass-through would instead put the tax on the owner's return, and the rates may change, so the corporate rates are a cautious stand-in. Distributions of $15,000, $20,000 and $40,000 start in Year 3.
Revenue by line of work
| Revenue stream | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Crop and irrigation advisory programs (per acre, per season) | $175,800 | $315,000 | $423,000 | $524,000 | $599,000 |
| Farm business, succession and conservation plans | $110,500 | $220,000 | $320,000 | $396,000 | $453,000 |
| Lender and agribusiness engagements | $58,500 | $120,000 | $178,000 | $221,000 | $254,000 |
| Total revenue | $344,800 | $655,000 | $921,000 | $1,141,000 | $1,306,000 |
| Growth on prior year | – | 90% | 41% | 24% | 14% |
Advisory is half of Year 1 revenue (51%) and 46% of Year 5, and it repeats every season. Lender work earns the most per hour, at about $190 on a $1,500 day, and plan projects, which come to about $155 an hour, arrive in winter when growers have time. Lender work is the smallest line in Year 1 at 17% and grows fastest in proportion, because it needs a track record on the farm side first.
The first calendar year, month by month
| Month | Crop and irrigation advisory programs (per acre, per season) | Farm business, succession and conservation plans | Lender and agribusiness engagements | Total revenue | EBITDA |
|---|---|---|---|---|---|
| Jan 2027 | $5,000 | $8,500 | $0 | $13,500 | ($17,600) |
| Feb 2027 | $8,000 | $17,000 | $0 | $25,000 | ($6,642) |
| Mar 2027 | $13,000 | $17,000 | $0 | $30,000 | ($1,878) |
| Apr 2027 | $21,400 | $8,500 | $0 | $29,900 | ($1,974) |
| May 2027 | $21,400 | $0 | $4,500 | $25,900 | ($5,785) |
| Jun 2027 | $21,400 | $0 | $6,000 | $27,400 | ($4,356) |
| Jul 2027 | $21,400 | $0 | $6,000 | $27,400 | ($4,356) |
| Aug 2027 | $21,400 | $8,500 | $7,500 | $37,400 | $5,172 |
| Sep 2027 | $21,400 | $8,500 | $7,500 | $37,400 | $5,172 |
| Oct 2027 | $21,400 | $17,000 | $9,000 | $47,400 | $14,700 |
| Nov 2027 | $0 | $17,000 | $9,000 | $26,000 | ($5,690) |
| Dec 2027 | $0 | $8,500 | $9,000 | $17,500 | ($13,788) |
Fees build from January as soil sampling starts, hold near $21,400 a month on the advisory line through the season, and drop to nothing in November and December when only plan and lender work is billed. Operating profit is positive only in August, September and October; the other nine months lose money. The lowest month-end cash balance is Oct, at about $30,000, after allowing for the 50 days clients take to pay.
Agronomists, analysts and office
| Role | Annual wage | Starts | Year 1 end | Year 2 end | Year 3 end | Year 4 end | Year 5 end |
|---|---|---|---|---|---|---|---|
| Founder and principal advisor | $110,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Agronomist (certified crop adviser) | $74,000 | Month 2 | 1 | 1 | 1 | 1 | 1 |
| Seasonal field scout (April to September) | $48,000 | Month 4 | – | – | – | – | – |
| Second agronomist | $76,000 | Month 15 | – | 1 | 1 | 1 | 1 |
| Second seasonal field scout (from April 2030) | $48,000 | Month 40 | – | – | – | – | – |
| Third agronomist | $78,000 | Month 27 | – | – | 1 | 1 | 1 |
| Farm business analyst | $78,000 | Month 21 | – | 1 | 1 | 1 | 1 |
| Client coordinator (part time, 24 hours a week) | $28,000 | Month 34 | – | – | 0.5 | 0.5 | 0.5 |
| Second senior advisor (agricultural economist) | $102,000 | Month 44 | – | – | – | 1 | 1 |
| Total payroll incl. on-costs | $253,448 | $374,733 | $547,460 | $669,695 | $745,260 |
Brian runs the first season with one agronomist, who starts in month 2, and a seasonal scout from April to September of each year. The scout shows as empty in the year-end columns because the post ends in September; its cost sits in payroll and its wage is shown at an annual-equivalent rate for the six months worked. A second agronomist joins in month 15, a business analyst in month 21 ahead of the second winter of plans, a third agronomist in month 27, a part-time coordinator in month 34, a second seasonal scout from April 2030 and a second senior advisor in month 44. Brian's $110,000 salary is already in the costs, so profit here is what remains after he is paid.
Profit and loss
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $344,800 | $655,000 | $921,000 | $1,141,000 | $1,306,000 |
| Direct costs (soil and tissue lab fees, sampling supplies) | ($16,274) | ($30,915) | ($43,470) | ($53,853) | ($61,641) |
| Gross profit | $328,526 | $624,085 | $877,530 | $1,087,147 | $1,244,359 |
| Payroll incl. on-costs | ($253,448) | ($374,733) | ($547,460) | ($669,695) | ($745,260) |
| Rent | ($25,600) | ($26,400) | ($27,200) | ($33,500) | ($34,500) |
| Utilities | ($3,000) | ($3,100) | ($3,200) | ($3,600) | ($3,700) |
| Marketing | ($18,000) | ($22,000) | ($24,000) | ($25,000) | ($26,000) |
| Insurance | ($19,000) | ($21,000) | ($23,500) | ($25,500) | ($27,000) |
| Professional fees | ($5,000) | ($5,500) | ($6,000) | ($6,000) | ($6,500) |
| Software subscriptions | ($11,000) | ($14,000) | ($17,000) | ($19,000) | ($20,000) |
| Vehicle fuel, repairs, field travel and lodging | ($20,000) | ($28,000) | ($34,000) | ($40,000) | ($44,000) |
| CCA continuing education, dues and lab-certification fees | ($3,000) | ($4,500) | ($5,500) | ($6,500) | ($7,000) |
| Added vehicles on lease and truck replacement | $0 | $0 | ($7,000) | ($14,000) | ($16,000) |
| Phones, supplies and postage | ($4,500) | ($5,500) | ($6,500) | ($7,000) | ($7,500) |
| Equipment replacement and new-hire kit | $0 | ($7,000) | ($9,000) | ($11,000) | ($9,000) |
| Bad debt allowance | ($3,000) | ($5,000) | ($7,000) | ($8,500) | ($9,500) |
| Annual pay raises (3% a year) | $0 | ($11,242) | ($33,340) | ($62,099) | ($93,537) |
| EBITDA | ($37,022) | $96,110 | $126,830 | $155,753 | $194,862 |
| Depreciation | ($16,600) | ($16,600) | ($16,600) | ($16,600) | ($16,600) |
| Interest | ($10,900) | ($9,825) | ($8,444) | ($6,911) | ($5,209) |
| Income tax | $0 | ($1,264) | ($24,913) | ($32,367) | ($42,356) |
| Net income before start-up costs | ($64,522) | $68,421 | $76,873 | $99,874 | $130,697 |
| Start-up costs expensed at opening (legal, licensing, launch events) | ($20,500) | $0 | $0 | $0 | $0 |
| Net income after start-up costs | ($85,022) | $68,421 | $76,873 | $99,874 | $130,697 |
Year 1 loses $64,522 before start-up costs and $85,022 after them. Year 2 is the first profitable year at $68,421. Year 3 profit rises to $76,873 even though the third agronomist, analyst and coordinator are all on payroll by then, and Year 4 reaches $99,874. Income tax is only $1,264 in Year 2 because the Year 1 loss is carried forward. Pay raises grow from $11,242 in Year 2 to $93,537 in Year 5; with them, payroll takes between 59% and 64% of revenue from Year 2.
Cash movements
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Cash from operations | ($115,655) | $42,528 | $57,035 | $86,337 | $124,694 |
| Trucks, field instruments and fit-out | ($85,000) | $0 | $0 | $0 | $0 |
| Funding received | $245,000 | $0 | $0 | $0 | $0 |
| Loan principal repaid | ($5,791) | ($12,531) | ($13,912) | ($15,445) | ($17,148) |
| Owner distributions | $0 | $0 | ($15,000) | ($20,000) | ($40,000) |
| Net change in cash | $38,554 | $29,997 | $28,122 | $50,892 | $67,546 |
| Closing cash | $38,554 | $68,551 | $96,673 | $147,565 | $215,111 |
Year-end cash stays positive in all five years, from $38,554 after Year 1 to $215,111 after Year 5. Receivables are the main use of cash after Year 1: they reach $178,904 by Year 5. Distributions begin in Year 3 and are sized to leave the reserve intact.
Balance sheet
| At year end | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cash | $38,554 | $68,551 | $96,673 | $147,565 | $215,111 |
| Accounts receivable | $47,233 | $89,726 | $126,164 | $156,301 | $178,904 |
| Trucks, field instruments and fit-out (net) | $68,400 | $51,800 | $35,200 | $18,600 | $2,000 |
| Total assets | $154,187 | $210,077 | $258,037 | $322,466 | $396,015 |
| Bank loan | $99,209 | $86,678 | $72,765 | $57,320 | $40,172 |
| Paid-in capital | $140,000 | $140,000 | $140,000 | $140,000 | $140,000 |
| Retained earnings | ($85,022) | ($16,601) | $45,272 | $125,146 | $215,843 |
| Total liabilities and equity | $154,187 | $210,077 | $258,037 | $322,466 | $396,015 |
Margins, break-even and loan cover
| Measure | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| EBITDA margin | -10.7% | 14.7% | 13.8% | 13.7% | 14.9% |
| Net margin (before start-up costs) | -18.7% | 10.4% | 8.3% | 8.8% | 10.0% |
| Payroll incl. pay raises as share of revenue | 74% | 59% | 63% | 64% | 64% |
| Revenue per full-time equivalent at year end | $172,400 | $163,750 | $167,455 | $175,538 | $200,923 |
| Average monthly revenue | $28,733 | $54,583 | $76,750 | $95,083 | $108,833 |
| Monthly revenue needed to cover operating costs | $31,971 | $46,177 | $65,657 | $81,461 | $91,790 |
| Debt service cover (EBITDA / interest + principal) | -2.2x | 4.3x | 5.7x | 7.0x | 8.7x |
The last two rows before loan cover compare average monthly revenue with the revenue needed to cover operating costs. Year 1 averages $28,733 against $31,971 needed, so the firm loses money. Year 2 averages $54,583 against $46,177. Loan cover is negative in Year 1 because EBITDA is negative while interest accrues, then holds above 4x from Year 2.
A dry year: revenue 20% short
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $275,840 | $524,000 | $736,800 | $912,800 | $1,044,800 |
| Net income before start-up costs | ($98,687) | $61,764 | $38,735 | $17,826 | $84,791 |
| Net income after start-up costs | ($119,187) | $61,764 | $38,735 | $17,826 | $84,791 |
| Closing cash | $13,835 | $45,674 | $57,947 | $52,818 | $118,979 |
This case cuts every revenue line by 20% in every year, as a drought, a price slump or a lender pulling back could. The response: every hire from month 13 starts six months later, the second senior advisor is dropped, marketing is cut by 20%, Brian takes a 20% pay cut, the firm stays in its first office and no distributions are paid. On those terms the firm ends every year with cash in the bank, at no less than $13,835, and is profitable from Year 2. Year 1 closing cash is the tight point, and the firm would draw on the $50,000 operating line in the first winter rather than count on the cash alone. Equity ends Year 1 at $20,813.
Sources
- USDA National Agricultural Statistics Service, 2022 Census of Agriculture, Colorado profile: farms, acres, sales, expenses, size and sales classes.
- Bureau of Labor Statistics, Agricultural and food scientists, Occupational Outlook Handbook: median pay for May 2025 and 2025 to 2035 growth projection.
- American Society of Agronomy, Certified Crop Adviser program: named for the credential only; the program sets its own requirements.
- Tax rates in the model (21% federal, 4.4% Colorado) are planning figures. Confirm current rates with a tax professional and the Colorado Department of Revenue.
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