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A fruit farm sells most of its crop in a few weeks and pays wages, rent and loan interest all year. A lender, a landlord or a family member who puts in savings will ask how the farm gets from one harvest to the next. How much cash does it need before the first berry sells? Which month is the lowest? What happens after a freeze? A generic template has no answer to any of these.
This article walks through a complete sample plan for a strawberry and blackberry farm east of Austin, Texas, section by section. It covers the executive summary, the SWOT analysis and, in particular, the five-year financials, ending with a bad-spring case and the steps the owner takes in response.
What you can take from it:
- The executive summary: see how to put a seasonal farm on one page, so a reader sees the ask and the harvest calendar together
- The start-up budget: find out what tunnels, a cooler and a van cost against the reserve that carries the farm to its first spring
- The revenue mix: learn how pick-your-own, market, wholesale and preserves each earn, and why the mix matters for cash
- The marketing plan: see what it costs to bring a few thousand households to a farm in its first season, and which channels do the work
- The month-by-month first year: spot the months that lose money before you reach them, and time hires and loan payments around them
- The five-year profit, cash flow and balance sheet: follow how each hire, acre and pay raise shows up in the numbers
- The bad-spring case: have an answer ready for "what if sales are 20% short?" with the steps the owner takes
If you are planning a berry or orchard business, read this before you write your own. Cedar Farm is fictional, so keep what fits your ground and change the rest.
In this plan
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Cedar Farm in Brief
Cedar Farm is a leased berry farm on 30 acres east of Austin, Texas. It opens its books on January 1, 2027 with strawberries already in the ground, planted the previous October and November, and sells them from February to June. It also grows blackberries that carry sales into July. Founder Wes Kowalski owns 100% of the company.
The farm sells four ways: pick-your-own and a farm stand, one farmers market booth, standing orders from independent grocers and restaurants, and preserves and frozen berries made from the fruit that is too soft to sell fresh. It needs $395,000: $130,000 of Wes's savings and a $265,000 operating loan from the USDA Farm Service Agency. Equipment and tunnels take $196,000, the fall 2026 planting takes $52,000, legal work, licenses and the launch campaign take $16,000, and $131,000 is held as a cash reserve.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $448,000 | $561,000 | $668,000 |
| Net income after start-up costs | ($71,557) | $26,206 | $59,546 |
| Closing cash | $123,824 | $126,390 | $160,283 |
Year 1 shows a loss of $71,557 after start-up costs, $68,000 of which is the fall 2026 planting, legal work, licenses and the launch campaign; before those the year is about break-even. Operating profit is positive only from March to June, and the farm carries a year-round hand, a harvest crew and the rent through the other eight months. Year 2 is the first profitable year. A cold spring or a late freeze is the main risk, and the plan prices it: with sales 20% below plan and the owner holding back hires, the farm still ends every year with cash.
The farm competes on picking and freshness. Berries are sold within a day of harvest, the tunnels bring the first fruit weeks ahead of the fields, and customers can pick their own at the farm.
The Berry Ground
Legal name: Cedar Farm, LLC, a Texas limited liability company. Owner: Wes Kowalski, 100%. Land: 30 leased acres east of Austin, in Bastrop County, with a pack shed, a farm stand building, a cooler pad and one established acre of blackberries. Opening: January 1, 2027, with the first crop planted in October and November 2026.
What the farm is for
Sell berries picked the same week they are eaten, at a price that pays a crew a fair wage, to households, restaurants and grocers within an hour of the farm.
What grows where
| Block | Size | Crop | First fruit |
|---|---|---|---|
| Field strawberries | 7 acres | Plasticulture beds on drip, fall-planted | March |
| Tunnel strawberries | about a quarter-acre | Four 30 by 96 foot tunnels, raised table beds | Late January to February |
| Blackberries | 2 acres | Thornless canes on trellis; one acre mature, one new | May to July |
| Rotation, cover crop, parking, buildings | the rest | Strawberry beds alternate with cover crop each year | – |
Strawberries are an annual crop on plastic. Fall planting is the common Texas practice, and Texas A&M AgriLife Extension publishes a commercial production guide for the state. Blackberry canes need two seasons before they give a full crop, which is why the second acre produces little in 2027.
Three-year targets
- 81,000 pounds of fresh fruit in 2027, about 113,000 in 2029 and about 131,000 in 2031.
- A profit after tax in 2028, the second season.
- Repay the operating loan on its seven-year schedule, and make no owner payouts until Year 4.
Rules the farm answers to
Texas has no state corporate income tax. The Comptroller's franchise tax has a no-tax-due threshold of $2,650,000 for 2026 and 2027 reports, far above this farm's revenue, but the farm still files. The Texas Department of Agriculture runs the state's produce safety program, and the plan expects the farm to be covered or qualified-exempt under the federal rule depending on its sales; the owner confirms status with the department before opening and again as sales grow. Pesticide applicator licensing and any sales-tax questions on prepared goods are also checked before launch, and the contract kitchen that makes the jam holds its own license.
Texas Berry Demand and Supply
Few growers, many buyers
The 2022 Census of Agriculture counted 221 Texas farms growing strawberries on 225 acres in total, and 1,041 farms growing blackberries and dewberries on 1,504 acres (Table 38 of the state report). Cedar Farm's 7 field acres would be a noticeable share of the state's strawberry area. The count says little about demand. It does suggest that Texas households buying strawberries in spring mostly buy fruit grown elsewhere, though the census does not measure that. The plan does not use it as a market-size figure.
Why fall planting and tunnels
Texas A&M AgriLife has described October as the prime month to set strawberries for spring fruit, and its extension program promotes high tunnels for earlier harvest and a longer window. The farm follows both: field beds go in during October and November, and the tunnels bring the first berries to the stand in late January or February, when nothing else local is ripe.
What the fruit sells for
Three price points drive the model. Visitors pay about $4.50 a pound to pick their own. Pre-picked fruit at the stand and at the market booth averages $6.63 and $7.45 a pound, the latter lifted by blackberries. Grocers and restaurants pay about $4.05. All three are the farm's planning figures and rise 3% a year; actual prices vary with weather and with what supermarkets charge in a given week.
Who else could get the sale
| Alternative | What it offers | Why a buyer picks it | How Cedar Farm differs by design |
|---|---|---|---|
| Supermarket strawberries shipped from other states | Year-round supply, low shelf price | Convenience and price | Picked within a day, a variety chosen for flavor, a place to pick |
| Other Central Texas berry and pick-your-own farms | Seasonal fruit and farm outings | Established customers and habit | Tunnel fruit in February, wholesale supply, preserves for fall |
| Farmers market produce vendors | A mix of local produce | Regular booths and loyalty | Berries only, with the stand and u-pick on the same farm |
| Grocery delivery and meal-kit services | Home delivery | Time saved | Direct from the grower with a farm visit as part of the offer |
| Wholesale distributors | Steady volume to restaurants | Reliability | Standing weekly orders from the grower, with fruit sorted for the customer |
The table describes what each alternative offers and how this farm positions itself. It is not a ranking and no competitor is named; the plan does not quote competitor prices.
SWOT
| Strengths | Weaknesses |
|---|---|
| Four outlets spread the risk of a weak market day | A season of about fourteen weeks carries the whole year |
| Tunnels bring fruit weeks ahead of the fields | Wes is the only grower, and the farm is leased |
| Visitors who pick their own cut harvest labor | One block of blackberries is not yet mature |
| Opportunities | Threats |
|---|---|
| Local-food shoppers with few Texas growers to choose from | A late freeze, hail or a wet spring |
| Restaurants that want fruit with a farm name on the menu | Out-of-state supply priced lower at the shelf |
| Preserves and gift boxes that sell after the harvest | Rising wages for harvest labor |
Who Buys the Berries
Weekend families
Households within 45 minutes who come on a Thursday to Sunday in March, April and May. They pick about 36,000 pounds in 2027 and buy fruit at the stand on the way out. The average paid visit is $37.70. Weather decides attendance more than price does.
Market regulars
Shoppers at one Austin-area farmers market on Saturdays, February to July. They pay the most per pound, ask about varieties and come back weekly while berries last.
Independent grocers
Seven stores buy about 3,000 pounds each in 2027, as weekly standing orders in flats. They want consistent size, a short delivery window and a farm name on the label.
Restaurants and caterers
Eight kitchens buy about 800 pounds each. Pastry cooks buy by the flat; a bar or a caterer buys blackberries by the pint. Orders move with events, so the farm confirms quantities two days ahead.
Fall gift buyers
Customers who buy jam, frozen berries and gift boxes from September to December, through the farm's website, the stand's winter hours and two holiday markets. This is the only line that sells after July.
Getting Customers to the Rows
From first visit to standing order
A visitor books or walks in, picks or buys, and joins the email list at the register. A grocer or a restaurant gets a tasting tray, a one-page price sheet and a first order for one week. Standing orders follow after two good deliveries.
What 2027 sales look like
About 5,700 paid visits, from about 3,600 households, for $215,000. The market booth earns $70,000 over about 36 stall-days. Wholesale brings in $111,000 from 15 accounts, and preserves $52,000. Fresh-fruit pounds by outlet are 36,000 picked by visitors, 8,000 pre-picked at the stand, 9,400 at the market and 27,400 wholesale.
Prices and how they move
Prices are set from week to week against the supermarket shelf, and the plan raises them 3% a year. Pick-your-own is priced below pre-picked fruit because the customer does the work. Wholesale is priced to leave the farm a margin after delivery, and the farm turns down orders that fall below it.
Marketing spend and what it buys
The first-year budget is $20,000: $8,000 of launch costs paid from start-up capital and $12,000 of operating spend. That is 4.5% of Year 1 revenue and falls to 2.2% by Year 5. Spread over about 3,600 first-time households, Year 1 costs about $5.56 per household. Wholesale accounts are won by tasting trays and visits, not advertising.
| Channel | Year 1 spend | What it does |
|---|---|---|
| Website with picking-conditions page (launch) | $3,500 | Shows what is ripe this week, hours and prices |
| Signs, banners and opening-weekend campaign (launch) | $4,500 | Draws the first visitors in late February |
| Local search and map listing | $3,600 | Searches such as "strawberry picking near Austin"; about 900 households |
| Email list and social posts | $3,000 | Weekly ripeness updates; about 750 households |
| Market booth signage and samples | $1,800 | Moves market customers to the farm; about 550 households |
| Community events and school groups | $2,000 | Word of mouth and repeat referrals; about 1,400 households |
| Tasting trays and price sheets | $1,600 | Opens grocer and restaurant accounts |
Milestones
- February 2027: tunnel berries on sale, first market day.
- April 2027: peak month, $130,700 of sales.
- July 2027: last blackberries; preserves take over.
- December 2027: gift boxes sold out and the 2028 planting plan set.
Tunnels, Rows and Cooler
The 30 acres
The lease runs ten years, at about $250 an acre for the land and $2,500 a month for the pack shed, farm stand building and cooler pad. The landlord signs a consent letting the lender take a lien on the equipment on the property. Field strawberries grow on 7 acres in 2027 and 10 by 2031, alternating with cover crop, and the third blackberry acre goes in during 2029. Irrigation is laid for 13 acres.
Equipment
A used 55-horsepower tractor with a bed shaper, plastic layer and transplanter ($38,000), four tunnels ($46,000), drip irrigation, a well pump and fertigation ($26,000), a walk-in cooler and pack shed fit-out ($28,000), a used refrigerated van ($24,000), stand fittings ($11,000), one acre of blackberry canes and trellis ($9,000), a walk-in freezer ($8,000) and row cover, frost-protection sprinklers and tunnel heaters ($6,000).
The crop calendar
October and November: plant field beds and tunnels. December to January: row cover, frost watch, tunnel heating on cold nights. February to June: harvest. July: blackberries and clean-up. August and September: pull plastic, prepare beds, plant cover crop. Fall: preserves and gift boxes.
Picking and packing
Fruit is picked in the morning, cooled to storage temperature within the hour and sold within a day, with wholesale orders loaded by 6 a.m. Harvest and pack work in 2027 is about 3,700 hours.
Preserves
A licensed kitchen makes the jam under contract, using surplus berries. About 5,500 pounds are frozen and about 2,000 pounds go into jam in 2027. The farm sells jars, five-pound bags and gift boxes.
Insurance and food safety
General liability with visitors on the property, product liability, vehicle, equipment and building cover, budgeted at $12,000 in Year 1. Texas lets most private employers decline workers' compensation; the Texas Department of Insurance reported that 24% of employers did not carry it in 2024. Cedar Farm carries it and includes it in the labor on-cost. A written food-safety plan, water testing and a third-party audit are part of the $3,500 budgeted for audits, testing and licenses.
Who does the work
Wes and a year-round farm hand run the farm. A harvest lead and two harvest and pack hands work February to June, joined by a part-time stand and market worker through July and two weekend stand workers from March to May. The peak is 8 people in 2027 and 13 by 2031.
Suppliers and advisers
Plug and plastic suppliers, a drip irrigation dealer, the co-packing kitchen and a crop consultant paid by the visit. A seasonal line of credit from a farm lender is arranged before the second winter. Wes's mentor, a retired grower in Bastrop County, reviews the plan each quarter in the first year.
Wes and the Crew
Wes Kowalski, founder and head grower
Wes has nine years in Central Texas fruit and vegetable production. He spent six on the production side of a large berry and peach grower, the last three as production manager, and three in sales at a produce distributor. He holds a Texas pesticide applicator license and a degree in horticulture. His $130,000 is the savings from those years.
Where the team is thin
Wes has not run his own payroll, filed his own tax return as an employer or taken a farm loan. The plan covers these with a bookkeeper on a retainer, a Farm Service Agency loan officer as a first point of contact, and an accountant who works with farms. The farm has one grower: if Wes is out in March, the harvest lead can run the day but not the irrigation or spray program.
Hiring
The third harvest hand and the second part-time worker join in February 2028, a fourth harvest hand in February 2029, a part-time market and wholesale coordinator in February 2030 and a fifth harvest hand in February 2031. Each follows the pounds the plan expects to sell.
Ownership and the lender
Wes owns 100% of Cedar Farm, LLC and offers the Farm Service Agency a lien on the equipment, a security interest in the crop and his personal guarantee. The agency sets its own security and reporting requirements. The farm sends it quarterly accounts.
Numbers for a Short Harvest
Cedar Farm earns most of its money in about fourteen weeks and pays its bills all year. The tables below are one five-year model: month by month for 2027, then a year at a time. The field and price figures come first so that each total can be traced to acres, pounds or hours.
Tunnels, cooler and the cash to reach spring
| Use of funds | Amount |
|---|---|
| Used 55-horsepower tractor, bed shaper and plastic layer, transplanter | $38,000 |
| Four 30 by 96 foot high tunnels with raised table beds | $46,000 |
| Drip irrigation, well pump, filtration and fertigation for 13 acres | $26,000 |
| Walk-in cooler and pack shed fit-out | $28,000 |
| Used refrigerated van | $24,000 |
| Farm stand fit-out, scales, tents, point-of-sale, picking containers | $11,000 |
| One acre of thornless blackberry canes and trellis | $9,000 |
| Walk-in freezer for frozen berries | $8,000 |
| Row cover, frost-protection sprinklers and tunnel heaters | $6,000 |
| Fall 2026 planting: plugs, plastic mulch, drip tape, fertilizer and planting labor | $52,000 |
| Food-safety audit, business license, produce-safety training | $3,000 |
| Legal: entity, farm lease, u-pick waiver | $5,000 |
| Launch: website, signage, spring opening campaign | $8,000 |
| Cash reserve for the months between harvests | $131,000 |
| Total uses | $395,000 |
| Source of funds | Amount |
|---|---|
| Wes Kowalski's savings | $130,000 |
| USDA Farm Service Agency direct operating loan | $265,000 |
| Total sources | $395,000 |
Wes puts in $130,000 of savings, 33% of the $395,000 total. The other $265,000 is a seven-year operating loan from the USDA Farm Service Agency at a planning rate of 6.0%, with the first principal payment in month 13. The loan terms are the plan's own and not an FSA quote; the agency sets rate, term and security case by case. Equipment, tunnels and the cooler take $196,000. The fall 2026 planting, which has no earlier sales to attach to, is a separate $52,000, and legal work, licenses and the launch campaign take $16,000. All of it is bought in the autumn of 2026 and booked in month 1 for simplicity. The remaining $131,000 stays in the bank. That reserve has a job: from August to January the farm sells only preserves while paying a founder, a full-time hand, rent and loan interest.
Field, price and crew figures
- Land and buildings: a lease on 30 acres east of Austin, with a pack shed, a farm stand building, a cooler pad and one established acre of blackberries. The land is $7,500 a year (about $250 an acre) and the buildings $2,500 a month, so rent is $37,500 in Year 1 and rises about 3% a year. Field strawberries take 7 acres in Year 1, 9 in Year 3 and 10 in Year 5, on a two-year rotation through cover crop, so up to 20 acres of ground. With 3 acres of blackberries and about 2 of buildings, tunnels and parking, that uses about 25 of the 30 acres. The third blackberry acre is planted in Year 3 from the equipment line.
- Volume: Year 1 sells about 81,000 pounds of fresh fruit. Field strawberries are planned at 10,000 pounds an acre (70,000), the tunnels at 4,500 and blackberries at 6,300. Year 3 sells about 113,000 pounds and Year 5 about 131,000, with field yield at 10,500 pounds an acre and the tunnels at 6,000. The yields are the plan's figures, not extension yields; local trial results should replace them.
- Pick-your-own and stand: 36,000 pounds picked by visitors at $4.50 and 8,000 pounds sold pre-picked at about $6.63, which is $215,000. That is roughly 5,700 paid visits averaging $37.70, about 110 a day over 52 days from Thursday to Sunday in March, April and May. Prices rise 3% a year from Year 2.
- Market: one stall at an Austin-area farmers market, about 36 stall-days at roughly $1,950, selling 9,400 pounds at about $7.45, a blend of strawberries and higher-priced blackberries. Stall fees sit in direct costs.
- Wholesale: 27,400 pounds at about $4.05 a pound, sold to seven independent grocers (about 3,000 pounds each) and eight restaurants and caterers (about 800 pounds each) on 30-day terms.
- Preserves: about 3,400 jars of jam at $9, 1,100 five-pound bags of frozen berries at $14 and about 130 gift boxes at $46, made from the 7,500 pounds or so of berries too soft or small to sell fresh. A licensed kitchen makes the jam under contract, which is why direct costs on this line run at 42%.
- Direct costs run at 20% of pick-your-own sales, 26% of market sales, 30% of wholesale and 42% of preserves, 26.0% overall in Year 1 ($116,340). They cover plugs, plastic mulch, drip tape, fertilizer and crop protection, containers, card and stall fees, and the co-packer. The plugs for each crop are bought the autumn before it sells, so the percentage stands in for that lag after the first year. Fuel, repairs and tools are a separate operating line.
- Labor: Year 1 payroll is $194,317, 43% of revenue, which is normal for hand-picked fruit. Rates are $19 an hour for the year-round hand, $18 for the harvest lead, $16 for harvest and pack hands and for part-time stand staff, and a $52,000 salary for Wes. The Bureau of Labor Statistics median for all agricultural workers was $17.25 an hour in May 2025; seasonal pay in Central Texas may differ. On-costs are 27% for year-round staff, 25% for seasonal harvest staff and 15% for part-time, covering payroll taxes, unemployment tax and workers' compensation. Pay raises of 3% a year are a separate line from Year 2.
- Hours: harvest and pack work in Year 1 comes to about 3,700 hours (44,800 pounds hand-harvested at about 14 pounds an hour, plus 15% for packing and loading). The three-person harvest crew supplies about 2,600 of them, the year-round hand about 800 and Wes about 300. Visitors pick the other 36,000 pounds. Front of house is covered by the part-time stand and market worker (about 650 hours) and two weekend workers from March to May (about 650 hours between them), with Wes and the crew filling gaps.
- Insurance of $12,000 in Year 1 covers farm liability with visitors on the property, product liability, the van, equipment and buildings. Premium quotes vary by carrier and by hail and freeze exposure. Professional fees of $9,000 cover a bookkeeper on retainer, a farm accountant, a crop consultant and legal work. Crop-loss cover is not modeled; the owner asks the FSA office about its disaster programs and a crop-insurance agent about whole-farm cover.
- Working capital: receivables average 10 days, supplier bills are paid in 20 days, and containers, jars and frozen stock are held at 4% of sales.
- Tax: the model charges the 21% federal corporate rate with losses carried forward. It does not carry the $68,000 of start-up costs forward as a tax loss, so tax in the early years is overstated. Texas has no state corporate income tax, and the franchise tax is not modeled because revenue sits far below the no-tax-due threshold. A farm LLC would normally pass profit to Wes's personal return, so the tax lines are a cautious placeholder.
- Owner distributions of $40,000 in Year 4 and $60,000 in Year 5 are paid only once cash and retained earnings can cover them. The loan stays in place rather than being repaid early.
Revenue by outlet
| Revenue stream | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Pick-your-own and farm stand | $215,000 | $255,000 | $290,000 | $320,000 | $345,000 |
| Farmers market stall | $70,000 | $88,000 | $102,000 | $114,000 | $124,000 |
| Grocer and restaurant wholesale | $111,000 | $150,000 | $190,000 | $222,000 | $245,000 |
| Preserves, frozen berries and gift boxes | $52,000 | $68,000 | $86,000 | $104,000 | $118,000 |
| Total revenue | $448,000 | $561,000 | $668,000 | $760,000 | $832,000 |
| Growth on prior year | – | 25% | 19% | 14% | 9% |
Pick-your-own and the stand are the base, at 48% of Year 1 revenue and 41% of Year 5, because customers carry their own harvest labor. Wholesale grows fastest, from 25% of Year 1 revenue to 29% of Year 5, as the farm gains acres and standing orders. The single market stall earns the highest price per pound but is limited by Saturdays. Preserves are the only line that sells in autumn, which is why they grow from 12% to 14% of revenue.
Month by month in 2027
| Month | Pick-your-own and farm stand | Farmers market stall | Grocer and restaurant wholesale | Preserves, frozen berries and gift boxes | Total revenue | EBITDA |
|---|---|---|---|---|---|---|
| Jan 2027 | $0 | $0 | $0 | $0 | $0 | ($24,926) |
| Feb 2027 | $5,200 | $4,700 | $4,400 | $800 | $15,100 | ($13,748) |
| Mar 2027 | $51,100 | $15,500 | $21,200 | $2,200 | $90,000 | $41,702 |
| Apr 2027 | $75,100 | $18,800 | $33,000 | $3,800 | $130,700 | $71,832 |
| May 2027 | $54,200 | $15,500 | $29,900 | $3,800 | $103,400 | $51,622 |
| Jun 2027 | $18,800 | $9,400 | $15,600 | $3,300 | $47,100 | $9,942 |
| Jul 2027 | $10,600 | $6,100 | $6,900 | $2,300 | $25,900 | ($5,752) |
| Aug 2027 | $0 | $0 | $0 | $3,200 | $3,200 | ($22,557) |
| Sep 2027 | $0 | $0 | $0 | $4,000 | $4,000 | ($21,965) |
| Oct 2027 | $0 | $0 | $0 | $5,600 | $5,600 | ($20,781) |
| Nov 2027 | $0 | $0 | $0 | $9,500 | $9,500 | ($17,893) |
| Dec 2027 | $0 | $0 | $0 | $13,500 | $13,500 | ($14,932) |
January is all cost, as tunnel fruit has not started. Sales begin in February with the first tunnel berries and peak in April at $130,700. EBITDA, which is operating profit before depreciation, interest and tax, is positive only from March to June, and negative in the other eight months. The lowest month-end cash in 2027 is Feb, at about $85,000 after allowing for ten days of receivables. Blackberries carry July; after that the farm lives on preserves and the reserve, and the year ends at $123,824.
Who picks and who packs
| Role | Annual wage | Starts | Year 1 end | Year 2 end | Year 3 end | Year 4 end | Year 5 end |
|---|---|---|---|---|---|---|---|
| Founder and head grower | $52,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Year-round farm hand (full time) | $39,520 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Harvest lead (full time, February to June) | $37,440 | Month 2 | – | – | – | – | – |
| Harvest and pack hand 1 (February to June) | $33,280 | Month 2 | – | – | – | – | – |
| Harvest and pack hand 2 (February to June) | $33,280 | Month 2 | – | – | – | – | – |
| Stand and market staff 1 (part time, February to July) | $20,800 | Month 2 | – | – | – | – | – |
| Weekend stand staff (two people, part time, March to May) | $20,800 | Month 3 | – | – | – | – | – |
| Harvest and pack hand 3 (February to June) | $33,280 | Month 14 | – | – | – | – | – |
| Stand and market staff 2 (part time, February to July) | $20,800 | Month 14 | – | – | – | – | – |
| Harvest and pack hand 4 (February to June) | $33,280 | Month 26 | – | – | – | – | – |
| Market and wholesale coordinator (part time) | $31,200 | Month 38 | – | – | – | 0.5 | 0.5 |
| Harvest and pack hand 5 (February to June) | $33,280 | Month 50 | – | – | – | – | – |
| Total payroll incl. on-costs | $194,317 | $223,610 | $240,944 | $273,834 | $294,157 |
Wes and the year-round farm hand run the farm from month 1. A harvest lead and two harvest and pack hands start each February and finish in June, with a part-time stand and market worker through July and two weekend stand workers from March to May. A third harvest hand and a second part-time worker start in month 14 (February 2028), a fourth harvest hand in month 26, a part-time market and wholesale coordinator in month 38 (February 2030) and a fifth harvest hand in month 50. Each hire follows the volume the last one made possible. Seasonal roles are off payroll in December, so the year-end columns show only the year-round staff. The farm peaks at 8 people in spring 2027, 10 in 2028, 11 in 2029, 12 in 2030 and 13 in 2031. The wage column is an annual-equivalent rate, and the payroll row counts months worked only.
What the berries earn
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $448,000 | $561,000 | $668,000 | $760,000 | $832,000 |
| Direct costs (plugs, plastic, drip tape, fertilizer, containers, card and stall fees, co-packer) | ($116,340) | ($145,685) | ($173,471) | ($197,362) | ($216,060) |
| Gross profit | $331,660 | $415,315 | $494,529 | $562,638 | $615,940 |
| Payroll incl. on-costs | ($194,317) | ($223,610) | ($240,944) | ($273,834) | ($294,157) |
| Rent | ($37,500) | ($38,600) | ($39,800) | ($41,000) | ($42,200) |
| Utilities | ($10,800) | ($11,400) | ($12,000) | ($12,600) | ($13,200) |
| Marketing | ($12,000) | ($13,500) | ($15,000) | ($16,500) | ($18,000) |
| Insurance | ($12,000) | ($13,000) | ($14,000) | ($15,000) | ($16,000) |
| Professional fees | ($9,000) | ($9,500) | ($10,000) | ($10,500) | ($11,000) |
| Software subscriptions | ($3,000) | ($3,500) | ($4,000) | ($4,400) | ($4,800) |
| Fuel, repairs and field supplies | ($16,000) | ($19,000) | ($22,000) | ($24,500) | ($26,500) |
| Food-safety audit, water testing and licenses | ($3,500) | ($3,800) | ($4,100) | ($4,400) | ($4,700) |
| Equipment replacement | $0 | ($4,000) | ($8,000) | ($11,000) | ($10,000) |
| Bad debt allowance | ($1,000) | ($1,400) | ($1,900) | ($2,300) | ($2,600) |
| Annual pay raises (3% a year) | $0 | ($6,708) | ($14,673) | ($25,392) | ($36,919) |
| EBITDA | $32,543 | $67,297 | $108,112 | $121,212 | $135,864 |
| Depreciation | ($20,200) | ($20,200) | ($20,200) | ($20,200) | ($20,200) |
| Interest | ($15,900) | ($14,871) | ($12,538) | ($10,060) | ($7,430) |
| Income tax | $0 | ($6,020) | ($15,829) | ($19,100) | ($22,729) |
| Net income before start-up costs | ($3,557) | $26,206 | $59,546 | $71,852 | $85,505 |
| Start-up costs expensed at opening (fall 2026 planting, legal, licenses, launch marketing) | ($68,000) | $0 | $0 | $0 | $0 |
| Net income after start-up costs | ($71,557) | $26,206 | $59,546 | $71,852 | $85,505 |
Year 1 loses $3,557 before start-up costs and $71,557 after them, and $52,000 of the start-up total is the fall 2026 planting. Year 2 is the first profitable year at $26,206, a 12.0% EBITDA margin. Year 3 reaches $59,546 on 16.2%. Margins then hold near 16% at EBITDA as pay raises and the coordinator offset volume, and net income rises to $71,852 in Year 4 and $85,505 in Year 5. Income tax first appears in Year 2.
Where the cash goes between harvests
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Cash from operations | ($75,176) | $40,398 | $74,057 | $87,160 | $101,876 |
| Equipment, tunnels and cooler | ($196,000) | $0 | $0 | $0 | $0 |
| Funding received | $395,000 | $0 | $0 | $0 | $0 |
| FSA loan principal repaid | $0 | ($37,831) | ($40,164) | ($42,641) | ($45,271) |
| Owner distributions | $0 | $0 | $0 | ($40,000) | ($60,000) |
| Net change in cash | $123,824 | $2,567 | $33,893 | $4,519 | ($3,395) |
| Closing cash | $123,824 | $126,390 | $160,283 | $164,802 | $161,407 |
Closing cash stays positive at every year end and is lowest at the end of Year 1. The model spreads Years 2 to 5 evenly across the months, so it cannot show the February low before each harvest. In winter 2029 the balance would fall by roughly $55,000 between December ($126,390 at the end of Year 2) and February, so the low is near $70,000 on the plan's own estimate. Owner distributions begin in Year 4, when cash and retained earnings can cover them.
What the farm owns and owes
| At year end | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cash | $123,824 | $126,390 | $160,283 | $164,802 | $161,407 |
| Accounts receivable | $12,274 | $15,370 | $18,301 | $20,822 | $22,795 |
| Containers, jars and frozen stock | $17,920 | $22,440 | $26,720 | $30,400 | $33,280 |
| Equipment, tunnels and cooler (net) | $175,800 | $155,600 | $135,400 | $115,200 | $95,000 |
| Total assets | $329,818 | $319,800 | $340,704 | $331,224 | $312,481 |
| Accounts payable (plugs, containers, co-packer) | $6,375 | $7,983 | $9,505 | $10,814 | $11,839 |
| FSA operating loan | $265,000 | $227,169 | $187,005 | $144,363 | $99,092 |
| Paid-in capital | $130,000 | $130,000 | $130,000 | $130,000 | $130,000 |
| Retained earnings | ($71,557) | ($45,352) | $14,194 | $46,046 | $71,551 |
| Total liabilities and equity | $329,818 | $319,800 | $340,704 | $331,224 | $312,481 |
Break-even and labor share
| Measure | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| EBITDA margin | 7.3% | 12.0% | 16.2% | 16.0% | 16.3% |
| Net margin (before start-up costs) | -0.8% | 4.7% | 8.9% | 9.5% | 10.3% |
| Payroll incl. pay raises as share of revenue | 43% | 41% | 38% | 39% | 40% |
| Revenue per full-time equivalent at year end | $224,000 | $280,500 | $334,000 | $304,000 | $332,800 |
| Average monthly revenue | $37,333 | $46,750 | $55,667 | $63,333 | $69,333 |
| Monthly revenue needed to cover operating costs | $33,670 | $39,175 | $43,497 | $49,689 | $54,040 |
| Debt service cover (EBITDA / interest + principal) | 2.0x | 1.3x | 2.1x | 2.3x | 2.6x |
Year 1 averages $37,333 of revenue a month against $33,670 needed to cover operating costs. Year 2 averages $46,750 against $39,175, and the cushion widens to $12,200 a month in Year 3 and $15,300 in Year 5. Debt service cover is 2.0x in Year 1, drops to 1.3x in Year 2 when principal payments begin, and reaches 2.6x by Year 5. The 1.3x in Year 2 is the tightest the loan gets. Revenue per full-time equivalent at year end overstates output, as the harvest crew is off payroll in December.
A freeze or a wet spring: 20% less revenue
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $358,400 | $448,800 | $534,400 | $608,000 | $665,600 |
| Net income before start-up costs | ($51,881) | $489 | $19,169 | $39,376 | $57,160 |
| Net income after start-up costs | ($119,881) | $489 | $19,169 | $39,376 | $57,160 |
| Closing cash | $80,264 | $58,316 | $52,969 | $65,991 | $95,017 |
This case cuts every revenue line by 20% in every year, as a late freeze or a wet spring could. The response: the fifth harvest hand and the coordinator are never hired, the third harvest hand and the second part-time worker start in month 26 rather than 14, the fourth harvest hand waits until month 38, fuel and field supplies fall 15%, equipment replacement is halved, marketing is cut by 20%, Wes takes a 20% pay cut and no distributions are paid. On those terms the farm ends every year with cash in the bank, never below $52,969, and is profitable from Year 2, though barely ($489) that year. Equity ends Year 1 at $10,119, so the lender would be told early. The winter 2029 low sits below the December figure and is estimated at roughly $10,000, which is why the owner would arrange a seasonal line of credit before relying on it. Without the response, the same shortfall would take cash below zero in Year 2.
Sources
- USDA National Agricultural Statistics Service, 2022 Census of Agriculture, Texas, Table 38: Berries by Acres. Strawberries: 221 farms, 225 acres; blackberries and dewberries: 1,041 farms, 1,504 acres.
- Texas A&M AgriLife Extension, Commercial Strawberry Field Production in Texas (HORT-PU-067, September 2024). The plan quotes no yield or cost from it.
- Texas A&M AgriLife, If summer's end has you in a jam, plant strawberries now (September 2023).
- USDA Farm Service Agency, Loans for beginning farmers and ranchers: direct operating loans up to $400,000 for applicants who cannot get commercial credit. Rates and terms are set by the agency; the 6.0% rate here is a planning figure.
- Texas Comptroller of Public Accounts, Franchise tax: no-tax-due threshold of $2,650,000 for 2026 and 2027 reports.
- Bureau of Labor Statistics, Agricultural workers, Occupational Outlook Handbook: median pay $17.25 an hour in May 2025.
- Texas Department of Insurance, Division of Workers' Compensation, 2024 biennial report: share of Texas employers without workers' compensation coverage.
- Yields, prices and volumes are the plan's own figures, and produce safety status depends on the farm's sales; confirm both with the Texas Department of Agriculture.
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