Cash-Flow Planner

The farm budget proves whether the enterprise makes money over a year. This planner proves whether it survives each month until it does — the gap between spending and the first harvest is where most small banana ventures fail.

The formulas#

Establishment per month = total establishment ÷ months to first income
Monthly cost            = establishment per month (pre-harvest only) + operating cost
Monthly revenue         = 0 before first income
                          × ramp % at the first harvest month
                          × steady revenue every month after
Monthly net             = revenue − cost
Cumulative cash         = running sum of monthly net
Peak funding need       = −(most negative cumulative)          ← the cash you must have
Cash break-even month   = first month the cumulative reaches zero
Funding gap             = max(0, peak funding need − cash available)

This assumes a staggered planting, so once the block is producing, mats at different stages yield income every month rather than in one annual lump. That is how a mature banana block behaves — and it is why cash flow, not annual profit, is the number to watch.

Worked example#

5 ha, first income month 12, establishment $45,000 over 12 months,
$1,000/month pre-harvest, $1,750/month producing, steady revenue $5,300/month,
first harvest at 70% ($3,710), cash available $40,000:

Months 1–12  cost = 3,750 + 1,000 = 4,750/month
Month 12     revenue 3,710 → net −1,040
Months 13+   net = 5,300 − 1,750 = +3,550/month

Peak deficit      = −$53,290 (month 12)
Funding needed    =  $53,290
Gap vs $40,000    = −$13,290   ← find this before planting
Cash break-even   = month 28
Steady surplus    = $3,550/month ($42,600/year)

The enterprise is profitable on paper from month 13 — but it needs roughly $53,000 of cash before the first surplus, $13,000 more than was available. That gap, not the margin, is what kills the project.

Reading the results#

Next steps#

• Check the annual picture: Farm budget and break-even.
• Estimate the revenue line: Yield forecast and Pack-out and grade.
• Keep the records the numbers depend on: Record-keeping templates.
• Plan the planting: How to plan a banana farm.