| Property taxes |
Fixed |
Use $500 per month in fixed overhead before calculating contribution margin. |
Spreading it across pounds sold and hiding true monthly overhead. |
| Farm insurance |
Fixed |
Use $350 per month as fixed overhead for the relevant planning range. |
Reducing it in slow harvest months even though the bill stays due. |
| Farm inputs, including plant stock and fertilizers |
Variable |
Model at 5% of first-year revenue, then apply the forecast percentage by year. |
Treating inputs as one annual overhead line instead of sales-linked production spend. |
| Packaging materials |
Variable |
Model at 3% of first-year revenue because clamshells, labels, and cartons rise with sales volume. |
Ignoring packaging per pound and overstating contribution margin. |
| Marketing and sales fees |
Variable |
Model at 7% of first-year revenue, then reduce by the forecast percentage in later years. |
Putting sales fees in fixed overhead and missing the drag on each dollar sold. |
| Harvesting and post-harvest supplies |
Variable |
Model at 4% of first-year revenue since bins, field supplies, and handling rise with harvest output. |
Treating harvest activity like overhead instead of a sales-volume expense. |
| Irrigation, cold storage, transport, and harvest utilities |
Semi-variable |
Split the base service charge from usage tied to harvest months and berry volume. |
Burying irrigation and cooling usage inside fixed utilities. |
| Farm vehicle maintenance and equipment upkeep |
Semi-fixed |
Start with the $250 monthly vehicle maintenance line, then step it up as acreage and harvest runs expand. |
Missing extra upkeep during harvest months when equipment is used hardest. |