Cassava Farming Break-Even Analysis: $458K/Month Needed

Fixed costs $5.8K/mo Office base

Contribution margin 82% After variable costs

Break-even revenue $7.1K/mo Revenue needed

Break-even timing Month 1 Launch month

Break-even calculator

Test whether cassava revenue covers harvest costs and fixed monthly overhead.

Lean Base Full

Monthly revenue Revenue is the cash you bring in before direct costs. $ Slow sales Scaled sales Variable expenses These are crop, harvest, logistics, and packaging costs that rise with sales. $ Tight costs Higher costs

Money available to cover fixed costs $24,500 $29,900 revenue - $5,400 variable expenses

Margin ratio

82%

Covers fixed costs

$11,092 short

Fixed monthly costs These are monthly overhead items the farm pays even if sales slow. $ Lean setup Scaled team

Break-even chart Revenue Total costs

Which cassava farm expenses are fixed, variable, semi-variable, or semi-fixed for break-even?

Cost classification

Use the table before contribution margin: first-year revenue-linked operating costs total 18% of sales, while listed fixed overhead totals $5,800/month. Misclassifying land lease or harvest labor will move break-even more than small price changes.

Expense	Cost	Break-Even Treatment	Common Mistake
Seeds/Cuttings & Fertilizer	Variable	Use 8.0% of first-year revenue in contribution margin.	Treating crop inputs as a flat monthly budget.
Direct Harvest & Initial Processing Labor	Variable	Use 5.0% of first-year revenue because it follows harvested and processed volume.	Treating harvest labor like fixed payroll.
Logistics & Distribution	Variable	Use 3.0% of first-year revenue; freight rises with shipped cassava products.	Modeling distribution as one flat truck charge.
Packaging Materials	Variable	Use 2.0% of first-year revenue for packed flour, starch, pellets, and chips.	Grouping packaging with office supplies.
Contracted Land Lease	Fixed	In the first year, leased land is 40 hectares at $50 per hectare per month, or $2,000/month.	Treating monthly lease commitments as volume-based.
Office Rent, Insurance, Security, Software, Admin, and Legal	Fixed	Use $4,300/month for the stable admin overhead block.	Spreading every office item across kilograms sold.
Machinery Maintenance and Pump Utilities	Semi-variable	Start with the listed $1,500/month base, then add usage-linked repairs or pumping if acreage drives wear and power use.	Leaving all repair and irrigation use in fixed overhead.
Farm Manager and Labor Supervisors	Semi-fixed	Keep salaries fixed within each staffing band, then step them up when FTEs increase with scale.	Modeling salaried managers as a percent of sales.

How does break-even change from a lean start to a full cassava farm buildout?

Scenario table

The lean setup is slightly below break-even, the base case clears it with room, and the expanded case builds a wide cushion. More land helps because the same fixed cost base is spread over more cassava output.

These are planning assumptions, not guarantees; harvest months and sales cycles can delay cash even when annual profit looks healthy.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean 50-hectare start	$44.3k	$8.0k	$37.6k	82.0%	-$1.2k	Still a touch below break-even, so one weak harvest month can flip it negative.
Base 100-hectare plan	$95.8k	$16.6k	$47.4k	82.7%	$31.9k	Clears break-even with a modest cushion, but cash timing still needs control.
Expanded 180-hectare buildout	$185.9k	$30.5k	$63.2k	83.6%	$92.2k	Has a wide break-even cushion, though harvest timing can still pressure working capital.

What breaks the cassava break-even plan?

Stress test

The first-year plan is already thin, so a small sales miss or cost bump pushes it back into loss. Weak buyer commitments, higher irrigation use, harvest labor shortages, and slow collections after harvest are the main red flags.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$45,572	$1,239 gap	Only a thin first-year cushion.
Revenue shortfall	Cut monthly sales by 10% to $39,900.	$44,774	$4,874 gap	Weak buyer commitments turn a small miss into a bigger loss.
Fixed-cost pressure	Raise fixed overhead by $5,000 a month.	$51,942	$7,609 gap	Rent, taxes, or admin creep can erase the margin fast.
Margin pressure	Lift variable expenses from 180% to 230%.	$48,821	$4,488 gap	Higher irrigation, fuel, or harvest labor can push losses wider.
Combined pressure	Combine a 10% revenue shortfall, 230% variable expenses, and $5,000 more fixed costs.	$55,314	$15,414 gap	Sales slippage and cost pressure together quickly push cash burn up.

What should you verify before locking in cassava land and equipment?

Founder checklist

Before you commit to land and equipment, make sure the crop plan can clear the model's $45,844 monthly break-even level. The opening month also carries about $37.6K of payroll, fixed overhead, and land lease, so weak land, water, or buyer setup will show up fast.

1Land Plan50 ha / 40 leased

Confirm the land mix before you pay for long-term access because Year 1 assumes 50 hectares, 20% owned land, and 40 leased hectares at $50 per leased hectare each month.

2Fixed Load$37.6K/mo

Check the opening cost stack before launch because payroll is about $29,792 per month and fixed overhead adds $5,800 before variable field costs.

3Irrigation$100K phase

Verify water supply and pump capacity before installation because the first irrigation phase is a $100,000 capex item and weak water will hit yield.

4Planting Stock8.0% rev

Secure cuttings and fertilizer before planting because Year 1 seeds, cuttings, and fertilizer run at 8.0% of revenue and cash drains early.

5Harvest Labor5.0% rev

Map harvest crews before planting because direct harvest and initial processing labor are 5.0% of revenue in Year 1 and shortages reduce usable roots.

6Buyer Offtake$16K / M13

Lock buyers for fresh roots, flour, starch, pellets, and chips before you spend on processing, and keep cash through Month 13 because minimum cash falls to $16,000.