Aquaponics

A sustainable farming method that combines aquaculture (raising fish) with hydroponics (growing plants in water) in a closed-loop system. Fish waste provides nutrients for plants, and plants help filter the water for fish.

Nutrient Mass Balancing

A method of calculating how much fish feed (and resulting waste) is required to meet the nutrient needs of plants. This ensures efficient resource use and prevents nutrient excess or deficiency.

Feed Conversion Ratio (FCR)

A measurement of how efficiently fish convert feed into body mass. For example, an FCR of 1.5 means it takes 1.5 kg of feed to produce 1 kg of fish.

Aerobic and Anaerobic Digestion

Biological processes used to break down fish waste:

• Aerobic digestion uses oxygen to decompose waste.
• Anaerobic digestion occurs without oxygen, producing useful byproducts like biogas and nutrient-rich liquids for plant growth.

Debt Service Coverage Ratio (DSCR)

A financial metric showing a farm’s ability to cover its debt payments. A DSCR of 1.5 means the farm generates 1.5 times the income needed to pay its debts.

Net Present Value (NPV)

A financial measure that calculates the value of future cash flows in today’s dollars. A positive NPV means the project is expected to generate more money than it costs.

Modified Internal Rate of Return (MIRR)

An investment metric that shows the profitability of a project, considering both the cost of investment and the reinvestment of profits. MIRR gives a more realistic picture than the standard IRR.

Sensitivity Analysis

A method of testing how changes in variables (like feed cost or crop price) affect a farm’s profitability. It helps identify risks and critical factors for success.

Overbuilding

Spending too much on unnecessary or oversized infrastructure and technology that doesn’t align with actual production needs, often leading to poor financial returns.

Cash Flow

The net amount of cash being transferred into and out of a business. Positive cash flow means the farm is bringing in more money than it spends, ensuring operational sustainability.

Investment-Grade

A rating that indicates a low risk of default on financial obligations. Projects with investment-grade ratings are more likely to secure bank loans and attract investors.