Greenhouse Tomato Budgets for Mississippi
Growing greenhouse vegetable crops and growing tomatoes hydroponically are popular among small producers who want to diversify their farms and landowners looking for extra income. Before breaking ground for a new greenhouse, you should understand how much time and work is involved. In fact, raising greenhouse tomatoes requires about the same amount of time and effort as raising dairy cattle or poultry. The grower needs to be present to complete daily duties and chores. Leaving the tomato plants without care for a day or two could lead to substantial crop loss.
While hydroponic techniques are used for a variety of crop plants, tomatoes are the crop most commonly grown hydroponically for sale. Worldwide, other vegetables grown hydroponically in greenhouses include cucumbers, peppers, lettuce, eggplant, spinach, melons, various herbs, and other specialty crops. Flowering crops and some fruit crops, such as strawberries and raspberries, are also well suited to hydroponics. You can grow other crops using hydroponic methods, but you must think about how well the crop will sell. If there is little demand for the crop in your area, sales will be poor. In Mississippi, tomatoes are in high demand, so they are the best vegetable crop for businesses to grow in greenhouses.
Corporate owners with 20 or more acres in greenhouse tomato production manage most of the greenhouse tomato acreage in the United States. However, most of the greenhouse tomato growers in this country farm them on less than one acre of floor space. In Mississippi, the average greenhouse tomato grower has 2.4 freestanding or gutter-connected bays, totaling about 6,000 square feet. Greenhouse tomato acreage has been increasing since the mid-1990s. Much of the expansion was caused by a changing consumer preference for the best quality vegetables. Greenhouse tomatoes are harvested when they are ripe (or at least well on the way to a red-color stage), so they have a good flavor. Greenhouse tomato varieties are more uniform in size, shape, and color, and they are more resistant to diseases than field-grown tomato varieties. These are some of the reasons for their higher value.
In many cities, consumers are not concerned about the higher price of greenhouse tomatoes; however, they do expect high quality. Greenhouse tomatoes are never picked green and gassed with ethylene to promote ripening, a common practice with field-grown winter tomatoes in the extreme southern United States, Mexico, and Central America.
Every greenhouse crop has special needs that traditional field crops do not have. Also, the greenhouse favors the breeding and rapid spread of some diseases and pests. Tomatoes are not an easy crop to grow in a greenhouse, and success depends on how well the grower can manage the crop and make the right decisions at the right time.
Information about greenhouse tomatoes is scarce compared to information about field vegetables, so it can be difficult to get help from county Extension agents or other trained personnel. An interested grower should read publications, attend short courses and seminars, and visit other growers to learn from their experiences.
This publication estimates the costs associated with starting a greenhouse tomato business. Figures in this budget reflect average experiences of various systems and are geared toward the typical Mississippi grower. The budget includes capital and operating expenses associated with production of greenhouse tomatoes. If your circumstances differ from the circumstances assumed in this budget, recalculate the estimated budget to reflect your situation. Production information is not included in this publication. Growers seeking production information can refer to the following MSU Extension publications:
- Publication 1828 — Greenhouse Tomato Handbook
- Publication 2364 — Greenhouse Tomato Growers’ Glossary
- Publication 1879 — Environmental Control for Greenhouse Tomatoes
- Publication 2037 — Fertigation: The Basics of Injecting Fertilizer for Field-Grown Tomatoes
- Publication 1995 — Starting Vegetable Transplants
- Publication 1861 — Greenhouse Tomatoes: Pest Management in Mississippi
- Publication 2875 — Tomato Troubles: Common Problems with Tomatoes
Initial Capital Investment
The polyethylene-covered Quonset-type structure is the most common greenhouse in Mississippi and is the type talked about in this budget. This type of structure is the least expensive to build and has few cross members, letting in more light.
Polyethylene greenhouses use two layers of plastic to cover the structure. Air is forced between the layers of plastic to create a 4- to 6-inch airspace, which forms an excellent insulation barrier. Several other types of coverings exist, including acrylic sheets, polycarbonate plastic, and fiberglass. Each of these coverings has some advantages, but they cost more than polyethylene.
Construction Costs
Greenhouse building costs vary, depending on the materials and equipment you use. When selecting materials, be careful not to sacrifice quality to keep costs low. Also be careful not to spend too much or buy more greenhouse than you need. Choose a greenhouse frame with the right load-bearing strength and useful life expectancy. Galvanized steel tubing and aluminum tubing are strong, economical materials for a greenhouse frame.
Greenhouse flooring can greatly affect cost. The floor in this budget is made of a ground cloth, black plastic, and pea gravel for walkways. This type of flooring is the most common among Mississippi growers. Other floor choices are bare ground, wall-to-wall gravel, concrete walkways, or wall-to-wall concrete, depending on what you want and can afford. This budget assumes that water and natural gas are available to the greenhouse. If water or gas is not available, add the expenses of digging a well or buying gas storage tanks to the budget.
You must also consider the advantages and disadvantages of buying automated equipment for the greenhouse. Automated equipment costs more but reduces labor requirements. If you lack reliable labor, you may want to invest in more automated equipment. The equipment package used in this budget reflects what is common for Mississippi growers. Table 1 presents the estimated capital requirement of $22,983 for one 24-foot by 96-foot Quonset-type greenhouse equipped for typical tomato production in Mississippi. This is equivalent to an investment of $9.98 per square foot of greenhouse.
Production Budgets
The production budgets were based on interviews with several growers in Mississippi, greenhouse tomato industry suppliers, researchers, and Extension specialists familiar with greenhouse tomato production in Mississippi. The engineering, or “synthesis,” method was used to describe the production system and to estimate current costs for that system.
Fixed Costs
The cost items in this budget follow generally accepted classification of fixed costs. Fixed costs are shown in Table 2 and represent a lump sum of total annual ownership costs divided proportionately among the production crops typical for Mississippi greenhouse tomato production. The fixed costs include interest on investment, depreciation, insurance, taxes, and some common overhead expenses.
Depreciation was estimated using the straight-line method with no salvage value. Assets were divided by their useful life expectancies to determine an annual cost for depreciation. Interest on investment was calculated by charging a rate of 5.25 percent on one-half of the initial cost of depreciable assets. Insurance and taxes were estimated to be 2 percent of the initial cost of depreciable assets.
Ownership costs also include general overhead expenses that are not directly related to producing the crop.
In this publication, overhead expenses include heating, water, electricity, telephone, lab fees, and repair and maintenance. Annual ownership costs for one 24-by-96 greenhouse totaled $7,080.
Variable Costs
Tables 3–6 present the variable costs of a spring crop, a fall crop, and a continuous crop of greenhouse tomatoes. The variable costs associated with crop production are all inputs that directly relate to producing tomatoes. The cultural practices in these budgets are typical of two tomato crops per year or one continuous crop for one greenhouse in Mississippi. Input prices are current prices of local and regional suppliers.
Interest on operating capital was charged at a rate of 5.25 percent on one-half of the total direct expense for each crop. Direct cost of producing a spring crop of tomatoes totaled $3,640, and the direct cost of producing a fall crop totaled $2,936. Direct cost of producing one continuous crop of tomatoes was $5,828.
Total Cost of Production
Total production cost is the sum of direct costs plus annual ownership costs (Table 7). The total estimated annual cost of producing two tomato crops (spring and fall) in a 24-foot by 96-foot greenhouse is $13,656, while the total estimated annual production cost for one continuous crop is $12,908. Given the total cost of production and assuming a conservative yield level of 8,000 pounds in the spring, 6,000 pounds in the fall, or 14,000 pounds for a continuous crop, a tomato price of around $1 per pound is needed to break even: that is, to cover all the direct and fixed/overhead costs.
|
Item structure |
Description |
Unit |
Number |
Cost per unit |
Total initial cost |
Useful life (years) |
|
Greenhouse package 2 |
24 ft. x 96 ft. |
sq. ft. |
2304 |
2.34 |
5,392.00 |
20 |
|
Personnel door |
Aluminum 42 in. |
each |
1 |
410.00 |
410.00 |
20 |
|
Heater system |
Gas 145,000 BTU |
each |
2 |
1,095.00 |
2,190.00 |
10 |
|
Cooling fans |
48”, 1 HP |
each |
2 |
1,170.00 |
2,340.00 |
5 |
|
Cooling pads |
48” x 12” x 6” |
each |
24 |
40.50 |
972.00 |
3 |
|
Pump and plumbing |
wet wall 300 gal |
each |
1 |
680.00 |
680.00 |
5 |
|
Inlet shutters |
33” x 33” motorized |
each |
4 |
193.00 |
772.00 |
7 |
|
Electrical |
wiring package |
each |
1 |
627.20 |
627.20 |
20 |
|
Irrigation/fertigation |
drip system |
each |
1 |
4,438.66 |
4,438.66 |
7 |
|
Ground cover |
woven plastic |
sq. ft. |
2304 |
0.08 |
181.98 |
0 |
|
Pea gravel |
|
cu. yd. |
7.5 |
36.00 |
270.00 |
0 |
|
Bags (four plants per bag) |
|
each |
100 |
0.82 |
82.00 |
0 |
|
Pine bark soil media |
|
cu. yd. |
6.5 |
22.00 |
143.00 |
0 |
|
Subtotal greenhouse structure |
$18,499 |
|||||
|
Auxiliary Equipment |
||||||
|
Backpack sprayer |
pump type |
each |
1 |
94.99 |
94.99 |
3 |
|
Thermostat |
single stage |
each |
2 |
142.50 |
285.00 |
3 |
|
Respirator |
|
each |
1 |
83.95 |
83.95 |
3 |
|
Pollinator |
|
each |
1 |
259.00 |
259.00 |
3 |
|
Thermometer |
hi/lo type |
each |
1 |
22.00 |
22.00 |
2 |
|
Transplant benches |
wood |
each |
2 |
39.20 |
78.40 |
10 |
|
Meters |
EC/pH combo |
each |
2 |
264.00 |
528.00 |
3 |
|
Backup generator |
gasoline |
each |
1 |
999.00 |
999.00 |
10 |
|
Subtotal auxiliary equipment |
$2,350 |
|||||
|
Assembly and installation 3 |
|
hour |
95 |
$ 16.69 |
$1,585 |
|
|
Utility hookup (electrical, gas, and water) 4 |
|
|
|
|
$549 |
|
|
Total |
$22,983 |
|||||
|
Cost per square foot |
$9.98 |
|||||
1 Land and site preparation was not included in the budget. This cost will vary depending on location.
2 Greenhouse package includes frame, end walls, 6-mil plastic double layer, base locking rail, and inflation kit.
3 Installation cost may vary significantly depending on location and owner’s ability and involvement.
4 Cost may increase if water well is required for water supply and if LP gas storage tanks must be purchased.
|
Item Structure |
Depreciation |
Interest |
Insurance and taxes |
Total |
|
Greenhouse frame |
270 |
142 |
108 |
519 |
|
Aluminum personnel door |
21 |
11 |
8 |
39 |
|
Heater system |
219 |
57 |
44 |
320 |
|
Cooling fans |
468 |
61 |
47 |
576 |
|
Cooling pads |
324 |
26 |
19 |
369 |
|
Pump and plumbing |
136 |
18 |
14 |
167 |
|
Inlet shutters |
110 |
20 |
15 |
146 |
|
Electrical |
31 |
16 |
13 |
60 |
|
Irrigation/fertigation |
634 |
117 |
89 |
839 |
|
Auxiliary Equipment |
||||
|
Backpack sprayer |
32 |
2 |
2 |
36 |
|
Thermostat |
95 |
7 |
6 |
108 |
|
Respirator |
28 |
2 |
2 |
32 |
|
Pollinator |
86 |
7 |
5 |
98 |
|
Thermometer |
11 |
1 |
0 |
12 |
|
Transplant benches |
8 |
2 |
2 |
11 |
|
Meters |
176 |
14 |
11 |
200 |
|
Backup generator |
100 |
26 |
20 |
146 |
|
Total greenhouse and equipment |
$2,749 |
$530 |
$403 |
$3,682 |
|
General overhead |
||||
|
Heating |
|
|
|
1,012 |
|
Electricity |
|
|
|
806 |
|
Telephone |
|
|
|
739 |
|
Repairs and maintenance |
|
|
|
370 |
|
Lab fees |
|
|
|
470 |
|
Total general overhead |
$3,398 |
|||
|
Total annual ownership costs |
$7,080 |
|||
|
Item |
Spring |
Fall |
One continuous crop |
|
Labor |
1,707 |
1,335 |
2,726 |
|
Seed |
261 |
261 |
261 |
|
Fertigation |
452 |
425 |
833 |
|
Fungicide |
220 |
165 |
331 |
|
Insecticide |
39 |
29 |
59 |
|
Boxes |
780 |
585 |
1,365 |
|
Other |
163 |
136 |
225 |
|
Total |
$3,622 |
$2,936 |
$5,800 |
|
Cost per square foot |
$1.57 |
$1.27 |
$2.52 |
|
Operation/operating unit |
Month |
Unit/size |
Quantity |
Cost/unit |
Total cost |
|
Labor (potting) |
November |
hour |
1 |
11.74 |
11.74 |
|
Potting mix |
November |
3 cu. ft. |
1 |
11.60 |
11.60 |
|
Seeding trays |
November |
each |
6 |
1.40 |
8.40 |
|
Transplant cell packs |
November |
each (72 ct.) |
6 |
1.70 |
10.20 |
|
Labor (seeding) |
November |
hour |
3 |
11.74 |
35.22 |
|
Seed |
November |
each |
480 |
0.54 |
261.12 |
|
Labor (watering) |
November |
hour |
1.65 |
11.74 |
19.37 |
|
Fertilizer |
November |
pound |
0.71 |
2.41 |
1.71 |
|
Electricity |
November |
day |
7 |
0.58 |
4.06 |
|
Labor (watering) |
December |
hour |
8.25 |
11.74 |
96.86 |
|
Fertilizer |
December |
pound |
3.54 |
2.41 |
8.53 |
|
Electricity |
December |
day |
35 |
0.58 |
20.30 |
|
Labor (watering) |
January |
hour |
2 |
11.74 |
23.48 |
|
Labor (transplanting) |
January |
hour |
2 |
11.74 |
23.48 |
|
Labor (pollination) |
January |
hour |
2 |
11.74 |
23.48 |
|
Labor (pruning) |
January |
hour |
4 |
11.74 |
46.96 |
|
Fungicide |
January |
ounce |
32 |
0.69 |
22.04 |
|
Insecticide |
January |
ounce |
9 |
0.60 |
5.36 |
|
Labor (stringing) |
January |
hour |
2 |
11.74 |
23.48 |
|
Twine |
January |
bundle |
0.4 |
25.95 |
10.38 |
|
Clips |
January |
box |
0.4 |
56.50 |
22.60 |
|
Labor (pollination) |
February |
hour |
5 |
11.74 |
58.70 |
|
Labor (pruning) |
February |
hour |
4 |
11.74 |
46.96 |
|
Fungicide |
February |
ounce |
64 |
0.69 |
44.09 |
|
Insecticide |
February |
ounce |
12 |
0.60 |
7.14 |
|
Labor (pollination) |
March |
hour |
5 |
11.74 |
58.70 |
|
Labor (pruning) |
March |
hour |
4 |
11.74 |
46.96 |
|
Fungicide |
March |
ounce |
80 |
0.69 |
55.11 |
|
Insecticide |
March |
ounce |
15 |
0.60 |
8.93 |
|
Labor (harvest) |
March |
hour |
4.05 |
11.74 |
47.55 |
|
Labor (grade/pack) |
March |
hour |
6.15 |
11.74 |
72.20 |
|
Labor (pollination) |
April |
hour |
5 |
11.74 |
58.70 |
|
Labor (pruning) |
April |
hour |
4 |
11.74 |
46.96 |
|
Fungicide |
April |
ounce |
64 |
0.69 |
44.09 |
|
Insecticide |
April |
ounce |
12 |
0.60 |
7.14 |
|
Labor (harvest) |
April |
hour |
8.1 |
11.74 |
95.09 |
|
Labor (grade/pack) |
April |
hour |
12.3 |
11.74 |
144.40 |
|
Labor (pollination) |
May |
hour |
2.5 |
11.74 |
29.35 |
|
Labor (pruning) |
May |
hour |
4 |
11.74 |
46.96 |
|
Fungicide |
May |
ounce |
64 |
0.69 |
44.09 |
|
Insecticide |
May |
ounce |
12 |
0.60 |
7.14 |
|
Labor (harvest) |
May |
hour |
8.1 |
11.74 |
95.09 |
|
Labor (grade/pack) |
May |
hour |
12.3 |
11.74 |
144.40 |
|
Labor (pruning) |
June |
hour |
1 |
11.74 |
11.74 |
|
Fungicide |
June |
ounce |
16 |
0.69 |
11.02 |
|
Insecticide |
June |
ounce |
6 |
0.60 |
3.57 |
|
Labor (harvest) |
June |
hour |
6.75 |
11.74 |
79.25 |
|
Labor (grade/pack) |
June |
hour |
10.25 |
11.74 |
120.34 |
|
Labor (misc.) |
Jan. – June |
hour |
17 |
11.74 |
199.58 |
|
Fertigation |
Jan. – June |
application |
1 |
441.28 |
441.28 |
|
Boxes |
April – June |
each |
400 |
1.95 |
780.00 |
|
Subtotal |
$3,547 |
||||
|
Interest on operating capital |
$75 |
||||
|
Total direct costs |
$3,622 |
||||
|
Operation/operating unit |
Month |
Unit/size |
Quantity |
Cost/unit |
Total cost |
|
Labor (potting) |
July |
hour |
1 |
11.74 |
11.74 |
|
Potting mix |
July |
3 cu. ft. |
1 |
11.60 |
11.60 |
|
Seeding trays |
July |
each |
6 |
1.40 |
8.40 |
|
Transplant cell packs |
July |
each (72 ct.) |
6 |
1.70 |
10.20 |
|
Labor (seeding) |
July |
hour |
3 |
11.74 |
35.22 |
|
Seed |
July |
each |
480 |
0.54 |
261.12 |
|
Labor (watering) |
July |
hour |
1.65 |
11.74 |
19.37 |
|
Fertilizer |
July |
pound |
0.71 |
2.41 |
1.71 |
|
Electricity |
July |
day |
7 |
0.58 |
4.06 |
|
Labor (watering) |
August |
hour |
8.25 |
11.74 |
96.86 |
|
Fertilizer |
August |
pound |
3.54 |
2.41 |
8.53 |
|
Electricity |
August |
day |
35 |
0.58 |
20.30 |
|
Labor (watering) |
September |
hour |
2 |
11.74 |
23.48 |
|
Labor (transplanting) |
September |
hour |
2 |
11.74 |
23.48 |
|
Labor (pollination) |
September |
hour |
2 |
11.74 |
23.48 |
|
Labor (pruning) |
September |
hour |
4 |
11.74 |
46.96 |
|
Fungicide |
September |
ounce |
32 |
0.69 |
22.04 |
|
Insecticide |
September |
ounce |
9 |
0.60 |
5.36 |
|
Labor (stringing) |
September |
hour |
2 |
11.74 |
23.48 |
|
Twine |
September |
bundle |
0.25 |
25.95 |
6.49 |
|
Clips |
September |
box |
0.25 |
56.50 |
14.13 |
|
Labor (pollination) |
October |
hour |
5 |
11.74 |
58.70 |
|
Labor (pruning) |
October |
hour |
4 |
11.74 |
46.96 |
|
Fungicide |
October |
ounce |
64 |
0.69 |
44.09 |
|
Insecticide |
October |
ounce |
12 |
0.60 |
7.14 |
|
Labor (pollination) |
November |
hour |
5 |
11.74 |
58.70 |
|
Labor (pruning) |
November |
hour |
4 |
11.74 |
46.96 |
|
Fungicide |
November |
ounce |
80 |
0.69 |
55.11 |
|
Labor (harvest) |
November |
hour |
7.74 |
11.74 |
90.87 |
|
Labor (grade/pack) |
November |
hour |
11.95 |
11.74 |
140.34 |
|
Insecticide |
November |
ounce |
15 |
0.60 |
8.93 |
|
Labor (pollination) |
December |
hour |
5 |
11.74 |
58.70 |
|
Labor (pruning) |
December |
hour |
4 |
11.74 |
46.96 |
|
Labor (harvest) |
December |
hour |
10.26 |
11.74 |
120.45 |
|
Labor (grade/pack) |
December |
hour |
15.85 |
11.74 |
186.03 |
|
Fungicide |
December |
ounce |
64 |
0.69 |
44.09 |
|
Insecticide |
December |
ounce |
12 |
0.60 |
7.14 |
|
Labor (misc.) |
July – Dec. |
hour |
15 |
11.74 |
176.10 |
|
Fertigation |
Sept. – Dec. |
application |
1 |
414.40 |
414.40 |
|
Boxes |
Oct. – Dec. |
each |
300 |
1.95 |
585.00 |
|
Subtotal |
$2,875 |
||||
|
Interest on operating capital |
$61 |
||||
|
Total direct costs |
$2,936 |
||||
|
Operation/operating unit |
Month |
Unit/size |
Quantity |
Cost/unit |
Total cost |
|
Labor (potting) |
August |
hour |
1 |
11.74 |
11.74 |
|
Potting mix |
August |
3 cu. ft. |
1 |
11.60 |
11.60 |
|
Seeding trays |
August |
each |
6 |
1.40 |
8.40 |
|
Transplant cell packs |
August |
each (72 ct.) |
6 |
1.70 |
10.20 |
|
Labor (seeding) |
August |
hour |
3 |
11.74 |
35.22 |
|
Seed |
August |
each |
480 |
0.54 |
261.12 |
|
Labor (watering) |
August |
hour |
1.65 |
11.74 |
19.37 |
|
Fertilizer |
August |
pound |
0.71 |
2.41 |
1.71 |
|
Electricity |
August |
day |
7 |
0.58 |
4.06 |
|
Labor (watering) |
September |
hour |
8.25 |
11.74 |
96.86 |
|
Fertilizer |
September |
pound |
3.54 |
2.41 |
8.53 |
|
Electricity |
September |
day |
35 |
0.58 |
20.30 |
|
Labor (watering) |
October |
hour |
2 |
11.74 |
23.48 |
|
Labor (transplanting) |
October |
hour |
2 |
11.74 |
23.48 |
|
Labor (pollination) |
October |
hour |
2 |
11.74 |
23.48 |
|
Labor (pruning) |
October |
hour |
4 |
11.74 |
46.96 |
|
Fungicide |
October |
ounce |
32 |
0.69 |
22.04 |
|
Insecticide |
October |
ounce |
9 |
0.60 |
5.36 |
|
Labor (stringing) |
October |
hour |
2 |
11.74 |
23.48 |
|
Twine |
October |
bundle |
0.6 |
25.95 |
15.57 |
|
Clips |
October |
box |
0.6 |
56.50 |
33.90 |
|
Labor (pollination) |
November |
hour |
5 |
11.74 |
58.70 |
|
Labor (pruning) |
November |
hour |
4 |
11.74 |
46.96 |
|
Fungicide |
November |
ounce |
64 |
0.69 |
44.09 |
|
Insecticide |
November |
ounce |
12 |
0.60 |
7.14 |
|
Labor (pollination) |
December |
hour |
5 |
11.74 |
58.70 |
|
Labor (pruning) |
December |
hour |
4 |
11.74 |
46.96 |
|
Fungicide |
December |
ounce |
80 |
0.69 |
55.11 |
|
Labor (harvest) |
December |
hour |
7.74 |
11.74 |
90.87 |
|
Labor (grade/pack) |
December |
hour |
11.95 |
11.74 |
140.34 |
|
Insecticide |
December |
ounce |
15 |
0.60 |
8.93 |
|
Labor (pollination) |
January |
hour |
5 |
11.74 |
58.70 |
|
Labor (pruning) |
January |
hour |
4 |
11.74 |
46.96 |
|
Labor (harvest) |
January |
hour |
10.26 |
11.74 |
120.45 |
|
Labor (grade/pack) |
January |
hour |
15.85 |
11.74 |
186.03 |
|
Fungicide |
January |
ounce |
64 |
0.69 |
44.09 |
|
Insecticide |
January |
ounce |
12 |
0.60 |
7.14 |
|
Labor (pollination) |
February |
hour |
5 |
11.74 |
58.70 |
|
Labor (pruning) |
February |
hour |
4 |
11.74 |
46.96 |
|
Fungicide |
February |
ounce |
80 |
0.69 |
55.11 |
|
Insecticide |
February |
ounce |
15 |
0.60 |
8.93 |
|
Labor (harvest) |
February |
hour |
4.05 |
11.74 |
47.55 |
|
Labor (grade/pack) |
February |
hour |
6.15 |
11.74 |
72.20 |
|
Labor (pollination) |
March |
hour |
5 |
11.74 |
58.70 |
|
Labor (pruning) |
March |
hour |
4 |
11.74 |
46.96 |
|
Fungicide |
March |
ounce |
64 |
0.69 |
44.09 |
|
Insecticide |
March |
ounce |
12 |
0.60 |
7.14 |
|
Labor (harvest) |
March |
hour |
8.1 |
11.74 |
95.09 |
|
Labor (grade/pack) |
March |
hour |
12.3 |
11.74 |
144.40 |
|
Labor (pollination) |
April |
hour |
2.5 |
11.74 |
29.35 |
|
Labor (pruning) |
April |
hour |
4 |
11.74 |
46.96 |
|
Fungicide |
April |
ounce |
64 |
0.69 |
44.09 |
|
Insecticide |
April |
ounce |
12 |
0.60 |
7.14 |
|
Labor (harvest) |
April |
hour |
8.1 |
11.74 |
95.09 |
|
Labor (grade/pack) |
April |
hour |
12.3 |
11.74 |
144.40 |
|
Labor (pruning) |
May |
hour |
1 |
11.74 |
11.74 |
|
Fungicide |
May |
ounce |
16 |
0.69 |
11.02 |
|
Insecticide |
May |
ounce |
6 |
0.60 |
3.57 |
|
Labor (harvest) |
May |
hour |
6.75 |
11.74 |
79.25 |
|
Labor (grade/pack) |
May |
hour |
10.25 |
11.74 |
120.34 |
|
Labor (pruning) |
June |
hour |
1 |
11.74 |
11.74 |
|
Fungicide |
June |
ounce |
16 |
0.69 |
11.02 |
|
Insecticide |
June |
ounce |
6 |
0.60 |
3.57 |
|
Labor (harvest) |
June |
hour |
6.75 |
11.74 |
79.25 |
|
Labor (grade/pack) |
June |
hour |
10.25 |
11.74 |
120.34 |
|
Labor (misc.) |
Aug. – June |
hour |
22 |
11.74 |
258.28 |
|
Fertigation |
Oct. – June |
application |
1 |
823.20 |
823.20 |
|
Boxes |
Dec. – June |
each |
700 |
1.95 |
1,365.00 |
|
Subtotal |
$5,679 |
||||
|
Interest on operating capital |
$121 |
||||
|
Total direct costs |
$5,800 |
||||
|
|
Spring crop |
Fall crop |
One continuous crop |
|
Direct cost |
3,640 |
2,936 |
5,828 |
|
Fixed and overhead cost 1 |
4,036 |
3,044 |
7,080 |
|
TOTAL COST |
7,676 |
5,980 |
12,908 |
|
Expected yields (pounds) |
8,000 |
6,000 |
14,000 |
|
Cost per square foot |
$3.33 |
$2.60 |
$5.60 |
|
Yield (pounds per square foot) |
3.47 |
2.60 |
6.08 |
|
Price (dollars per pound) needed to cover production (Direct) costs |
$0.46 |
$0.49 |
$0.42 |
|
Price (dollars per pound) needed to break even (to cover Direct + Fixed and overhead costs) |
$0.96 |
$1.00 |
$0.92 |
1 For spring and fall crops, the rate of greenhouse utilization during the year is assumed at 57 percent and 43 percent, respectively. Thus, 57 percent of the annual fixed and overhead costs are allocated to the spring crop, and 43 percent are allocated to fall crop. Note, however, that if you only have a spring crop during the year, then the fixed and overhead cost allocated to the spring crop would be the entire annul cost which is estimated at $6,979.
Publication 2766 (POD-08-20)
Elizabeth Canales Medina, PhD, Assistant Professor, Agricultural Economics; and Richard Snyder, PhD, Professor and Extension Vegetable Specialist, Central Mississippi Research and Extension Center.
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