This fact sheet is intended to be a guide used to make production decisions, determine potential returns and prepare business and marketing plans. All practices, yields, costs, and pricing were determined through a research study conducted at Utah State university across a 3-year period

Black, Brent

Curtis, Kynda

Drost, Dan

Maughan, Tiffany

English

DigitalCommons@USU

 August 2014                                                                                                  Horticulture/HighTunnels/2014-06pr   Northern Utah High Tunnel Strawberry Production Costs and Returns, 2014  Tiffany Maughan, Research Associate, Department of Plants, Soils and Climate Kynda Curtis, Associate Professor and Extension Specialist, Department of Applied Economics   Brent Black, Professor and Extension Specialist, Department of Plants, Soils and Climate Dan Drost, Professor and Extension Specialist, Department of Plants, Soils and Climate    Introduction  Sample costs and returns to produce strawberries in one high tunnel structure under drip irrigation and sold through direct markets are presented in this publication. This publication is intended to be a guide used to make production decisions, determine potential returns and prepare business and marketing plans. All practices, yields, costs, and pricing were determined through a research study conducted at Utah State University across a three-year period and are updated from those provided in Rowley, Black, and Feuz (2010). Practices, yields, costs, and pricing are not applicable to all situations as management, cultural practices, markets, and growing conditions vary across the region.  High Tunnel This publication assumes use of a 14 x 96 foot high tunnel (see Black et al., 2008), using an annual hill system with fall-planted, June-bearing ‘Chandler’ strawberries. Although the costs and returns provided represent production in one high tunnel, it should be noted that 20 high tunnels can be accommodated on one acre of land (Ward, Drost, and Whyte, 2011).   Crop Pricing As high tunnels move production earlier in the season, early yield was calculated as the total mass yield produced before non-protected field production begins. Early strawberries typically command price premiums over in-season production. When the field (unprotected) strawberries begin yielding, local supply increases and the total price per pound is lowered. In limited test marketing in Logan, Utah, a $1.50 per pound premium was common for the early, out-of-season strawberries. Based on interviews with strawberry growers in Utah, pricing was set at $4.50 per pound for in season and $6.00 per pound for early season strawberries sold through direct markets (see Table 1). Price per pound will vary by market and geographical area.   Calculated Yield  Yield data (quantity of 1 pound clamshells) were collected in North Logan, Utah, and averaged over a 3 year period. The one high tunnel produced 373 1 pound clamshells in the early season and 472 1 pound clamshells in the regular season (see Table 1). Over the three seasons, the field production season began between May 1 and May 12, typically 4 to 6 weeks later than the start of high tunnel production (Maughan et al., 2013).   2  Supplies  Production supplies were priced based on costs in Logan, Utah (Rowley, Black, and Drost, 2010) and may vary across regions. Plug plants are not commercially available in the Intermountain West and are not amenable to shipping over long distances so must be either produced on site or contracted through a local nursery. Supplies ordered from online sources will have an additional shipping cost.   Hired Labor  Labor was priced at $10 per hour. Quantity of hours needed per activity was recorded and averaged over the study period, although depending on tools and experience, time needed may vary.   Depreciation  Asset depreciation of the high tunnel was calculated using straight line depreciation and assumed no salvage value at the end of the useful life (Table 2). Total cost of investment was divided by number of years the asset is assumed to be useful resulting in the annual depreciation cost. High tunnel useful life is 6 years and the initial cost of the high tunnel was based on the low-cost high tunnel design used at Utah State University (Black et al., 2008). High tunnel cost will vary depending on design and materials used.   Straight Line Depreciation Computation  Purchase Price - Salvage Value( )Useful Life  Summary of Results As shown in Table 1, the net income resulting is $1,944.27 per 96' high tunnel, or $38,885.38 per acre assuming 20 tunnels.     References Black, B., D. Drost, D. Rowley, and R. Heflebower. 2008. Constructing a low-cost high tunnel. Utah State University Extension Bulletin HG/High Tunnels/2008-01pr. Utah State University, Logan, Utah. Online at:  http://extension.usu.edu/files/publications/publication/HG_High_Tunnels_2008-01pr.pdf Maughan, T., B. Black, D. Drost, and K. Curtis. 2013. Optimizing Systems for Cold-Climate Strawberry Production. M.S. Thesis, Utah State University. Rowley, D., B.L. Black, and D. Drost. 2010. Strawberry plug plant production. USU Extension Fact Sheet Horticulture/Fruit/2010-01pr. Utah State University, Logan, Utah. Rowley, D., B. Black, and D. Feuz. 2010. High Tunnel June-bearing Strawberry Budget 2010, Based on a 14' x 96' High Tunnel. 2010 Utah Agriculture Statistics and Utah Department of Agriculture and Food Annual Report. p. 94. Ward, R., D. Drost, and A. Whyte. 2011. Assessing profitability of selected specialty crops grown in high tunnels. Journal of Agribusiness 29(1):41-58.    3  Table 1. High Tunnel June-bearing Strawberry Costs and Returns, 14' x 96' Tunnel.                Units Quantity Price Total Revenues      Early Out-of Season Strawberries 1 lb clamshells 373 $6.00  $2,238.70   In-Season Strawberries 1 lb clamshells 472 $4.50  $2,122.61  Total Revenues    $4,361.31         Operating Expenses     Supplies      Preplant and preparation costs       Soil test Each 1 $14.00  $14.00    Fuel Gallons 0.38 $3.50  $1.31    Preplant fertilizers and soil amendments Pounds 2.25 $15.00  $33.75    Plastic mulch Foot 281 $0.05  $14.06    Drip tape Foot 576 $0.05  $28.80   Strawberry establishment and growth       Plug plants Each 743 $0.26  $193.05    20-20-20 water soluable fertilizer mix Pounds 11.34 $1.23  $13.95    10-30-20 water soluable fertilizer mix Pounds 2.84 $1.49  $4.22    Captan Pounds 0.43 $9.82  $4.20    Thionex 50 W Pounds 0.03 $7.51  $0.20   Strawberry harvest       1 lb clamshells Each 1033 $0.25  $258.19  Labor       Preplant and preperation costs       Soil test Hours 0.5 $10.00  $5.00    Apply preplant fertilizers Hours 0.75 $10.00  $7.50    Tillage Hours 7.5 $10.00  $75.00    Form raised beds Hours 13 $10.00  $130.00    Install drip tape Hours 0.75 $10.00  $7.50    Cover with plastic mulch Hours 1 $10.00  $10.00   Strawberry establishment and growth       Planting labor Hours 6 $10.00  $60.00    Fertigation Hours 2 $10.00  $20.00    Pesticide applications Hours 4.5 $10.00  $45.00    Hand weeding Hours 4 $10.00  $40.00    Plastic and shade cloth install/removal Hours 12 $10.00  $120.00    Monitoring and ventilation Hours 30 $10.00  $300.00   Strawberry harvest       Hand harvest Hours 68 $10.00  $680.00   Post-harvest       House clean out Hours 4.5 $10.00  $45.00  Total Operating Expenses     $2,110.73         Fixed Expenses (Depreciation)      High Tunnel Annual    $248.17   Irrigation System Annual    $58.82  Total  Fixed Expenses    $306.98         Total Expenses    $2,417.71         Net Income       $1,944.27    4  Table 2. Annual Depreciation for High Tunnel and Irrigation System.       Units Useful Life (yrs) Quantity Price Total High Tunnel          High Tunnel Each 6 1 $497.00  $497.00    Initial Construction Labor Hours 6 25 $10.00  $250.00    6 mil Greenhouse Film 24'x100' sheet 3 2 $221.00  $442.00    Shade Cloth 20' x 100' piece 6 1 $300.00  $300.00   High Tunnel  Total     $1,489.00           Annual Depreciation Cost of High Tunnel     $248.17          Irrigation system        3/4" Poly Pipe Foot 6 14 $0.42  $5.88    1" Valve Each 6 1 $5.15  $5.15    Misc. Fittings Each 6 10 $1.00  $10.00    Drip Hose Adapter Each 6 6 $0.56  $3.36    Injector* Each 6 1 $265.00  $265.00    Filter* Each 6 1 $12.50  $12.50    Pressure  Regulator* Each 6 1 $11.00  $11.00    Installation Labor* Hours 6 4 $10.00  $40.00   Irrigation System Total     $352.89           Annual Depreciation Cost of Irrigation System     $58.82    *May be used for multiple high tunnels             This project is funded in part by USDA-Risk Management Agency under a cooperative agreement, the Utah Department of Agriculture and Food under a specialty crop black grant, Utah State University Extension, and the Utah Agricultural Experiment Station.    Utah State University is committed to providing an environment free from harassment and other forms of illegal discrimination based on race, color, religion, sex, national origin, age (40 and older), disability, and veteran’s status. USU’s policy also prohibits discrimination on the basis of sexual orientation in employment and academic related practices and decisions. Utah State University employees and students cannot, because of race, color, religion, sex, national origin, age, disability, or veteran’s status, refuse to hire; discharge; promote; demote; terminate; discriminate in compensation; or discriminate regarding terms, privileges, or conditions of employment, against any person otherwise qualified. Employees and students also cannot discriminate in the classroom, residence halls, or in on/off campus, USU-sponsored events and activities. This publication is issued in furtherance of Cooperative Extension work, acts of May 8 and June 30, 1914, in cooperation with the U.S. Department of Agriculture, Kenneth L. White, Vice President for Extension and Agriculture, Utah State University. 

Northern Utah High Tunnel Strawberry Production Costs and Returns, 2014

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Northern Utah High Tunnel Strawberry Production Costs and Returns, 2014

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