Transcript SCRI advisory group meeting 5/21/2010

Eric Belasco, Suzette Galinato, Tom Marsh,
and Srinivasa Ponnaluru
June 1st, 2011

Enterprise Budgets
 Tomatoes and lettuce under high tunnels for growers
in WA

Production and Risk
 Analysis of crop insurance and risk related issues.
 Strategies for wind damage mitigation.

Cost-Benefit Analysis of BDM
 Establishment of the monetary benefits (saving costs)
and costs of the CBA.
 CB Comparison of BDM film vs HDPE/LDPE film.
2

Accomplishments:
◦ Tomato
 High tunnel
 Open field
◦ Lettuce
 High tunnel

To be accomplished:
◦ Lettuce
 Open field
◦ Strawberry
 High tunnel
 Open field
3
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High tunnel as an add on to the existing farm.
Tunnel is 96 X 20 ft single poly, with 85%
usable space
2300 plants in 20 rows, at a 10 X 10’’ spacing
75% marketable yield
Direct local sales, CSA, and local restaurants
as market
3 years of usable life on tunnel.
Drip irrigation
Summary
Gross returns
3450
Total Variable costs
1844.11
Total Fixed costs
947.45
Net Returns
658.44
Gross returns
Description
Price
Qty
Total
Lettuce heads
2
1725
3450
5
Variable costs
Item
Soil Preparation
Spread compost
Material
Labor
Till cover crop and compost
Chisel plow
Till beds
Fertilizer
Material
Labor
Irrigation
Drip tape
Labor
Seeds
Seeds
Transplants
Planting
Unit
Quantity
Price ($)
Total
Costs ($)
yard
hour
hour
hour
hour
21.00
15.00
165.00
165.00
165.00
3.50
2.00
0.09
0.09
0.09
73.50
30.00
14.85
14.85
14.85
hour
165.00
0.09
14.85
linear feet
hour
0.03
15.00
1150.00
0.60
34.50
9.00
per 1,000
pot
hour
0.01
0.07
15.00
2300.00
2300.00
5.00
23.00
161.00
75.00
6
Variable costs
Item
Unit
Quantity
Price ($)
Total
Costs ($)
Production Costs
Fungicide
Herbicide
Insecticide
Irrigation water
Irrigation power
Tunnel temperature management
month
10.00
2.00
hour
15.00
15.00
0.00
0.00
0.00
20.00
0.00
225.00
hour
case
case
case
15.00
1.50
0.25
3.20
0.80
18.00
72.00
72.00
72.00
72.00
270.00
108.00
18.00
230.40
57.60
box
0.5
72
36.00
Harvest and Post-harvest Costs
Picking
Washing, grading (per pound)
Supplies
Packaging
Hydro Cooling
Marketing
Delivery
Maintenance and Repairs
Irrigation System Maintenance and
Repair
Tunnel and Equipment Maintenance and
Repairs
45.00
166.00
Other Variable Costs
Overhead (5% of variable costs)
Interest on Variable Costs (7%)
Total Variable Costs
82.07
120.64
1,844.11
7
Fixed costs
Item
Cost ($)
Years
Used
Cost Per
year ($)
Fixed Costs
Depreciation
High Tunnel Hoop house
227.20
Irrigation System
36.67
Machinery and Equipment
Annual Replacement Cost
100.00
Interest
High Tunnel Hoophouse
43.74
Irrigation System
4.24
Machinery and Equipment
35.61
Other Fixed Costs
Permit
Hoophouse set up and
removal[1]
hour
25
11
275.00
Irrigation management
hour
15
15
225.00
Total Fixed Costs
Total Cost
Estimated Net Returns
0.00
947.45
2,791.5
6
658.44
8

Tasks accomplished:
◦ Identification of different crop insurance options
available for specialty crops (in the open field &
under high tunnel).
◦ Paper presentation at AAEA, Pittsburgh.

Tasks to be accomplished:
◦ Evaluate profitability with and without crop
insurance.
◦ Evaluate profitability of using cover crops in high
tunnel production, and compare BDM v
conventional practices.
9
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High tunnels act as damage abatement input
Wind speeds inside the tunnel are
hypothesized to be lower than open field
High winds can damage high tunnel structure
and the crop.
Extent of damage to HT depends on design,
orientation, material and construction.
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Damage to crop depends on type, stage of
crop.
 Product quality, quantity and time of maturity
may also be affected.
Objectives:
 To identify if statistically significant
differences in wind speed exist with in and
outside tunnel.
 To identify extent of damage to crops and the
high tunnel stucture.
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
Tasks accomplished :
◦ The first three topics set the stage and provide
information for the C-B analysis.
◦ Dynamic model that reflects benefits, costs and
rates of decay of pollutant (BD plastic) in soil.
◦ The model can be used to assess net benefits
associated with various rates of decay.
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
Tasks to be accomplished:
◦ Specify a damage function to model
damages/effects on soil from BD plastic decay.
◦ Enumerate benefits and costs associated with high
tunnels –
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Price premiums
Yield differences
Structural costs
Labor costs
Other associated costs.
◦ Sensitivity analysis.
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
Enterprise Budgets

Production and Risk

Cost-Benefit Analysis
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

Specification of a damage function for CB
analysis
Obtain feedback on enterprise budgets
Obtain cost info. regarding expenses for
◦ Initial high tunnel construction
◦ Maintenance costs for repairs from hail, wind, and
flooding

Ensure accurate use of field data (yields)
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