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Enterprise Budget and Cash Flow for Greenhouse Tomato Production ( PDF )

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J. L. Smith, T. D. Hewitt, R. C. Hochmuth, and G. J. Hochmuth2

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Enterprise Budget and Cash Flow for Greenhouse Tomato Production Florida Greenhouse.... 2

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Enterprise Budget and Cash Flow for Greenhouse Tomato Production Florida Greenhouse.... 3

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Enterprise Budget and Cash Flow for Greenhouse Tomato Production Florida Greenhouse.... 4

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Enterprise Budget and Cash Flow for Greenhouse Tomato Production Florida Greenhouse.... 5

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Enterprise Budget and Cash Flow for Greenhouse Tomato Production Florida Greenhouse.... 6 Greenhouse Investment Costs for Tomato Production -------------------------Annual Charge----------------------Construction Original Cost LifeYrs. Depreciation Interest** Tax&Ins.* Annualized Greenhouse Frame (30x120) 588020294 26574 632 Warehouse (10'x10') 900 10 90 4111 142 Site Preparation + Inflation Kit 620 10 62 28 8 98 Ground Cover 560 7 80 25 7 112 Irrigation/Fertigation System 17007 243 7721 341 LP Gas Heating System 160010160 7220 252 Plant Support System 750 10 75 34 9 118 Backup Generator + Electrical 145010145 6518 228 Labor (Const. + Equip. Install.) 7000 10 700 315 88 1103 Durables Plastic 500 4 125 23 6 154 Shade System 540 3 180 24 7 221 Cooling Pads (35) 14703 490 6618 575 Pump & Plumbing 680 5 136 31 9 175 Cooling Fans + Environmental Control 17905 358 8122 461 Spray & Spray Mask 575 5 115 26 7 148 Other Durable Goods 1100 5 220 50 14 283 Total Durables $6,665 $1,624 $300 $83 $2,007 Utility hook-ups (electrical, gas, & water)*** Total Greenhouse Investment Taxes and Ins Rate % = 1.3 ** Interest Rate (%) = 9 *** Does not include cost of new well

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Enterprise Budget and Cash Flow for Greenhouse Tomato Production Florida Greenhouse.... 7 Greenhouse Tomato Enterprise Budget Production Systems Perlite Bags Crop Duration weeks 42 Number of Greenhouses 1 Harvest Period weeks 30 Dimensions 30' x 120' Miles to packinghouse 50 Lbs. Tomatoes/Plant 20 Trips to packinghouse 60 Yield-lbs Price $/lb Total $ 17,600 0.90 UnitQuantityPriceValueTotal $ Preharvest Material Inputs $ 1 3,2003,200 Energy + Repairs $ 1 3,290 3,290 Labor hrs. 281 5.251,475 Int. on Op. Capital* $7,9650.05398 Harvest & Hauling Labor hrs.288 5.25 1,512 Vehicle** mi.8,9400.343,040 Custom Packing & Marketing lbs.17,6000.2263,978 Cleanout 36 5.25189 Fixed Costs Depreciation + Interest $ 1 4,6934,693 Taxes & Ins. $ 1 339339 Returns Above Cash Costs Returns Above Total Costs Breakeven Price to Cover Cash Costs Breakeven Price to Cover Total Costs Interest on operating expenses charged at 10% for 6 months. ** Vehicle miles assume 100 mile round trip to packing house 2 times/week for 30 weeks plus an additional 10 miles per day for other greenhouse needs.

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Enterprise Budget and Cash Flow for Greenhouse Tomato Production Florida Greenhouse.... 8 This table presents an analysis of cash flow for one greenhouse in north Florida producing tomato. A loan for 80% of the investment + durables cost for 7 years at 9% was assumed. Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Total ($4,520) ($6,690) ($9,060) ($13,406) ($16,046) ($18,889) ($22,843) ($24,175) ($21,334) ($19,601) Cash Receipts 16,97417,82318,71419,65020,63221,66422,74723,88425,07826,332213,497 Financing 23,095 23,095 $23,095 $16,974 $17,823 $18,714 $19,650 $20,632 $21,664 $22,747 $23,884 $25,078 $26,332 236,952 $23,095 $12,454 $11,133 $9,654 $6,244 $4,586 $2,765 ($96) ($291) $3,734 $6,731 Production Cost Direct 7,1937,4097,6317,8608,0968,3398,5898,8479,1129,38682,462 Harvest & Hauling 3,0403,1313,2253,3213,4213,5243,6293,7383,8503,96634,846 Packing & Shipping 4,262 4,390 4,522 4,658 4,797 4,941 5,089 5,242 5,399 5,561 48,863 $0 $14,495 $14,930 $15,378 $15,839 $16,314 $16,804 $17,308 $17,827 $18,362 $18,913 166,171 Capital Investment 27,615 27,615 Loan Payment Cap. Inv. 4,3104,3104,3104,3104,3104,3104,310 30,170 Durable Goods Cost 2,1965631,0342,400 6332,623 9,449 Taxes & Insurance 3393493603703813934054174294423,886 Interest on Addit. Capital 603 816 1,207 1,445 1,701 2,056 2,176 1,921 1,765 13,690 $27,615 $4,649 $5,262 $7,682 $6,450 $7,171 $8,804 $6,771 $3,226 $4,973 $2,207 84,810 $27,615 $19,144 $20,192 $23,060 $22,289 $23,485 $25,608 $24,079 $21,053 $23,335 $21,120 250,981 ($4,520) ($6,690) ($9,060) ($13,406) ($16,046) ($18,899) ($22,843) ($24,175) ($21344) ($19,604) ($14,389)

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Enterprise Budget and Cash Flow for Greenhouse Tomato Production Florida Greenhouse.... 9 The effect of changes in yield and price on break-even costs and cash balance after eleven years. Num. Plant Yield lbs/plant Price B/E Cash 11 Year Cash Balance 880200.900.96($14,389) 880220.900.90$5,631 880201.00.96$14,450 880 2 1.00 .90 $26,887 Assumptions: 1. Loan Period 7 Years 2. Loan Rate 9% Annual loan payments for various loan periods and amounts for different interest rates. 9% Interest 12% Interest Loan Period Years Loan Period Years % GH 5 7 10 5 7 10 Financed Principal ($) -------------$/Year-------------Principal ($) -------------$/Year-------------8021,692($5,576)($4,310)($3,380)21,692 ($6,018)($4,753)($3,839) 6016,269($4,183)($3,232)($2,535)16,269 ($4,513)($3,565)($2,879) 5013,558($3,486)($2,694)($2,113)13,558 ($3,761)($2,971)($2,399)

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Enterprise Budget and Cash Flow for Greenhouse Tomato Production Florida Greenhouse.... 10 Cash flow stnsitivity for a greenhouse with 880 plant yielding 20 lbs. Fruit/plant with a loan of 80% of the greenhouse construction + durable goods costs ($21,692) at 9% for three separate loan periods. Loan Period Cash Balance at the End of the Year Years Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 5($4,520)($7,957)($11, 707) ($17, 558) ($21, 839) ($26, 480) ($26, 797) ($24, 175) ($21, 344) ($19, 601) ($14, 389) 7($4,520)($6,690)($9,060)($13, 406) ($16, 046) ($18, 899) ($22, 843) ($24, 175) ($21, 344) ($19, 601) ($14, 389) 10($4,520)($5,760)($7,116)($10, 357) ($11, 793) ($13, 333) ($15, 846) ($15, 619) ($15, 399) ($16, 500) ($14, 389)