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Enterprise Budget and Cash Flow for Greenhouse Tomato Production - Florida Greenhouse Vegetable Production Handbook, Vol 3
http://edis.ifas.ufl.edu/ ( Publisher's URL )
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Permanent Link: http://ufdc.ufl.edu/IR00000983/00001
 Material Information
Title: Enterprise Budget and Cash Flow for Greenhouse Tomato Production - Florida Greenhouse Vegetable Production Handbook, Vol 3
Series Title: Florida Greenhouse Vegetable Production Handbook
Physical Description: Fact Sheet
Creator: Smith, John L.
Hewitt, Tim
Hochmuth, Robert C (Robert Conway), 1957-
Hochmuth, George J. (George Joseph)
Publisher: University of Florida Cooperative Extension Service, Institute of Food and Agriculture Sciences, EDIS
Place of Publication: Gainesville, Fla.
Publication Date: 2001
 Subjects
Subjects / Keywords: Greenhouse plants -- Economic aspects -- Florida
Tomatoes -- Economic aspects -- Florida
Genre:
Spatial Coverage:
 Notes
Abstract: "Growing crops in a greenhouse environment requires a substantial investment in capital and management resources. The two financial considerations regarding any such enterprise are profitability and cash flow. Profitability potential can be addressed through an enterprise budget, which is an itemization of costs incurred over a typical production cycle. The second consideration is addressed by analyzing cash flows in and out of the enterprise for a fixed interval of time, that is, through a cash-flow budget."
Acquisition: Collected for University of Florida's Institutional Repository by the UFIR Self-Submittal tool. Submitted by Diana Hagan.
Publication Status: Published
General Note: "This document is HS798 and a part of SP48, a chapter of the Florida Greenhouse Vegetable Production Handbook - Volume 3"
General Note: "Date first printed: December, 1990. Date revised: December 2001. Reviewed May 2009."
 Record Information
Source Institution: University of Florida Institutional Repository
Holding Location: University of Florida
Rights Management: All rights reserved by the submitter.
System ID: IR00000983:00001

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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)