sensitive to supply levels. Price paid by wholesalers and shippers would be responsive to conditions
in other producing areas.
Vegetable producers also are confronted with yield risk from factors such as weather and
disease. This risk may be reduced through cultural practices such as irrigation and appropriate
disease prevention and control measures. However, such measures offer only partial protection
against variations in yield. Before committing resources to production of any vegetable crop, the
grower should consider the impact of adverse events and his financial ability to withstand unexpected
developments.
Conclusions
The important addition to the set of budgets for 1997 are the spring and fall crops of
greenhouse tomatoes. This enterprise has attracted the attention of potential growers, and a number
of greenhouses already have been constructed. The budgets presented here rely on the accumulated
experience of the University’s horticulturalists, rather than on growers’ experiences, and will be
updated as production experience is gained.
At the per acre cost levels that result from the budgeting procedure, and using revenues from
assumed prices and yields, returns to the grower's managerial ability and willingness to accept risk
vary widely depending on market channel, degree of mechanization and investment. Generally, the
fresh market provides higher returns compared to the processing market (Table 1). An example is
mustard greens. Higher technology levels provided higher returns compared with the typical
technologies, as shown by tomato, cabbage and watermelon budgets. Larger machinery (four-row)
reduces cost and provides higher net returns compared with one-row machines, even when selling
price is reduced to account for use of the fresh wholesale market by larger producers. In all cases
for which budgets are provided except eggplant and sweet corn, estimated net returns are sufficient
to cover costs of production including labor. A majority of crop situations provided returns above
direct expense in the range between $100.00 and $1000.00. The highest net return was $5154.05 for
tomatoes produced using a high management level, plastic mulch and drip irrigation, resulting in a
much higher than average yield level and assuming that output is successfully marketed at the $7.75
price.
The information presented herein is intended as a guide only. Each grower may adapt the
information to his particular situation, including yield and price expectations. By using machinery cost
data presented in Appendix Tables 1-5, an individual can find approximate cost per hour for each
machine operation. Costs for selected operations may be substituted for those shown in the budget.
Other inputs and costs may be substituted in a similar manner to tailor the budget to any individual
producer's situation.
REFERENCES
Bracy, R., R. Parish, P. Bergeron and R. Constantin. "High-density planting for maximizing yields in
greens". Louisiana Agriculture, Louisiana State University Agricultural Center, Vol. 34, No. 2, Winter
1990-91.
Parish, R., W. Mulkey, W. Meadows, P. Chaney, T. Talbot and P. Hidalgo. "Direct seeding of cole
crops in Louisiana". Louisiana Agriculture, Louisiana State University Agricultural Center, Vol. 31, No.
4, Summer 1988.
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