High Tunnel Budgets

Construction Cost

What to consider when constructing a high tunnel Site preparation Grading, preparing surface- Tractor with bucket attachment, grader blade, land leveler, box blade Posts- setting and driving in Forming beds- Do you need to bring in soil? Water- no way to do without this Soil? – Do you need to amend plot after grading? Site preparation can be $500-$1000 to contract out Post set and driving can be $200-$400 to contract out

What do you want to do with it? Winter farming/ Summer off may be able to do a caterpillar Want to do summer growing as well will need side walls for ventilation May need a shade cloth and insect netting

How big? Standard NRCS Tunnels 30’ wide x 72’ long- 2160 sq. ft. -NRCS will cover up to 2,178 sq. ft. Max $10,000 -You need to buy up front and they will reimburse you -If you want a 30 x 96 tunnel you will have to pay the difference. Gothic or Quanset? Is there snowfall? 4’ or 6’ bows. If any snowfall then they recommend 4’ bows

Construction Cost 30x96 Gothic 4’Bows Materials $ Labor $12.00 Site Preparation/posts $750 site prep and $300 posts 60 1,050 (may be more than $12/hr) High tunnel + delivery $600- Atlas 2018 48 hours (depends on skill set) 7600 576 Cover and side wall 6 mil poly 4 yr + repair tape 10 hours 548 120 Ventilation System 5 hours 1,619 Lumber Hardware 32 hours 800 384 Endwall finish 12 hours 250 144 Irrigation 2.5 hours 145 30 Total 11,022 2,364

Construction Materials Annual Cost Construction Cost Materials Useful Life Annual cost Site Preparation 60 15 4 Frame/ doors+ delivery 7,600 507 Cover and side wall 6 mil poly 4 yr + repair tape 548 137 Ventilation System 1,619 108 Lumber Hardware 800 53 Endwall finish 250 10 25 Irrigation 145 14.5 Labor 2,364 158 Total 1006.5

Estimating total revenue Yields: -Expect between 8-15 lbs/plant -Can vary for different varieties, planting dates, growing conditions, fertility -Keep yield records -Use about 6 sq. ft per plant What price ? http://www.ncagr.gov/markets/mktnews/retail_farmers_markets _reports.htm -Check local market prices -Producing earlier or later in season?

Estimate High tunnel Tomato Enterprise 30 x 96 Gothic High tunnel 2,880 sq. ft Early season one crop Tomato 12 lbs/plant $2.50/lb 2,880 sq. ft/ 6 sq. ft./plant= 480 plants 480 plants * 12 lbs/ plant = 5, 760 lbs 5, 760 lbs * $2.50= $14,400

Variable Cost Materials 480 plants/ 2, 880 sq. ft. Material Costs Plants ($.11-.50 ea.) Banner greenhouses $150 Fertilizer $175 Irrigation supplies $25 Stakes, string, clips $200 Harvesting baskets/ boxes/ etc. $137 Mis supplies Sub total $837.00

Variable Labor Cost 480 plants/ 2,880 sq. ft Labor Hours Farm School Iowa Extension Michigan Extension Wiswall Soil/Bed Preparation 16 12 7 13.5 Transplanting 4 6.5 9.5 4.5 Maintenance 60 30.5 26.4 65 Harvesting 40 39 103 Marketing 10 hours 130 109 91.9 193 $12 hr wage $ 1,560,00 $ 1,308.00 $ 1,102.80 $ 2,316.00

Total Cost 5760 lbs assuming 1 planting of 480 plants Total $ Per lb Yield 5,760 lbs Annualized Construction Cost $1006.5 .17 Fixed cost (interest, taxes, land) $1,085 .19 Variable Cost materials $837 .15 Variable Cost labor $1560 .27 Total Cost $4488.5 .78 5760 lbs assuming 1 planting of 480 plants

Returns At Various Prices $1.50/LB $2.00/LB $2.50/LB Gross Returns $8,640 $11,520 $14,400 Variable Cost (incl. labor) $2,397 Returns over Variable Cost $6,243 $9,123 $12,003 Fixed Cost (+ annualized construction) $2091.5 Returns over Total Cost $4151.50 $7031.50 $9911.50 Total profit/lb .72 1.22 1.72

Breakeven Analysis Variable cost and labor $2,397 $2,397/yield of 5,760 LBS Price needed to cover variable costs = $0.42 Variable+ Fixed Costs: $2,397+$2091.50=$4,488.50/High Tunnel Price needed to cover total costs =$.78/lb

Other Expenses not included Highly variable: Marketing -Depends on direct to consumer, retail or wholesale -Yields this high may require several different market outlets -Distribution costs, packaging, mileage, labor costs and post harvest handling will all be different depending on market outlet - Any certifications such as organic or Gap.

Some calculations made based on following resources Iowa Extension Resource https://www.extension.iastate.edu/agdm/crops/html/a1-23.html Missouri Extension Resource https://extension2.missouri.edu/M170 Richard Wiswall, The Organic Farmers Business Handbook