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High Tunnel Budgets
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Construction Cost
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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
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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
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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
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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
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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
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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 ? _reports.htm -Check local market prices -Producing earlier or later in season?
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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= plants 480 plants * 12 lbs/ plant = 5, 760 lbs 5, 760 lbs * $2.50= $14,400
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Variable Cost Materials
480 plants/ 2, 880 sq. ft. Material Costs Plants ($ ea.) Banner greenhouses $150 Fertilizer $175 Irrigation supplies $25 Stakes, string, clips $200 Harvesting baskets/ boxes/ etc. $137 Mis supplies Sub total $837.00
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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 $ ,560,00 $ ,308.00 $ ,102.80 $ ,316.00
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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
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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 $ $ $ Total profit/lb .72 1.22 1.72
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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: $2,397+$ =$4,488.50/High Tunnel Price needed to cover total costs =$.78/lb
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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.
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Some calculations made based on following resources Iowa Extension Resource Missouri Extension Resource Richard Wiswall, The Organic Farmers Business Handbook
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