The Economics of Strawberries and
Squash Grown in Hoop Houses
by Jeri Donnell, Jon T. Biermacher and Steve Upson
NF-AE-12-01
Introduction
Hoop house structures are becoming
increasingly popular among growers
and horticultural enthusiasts. A hoop
house, also known as a high tunnel, is defined as “a freestanding or
gutter-connected covered structure,
without heating or electrical power,
using passive ventilation for air exchange and cooling, and an irrigation
system for crop production.”4 Hoop
house benefits commonly promoted
include season extension1, 2, 5 and
the decrease of diseases, pests and
weeds.1,3,6 While production advantages are promoted, little economic
information exists to support the use
of hoop house plasticulture technology to grow fruits and vegetables.
To provide more economic information to growers and horticultural
enthusiasts, the Noble Foundation
evaluated a year-round cropping system consisting of a cool-season crop
(strawberry) followed by a warm-season crop (squash). The two crops were
grown in a high tunnel hoop house.
The objectives were to: determine
the expected cost of production for
each crop; determine the price growers need to receive for each crop in
order to break even; and determine
how breakeven prices change depending on different yield, expense
and marketing scenarios. Results from
this study are expected to benefit a
diverse audience including profitminded growers, cost-conscious
growers who are interested in the fruit
and vegetable production lifestyle,
and growers who wish to market the
portion of produce not used for personal household consumption.
Materials and Methods
A randomized and replicated study
was conducted at the Noble Foundation’s Headquarters Farm in Ardmore,
Okla., for the 2007-08, 2008-09 and
2009-10 growing seasons. The strawberry/squash cropping system was
produced (replicated) in two high
tunnel hoop houses. Each house was
approximately 1,400 square feet in
size and contained four 238-cubicfoot permanent raised growing beds
(approximately 60’x3.5’x1’). Growing
seasons began in August with soil
solarization. Strawberry (Ventana variety) was established in October and
harvested in April and May. Yellow
and zucchini squash (Enterprise and
Senator varieties) were established in
May and harvested in June and July.
During the growing season, crops
were inspected daily, chemical treat-
The Samuel Roberts Noble Foundation
ments were administered as needed,
and fertilizer applications were made
according to soil test results. Crops
were watered using drip-line irrigation when a tensiometer reading
indicated approximately 50 percent of
available soil moisture was depleted.
Temperature and airflow were regulated manually using sidewall ventilation techniques.
Data collected for each crop included quantity and quality of yield;
hours of labor used; and quantity of
inputs used (except water). Yield quality was categorized as marketable or
culled yield. Labor was categorized
as pre-planting, planting, crop care,
hoop house maintenance, harvesting,
sorting and packaging, or post-crop
cleanup labor activities. Inputs were
categorized as either operating ex- 4
FORAGE
ECONOMICS
Pounds per house
penses or fixed costs for depreciable assets. Operating ex- Figure 1. Marketable Yield for Strawberry and Squash by Year
Figure 1 . Marketable Yield for Strawberry and Squash by Year (pounds/house)
penses included fertilizer, seeds and plants; pesticides and (pounds/house)
herbicides; packaging supplies; labor; and interest. Fixed
900
costs included the hoop house, growing beds, plastic, and
800
820
windbreaks; a work truck (50 percent allocation); tiller,
2007/08
2008/09
2009/10
Average
700
sprayers and other equipment; the irrigation system; and
600
harvest and cleaning equipment, as well as miscellaneous
602
tools and equipment.
500
518
498
Enterprise budgeting techniques were used to deter453
452
400
mine the total cost of production (dollars per house) for
369
300 per house364
348
Pounds
318
each crop. The total cost of production for each crop was
257
200
then divided by the three-year average marketable yield
153
100
for each crop to determine the price (dollars per pound)
growers would need to receive for each crop in order to
0
Strawberry
Yellow Squash
Zucchini Squash
break even. Further analyses of breakeven prices were
conducted using various assumptions about the cost of labor, percentage of yield marketed and consumers’ willingness to pay breakeven prices.
Results and Discussion
Figure 2. Percent of Labor for the Strawberry/Squash Cropping System by
Three-year average marketable yields for strawberry and
yellow and zucchini squash crops were 518, 452 and 318
pounds per house, respectively (Figure 1). There was
substantial variation in yield between the two houses and
each crop experienced variation in yield across the three
years. This is an indication that growers can expect production risk from year to year when growing strawberry
and squash crops. Additionally, 21 percent (140 pounds)
of strawberry, 16 percent (84 pounds) of yellow squash
and 42 percent (228 pounds) of zucchini squash were
culled, on average, due to fruit damage and deformities.
Fruit and vegetable production in hoop houses is labor
intensive. On average, the strawberry/squash cropping
system required 114 hours of labor per house. More than
half of the labor hours were used to perform routine crop
care during the growing season and harvest crops (Figure
2). When evaluated as individual crops, strawberry and
yellow and zucchini squash required, on average, 77, 19
and 18 hours of labor per house, respectively. Routine
crop care required the greatest amount of labor for each
crop (Figures 3, 4 and 5) while planting required the least
amount of labor for each crop. However, growers should
not underestimate the amount of labor required prior
to planting. For example, pre-planting required approximately 23 percent of labor for strawberry.
The average total cost of production for the strawberry/squash cropping system was $3,461 per house
(Figure 6). On average, operating expenses accounted
for $1,520 per house while $1,941 per house was associated with fixed costs for depreciable assets. Specifically,
2
Figure 2. Percent of Labor for the Strawberry/Squash
Cropping
Category
System by Category
7.73%
7.91%
114 total hours
17.22%
Pre-planting
5.92%
Planting
Crop care
17.62%
Hoop house m
Harvesting
Sorting and p
Post-crop cle
7.52%
36.09%
Figure 3. Percent of Labor for Strawberry by
Figure 3. Percent of Labor for Strawberry by Category
77 total hours
7.29%
9.01%
22.64%
Pre-planting
Planting
Crop care
17.67%
7.24%
Hoop house
Harvesting
Sorting and p
Post-crop cle
9.07%
The Samuel Roberts Noble Foundation
27.07%
ECONOMICS
FORAGE
Figure
4. 4.
Percent
of Labor
for Yellow
Squash by
Category
Figure
Percent
of Labor
for Yellow
Squash
by Category
Figure
Percent
of Labor
for Zuchinni
Squash
by Category
Figure 5.5.Percent
of Labor
for Zuchinni
Squash by
Category
19 total hours
8.51%
5.72%
18 total hours
8.77%
3.10%
5.83%
5.90%
3.20%
5.35%
18.41%
Pre-planting
Pre-planting
Planting
Planting
Crop care
16.59%
Hoop house maintenance
Crop care
Harvesting
Harvesting
Hoop house m
Sorting and packaging
4.17%
Post-crop cleanup
Sorting and pa
4.30%
Post-crop clea
54.25%
55.90%
Legend for Pie Graphs
Pre-planting
Planting
Crop care
Hoop house maintenance
Harvesting
Sorting and packaging
Post-crop cleanup
Figure 6. Cost of Production for Strawberry, Yellow and Zucchini Squash, and the Strawberry/Squash Cropping System by Expense
Category (dollars per house)
Expense Category
Zucchini Squash
Strawberry/Squash
Cropping System
Strawberry
Yellow Squash
Fertilizers (N, P, K)
10.46
5.75
5.75
21.96
Seeds and plants
365.33
24.93
27.33
417.59
10.98
1.84
1.84
14.66
Packaging supplies
144.99
13.56
9.54
168.09
Labor
582.30
140.00
136.10
858.40
37.00
1.24
1.20
39.44
1,151.06
187.32
181.76
1,520.14
House, beds, plastic and windbreaks
792.76
69.95
69.95
932.66
Work truck (50% allocation)
566.67
50.00
50.00
666.67
Tiller, sprayers and other equipment
85.05
20.24
20.24
125.53
Irrigation system
62.42
6.10
6.10
74.62
Harvest and cleaning equipment
22.20
11.10
11.10
44.40
Miscellaneous tools and equipment
69.25
14.03
14.03
97.31
Total Fixed Costs
1,598.35
171.42
171.42
1,941.19
Total Cost of Production
2,749.41
358.74
353.18
3,461.33
Operating Costs:
Pesticides and herbicides
Interest on operating costs
Total Operating Cost
Fixed Costs for Depreciable Assets:
The Samuel Roberts Noble Foundation
3
FORAGE
ECONOMICS
the four largest input categories were fixed costs for the
hoop house, growing beds, plastic and windbreaks ($933);
labor ($858); partial use of a work truck ($667); and seeds
and plants ($418). When evaluated as individual crops, the
average total cost of production for strawberry ($2,749)
was greater than the average total cost of production for
yellow squash ($359) and zucchini squash ($353).
To break even, profit-minded growers who are able to
market 100 percent of the average marketable yield and
who value owner/operator labor would need to receive
$5.31, 79 cents and $1.11 per pound of strawberry, yellow squash and zucchini squash, respectively (Figure
7). In other words, growers would need to receive the
breakeven price for each pound of marketable strawberry,
yellow squash and zucchini squash yield in order to pay all
expenses, including owner/operator labor and fixed costs
associated with depreciable assets. The breakeven price
for each crop decreases when the cost of labor is excluded.
Specifically, growers who are able to market 100 percent of
the average marketable yield and who do not place a value
on owner/operator labor would only need to receive $4.18,
48 cents and 68 cents per pound of strawberry, yellow
squash and zucchini squash, respectively, to break even.
Results show the breakeven price for each crop increases as the percentage of marketable yield sold de-
creases. Growers who choose to withhold 50 percent of
produce for household consumption (or growers who lose
half of produce due to post-harvest waste) and who place
a value on owner/operator labor would need to receive
$10.62, $1.59 and $2.22 per pound of strawberry, yellow
squash and zucchini squash, respectively, to break even.
However, consumers may not be willing to pay prices that
allow growers to break even. For the strawberry/squash
cropping system to break even, the price for the second
crop (squash) must increase if consumers are unwilling
to pay breakeven prices for the first crop (strawberry). For
example, growers would need to receive $2.90 per pound
of yellow squash and $4.07 per pound of zucchini squash
in order to break even when consumers are only willing to
pay $3 per pound of strawberry (Figure 8).
Summary
The strawberry/squash cropping system does not appear to be viable when grown in hoop houses. Results
suggest that growers can expect substantial production risk from year to year due to relatively inconsistent
strawberry and squash yields. Quick-maturing fruit and
fruit color that blends with plant foliage is suspected
to be one of the reasons for yield variability in zucchini
squash, but there is still a large amount of unexplained
Figure 7. Breakeven Prices for Strawberry, Yellow Squash and Zucchini Squash by Assumed Expense and Marketing Scenarios
(dollars per pound)
% Marketable Yield Sold; Labor Expense
Strawberry
Yellow Squash
Zucchini Squash
100%; with labor
5.31
0.79
1.11
75%; with labor
7.08
1.06
1.48
50%; with labor
10.62
1.59
2.22
100%; without labor
4.18
0.48
0.68
75%; without labor
5.58
0.65
0.91
50%; without labor
8.37
0.97
1.37
Figure 8. Squash Breakeven Prices by Consumers’ Willingness to Pay for Strawberry and by Assumed Expense and Marketing
Scenarios (dollars per pound)
Consumers’ willingness to pay for strawberry
% Marketable Yield Sold; Labor Expense
$3.00
$4.00
$5.00
Yellow Squash: 50%; with labor
$2.90
$2.62
$2.34
Zucchini Squash: 50%; with labor
$4.07
$3.68
$3.29
Yellow Squash: 50%; without labor
$1.97
$1.69
$1.41
Zucchini Squash: 50% without labor
$2.77
$2.38
$1.99
4
The Samuel Roberts Noble Foundation
ECONOMICS
FORAGE
variation in both strawberry and yellow squash. The
strawberry/squash cropping system is anticipated to present growers with production and marketing challenges.
However, growers interested in producing strawberries
and squash may find these challenges acceptable. On
the other hand, growers with profit-related goals are
cautioned about implementing the strawberry/squash
cropping system and are advised to carefully evaluate
market outlets and consider other cropping systems
that are more suitable when grown in hoop houses. <
References:
1. Blomgren, T., and T. Frisch. “High Tunnels: Using Low Cost
Technology to Increase Yields, Improve Quality and Extend
the Season.” Center for Sustainable Agriculture, University of
Vermont, 2007. Internet site: www.uvm.edu/sustainableagriculture/Documents/HighTunnels.pdf (Accessed July, 2010).
2. Conner, D.S., K.B. Waldman, A.D. Montri, M.W. Hamm, and J.A. Biernbaum. “Hoophouse Contributions to Economic Viability: Nine
Michigan Case Studies.” HortTechnology 20,5(2010):877-884.
3. Demchak, K. “Small Fruit Production in High Tunnels.” HortTechnology 19,1(2009):44-49.
4. Giacomelli, G. A. “Engineering Principles Impacting High-tunnel Environments.” HortTechnology 19,1(2009):30-33.
5. Lamont, W. J. Jr., and M.D. Orzolek. “2003 High Tunnel Production Manual.” Center of Plasticulture, Pennsylvania State
University (2003).
6. Upson, S. “Hooping It Up: Observations from Two Years of
Hoop House Vegetable Trials.” Ag News and Views, 1998. Internet site: www.noble.org/Ag/Horticulture/HoopVeggieTrials
(Accessed December, 2010).
The Samuel Roberts Noble Foundation
5
The Samuel Roberts Noble Foundation
2510 Sam Noble Parkway
Ardmore, Oklahoma 73401
Phone: (580) 223-5810
www.noble.org
©2012 by the Samuel Roberts Noble Foundation