Economic Analysis of Small-scale Greenhouse Tomato Production in Florida

The number of greenhouse vegetable growers in the United States more than doubled between 2007 and 2012, and total greenhouse vegetable production area increased from 62 million to 98 million square feet. Greenhouses provide opportunities to extend production seasons, increase yields per acre, and reduce production risks. Economic viability of greenhouse vegetable production in Florida can be a challenge, however, and prospective growers seek information on production costs and potential returns for various crops and systems. Based on University of Florida/IFAS tomato production demonstrations, research reports, information from input suppliers, and discussions with growers, we conducted an economic analysis of cluster tomato production in a single-bay, fan-and-pad greenhouse. The analysis includes an annual production budget, 10-year investment analysis, break-even analysis, and sensitivity analysis. These analyses demonstrate that the annualized greenhouse cost, labor costs, and energy costs account for about 60% of total costs and provide the greatest opportunity to find significant cost savings. Also, the tomato selling price must be higher than the average retail price in the southeastern U.S. for small-scale greenhouse tomato production to be profitable.