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Bedding Plants
Greenhouse Costs of Production Budget

  Annual total Cost per sq. ft. week of bench
     
Overhead labor & benefits $63,000  $0.079 
UTILITIES    
    Heating fuel (13,420 gal.) 13,420  0.017 
    Electricity 1,935  0.002 
    Telephone 1,273  0.002 
Depreciation 25,000  0.031 
Interest 15,000  0.019 
Insurance 4,852  0.006 
Repairs 12,409  0.015 
Property taxes 769  0.001 
Advertising 716  0.001 
Dues & subscriptions 344  0.000 
Travel & entertainment 1,697  0.002 
Office expenses 796  0.001 
Professional fees 1,000  0.001 
Truck expenses & equipment rental 14,000  0.017 
Land rental 1,565  0.002 
Contributions 400  0.000 
Miscellaneous 2,800  0.003 
Bad debts 700  0.001 
     
Total $161,675  $0.200 
1. 20,000 sq. ft. double layer, polyethylene greenhouse.

 

 

Table 2. Labor inputs for seedling production.
 

  Barerooted  Time (seconds per flat) 
  Small  Med.  Large  Small  Med.  Large 
            Non Auto  Auto 
Seedling stage              
Fill flat 35  37  22  24  49  47  47 
Seed and move to germination area 144  162  85  103  140  81  81 
Move to greenhouse 16  40  33  36  29  14  14 
Irrigate 14  14  14 
Move to work area 40  30  67  46  51  25  25 
               
Total 249  283  213  223  276  172  172 
               
Finished flat stage              
Fill flat 45  120  35  36  44  66 
Transplant and move              
to greenhouse 209  180  191  76  187  137  108 
Irrigate 99  78  62  84  66  53  53 
Spray growth regulator 14  10  14  10 
Spray pesticide 14  14 
               
Total 381  390  292  224  309  260  169 
 

 

Table 3. Seedling production costs 
 

  Conventional  Plug 
  Small  Med.  Large  Small  Med.  Large 
             
Seeds1 $12.50  $10.80  $10.00  $3.60  $3.11  $2.88 
Tray 0.47  0.42  0.38  0.59  0.32  0.47 
Medium 0.46  0.42  0.37  0.15  0.14  0.14 
Fertilizer 0.01  0.01  0.01  0.01  0.01  0.01 
Labor 0.55  0.61  0.46  0.48  0.60  0.37 
Interest on Variable costs2 0.63  0.55  0.50  0.22  0.19  0.17 
Overhead-costs3  0.98  0.73  0.70  2.95  2.18  2.10 
Total per flat $15.60  $13.54  $12.42  $8.00  $6.55  $6.14 
Total per seedling $0.03  $0.03  $0.02  $0.03  $0.03  $0.02 
1. 555 seeds planted per conventional flat and 288 per plug flat. Germination rate is assumed to be 90%.
2. Interest rate is assumed to be 9% for 6 months.
3. Overhead costs are calculated using $0.200, $0.148, and $0.142 per square foot-week, respectively for small, medium, and large greenhouses. It is assumed that a flat uses 1.64 square feet x 3 weeks for bare root seedling flats and 9 weeks for plug flats.

 

 

Table 4. Finished flat production costs using grower produced plugs
 

  Barerooted  Plug Produced in 288-cell Tray 
  Small  Med.  Large  Small  Med.  Large 
            Non Auto  Auto 
Variable costs              
Seedings1 $1.08  $1.08  $0.72  $1.08  $1.08  $0.72  $0.72 
Flat 0.47  0.42  0.38  0.47  0.42  0.38  0.38 
Insert 0.29  0.25  0.23  0.29  0.25  0.23  0.23 
Rooting medium 0.37  0.36  0.35  0.37  0.36  0.35  0.35 
Label 0.15  0.13  0.12  0.15  0.13  0.12  0.12 
Fertilizer 0.03  0.02  0.02  0.03  0.02  0.02  0.02 
Growth regulator 0.03  0.02  0.02  0.03  0.02  0.02  0.02 
Pesticide 0.01  0.01  0.01  0.01  0.01  0.01  0.01 
Labor 0.85  0.87  0.65  0.50  0.69  0.58  0.38 
Interest on variable cost 0.15  0.14  0.11  $3.06  $3.11  $2.54  $2.33 
               
Total variable costs $3.42  $3.30  $2.61   $3.06  $3.11  $2.54  $2.33 
Overhead costs2 2.62  1.94  1.86  0.66  0.49  0.47  0.47 
Loss allocation3 0.32  0.28  0.24  0.20  0.19  0.16  0.15 
Total per flat $6.37  $5.52  $4.71  $3.91  $3.79  $3.16  $2.94  
1. 36 seedlings per finished flat.
2. Overhead costs are calculated at $0.200, $0.048, and $0.142 per square foot-bench-week for small, medium, and large greenhouses respectively. It is assumed that a flat uses 1.64 square feet of bench area per week and production takes 8 weeks for barerooted flats and 2 weeks for plug flats.
3. Based on a 5% loss.

 

 

Table 5. Finished flat production costs using purchased plugs.
 

  Plug Purchased in 288-cell tray  Plug Purchased in 512-cell tray 
  Small  Medium  Large  Small  Medium  Large 
      Non Auto Auto     Non Auto Auto
Variable costs                
Seedlings1 $2.52  $2.16  $1.98  $1.98  $1.80  $1.62  $1.44  $1.44 
Flat 0.47  0.42  0.38  0.38  0.47  0.42  0.38  0.38 
Insert 0.29  0.25  0.23  0.23  0.29  0.25  0.23  0.23 
Rooting medium 0.37  0.36  0.35  0.35  0.37  0.36  0.35  0.35 
Labels 0.15  0.13  0.12  0.12  0.15  0.13  0.12  0.12 
Fertilizer 0.03  0.02  0.02  0.02  0.03  0.02  0.02  0.02 
Growth regulator 0.03  0.02  0.02  0.02  0.03  0.02  0.02  0.02 
Pesticide 0.01  0.01  0.01  0.01  0.01  0.01  0.01  0.01 
Labor 0.50  0.69  0.58  0.38  0.50  0.69  0.58  0.38 
Interest on Variable costs  0.20  0.18  0.17  0.16  0.16  0.16  0.14  0.13 
                 
Total variable costs $4.46  $4.24  $3.85  $3.64  $3.81  $3.67  $3.29  $3.08 
Overhead costs2 0.66  0.49  0.47  0.47  1.64  1.21  1.16  1.16 
Loss allocation3 0.27  0.25  0.23  0.22  0.29  0.26  0.23  0.22 
Total per flat $5.50  $4.97  $4.55  $4.32  $5.74  $5.15  $4.61  $4.47 

NOTES:
1. 36 seedlings per finished flat.
2. Overhead costs are calculated at $0.200, $0.048, and $0.142 per square foot-bench-week for small, medium, and large greenhouses, respectively. It is assumed that a flat uses 1.64 square feet of bench area per week and production takes 2 weeks for flats using plugs from a 288-cell tray and 5 weeks for flats using plugs from a 512-cell tray.
3. Based on a 5% loss.

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