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market-farming - Re: [Market-farming] Why do it II

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  • From: JOHN A HENDRICKSON <jhendric AT wisc.edu>
  • To: Market Farming <market-farming AT lists.ibiblio.org>
  • Subject: Re: [Market-farming] Why do it II
  • Date: Fri, 25 Apr 2008 08:11:22 -0500

Certainly much is possible and it is very encouraging that this type of
research is being conducted. I would never say that $90K per acre is
impossible. However, Bill's hypothetical tomato example and comments are
well-reasoned and on target. A tremendous amount of product and even sales
can be generated per acre for horitcultural crops. As Bill notes, the $90K
and $5K figures are not "profit" but gross sales. Expenses on a fruit and
vegetable farm are very high, especially labor...and especially labor on the
type of crops the Ohio researcher is investigating (berries, asparagus,
etc.). Net income may be as low as 15-25% of gross for some vegetable
operations. Net might also be has high as 50-60% of gross. It is also worth
mentioned that upfront investment (equipment, facilities, plant stock, etc.)
can also be considerable.

It has been mentioned before on this list, but for an economic look at some
real life examples of organic vegtable farms, see:
http://www.cias.wisc.edu/pdf/grwr2grwr.pdf

-John




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