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ECONOMICS OF GREENHOUSE PRODUCTION IN ALASKA

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ECONOMICS OF GREENHOUSE PRODUCTION IN ALASKA ( economics-greenhouse-production-in-alaska )

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A complete list of construction and durable goods costs needed for construction and maintenance of the greenhouse is shown in Table 2. A straight-line depreciation is used. Interests are charged on the average investment, using a rate of 10%. Insurance is assumed to be 1.3% of the original investment. Construction Original Cost Total Construction Cost $105,386 Durables Total Durable Goods $23,917 Total Greenhouse Construction & Durables $129,303 Utility hook-ups (electrical, heat) (19) 5,000 Cost fresh water well & hook up (20) 4,000 Total Greenhouse Investment $138,303 * Interest Rate (%) = 10 ** Ins. Rate (%) = 1.3 Life-Yrs. Depreciation $10,378 $4,890 $15,268 1,000 200 Interest* $5,269 $1,196 $6,465 250 200 Ins.** Annualized $1,370 $17,017 $311 $6,397 $1,681 $23,414 65 1,315 52 452 Buying Property (01) 0 100 0 0 0 0 Licenses (02) 0 100 0 0 0 0 Greenhouse Frame (60ft x 72ft) (03) 20,188 20 1,009 1,009 262 2,281 Warehouse & Packing Plant on site (04) 16,600 10 1,660 830 216 2,706 Controller (05) 5,500 10 550 275 72 897 Floor (insulation, concrete slab, paint) (06) 9,035 10 903 452 117 1,473 Floor Heating System (07) 1,302 10 130 65 17 212 Water Tank (08) 1,248 7 178 62 16 257 Irrigation/Fertigation (hydroponic structure & equipment) (09) 24,555 10 2,456 1,228 319 4,003 Electrical Installation (10) 6,005 10 601 300 78 979 Miscellaneous Supplies (00) 7,952 5 1,590 398 103 2,091 Labor (Const. & Equip. Install.) (11) 13,000 10 1,300 650 169 2,119 Roof & Walls (12) 799 3 266 40 10 317 Plumbing Hot Water (13a) 2,835 5 567 142 37 746 Plumbing Fresh Water (13b) 356 5 71 18 5 94 Plumbing MISC (13c) 2,130 5 426 106 28 560 Extra Cooling Fans & Environmental Control (14) 147 5 29 7 2 39 Lights (15) 16,800 5 3,360 840 218 4,418 Other Durable Goods (16) 850 5 170 42 11 223 5 20 Table 2: Greenhouse Investment Cost for Lettuce Production 3.2 Operation and Maintenance Costs Lettuce is grown hydroponically and could be made available year-round, with an average time from seed to harvest of 30 days. The production cycle is shorter in the summer and longer in the wintertime and also depends on the variety of lettuce used. 6

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