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Figure 4: Rock Wool Sheet with Lettuce Seedlings The enterprise budget with its assumptions is presented in Table 3. The greenhouse would need to be staffed with a minimum of two full-time, salaried employees. One would be the Greenhouse Production Manager; the second would be the Marketing Manager. There would be some overlap in their responsibilities. Salaries are expected to be approximately $40,000 per year, or approximately $125,000 total labor cost. Total annual labor, accessories, and material input (nutrients, beneficial insects, seeds, and rock wool) cost approximately $172,000. The heating needs of the greenhouse are highest in October through March and are expected to average approximately 500,000BTU/h. This is equivalent to about 75 gallons of fuel oil per day. The model assumes that the ―waste heat‖ from the geothermal resource is sold to the greenhouse operation at a stable, long-term rate which compares favorably to fuel oil. This is mutually beneficial as long-term economic projections can be made for the installation without being effected by fluctuations in fuel oil.2 Heating costs represent an expense of $23,650 to the greenhouse facility if the heat is purchased for the equivalent of $1.50 per gallon of heating oil. In comparison, the average cost of heating fuel in Interior Alaska in 2006 was $3.73 (DCED 07, p. 3). 2 The same argument is used for electricity costs. 8PDF Image | ECONOMICS OF GREENHOUSE PRODUCTION IN ALASKA
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