Summary
The economic studies for the selected crops (watermelon, eggplants, fall and spring sweet corn) were developed to determine the net return for each crop. They will serve as a guide to Georgia and neighboring states vegetable growers and financial institutions as well.
Situation
The Georgia vegetable industry is dynamic and growing rapidly despite enormous risk and challenges. There are over 35 different vegetables currently grown in the state and the 2010 farm gate value was $752 million. Economic analysis is a necessary and sufficient condition for growing commercial vegetables. Financial and other institutions and stakeholders are interested in enterprise budgets to determine which crops to grow based on their financial lucrativeness. Some banks and lenders also interested in these budgets prior to making loan decisions to growers. It is as a result of all these uncertainties and risks associated with producing perishable crops such as vegetables that exacerbated the need for developing selected vegetable enterprise budgets for these studies. Our selected vegetables are watermelon, eggplant, fall and spring sweet corn respectively. Together, these budgets generated $186 million equivalent to 24.7% of the total 2010 Georgia Farm Gate Value.
Response
Prices of commercial vegetable production inputs fluctuate significantly. Retail and growers prices are also difficult to forecast. Pest, disease and other factors such as weather all have significant impact on prices. Primary and secondary data was collected to accomplish these works. Primary data was directly obtained from watermelon, eggplant and sweet corn growers. Additional primary data was obtained from machinery, chemical and fertilizers vendors. Price data was obtained from growers, The Parker Magazine and USDA respectively.
Impact
Our studies show that the total cost of producing watermelon was $5,840 while the total net return was $871. The total cost of producing eggplant was $10,634 with a net income of $1,366. On the other hand, the fall and spring total cost of producing spring sweet corn were $3,317 and $3, 525. The net returns were $1,183 (fall) and $1,275 (spring). There was no significant difference in the fall and spring total cost of production and net returns for sweet corn. With good prices and quality the chances of favorable returns to the grower is positive. The three selected vegetables generated $185.8 million equivalent to 24.7% of the total 2010 Georgia farm gate value. These economic studies serve a guide to this $186 million industry.
State Issue
Agricultural Profitability and Sustainability
Details
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Year:
2013
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Geographic Scope:
Multi-State/Regional
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County:
Tift
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Program Areas:
- Agriculture & Natural Resources
