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Economics Working Group –Challenges and Accomplishments. Eric Belasco, Suzette Galinato, Tom Marsh, and Srinivasa Ponnaluru. June 1 st , 2011. Overview. Enterprise Budgets Tomatoes and lettuce under high tunnels for growers in WA Production and Risk
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Economics Working Group –Challenges and Accomplishments Eric Belasco, Suzette Galinato, Tom Marsh, and Srinivasa Ponnaluru June 1st, 2011
Overview • Enterprise Budgets • Tomatoes and lettuce under high tunnels for growers in WA • Production and Risk • Analysis of crop insurance and risk related issues. • Strategies for wind damage mitigation. • Cost-Benefit Analysis of BDM • Establishment of the monetary benefits (saving costs) and costs of the CBA. • CB Comparison of BDM film vs HDPE/LDPE film.
Enterprise Budgets • Accomplishments: • Tomato • High tunnel • Open field • Lettuce • High tunnel • To be accomplished: • Lettuce • Open field • Strawberry • High tunnel • Open field
Budget Benchmark • High tunnel as an add on to the existing farm. • Tunnel is 96 X 20 ft single poly, with 85% usable space • 2300 plants in 20 rows, at a 10 X 10’’ spacing • 75% marketable yield • Direct local sales, CSA, and local restaurants as market • 3 years of usable life on tunnel. • Drip irrigation
Production and Risk • Tasks accomplished: • Identification of different crop insurance options available for specialty crops (in the open field & under high tunnel). • Paper presentation at AAEA, Pittsburgh. • Tasks to be accomplished: • Evaluate profitability with and without crop insurance. • Evaluate profitability of using cover crops in high tunnel production, and compare BDM v conventional practices.
Wind Damage Mitigation • High tunnels act as damage abatement input • Wind speeds inside the tunnel are hypothesized to be lower than open field • High winds can damage high tunnel structure and the crop. • Extent of damage to HT depends on design, orientation, material and construction.
Wind Damage Mitigation • Damage to crop depends on type, stage of crop. • Product quality, quantity and time of maturity may also be affected. Objectives: • To identify if statistically significant differences in wind speed exist with in and outside tunnel. • To identify extent of damage to crops and the high tunnel stucture.
Cost-Benefit Analysis • Tasks accomplished : • The first three topics set the stage and provide information for the C-B analysis. • Dynamic model that reflects benefits, costs and rates of decay of pollutant (BD plastic) in soil. • The model can be used to assess net benefits associated with various rates of decay.
Cost-Benefit Analysis • Tasks to be accomplished: • Specify a damage function to model damages/effects on soil from BD plastic decay. • Enumerate benefits and costs associated with high tunnels – • Price premiums • Yield differences • Structural costs • Labor costs • Other associated costs. • Sensitivity analysis.
Summary… • Enterprise Budgets • Production and Risk • Cost-Benefit Analysis
Remaining Issues • Specification of a damage function for CB analysis • Obtain feedback on enterprise budgets • Obtain cost info. regarding expenses for • Initial high tunnel construction • Maintenance costs for repairs from hail, wind, and flooding • Ensure accurate use of field data (yields)
