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Pumpkins for Profit?:
Enterprise Budgeting
Danny Morris – Area Farm
Management Specialist
Steps to Profitable Pumpkin Production
1. Find a market.
2. Use well-drained soils.
3. Use raised beds.
4. Soil test for lime, fertilizer, and nematicide needs.
5. Lime to pH 6.0 to 6.5.
6. Choose a variety that sells in your area.
7. Allow soil to warm to 60°F before planting.
8. Space plants for harvest purposes.
9. Plant for harvest time, not too early.
10. Provide bees.
11. Control cucumber beetles and other insects.
12. Control weeds.
13. Spray for mildews.
14. Prune for large fruit if market demands.
15. Allow skin to harden before harvest.
-Source: North Carolina Cooperative Extension
How do we produce a profit in
pumpkins?
Gross Revenues – Expenses = Net Profit
Which part of this equation do you have more control over?
What influences revenues?
• Yield of pumpkins
– Different varieties yield differently
• Varieties of pumpkins produced
– Small, medium, large, or other varieties
• Methods of marketing pumpkins
– Wholesale, retail, pick your own, etc.
Revenue Factor: Yields
• Yield of varieties can vary greatly– For example, small varieties will typically yield less
tonnage than larger types on a per acre basis.
• We will look at few examples of this in a moment.
• Soil type, fertilizer rates, and water availability will dictate overall yields.
• Pests and diseases must be controlled to maximize yield.
• Competition from weeds. – Plasticulture can help control weeds.
• All of these factors have costs associated with them.
Revenue Factor: Yields
• All of the factors that impact yield have costs associated with them.
• When trying to maximize yields, often costs begin to rise. – Irrigation is costly
– Higher fertilizer rates increase expenses
– Plasticulture requires additional labor
– Fungicides are not cheap
• Enterprise budgeting can help to evaluate all of these costs.
Revenue Factors: Variety
• Tonnage produced can vary greatly
between varieties.
• Certain markets prefer specific varieties.
– Retail outlets prefer jack o’ lantern varieties.
– Homeowners that use them for fall displays
desire a variation of shapes and sizes.
• Some varieties are resistant to certain
diseases and mildews
Source: 2015 Pumpkin Cultivar Trials, Schultheis, Wszelaki, & Moore, UT Extension and N.C. State University
Let’s look at the wide range in yields between different varieties.
Revenue Factors: Method of
Marketing Pumpkins
• Wholesale
– Supply larger quantities to commercial
customers at a lower price than retail
– Contract sell to distributors, chain stores, etc.
– Sell wholesale at the local level:
• Local grocery stores
• Local nurseries
Revenue Factors: Method of
Marketing Pumpkins Cont’d.
• Retail
– Pick-your-own method of sale• Can be combined with other activities such as hay
rides and/or a fall festival to add on sales
• Reduces harvest labor expense, but creates an additional liability for the business owner
– Road side stand • Location, location, location
• Labor expense may increase from having to pay an attendant to watch over pumpkins
– Expense will be larger if produce has to be moved
Revenue Factors: Method of
Marketing Pumpkins• Unit of sale is important
– Do you sell by the pound?
– Or should you sell by the unit?
• By the pound:– Requires that an attendant be there to weigh at
point of sale
– More profitable?
• By the unit: – Less time and effort as you do not have to weigh
produce at point of sale
– Less profitable?
Steps to Profitable Pumpkin Production
1. Find a market.
2. Use well-drained soils.
3. Use raised beds.
4. Soil test for lime, fertilizer, and nematicide needs.
5. Lime to pH 6.0 to 6.5.
6. Choose a variety that sells in your area.
7. Allow soil to warm to 60°F before planting.
8. Space plants for harvest purposes.
9. Plant for harvest time, not too early.
10. Provide bees.
11. Control cucumber beetles and other insects.
12. Control weeds.
13. Spray for mildews.
14. Prune for large fruit if market demands.
15. Allow skin to harden before harvest.
-Source: North Carolina Cooperative Extension
We have covered the revenue factors
from this list. Now let’s focus on
expenses.
Expenses: Site Selection
• Site selection is important as the soil profile
can dictate overall yield potential.
– Look for sites that are well drained
• Soil test to determine the pH and fertilizer
requirements.
– Optimum pH is between 6.0 to 6.5.
• Be mindful of acreage that may have been
planted in other cucurbits within past 2 years.
– Prevents soil borne diseases from being an issue.
Expenses: Site Selection Cont’d.
• Be sure that site selection will allow for the following:
– Area to accommodate adequate row spacing
– Easily accessible with the needed equipment
– Access to water for irrigation
– Slope is sufficient for irrigation and/or plasticulture; avoid low spots.
• Be mindful of land costs (i.e. rent).
• Advise to use raised beds, which will require tillage equipment.
Expenses: Equipment
• Equipment costs:
– All tillage and harvesting equipment have
costs associated with them.
• Plasticulture will require additional equipment
• Even if equipment is older, there will be
maintenance expenses and fuel costs.
Expenses Related to Site Prep and
Planting
• Soil Test
• Fertilizer and Lime
• Tillage
– Equipment expenses (i.e. fuel and repairs)
• Plastic Mulch
• Seed
Expenses: Pollinators
• Honey bees are crucial to a complete pollination and fruit set.
• One hive per acre is recommended for maximum fruit production.
• Pollinator populations can be negatively impacted by insecticides.
– Natural hives do exist and pollinators may not be needed.
– However, bees can be rented if need be.
Expenses: Pesticides
• Pesticides are not cheap!– Herbicides, insecticides, and fungicides expenses
combined can exceed $500/acre.
• Proper application can greatly impact overall yield of crop. – Weeds
• Early cultivation and a thick canopy can reduce weeds.
– Diseases• Powdery mildew, downy mildew, etc.
– Insects• Cucumber beetles, aphids, mites, etc.
Expenses: Labor
• Pumpkins are a very labor intensive crop.
• Plasticulture will add to labor expense.– Mulch laying and removal
• Spraying crew
• Harvest labor– Can vary greatly between operations and method of selling
• Pick-your-own greatly reduces harvest labor
– H2A labor may be an option for larger growers
• Marketing labor– Selling method will impact labor required to market your
pumpkins • Wholesale will tend to require less help than retail at the point of
sale
Expenses: Overhead and Fixed
Expenses • This will vary greatly between operations.
• Overhead will try to account for expenses that cannot be easily traced, such as expenses related to facilities. – Example budget will assume 0.5% of total variable
expenses.
• Fixed Expenses serve to:– Capture depreciation expense of equipment
• Could be called “cost of ownership”
– Capture interest on equipment notes
– Account for land costs
– Include a cost for management’s time and labor
Other Things to Consider
• When planting, consider soil temperatures
so that germination of seed is successful.
• Consider row spacing not only for plant
growth, but for harvest as well.
• Plant at a time when harvest will be during
peak selling season.
• Allow fruit skin to harden sufficiently in
order to reduce harvest loss.
Steps to Profitable Pumpkin Production
1. Find a market.
2. Use well-drained soils.
3. Use raised beds.
4. Soil test for lime, fertilizer, and nematicide needs.
5. Lime to pH 6.0 to 6.5.
6. Choose a variety that sells in your area.
7. Allow soil to warm to 60°F before planting.
8. Space plants for harvest purposes.
9. Plant for harvest time, not too early.
10. Provide bees.
11. Control cucumber beetles and other insects.
12. Control weeds.
13. Spray for mildews.
14. Prune for large fruit if market demands.
15. Allow skin to harden before harvest.
-Source: North Carolina Cooperative Extension
We have covered most of the
expenses on this list. Now, let’s look at
an enterprise budget example…
Enterprise Budgeting Example
• We are going to look an example of an
enterprise pumpkin budget.
• Marketing method that will be evaluated
will be wholesale.
• Example is based on information gathered
from UT Extension Research and Penn
State Extension’s Pumpkin Sample
Budget.
Budget Assumptions
• Example is based on a plasticulture operation.
• All variable expenses are derived from UT
Extension and Penn State Extension research.
• Fixed expenses are based on Penn State
Extension research with a few modifications.
– Remember: Fixed expenses will vary greatly between
each operation.
WholesaleExample
Estimated Cost and Returns per Acre of Establishing and Producing Pumpkins
Item Quantity Unit Price
Receipts
Wholesale pumpkins 27,000 pounds $0.19 $5,130.00
Variable Costs
Custom
Soil Test 1 kit $8.00 $8.00
Applying calcium lime 0.5 ton $30.00 $15.00
Pest scouting 1 acre $35.00 $35.00
Fertilizer spreading 1 acre $7.00 $7.00
Bee rental 1 acre $75.00 $75.00
Moldboard plowing 1 acre $22.00 $22.00
Disking 2 acre $19.93 $39.86
Harrowing / Do-All / Rear Tine Till 1 acre $13.00 $13.00
Fertilizer/lime 1 acre $122.08 $122.08
Herbicide 1 acre $37.38 $37.38
Fungicide 1 acre $458.92 $458.92
Insecticide 1 acre $81.60 $81.60
Plastic mulch 1 acre $115.24 $115.24
Drip tape 7260 feet $0.03 $181.50
Pumpkin seed 1 acre $319.58 $319.58
Labor
Mulch laying 10 hour $11.72 $117.20
Mulch removal (end of season) 11.81 hour $11.35 $134.04
Hand labor 3.375 hour $10.93 $36.89
Spray crew (fertilizer and chemicals) 9.383 hour $10.80 $101.34
Harvest labor 35.33 hour $11.62 $410.53
Fuel and lubricants 52.49 gallon $2.35 $123.35
Repairs & maintenance 1 acre $111.02 $111.02
Marketing 1 acre $255.00 $255.00
End of season clean-up
Mulch removal and disposal (labor) 12 hour $10.38 $124.56
Plastic mulch disposal 1.00 acre $17.62 $17.62
Overhead 1 acre $88.48 $88.48
Interest on operating capital 1 acre $94.30 $94.30
Total variable costs $3,145.49
Fixed Costs
Depreciation
Irrigation System 1 acre $20.00 $20.00
Machinery & Equipment 1 acre $87.10 $87.10
Interest
Irrigation System 1 acre $20.00 $20.00
Machinery & Equipment 1 acre $87.10 $87.10
Land charge 1 acre $160.00 $160.00
Insurance cost (all farm) 1 acre $100.00 $100.00
Management 1 acre $200.00 $200.00
Total fixed costs $674.20
Total costs $3,819.69
Net returns $1,310.31
No-Till Pumpkin Production
• Based off of Penn State Extension’s
budgets as UT Extension does not have a
No-Till Pumpkin Production budget.
• Key differences occur in the following:
– Harvest Labor
– Tillage costs
– Herbicide expense
Sample No-Till Budget: Penn State Extension
Sample Plasticulture Budget: Penn State Extension
No-Till Production vs. Plasticulture
• Differences in cost must be considered.
• Equipment availability, or lack thereof, will
determine profitability.
• Information on comparing the two
production methods is limited.
Conclusion
• Marketing methods will cause gross revenues
to fluctuate greatly between each operation.
– Wholesale vs. Retail
– Per Unit or Per Pound
• Costs of production will vary dependent upon
pesticide applications, equipment needs, and
labor.
• A UT Extension sample pumpkin budget is
being developed to assist producers.
Questions/Comments
Danny Morris
UT Extension
Area Farm Management Specialist
Email: danhmorr@utk.edu
Phone: 731-855-7656
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