2016 Crop Costing Examples and Budget Categories
Jello Mold Farm
Because 80% of flowers sold in the US are imported (with labor as cheap as $10.00 or
less per day) the local flower farmer faces some tricky challenges in running a profitable
business. We have found that labor costs are the “make or break” line item for most of
the crops we grow. We value labor on our farm at a cost of $20.00 per hour (including
our own) so analyzing inputs is critical in choosing which crops to grow profitably. These
examples are inspired from Richard Wiswall’s The Organic Farmer’s Business
Handbook.
CROP COSTING EXAMPLE 1: TRANSPLANTED SUNFLOWERS 100’ X 3’
field bed, 6” spacing, soil blocked in standard flats of 50, total of 1200 plants needed,
started in greenhouse and transplanted out. Harvested and sold as 5 stem bunches.
1. Seed starting costs $192.99
a. cost of seed .03 cents per seed X 1,380 seeds (28 flats) = $41.40 (planting 15%
extra to allow for germination failure.)
b. cost of growing medium and amendments = $1.84 X 28 flats = $51.52. (1
wheelbarrow full of starting medium makes 10.5 flats for soil blocking and costs
$19.31 in materials. It contains 1/2 bale of Sunshine #4 mix potting soil ($15.50)
plus 2 cups Walt’s organic fertilizer ($1.31) and 2 cups kelp meal ($1.00) plus 2
gallons special homemade compost ($1.50). Cost per flat = $1.84)
c. cost of utilities and greenhouse overhead = $12.07 (ball parked.)
d. cost of labor to mix medium, make soil blocks and plant seeds = $58.00. (28
flats at a rate of 10 flats per hour @ labor cost of $20.00 per hour.)
e. cost of labor to tend and maintain seedlings until transplant = $30.00.
2. Cost to grow from transplant to harvest stage $186.45
a. cost of amendments = $30.65. (22.5 lbs Nature’s Intent Organic fertilizer @
.20/lb = $4.50, 8.3 wheelbarrows compost @ 3.15 each = $26.15.)
b. cost of irrigation parts, trellis netting and watering = $35.80 (600’ drip tape @
.025 cents per foot plus irrigation parts = $18.00, 100’ trellis netting and stakes (reused) = $10.30, and electricity costs for running filtered well water est. $7.50.)
c. labor cost to prep planting bed, install driplines, transplant seedlings =
$100.00.(5 hrs @ $20.00/hr.)
d. labor cost to stake and net crop = $20.00. (No weeding required.)
3. Cost per bunch to produce up to harvest stage = $1.98.
a. total production costs for 100’ bed (sections 1 and 2 above) = $379.44.
b. number of 5 stem bunches you expect to harvest and sell from 100’ bed =
192. (This number is based on an expectation of harvesting and selling 80% of the
crop.)
c. production cost divided by number of bunches harvested = $1.98.
4. Overall cost per bunch to harvest the crop = $1.43
a. labor cost to harvest Rate of 16 bunches per hour @ $20.00/hr = $1.25 per bunch.
Includes time to prep solution in buckets, and handling of product in prep room and
cooler.
2016 Crop Costing Examples and Budget Categories
Jello Mold Farm
b. post harvest product costs = $.08 (.003 cents for 1 rubberband, and .078 for 1
farm brand twist tie per bunch = .11. )
c. cost of cooler, utilities and farm overhead = $.08 per bunch
5. Total pre delivery production cost per bunch of SUNFLOWERS = $3.41. This
number was obtained by adding production cost per bunch (section 3) plus cost per
bunch to harvest (section 4). $2.33 of this total cost is labor. Note: we no longer grow
this crop! Direct seeding in large quantities would likely bring the cost down
considerably - as long as you have the means of keeping seeds moist while
germinating, weed pressure can be managed and you have a reliable channel to sell
volume crop.
EXAMPLE CROP 2: FIELD DAHLIAS 100’ double row, 16” spacing in line,
wholesale tubers purchased and planted in spring. Harvested and sold as 3-5 stem
bunches.
1. Starting costs $388.40
a. cost of tubers $1.74 per tuber X 160 tubers (allowing for some duds) = $278.40
b. cost of growing medium, labor and overhead to pre-start tubers = $110.00. 8
crates, 20 tubers per crate with 1/4 bale of potting soil per crate = $64.00 (2 bales)
plus 2 hours labor @ $20 = $40 and cost of heat in prep room $6.00 (ball parked).
2. Cost to grow from field planting to harvest stage $201.35
a. cost of amendments = $44.55. (30 lbs Nature’s Intent Organic fertilizer (2
applications) @ .20/lb = $6.00, 1 application fish emulsion fertilizer $12.40, 8.3
wheelbarrows compost @ 3.15 each = $26.15.)
b. cost of irrigation parts, trellis netting and watering = $26.80 (300’ drip tape @
.025 cents per foot plus irrigation parts = $9.00, 100’ trellis netting and stakes (reused) = $10.30, and electricity costs for running filtered well water est. $7.50.)
c. labor cost to prep planting bed, install driplines, transplant pre-started
tubers = $50.00.(2.5 hrs @ $20.00/hr.)
d. labor cost to stake, net and maintain crop = $80.00. (1 hour weeding plus 1.5
hrs staking, .5 hrs fertilizing and 1 hr crop maintenance throughout the growing
season = 4 hours @ $20.00 per hour.)
3. Cost per bunch to produce up to harvest stage = $2.07.
a. total production costs for 100’ bed (sections 1 and 2 above) = $589.75.
b. number of 5-7 stem bunches you expect to harvest and sell from 100’ bed =
285. (Based on average yield per variety from previous year’s sales records.)
c. production cost divided by number of bunches harvested = $2.07.
4. Overall cost per bunch to harvest the crop = $1.21
a. labor cost to harvest Rate of 20 bunches per hour @ $20.00/hr = $1.00 per bunch.
Includes time to prep solution in buckets, and handling of product in prep room and
cooler.
2016 Crop Costing Examples and Budget Categories
Jello Mold Farm
b. post harvest product costs = $.11 (2 1-gal Chrysal #2 T-bag per 8 bunches @
.125 per T-bag = .031 per bunch plus .004 cents for 1 rubberband, and .078 for 1
farm brand twist tie per bunch = .11. )
c. cost of cooler, utilities and farm overhead = $.10 per bunch
5. Total pre delivery production cost per bunch of DAHLIAS = $3.28. $1.60 of this
total cost is labor. Note that successful wintering over of dahlias can yield
considerably more bunches per plant without additional tuber and labor costs.
EXAMPLE CROP 3: LILAC woody crop with 12+ year life expectancy. 100’ double
row, 4’ spacing in line, wholesale bare root plant starts, insignificant harvest for the first
five years. Harvested and sold as 3-5 stem bunches.
1. Starting costs $571.00
a. cost of 3-4’ bare root plant starts $8.50 per plant X 50 = $425.00
b. landscape cloth - 100’ X 6’ = $46.00
2. Twelve year cost to grow and maintain from field planting to harvest stage
$1,390.24
a. cost of amendments for twelve years = $177.24. (120 lbs Nature’s Intent
Organic fertilizer @ .20/lb = $24.00, 20 wheelbarrows compost @ 3.15 each =
$63.00, and 48 wheelbarrows wood chip mulch @ $1.88 each = $90.24.)
b. cost of irrigation parts and watering for twelve years = $293.00 (1,800’ soaker
drip line @ .025 cents per foot plus irrigation parts = $265.00 and electricity costs
for running filtered well water est. $28.00.)
c. total labor cost to prep bed, plant crop and install and replace driplines =
$480.00.(24 hrs @ $20.00/hr.)
d. labor cost to maintain crop over twelve years = $440.00. (12 hrs spreading
fertilizer, compost and mulch; 10 hrs pruning = 22 hours @ $20.00 per hour.)
3. Cost per bunch to produce up to harvest stage = $2.10
a. total production costs for 100’ bed (sections 1 and 2 above) = $1,961.24.
b. number of 3-5 stem bunches you expect to harvest and sell from 100’ bed =
934. (Based on 7 years average yield and sales.)
c. production cost divided by number of bunches harvested = $2.10
4. Overall cost per bunch to harvest the crop = $1.43
a. labor cost to harvest Rate of 17 bunches per hour @ $20.00/hr = $1.18 per bunch.
Includes time to prep solution in buckets, and handling of product in prep room and
cooler.
b. post harvest product costs = $.15 (1 dose Chrysal RVB hydrating solution per 6
bunches @ .14 per dose = .023 per bunch, 2 1-gal Chrysal #2 T-bag per 6
bunches @ .125 per T-bag = .041 per bunch; plus .003 cents for 1 rubberband,
and .078 for 1 farm brand twist tie per bunch = .15. )
c. cost of cooler, utilities and farm overhead = $.10 per bunch
5. Total pre delivery production cost per bunch of LILAC = $3.53. $2.17 is labor.