Cost-benefit Analysis of Cabbage Grown Using a Plasticulture and Seepage Bare Ground Production System in Florida

Abstract

<jats:p>Seepage is characterized as an inefficient irrigation method with regard to water and nutrient use. There is a need for an economically viable irrigation alternative to seepage, which increases crop productivity and profitability in Florida. The use of plastic mulch and drip irrigation for cabbage (<jats:italic>Brassica oleracea</jats:italic> var. <jats:italic>capitata</jats:italic>) production increases plant population per area and reduces the irrigation water requirement. However, plasticulture has a high capital investment and operating cost. The objectives of this study were to compare the profitability of plasticulture cabbage production and traditional seepage bare ground irrigation systems for Florida cabbage production, and to determine the breakeven point for cabbage grown under plasticulture given a range of market prices. The preharvest cost per acre for the plasticulture system was significantly higher than the cost for the seepage system ($4726 and $3035 per acre, respectively). However, for all planting dates considered in this study, the plasticulture system resulted in a significant increase in marketable yields when compared with the seepage system. The resulting increase in potential revenue offset the increase in preharvest costs and assured a positive net return on investment over the whole range market prices. It was also observed that low air temperatures combined with reduced solar radiation can prevent optimum plant development for cabbage transplanted between November and mid-December. Therefore, the return on investment may be reduced during less favorable climatic conditions for cabbage growth, making the plasticulture system less economically desirable for certain planting dates.</jats:p>

Economic Feasibility of Converting from a Bare Ground System with Seepage Irrigation to Plasticulture for Cabbage Production: Where is the Risk?

“…Next, price ($/Mg fresh cabbage) was stochastically simulated to calculate revenue for the profit model. The profit model was created by using the product of yield and the price per unit yield minus fixed and variable costs associated with production and marketing following Paranhos et al (2016a). Finally, profit was simulated for the two production strategies (bare ground and plasticulture) to estimate their respective distributions and provide a tool for making better management decisions in the presence of risky weather conditions.…”

“…The additional costs were primarily the result of the initial investment cost for a basic pumping system, required labor, plastic mulch, drip tape, irrigation fittings and supply pipes, and the increase in transplants associated with the expected 25% increase in plant population. Paranhos et al (2016a) stated that these estimates are provided as a baseline, and because of differences among farms, actual costs could be lower or higher based on preexisting farm infrastructure or lack thereof. Harvest and marketing costs were estimated based on current data (Paranhos et al, 2016a) and added to these preharvest costs to obtain a total production cost estimate.…”

“…Paranhos et al (2016a) stated that these estimates are provided as a baseline, and because of differences among farms, actual costs could be lower or higher based on preexisting farm infrastructure or lack thereof. Harvest and marketing costs were estimated based on current data (Paranhos et al, 2016a) and added to these preharvest costs to obtain a total production cost estimate. The preharvest, fixed cost estimates were $7501/ha ($3036/acre) and 11,680/ha ($4726/acre) for standard bare ground and median-recommended plasticulture plant populations, respectively.…”

“…where variables under a tilde are stochastic and g yield = multiple regression model with stochastic weather parameters (independent variables) simulated by a MVEMP; g price = stochastic Florida price from the National Agricultural Statistics Service (U.S. Department of Agriculture, 2015) for the years of the trials correlated to the yields for the plasticulture and bare ground trials; and cost = estimated total costs from Paranhos et al (2016a) for Florida plasticulture and bare ground production systems. The profit distribution was estimated using a MVEMP.…”

“…Barrett et al (2015Barrett et al ( , 2018) developed a drip-irrigated plasticulture system and nitrogen fertilizer rates to increase water and fertilizer use efficiencies while increasing plant population. In two follow up studies, Paranhos et al (2016aParanhos et al ( , 2016b examined the effects of planting date on plasticulture grown cabbage over the course of the entire Northeast Florida cabbage planting season and compared the profitability of cabbage grown using plasticulture and bare ground. The objectives of this study were to compare yield and profit of the current bare ground cabbage production system used in Florida with the plasticulture system proposed in Barrett et al (2015) by using a model with stochastically simulated independent variables that are known to be correlated with yield.…”