Economic feasibility of adopting a hydroponics system on substrate in small rural properties

Abstract

Objective is to analyze the economic feasibility of implementing a greenhouse in a hydroponics production system in substrate (sand) on a small family farm as an alternative to hydroponic cultivation using nutrient film technique (NFT). This case study was carried out in the Municipality of Dourados, Mato Grosso do Sul state, Brazil. The location was specifically selected because of the importance of agricultural activities and the need for productive diversification related to the context of the small rural producer. As a criterion for assessing economic viability, the techniques of net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), cost–benefit (C/B), profitability index (PI), equivalent annual value (EAV) and discounted payback (DP) were under consideration. A minimum attractiveness rate adjusted to the risk of emerging countries of 10.25% per year was considered. The viability of the project was verified, even when exposed to risk and uncertainty. Graphical abstract

New Generation Sustainable Technologies for Soilless Vegetable Production

“…Regarding the disadvantages of these technologies, several of them are mentioned in Table 1; however, the most common disadvantage is related to the high initial investment costs, which in hydroponic systems are mainly related to costs that include items such as grow lights, pumps, nutrient delivery systems, climate control systems, and specialized growing media [57], which are items that allow the construction of an advanced technological production system. These costs can vary significantly depending on the scale and complexity of the hydroponic setup.…”