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