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- Author or Editor: Esendugue Greg Fonsah x
Rabbiteye blueberry (Vaccinium ashei) is the most important type of blueberry grown in Georgia. This species is classified as a highbush blueberry type, but is distinctively different from highbush blueberry (V. corymbosum) in its ability to withstand high temperatures and low-organic–matter soils. However, rabbiteye blueberries, like other fruit crops, are subject to price and yield fluctuation. These volatilities depend on several factors, including the cultivar produced and sold, locality, aggregate productivity, targeted market, and timing. As a result, profit margin is hard to determine. The objective of this study was to estimate economic returns using risk-rated budget analysis for rabbiteye blueberry under Georgia conditions. The first-year establishment and maintenance cost of growing rabbiteye blueberry in Georgia was estimated at $5022.04/acre. Total harvesting and marketing cost in the second year was $719.44/acre. In the third year, total variable and fixed cost was $3487.50/acre. In the full production year (fourth year), the cost was estimated at $4671.17/acre. The compounded and recaptured establishment annual cost was $2736.11/acre. The risk-rated expected returns over total costs 63% of the time were $679.00/acre. The chances of making a profit were 77% and the base budgeted net revenue was $369.00/acre. The total budgeted cost was $0.94/lb. The estimated annual total fixed machinery cost was $698.00/acre. The total annual cost of drip irrigation was $161.15/acre.
We developed and investigated a stochastic farm enterprise budget framework that properly accounts for uncertainty in estimates used for investment decisions and structural dependency between yields and prices, which is generally absent in traditional (nonstochastic) budgets. In the first stage, we developed a traditional enterprise budget based on theoretical and accounting methods recommended by the American Agricultural Economics Association (AAEA) Task Force on Commodity Costs and Returns. In the second stage, we developed a probabilistic framework based on estimates derived from the traditional approach, and extended the approach to a stochastic framework through Monte Carlo simulations under specific price elasticity of demand. We applied the framework to estimate the costs, revenues, and conducted investment analysis of producing muscadine grapes (Vitis rotundifolia) in Georgia using a single-trellis system. Finally, we compared results derived from both approaches and revealed muscadine grape production and marketing to be an economically sound investment under multiple scenarios. Overall, the confidence placed on traditional budget estimates and investment outcomes was found to be overestimated at least 3-fold. This suggests that the true uncertainty in the returns and profitability of the business is grossly underestimated, erroneously painting a more promising outlook of investing in muscadine grape production.
Southern highbush blueberries (Vaccinium corymbosum × V. darrowii hybrids) are a rapidly emerging crop with a bright future in Georgia; however, blueberries, like other fruit crops, are subject to price and yield fluctuation. These volatilities depend on several factors, including the cultivar produced and sold (i.e., fresh or frozen), locality, aggregate productivity, targeted market, and timing. As a result, profit margin is hard to determine. The objective of this study was to estimate total costs of cultivating southern highbush blueberries in soil under Georgia conditions and determine profitability, if any. Although there are several methods of profit determination, the risk-rated method was adopted for this study. The first-year establishment and maintenance cost of growing southern highbush blueberry in soil in Georgia using high organic matter (greater than 3%) spodic-type or allied sand soil series with supplemental pine bark incorporated was estimated at $9585.55/acre. The second-year establishment and maintenance cost of growing, harvesting, and marketing was $3691.99/acre less return from receipts of $2375.00/acre equal to $1316.99/acre. The third-year establishment and maintenance cost was $7068.20/acre. The total returns for the same year were $9500.00/acre. Subtracting the cost of $7068.20 from $9500.00 gives a net return of $2431.80/acre. The fourth-year cost, which was considered to be the first year of actual full production, was estimated at $13,547.35/acre. The compounded and recaptured establishment annual costs were $2176.43/acre. The risk-rated expected returns over total costs 66% of the time were $5452.65/acre. The chances of making profit were 92% and the base-budgeted net revenue was $6456.00/acre. Total budgeted cost was $3.38/lb. The estimated annual total fixed machinery cost was $290.41/acre. Total annual cost of solid set irrigation was $657.81/acre.
Bananas are a popular ornamental plant in the southern U.S. However, normally only a few cultivars, such as `Lady Finger' and `Orinoco', are grown in Georgia. Thirty-three primarily commercial cultivars of bananas were grown for two years near Savannah, Georgia to determine their suitability for ornamental and nursery production. Most plants were grown from tissue culture plugs. They where given rates of fertilization used for commercial banana fruit production. Most cultivars produced 10 to 14 leaves and grew to heights of 1.5 to 2.0 m. Some displayed desirable ornamental characteristics such as pink tinted pseudostems, colorful flowers, and large graceful leaves. Many of the cultivars flowered and began producing fruit in late summer, although only `1780', `Raja Puri' and `Sweetheart' produced palatable fruit before frost in November in some years. Cultivars were also rated for their ability to produce suckers that can be used for nursery production. In year two, `1780' and `Manzano' produced the largest number of high quality suckers for nursery production. For the planting as a whole, sales of suckers at a field day averaged $7/per plant in year 2 and $17/per plant in year 3.
Bananas (Musa spp.) are a popular ornamental plant in the southern United States; however, only a few cultivars, such as Lady's Finger and Orinoco, are grown in Georgia. Thirty-three primarily commercial cultivars of bananas were grown for 2 years near Savannah, Georgia, to determine their suitability for ornamental and nursery production, and for 3 years for fruit observations. Most plants were grown from tissue culture plugs. They were given rates of fertilization used for commercial banana fruit production. Most cultivars produced 10 to 14 leaves and grew to heights of 1.5 to 2.0 m. Some displayed desirable ornamental characteristics such as pink-tinted pseudostems, colorful flowers, and large graceful leaves. Some of the most attractive tall-growing cultivars were Belle, Ice Cream, Kandarian, Manzano, Saba, and 1780. Some of the most attractive medium-height cultivars were Dwarf Namwah, Dwarf Orinoco, Goldfinger, Raja Puri, and Super Plantain. In the short category, the cultivars Dwarf Nino, Gran Nain, Kru, and Sum X Cross were among the most attractive ornamentals. Many of the cultivars flowered and began producing fruit in late summer, although only ‘Raja Puri’, ‘Sweetheart’, and ‘1780’ produced palatable fruit before frost in November. Cultivars were also rated for their ability to produce suckers that could be used for nursery production. In year 2, ‘Manzano’ and ‘1780’ produced more than six high-quality suckers for nursery propagation. Potential income for these cultivars was over $60 per plant. For the planting as a whole, sales of suckers at a field day averaged $7 per plant in year 2, and $17 per plant in year 3.