Farm economics – soilless (hydroponic) farm costs

Research and reports have consistently shown that consumers today are looking for local, fresh, healthy, and sustainably grown food. An additional aspect that is equally as important is ensuring that the food is competitively priced. Farms, therefore, are not only challenged to fill a growing need for food supply but to do so while taking into consideration their own farm economics and pricing strategies.

With a range of variables to consider, ranging from nutrient management to water and energy utilization, soilless farmers need to plan for a comprehensive analysis when planning their business. However, there are other aspects which can be analyzed fairly easily when it comes to soilless farming/hydroponic costs, which we have detailed below.

A typical greenhouse farm can expect gross profit margins that range from 50% - 65% for lettuce and tomatoes. However, if a farm employs organic farming techniques, their gross profit margins immediately increase to 60%, on average. An evident opportunity to increase net income presents itself to soilless (greenhouse) farmers as they analyze their operational economics and consider ways to maximize their gross profit margins. 

Source: Re-nuble.com.


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