Pumpkin Enterprise Budget
The Pumpkin Enterprise Budget below is the product of team work led by Eric Richer, Associate Professor, Farm Management, OSU Extension and supported by Jim Jasinski, Professor, Integrated Pest Management, OSU Extension, Rob Leeds, Assistant Professor, OSU Extension-Delaware County, Logan Minter, Associate Professor, OSU Extension-South Centers and Barry Ward, Leader, Production Business Management, OSU Extension.
For more than two decades, Ohio State University Extension educators and faculty from Plant Pathology, Entomology and Horticulture and Crop Science, have supported the production and pest management needs of pumpkin growers throughout the state. The focus of this work has predominately been to help growers produce a better quality and higher yielding pumpkin crop based on solid production and IPM practices. To complement our focus on production, we have developed a new tool to help growers understand the financial aspects and profitability of raising pumpkins in Ohio.
Screenshot of overall budget spreadsheet
For the first time in 25 years, an updated Ohio Commercial Pumpkin Enterprise Budget has been released on the Farm Office website! This downloadable interactive spreadsheet (www.go.osu.edu/commercialpumpkinbudget) can be used to predict your cost of production; calculate profit per acre, per ton, and per bin; and help growers set prices accordingly. The tool was developed and refined by OSU Extension Specialists, educators and growers over the past few years who have a passion to understand the economic aspects of pumpkin production.
The budget is based on a standard jack-o-lantern production enterprise with three default yield and cost columns based on low (5 tons/A), average(10 tons/A) and high production systems (15 tons/A). The spreadsheet is designed so growers can enter their individual information in yellow cells and the resulting calculations in blue cells will determine their cost of production and potential profitability. Current market prices for input costs (fertilizer, labor, pesticides, etc.) were used based on industry standards.
Receipts section
The budget begins with a Receipts section that allows growers to break out their production by retail, wholesale or other sale methods based on percentage of yield. The receipts section also allows for percentage spoilage and customization in price per market segment.
Variable costs section
In the Variable costs section of the budget, growers can input their desired row spacing (between row and in-row spacing) and projected seed costs. The default seeding and fertilizer rates are based on the Midwest Vegetable Production Guide but can be modified per the grower’s production practice. The herbicide, insecticide and fungicide application sections are perhaps the most improved from our last iteration. Growers can utilize the standardized pesticide recommendations and updated industry costs or choose to modify the pest management program based on their current production practices, farm history and seasonal pest levels. Also included are custom spraying charges in case a grower does not spray their own pumpkins.
The remaining Variable costs include bee hives (if used), labor, marketing cost of bins, trucking, fuel/oil/grease, repairs, irrigation, and operating interest. These costs can vary greatly by grower, but standardized values were used where standardized costs could be found.
Fixed costs section
After variable costs, the budget tool estimates Fixed or overhead costs related to operating a commercial pumpkin enterprise. As in most enterprise budgets, these Fixed costs include owner’s labor and management charges, machinery and equipment ownership costs and a land charge. Again, producers can enter their individual values for each of these categories if they know them for a more accurate output.
Total costs section
The Total Costs section at the bottom of the budget helps growers determine their overall costs on a per acre, per ton and per bin basis depending on actual pumpkin harvest yields.
The last six lines of the Total Costs section are used to understand profitability. These are broken down on a per acre basis into Returns Above Variable Costs, Returns Above Variable and Land Costs, and Returns Above Total Costs. Growers generally associate Returns Above Total Costs as their profit per acre. There are more sophisticated measures of profitability such as Return to Land, Return to Labor and Management, and Return to Land, Labor and Management if growers care to dive deeper. The “Return Above” and “Return To” measures of profitability are explained in greater detail in the footnotes associated with the budget.
If you have specific questions about the Pumpkin Enterprise Budget, please contact Eric Richer, richer.5@osu.edu.
Pumpkin Enterprise Budget video
If you prefer to digest this information by watching a video where Eric explains the various budget sections, it can be viewed on the OSU IPM YouTube video library here: https://youtu.be/RkNMqGezVaU?si=7eMSTxx5xPU5q5Qs
Additional crop and animal enterprise budgets can be found on OSU’s Farm Office website at www.farmoffice.osu.edu/farm-management/enterprise-budgets.
Screenshot of OSU IPM YouTube video library
To view the pumpkin IPM video library created to help growers identify and manage key pests and other topics, check out go.osu.edu/osuipm.