Country World Archives 2001-2008
Marketing your own fruits and vegetables? Is there a profit?
By KRISTY HEMMINGSEN | Country World East Texas
April 19, 2001 -- Planting your own garden and seeing the results can be quite a treat. Yet, taking those same fruits and/or vegetables and selling them to the public, even for a small profit, can certainly be some added excitement.
Many East Texans, at one time or another, have tried to make a little extra money by growing and selling their garden's produce.
Whether they sell it right out of their own front yard, out of the back of their truck, or drive it to a local farmer's market, if done "right," the venture can prove to be successful.
A study published in 1998 by the Texas Agricultural Extension Service holds some good information about such ventures' expenses and returns per acre.
The study's results came from a tomato project. It showed planting expenses to include herbicides, transplants, lime application, disking, row conditioning, black smooth mulch, and planting and fertilizer transplants. Preharvest production expenses included the application of insecticides, nitrogen, phosphate, potassium, irrigation (which cost about $500, one of the biggest expenses), and machinery labor.
In the end, total expenses totaled $5,065.70 per acre.
On the plus side, the study showed total revenue from the crop of tomatoes at $7,950.00 per acre.
As a result, the net projected return totaled $2,884.30
(Many of the above expenses may be unnecessary for those who choose to grow on a much smaller scale).
In reference to "how" to sell the produce, Dr. Greg Clary, Extension economist-management, said, "You're more likely to have better success in selling your fruit and vegetables when you sell them directly to the public."
He implied that by selling the produce to the customer yourself, and not for resale, can help attract customers to you and your produce. In future years, those same customers will likely repeat business with you since they are aware it's "your" fruit and/or vegetables that they are buying.
Clary also said to remember there is an extra cost involved in selling produce to the farmer's market.
Another tips the economist offered is to always "attract" the customer, whether it involves where you sell the produce or how eye-catching your stand may be.
He said a produce stand located in a good location, and one that is clean with a variety of produce, can certainly attract customers.
Dr. Jim Blalock, retired Extension agronomist, said another thing to keep in mind before someone plans to start such a business is to decide how labor intensive they want to get.
He said the more "will power" the better. If too much hired help is used, versus how much produce is planted, a profit may be hard to come by. Also, if not outside help is used and the grower ends up doing more than than they had hoped, the project will not be enjoyable.
Blalock also said to keep the weather in mind -- it's not always ideal. Some years there may be too much rain, when some years may not have enough.
"Weather certainly can play a factor," he said. "Unused machines due to weather, and hired labor that doesn't want to work in certain conditions, only hurt your chances of a profitable year."
Blalock has 15 acres of peanuts, and he also grows and sells different varieties of cantaloupe and watermelons.
Last year, there was not enough rain and his expenses, (which included seed costs, fertilizer, and weed control) totaled $250. Despite the expenses and drought, he made $500 by selling the melons that did make to someone "on the halves."
On a larger scale, Jim Driskill of the Fruitvale community in Van Zandt County has quite a bit of experience in growing and selling his own produce.
A third generation farmer, Driskill primarily grows and sells tomatoes.
Before health problems developed three or four years ago, Driskill farmed 100 acres. Today, he has reduced production down to about 20 acres and sells to the Dallas Farmer's Market.
In dealing with weather and production, Driskill uses a drip irrigation system, and a plastic cover which keeps extra water (rain) from saturated plants and the ground warm/cool when necessary. These have helped keep the last few years of drought and then excessive rainfall from negatively affecting Driskill's operation.
He said irrigation can be costly at first, but it pays for itself over time.
Another weather-related expense he sometimes incurs is having to hire labor for hand-planting the tomato plants when it is too wet for getting a tractor and planting machine into the field.
All in all, though, Driskill admits he "thoroughly enjoys the business of farming. It's not easy, .. and whoever pursues such a career has to like doing it in order to be successful. There are ups and downs in reference to the profit margin in this business, and in recent years there have been more downs, but I believe a turn-around in the situation is not too far ahead."