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Staying in Business with the Nursery Cost and Profit Estimator

Trent Teegerstrom

Summary

The Nursery Cost and Profit Estimator (NCPE) is a spreadsheet tool developed jointly by the University of Arizona and the University of Hawaii to assist nursery producers in determining the cost of producing individual plants or groups of similar products. Knowing the individual cost of each product is critical information to make sound management decisions. In an industry where a typical business produces often over 100 different plant products, knowing which ones contribute to profit or loss can be challenging. The NCPE is set up to evaluate products from in-house propagation as well as purchased propagation material, and for final size plants ranging from small containers to trees in large boxes. The NCPE allows determining the true cost of a product but in addition the opportunity to simulate the impact of different cultural practices, regulatory demands, and the use of new products or different inputs. Information needed to start using the NCPE includes the land and bench area in operation, including production and non-production areas, federal tax schedule F or C, and production records for specific products or groups of products grown in the operation. The NCPE offers producers the opportunity to weigh the risks associated with different cultural practices, pricing, and regulatory compliance.

Growers Comments:
“Getting started requires a little effort, but it’s all worth it. Keep an open mind and I guarantee that you will leave this session inspired to measure, map and calculate your way to a new level of profitability.” - Les Shipley, Owner, Civano Nursery

Details

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