Economic analysis of adopting zero runoff subirrigation systems in greenhouse operations in the northeast and north central United States

Abstract

Zero runoff subirrigation (ZRS) technology is a promising method of managing fertilizer and pesticide inputs while improving production efficiency. However, high capital investment costs and inadequate technical information available to growers are major impediments to initiating the change. This study quantifies costs and returns associated with adopting ZRS systems and compares the profitability of four alternative ZRS systems (ebb-and-flow benches, Dutch movable trays, flood floors, and trough benches) for greenhouse operations in the northeastern and north central United States. The capital investment analysis showed that the Dutch movable tray system was most profitable for small potted plant production, and the flood floor system was most profitable for large potted plant and bedding crop flat production. Sensitivity analysis showed that changes in cost variables generally did not affect the profitability rankings of the alternative ZRS investment projects. Nonetheless, the flood floor system gained slight advantages when the product price increased, and the Dutch movable tray system gained advantages as the hourly labor cost increased.