COMMERCIAL GREENHOUSE PRODUCTION: COMPONENT AND SYSTEM DEVELOPMENT

• Sponsoring Institution: National Institute of Food and Agriculture
• Project Status: COMPLETE
• Funding Source: HATCH
• Reporting Frequency: Annual
• Accession No.: 0199265
• Multistate No.: NE-1035
• Project Start Date: Oct 1, 2008
• Project End Date: Sep 30, 2013
• Program Code: [(N/A)]- (N/A)

Recipient Organization
RUTGERS, THE STATE UNIVERSITY OF NEW JERSEY
3 RUTGERS PLZA
NEW BRUNSWICK,NJ 08901-8559

Performing Department
Agricultural Food & Resource Economics

Non Technical Summary
Our 2003 survey on benchmark costs found energy costs including heating fuel, fuel for vehicles, and electricity were 5.3% of sales. Heating costs were 4.9% or $0.82 per square foot per year. Since then, heating oil costs (the most common fuel used for heating New Jersey greenhouses) have almost tripled. Other energy costs have gone up too. In a mail-in survey of the New Jersey greenhouse industry, we found that 61% of growers were considering energy saving technologies, 17% were considering alternative energy sources, and 10% were considering co-generation. This year, we have been asked by growers to help you find ways to cope with ever increasing energy costs. One option is for growers to consider producing their own biofuels.

Animal Health Component

(N/A)

Research Effort Categories

Basic

(N/A)

Applied

(N/A)

Developmental

(N/A)

Classification

Knowledge Area (KA)	Subject of Investigation (SOI)	Field of Science (FOS)	Percent
601	2420	2090	100%

Knowledge Area
601 - Economics of Agricultural Production and Farm Management;

Subject Of Investigation
2420 - Noncrop plant research;

Field Of Science
2090 - Statistics, econometrics, and biometrics;

Keywords

energy

biofuel

alternative

conservation

heating

heat

fuel

diesel

energy cost

Goals / Objectives
Evaluate biomass derived fuels for greenhouse heating Develop decision support systems for alternative fuel heating systems Develop protocols for irrigation that maximize water use efficiency while maintaining crop growth and quality Develop irrigation protocols and filtration or sterilization methods for nutrient solution recirculation that minimize the effects of pathogens or toxic metabolites Improve volumetric water content sensor efficacy Improve sensor control of the greenhouse aerial environment (light, carbon dioxide, temperature, and moisture) Develop greenhouse design and management protocols to maintain high nutrition values of vegetable crops grown under various environments Develop greenhouse design and management protocols to maximize production of beneficial compounds such as phytochemicals and biopharmaceuticals To continue our efforts to use CFD techniques to evaluate greenhouse natural ventilation systems Continue efforts to improve the efficiency and effectiveness of greenhouse fog cooling systems Improve control strategies as an alternative to existing vent control systems

Project Methods
We want survey growers to out how many are considering alternative energy sources and conservation methods, and how many of them have enough land to consider growing biofuels. We also want to know how you and other growers are handling the fuel cost increases. We are looking at research on using biofuels for greenhouses and other ways we can help you deal with rising energy costs.

Progress 10/01/08 to 09/30/13

Outputs
Target Audience: Greenhouse growers. Women producers Socially disadvantaged producers Specialty crop producers Changes/Problems: Nothing Reported What opportunities for training and professional development has the project provided? in addition to the training and professional development opportunities offered by Annie's Project New Jersey, two webinars were presented to eighty registered On August 15,2013 "Do´s & Don´ts of Writing Your Agricultural Business Plan" was facilitated by Dr. Robin Brumfield and Jenny Carleo. On August 16, "Identifying & Reaching Your Target Audience" was facilitated by Rick VanVranken. How have the results been disseminated to communities of interest? PDFs from the presentations and webinars can be downloaded at http://aesop.rutgers.edu/~farmmgmt/events.html and the recorded presentations can be viewed at http://cpemediapro.wix.com/njfwc-!webinars/cld. Participants learned about these conferences and webinars from Facebook, National Association of County Agricultural Agents´ emails (12); Courier News Article, various cooperative extension agents in the United States (including Alaska (11); University of Minnesota (5); Freehold, NJ, Mercer County (2) Carrington, MD); newsletters including the Farm Bureau (3); Grow NYC Farm Roots (2); Alaska Peony Growers Association, web search; NJ Beekeepers Association(5); NJ Dept. of Agriculture(4) and Annie´s Project Facebook. One-hundred thirty-three registered from various states including Alabama (2), Alaska (26), California (1),Colorado (1), Georgia (2), Illinois (1), Indiana (4), Kansas (1), Kentucky (1), Louisiana (1), Maine (1), Maryland (3), Michigan (1), Minnesota (8), Montana (2), New Hampshire (1), New Jersey (57), New Mexico (1), New York (5), North Carolina (2), Ohio (1), Pennsylvania (1), South Carolina (1), What do you plan to do during the next reporting period to accomplish the goals? Nothing Reported

Impacts
What was accomplished under these goals? We developed the Rutgers Cost Accounting Program, which allows greenhouse proudcers to track their costs carefully,analyze their financial position, review their historical performance, track their assets, review benchmarks, and predict future performance. Educational modules in Controlled Environment Plant Protection (CEPP) can be used by students, greenhouse growers, industry representatives, and college administrators anywhere in the country. The business management modules will be largely based on curriculum that has been developed for Annie’s Project New Jersey. A workbook has been developed using a greenhouse as an example.The workbook describes each section of a business plan, gives a greenhouse example, and provided worksheets so that clientele can develop their plans. Short videos are being made of each section including mission statement, financial plan, cost accounting, financial analysis, overhead versus variable cost, cost accounting, how to determine the profitability and cash flows of the business. All of the women who participated in Annie's Project started a business plan and all have increased their knowledge of the risk factors affecting their businesses. We are entering the fourth year of Annie’s Project, a program to teach women producers how to manage their financial risks.We have secured funding to deliver an Annie’s Project New Jersey particularly targeted to greenhouses and are midway through that class of 35 producers, mostly women, but 4 men. Annie’s Project II: New Jersey Farm Women Conference 2013 was a group of one day, intensive training sessions designed to improve the economic stability of traditionally underserved women farmers in New Jersey, including specialty crop producers and small acreage farmers. By providing educational forums on the availability of crop insurance products and risk management tools, we have ensured that our clientele are well informed and able to reduce their farm risk. By providing networking opportunities, we ensured that our clientele know where to go for help and are able to develop business contacts as well as friendships and support networks. The characteristics that made Annie’s Project II: New Jersey Farm Women Conference 2013 an invaluable opportunity to women producers are 1) single day, intensive training sessions that give women who have been unable to commit to longer sessions the same exceptional risk management education and networking possibilities that have been so valuable to other women in the state; 2) offering the program from one end of the state to another, reaching women from all areas of New Jersey; 3) offering three tracks to choose from—estate planning, financial management and insurance or business plan development; 4) recording all the presentations for compilation onto a DVD that will be provided to all the participants; 5) Uploading presentations to a website that will enable non participants to watch the presentations and share them with other Annie’s Project New Jersey participants.

Publications

• Type: Journal Articles Status: Accepted Year Published: 2014 Citation: Brumfield, R.G., J.S. Carleo, .J. Heckman, A. Lippet-Faczak, J. Matthews, M. Melendez, B. ONeill and N. Polanin. 2014. Using Technology to Enhance Annies Project Women Farmer Training. Acta Horticulturae. (In Press).
• Type: Conference Papers and Presentations Status: Published Year Published: 2012 Citation: Carleo, J., R.G. Brumfield, S J. Komar, A. Lippet-Faczak, J. Matthews, M. Melendez, R. Mickel, B. ONeill, and N. Polanin. 2012. A Method of Teaching Farm Women to Write Business Plans in the United States, Journal of the National Association of County Agricultural Agents 5(2). The entire issue is available on the NACAA website at: http://www.nacaa.com/journal/
• Type: Conference Papers and Presentations Status: Published Year Published: 2012 Citation: �zkan, B., R.G. Brumfield, J. Carleo, S.J. Komar, A. Lippet-Faczak, J. Matthews, M. Melendez, R. Mickel, M. Minard, B. ONeill, and N. Polanin. 2012. Women Farmers Empowerment: A case study of New Jersey and Turkey. 14th Annual International Conference of the Global Business and Technology Association. New York City, NY. July 10-14, 2012. Global Business And Technology Association (GBATA) Refereed Conference Readings Book.
• Type: Conference Papers and Presentations Status: Published Year Published: 2014 Citation: Matthews, J., R.G. Brumfield, J.S. Carleo, A. Lippet-Faczak, M. Melendez, B. ONeill, and N. Polanin. 2014. As Seen Online: Using Webinar Technology to Reach Women Farmers. Poster presented at the 2014 Annual Meeting of the Northeast Region of the American Society for Horticultural Science. Philadelphia, PA, January 6-8, 2014.
• Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Matthews, J., R.G. Brumfield, J.S. Carleo, A. Lippet-Faczak, M. Melendez, B. ONeill, and N. Polanin. 2013. A New Era in Communication, Merging Tradition and Technology. Poster presented as part of the 2013 National Association of County Agricultural Agents Extension Education poster session at the Galaxy IV Conference in Pittsburgh, PA. September 16-20, 2013.
• Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Carleo, J.S., R.G. Brumfield*, A. Lippet-Faczak, J. Matthews, M. Melendez, B. ONeill and N. Polanin. 2013. Using an Extraordinary Combination of In-person Education and Distance Learning to Help Women Producers Create Business Plans. 2013 Annual Conference of the American Society for Horticultural Science (ASHS), July 22-25, Palm Desert, CA. This presentation was also chosen to be recorded as part of the ASHS Hort Talks series (www.ASHS.org/db/horttalks) and was compiled as a digital iBook and available for download.
• Type: Conference Papers and Presentations Status: Published Year Published: 2013 Citation: Carleo, J.S., R.G. Brumfield, S.J. Komar, A. Lippet-Faczak, J. Matthews, M. Melendez, R. Mickel, B. O'Neill and N. Polanin. 2013. Impacts of Annie's Project New Jersey - Six Months after Program Delivery. Paper presented at the 2013 Annual Meeting of the Northeast Region of the American Society for Horticultural Science, New Brunswick, NJ. January 2-4, 2013.

Progress 10/01/11 to 09/30/12

Outputs
OUTPUTS: We continue to work on educational modules in Controlled Environment Plant Protection (CEPP) that can be used by students, greenhouse growers, industry representatives, and college administrators anywhere in the country. The business management modules will be largely based on curriculum that has been developed for Annie's Project New Jersey. The educational goals of the economics portion of this proposal are to develop an understanding of the concepts that must be considered to determine the economic viability of CEPP operations. We will present a template of a financial spreadsheet for students and create supporting classroom materials to build understanding of the components of the model. Educational modules will include financial analysis, overhead versus variable cost, cost accounting, how to determine the profitability and cash flows of the business. PARTICIPANTS: We worked with producers, extension specialists, and other agricultural organizations including Farm Bureau and Farm Credit East. TARGET AUDIENCES: We conducted extension programs using hands on and distance learning to educate producers on how to handle their risks. All of them finished part or all of a business plan. PROJECT MODIFICATIONS: We added distance learning to reach more people and reduce costs.

Impacts
With the greenhouse industry still faced with a struggling economy, the Rutgers Cost Accounting Program is being used by more producers. It allows producers to track their costs carefully, track their costs, analyze their financial position, review their historical performance, tract their assets, review benchmarks, and predict future performance. An alternative for greenhouse producers to control energy costs is to produce their own energy. We have updated the costs of producing bio-energy crops which can be used to heat greenhouses, sell wholesale, or sale retail and have presented the results. I have been developing business planning tools for our New Jersey Annie's Project participants. All of the women who participated in Annie's Project started a business plan and all have increased their knowledge of the risk factors affecting their businesses. We are entering the third year of Annie's Project, a program to teach women producers how to manage their financial risks. We have secured funding to deliver an Annie's Project New Jersey particularly targeted to greenhouses.

Publications

• Brumfield, R.G. and C. Gouliamberis. 2012. Rutgers Cost Accounting Program Now Tracks Cash Flows. 6th National Small Farm Proc. Memphis Cook Convention Center. Memphis, TN. September 18-20, 2012.
• Brumfield, R.G. 2012. New and Emerging Technologies for Enhancing Small Farm Profitability, 6th National Small Farm Proc. Memphis Cook Convention Center. Memphis, TN. September 18-20, 2012.
• Carleo, J. R.G. Brumfield, S.J. Komar, A. Lippet-Faczak, J. Matthews, M. Melendez, and R. Mickel, B. ONeill and N. Polanin. 2012. Annie's Project NJ - Using Social Media and Marketing to Help Women Farmers Take the Risk out of Farm Management. 6th National Small Farm Proc. Memphis Cook Convention Center. Memphis, TN. September 18-20, 2012.
• Ozkan, B. R.G. Brumfield, J. Carleo, S. J. Komar, A. Lippet-Faczak, J. Matthews, M. Melendez, R. Mickel, B. ONeill, and N. Polanin. 2012. Using Business Plans to Empower Women Who Manage Horticultural Businesses in New Jersey and Turkey. 6th National Small Farm Proc. Memphis Cook Convention Center. Memphis, TN. September 18-20, 2012.
• Brumfield, R.G., J. Carleo, B. ONeill, N. Polanin, S. Komar, and R. Mickel. 2012. Annie's Project NJ - Using Social Media and Marketing to Help Women Farmers Take the Risk out of Farm Management. Women in Agriculture Educators National Conference, Published Abstracts: 37, Memphis, TN, March 28-29, 2012.
• Carleo, J.S., J.L. Matthews, R.G. Brumfield, B. ONeill, A. Lippet-Faczak, N. Polanin, M. Melendez, S.J. Komar, and R. Mickel, 2012. Success in Annie's Project Using Distance Education. Proceedings 97th National Association of County Agricultural Agents Annual Meeting and Professional Improvement Conference, Charleston, SC, pp. 61-62.
• Brumfield, R.G., J.S. Carleo, S.J. Komar, R. Mickel and B. ONeill. 2011. Annie's Project In New Jersey- Challenges In Adapting a Program From Midwest Agriculture to New Jersey Female Horticultural Producers HortScience 42(4):982.
• Brumfield, R.G., J.S. Carleo, S.J. Komar, R. Mickel, and B. ONeill. 2011. Annie's Project In New Jersey- Challenges In Adapting a Program from.the Midwest for Jersey Girls. Proceedings of the Risk Management Education Conference in St. Louis, MO, April 12 to 13, 2011.
• Carleo, J., R. Brumfield, B. ONeill, S. Komar and R. Mickel. 2011. Annie's Project New Jersey: A Technologically Advanced Approach. Proceedings of the 96th National Association of County Agricultural Agents Annual Meeting and Professional Improvement Conference, Overland Park, KS.
• Brumfield , R.G., J. Carleo, B. Ozkan, N. Polanin, B. ONeill, S.J. Komar and Robert Mickel. 2012. Empowering Women Farmers in New Jersey and Turkey. Women in Agriculture Educators National Conference, Published Abstracts: 28, Memphis, TN, March 28-29, 2012.
• Brumfield, R.G., J.S. Carleo, B. Ozkan, N. Polanin, B. ONeill, S.J. Komar, and R. Mickel. 2012. Using Business Plans to Empower Women Who Manage Horticultural Businesses In New Jersey and Turkey. HortScience (Supplement).

Progress 01/01/11 to 12/31/11

Outputs
OUTPUTS: In the absence of a comprehensive undergraduate curriculum in Controlled Environment Plant Protection (CEPP) anywhere in the country, and based on the demonstrated need as expressed by current students, greenhouse growers, industry representatives, and college administrators, we have designed a comprehensive list of educational modules that can used as the core of a CEPP curriculum and have received a grant to develop this curriculum. These educational materials that can be incorporated to enhance other courses, presented as complete courses, or used for Extension outreach efforts. The educational goals of the economics portion of this proposal are to develop an understanding of the concepts that must be considered to determine the economic viability of CEPP operations. We will present a template of a financial spreadsheet for students and create supporting classroom materials to build understanding of the components of the model. Educational modules will include financial analysis, overhead versus variable cost, cost accounting, how to determine the profitability and cash flows of the business. The educational modules will use case studies as the basis for developing financial spreadsheets and a business plan, giving students real-world experience in utilizing these tools and understanding the interaction and impact of the economic variables of CEPP operations. PARTICIPANTS: A team of faculty and industry representatives from across the country with expertise in engineering, plant science, and economics TARGET AUDIENCES: The target audience consists of green industry producers and equiment providers. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
I have updated the Rutgers Cost Accounting Program to include a cash flow worksheet. As the CEPP enters a mature market phase and energy costs rise, this is crucial because producers will need to track their costs carefully. Producers are using the Rutgers Cost Accounting Program to remain viable in tough economic times. An alternative for greenhouse producers to control energy costs is to produce their own energy. We conducted a study to analyze the costs of producing bio-energy crops to heat their own greenhouses, sell wholesale, or sale retail. Producing energy to replace purchased fuel was the most profitable option. I authored two chapters, Marketing and Business Management, of the best-selling textbook, "Greenhouse Operations and Management" to give current and future greenhouse producers the tools to profitably manage their businesses. I am using these two chapters as the basis to develop on-line teaching modules that can be used in the classroom as well as by producers to plan their business management and marketing systems for their greenhouses. I am working on collecting data to accurately represent the financial planning data for these modules. I have been developing business planning tools for our New Jersey Annie's Project participants. All of the women who participated in Annie's Project started a business plan and forty percent of them completed it. They have all increased their knowledge of the risk factors affecting their businesses. I am collecting their business plans on-line to develop case studies to be used for the on-line teaching modules and other outreach and research efforts. We also conducted a benchmarking survey and published the results on pricing, advertising and expansion.

Publications

• Brumfield, R.G., J.S. Carleo, S.J. Komar, R. Mickel and B. O'Neill. 2011. Annie's Project In New Jersey - Challenges In Adapting a Program From Midwest Agriculture to New Jersey Female Horticultural Producers HortScience 42(4):982. (Abstract) Presented at the 108th Annual Meeting of American Society for Horticultural Science, Waikoloa, Hawaii, Sept. 25 to 28, 2011.
• Brumfield, R.G., J.S. Carleo, S.J. Komar, R. Mickel, and B. O'Neill. 2011. Annie's Project In New Jersey - Challenges In Adapting a Program From the Midwest for Jersey Girls. (Abstract) Proceedings of the Risk Management Education Conference in St. Louis, MO, April 12 to 13, 2011.
• Brumfield, R.G. 2011. Chapter 16, Marketing. pp. 488-530. In: Greenhouse Operation and Management. 7th Ed. Prentice Hall, Upper Saddle River, NJ, Authored by P.V. Nelson.
• Brumfield, R.G. 2011. Chapter 17, Business Management. pp. 531-586. In: Greenhouse Operation and Management. 7th Ed. Prentice Hall, Upper Saddle River, NJ, Authored by P.V. Nelson.
• Hodges, A.W., C.R. Hall, B.K. Behe, J.H. Dennis, and R.G. Brumfield. 2010. Regional benchmarking survey, Part 4: Pricing, Advertising and Expansion Opportunities. Nursery Management and Production. January 22, 2010. http://www.nmpromagazine.com/nmpro-0110-regional-benchmarking-survey- pricing-advertising-expansion.aspx.
• Brumfield, R. G. and Z.R. Helsel. 2011. Bioenergy Budgets Rutgers Coop. Ext. Factsheet E331. http://www.njaes.rutgers.edu/pubs/publication.asppid=E331.
• Brumfield, R.G., B. O'Neill, J.S. Carleo, R. Mickel and S.J. Komar. 2011. Annie's Project In New Jersey - Challenges In Adapting a Program From the Midwest. (Abstract) Presented at the AAEA & NAREA Joint Annual Meeting, Pittsburgh, PA, July 24 to 26, 2011. (Invited).
• ONeill, B., Komar, S.J., Brumfield, R., Mickel, R., Porter, N., Pankow, D., and Schuchardt, J. 2010. Financial Planning for Farm Families: Two New Resources for Financial Educators. (Abstract) Consumer Interests Annual Presented at the American Council on Consumer Interests Annual Meeting, Atlanta, GA, April 14 to 16, 2010.
• ONeill, B., Komar, S.J., Brumfield, R.G., and Mickel, R. 2010. Later Life Farming: Retirement and Succession Concerns of Farm Households. (Abstract) Eastern Family Economics/ Resource Management Association, http://mrupured.myweb.uga.edu/proceedings2010.shtml.

Progress 01/01/10 to 12/31/10

Outputs
OUTPUTS: The green industry in the northeastern U.S. is an important component of agricultural production with over $2 billion in farm cash receipts, equating to 22.4% of all farm cash receipts in the northeastern U.S. It is the number one agricultural commodity in five northeastern U.S. states. Competition in the green industry has become fierce. Many factors have put downward pressure on price. These include the recent volatility of fossil fuels and general energy prices, domestic competition, off-shore production, a weakened and stressed economy, and the growth of the mass market. Nationally, the number of producers continues to decline as a direct result of the newly defined economic risks. The industry's profit margins are typically low, leaving little room for growers to absorb significant increases in costs or decreases in revenues. Unlike farmers who produce field crops, nursery and greenhouse firms bear the entire price, market, and production risks because these crops have had no government support programs. I developed a paper to discuss what strategies producers in the northeastern U.S. are using to reduce costs and increase profits in tough economic times. It analyzed how producers have they honed their marketing and management skills to continue to survive and respond to current trends. In a market with ever increasing input costs and an economy that makes increasing prices difficult, greenhouse producers are integrating both vertically and horizontally. Thus, they have requested the ability to include more costs and to calculate costs of outdoor production. I have presented talks using the Excel program, "Cost accounting for indoor and outdoor plants" allows clientele to monitor labor costs more closely, calculate break-even costs, use more cost categories, and calculate the costs of producing plants outdoors. The program allows producers to input their income statement and balance sheet so that they can calculate financial ratios and track the financial health of their business over time. The program can aid managers in making decision about pricing, reducing unprofitable crops, controlling costs, and increasing sales of profitable crops. The program and workshops on using it have been requested by producers and educators all over the U.S. A gratis, simplified version is on the Rutgers University Farm Management Website (http://aesop.rutgers.edu/~farmmgmt) and linked to the national risk management website. An Excel version is distributed through Rutgers Cooperative Extension so that producers can calculate their own costs. PARTICIPANTS: I have reached producers in New Jersey through a combination of workshops, meetings, field visits, a newsletter, and The Rutgers Farm Management Website. TARGET AUDIENCES: The primary audience is the ornamental industry which includes nurseries, greenhouses, and garden centers. PROJECT MODIFICATIONS: Not relevant to this project.

Impacts
Producers are using the Excel program, "Cost accounting for indoor and outdoor plants" to remain viable in tough economic times. I have reached producers in New Jersey through a combination of workshops, meetings, field visits, a newsletter, and The Rutgers Farm Management Website. The primary audience is the ornamental industry which includes nurseries, greenhouses, and garden centers.

Publications

• Brumfield, R.G. 2010. Strategies Producers in the Northeastern United States Are Using to Reduce Costs and Increase Profits in Tough Economic Times. HortTechnology 20(5):836-843.
• O'Neill, Barbara, Stephen J. Komar, Robin G. Brumfield, and Robert Mickel. 2010. Later Life Farming: Retirement Plans and Concerns of Farm Families. Journal of Extension. 48(4): Article Number 4FEA6.
• Orhan Ozcatalbas, and R.G. Brumfield. 2010, Advisory Services for Organic Agriculture in the European Union and Turkey. Journal of Food, Agriculture & Environment 8(2):507-511.
• Orhan Ozcatalbas, and R.G. Brumfield. 2010, Allelopathy as an agricultural innovation and improving allelopathy extension. Journal of Food, Agriculture & Environment 8(2):908-913.

Progress 01/01/09 to 12/31/09

Outputs
OUTPUTS: The greenhouse and nursery industry in the Northeast is an important component of agricultural production with almost $3 billion in farm cash receipts. The greenhouse and nursery industry is the number one agricultural commodity in New Jersey with a value of cash receipts totaling in excess of one third of the state's total farm receipts and 2.3% of the total US value for this commodity. Currently, there are approximately 350 greenhouse and 600 nursery operations in New Jersey. The U.S. floricultural and nursery industry is the second most important sector in U.S. agriculture in terms of economic output. The green industry is the leading sector in agricultural in New Jersey and four other states. Location, demographics, years of growth and subsequent decline all have positioned New Jersey well. We have survived and profited during the booms years; and, have honed our skills in marketing and management to enable the green industry to continue to survive, thrive, and lead the nation. PARTICIPANTS: I work with my colleagues in New Jersey and other states to provide information to our farmers. I conducted an in-service workshop for New England educators on cost of production, profitability, marketing, and pricing. I also speak to producers in other states, most recently Pennsylvania. I have organized "My Business - Lean and Mean" on-line workshop jointly with Penn State to give ideas, methods, and objectives to help growers in New Jersey and Pennsylvania and other states manage the nursery and greenhouse businesses during difficult economic times. TARGET AUDIENCES: In 2008, we surveyed New Jersey greenhouse growers to find out how they were coping with rising energy costs. The survey showed that while only 4% have adopted alternative energy, 45% of them are investigating new methods of energy use, storage, and generation. Some of the alternative energy uses include biomass (wood, corn, switchgrass, etc.), co-firing (coal and biomass), solar, wind, ground-source heat pumps, and geothermal. PROJECT MODIFICATIONS: Nothing significant to report during this reporting period.

Impacts
Competition in the nursery and greenhouse industry has become fierce. The recent volatility of fossil fuels and general energy prices, domestic competition, off-shore production, a weakening and stressed economy, and the growth of the mass market add-up to collectively produce downward pressure on prices. Nationally, the number of producers continues to decline as a direct result of the newly defined economic risks. Fuel oil, the typical fuel used to heat greenhouses almost tripled in price from 2003 to the middle of 2008, but has since come down to levels experienced during the middle of the decade. If, as expected, oil prices start to climb again, a typical commercial greenhouse operation would experience significant difficulty making a profit, and its industry would be in peril. In 2008, we surveyed New Jersey greenhouse growers to find out how they were coping with rising energy costs. The survey showed that while only 4% have adopted alternative energy, 45% of them are investigating new methods of energy use, storage, and generation. Some of the alternative energy uses include biomass (wood, corn, switchgrass, etc.), co-firing (coal and biomass), solar, wind, ground-source heat pumps, and geothermal. In a market with ever increasing input costs and a economy that makes increasing prices difficult, greenhouse producers are integrating both vertically and horizontally. Thus, they have requested the ability to include more costs and to calculate costs of outdoor production. "Cost accounting for indoor and outdoor plants" allows clientele to monitor labor costs more closely, calculate break-even costs, use more cost categories, and calculate the costs of producing plants outdoors. The program allows producers to input their income statement and balance sheet so that they can calculate financial ratios and track the financial health of their business over time. The program can aid managers in making decision about pricing, reducing unprofitable crops, controlling costs, and increasing sales of profitable crops. The program and workshops on using it have been requested by producers and educators all over the U.S. A gratis, simplified version is on the Rutgers University Farm Management Website (http://aesop.rutgers.edu/~farmmgmt) and linked to the national risk management website. An Excel version is distributed through Rutgers Cooperative Extension so that producers can calculate their own costs. With budgets tight, we've decided to present a conference online instead of at one of our normal venues. The theme is "Ideas, Methods, & Objectives to Help You Manage Your Greenhouse and Nursery Business During Difficult Times." It is available at: http://www.aesop.rutgers.edu/~farmmgmt/. To serve agents in New Jersey better, I have again been writing a newsletter entitled "Farm Management News and Views" and distributing it electronically so they can incorporate it into their newsletters. I have reached producers in New Jersey through a combination of workshops, meetings, field visits, a newsletter, and The Rutgers Farm Management Website. The primary audience is the ornamental industry which includes nurseries, greenhouses, and garden centers.

Publications

• Hodges, A.W., C.R. Hall, B.K. Behe, J.H. Dennis, and R.G. Brumfield. 2010. Regional benchmarking survey., Part 4: Pricing, Advertising and Expansion Opportunities. Nursery Management and Production.
• O'Neill, B., Komar, S., Brumfield, R., and Mickel, R. 2010. Later Life Farming: Retirement Plans and Concerns of Farm Households. Accepted for publication in the proceedings of the 2009 annual meeting of the Association for Financial Counseling and Planning Education.
• Brumfield, R.G., A.J. Both, and G. Wulster. 2009. How Are Energy Costs Affecting Greenhouse Growers. 5th National Small Farm Proc. Prairie Capital Convention Center, Springfield, IL. Sept. 15-17, 2009.
• Brumfield, R.G. 2009. Taking Control of Your Costs: A Cost Accounting Tool for Greenhouse and Outdoor Crops. National Extension Risk Management Education Conference, Silver Legacy Hotel, Reno, NV on March 31-April 1, 2009.
• Brumfield, R.G., A.J. Both, and G. Wulster. 2009. How Are Greenhouse Growers Coping With Rising Energy Costs Southern Nursery Association Research Conference Proceedings. Georgia World Congress Center, Atlanta, GA. February 12-13, 2009. pp. 304-307.
• Brumfield, R.G. 2009. Matching profitable prodution with labor needs. 2009 Atlantic Coast Agricultural Convention. Atlantic City, NJ, Jan. 12-15, 2009, Trump Taj Mahal.
• Brumfield, R.G. 2009. Whats value got to do with it A guide to pricing. 2009 Atlantic Coast Agricultural Convention. Atlantic City, NJ, Jan. 12-15, 2009, Trump Taj Mahal.
• Brumfield, R.G. 2009. Increase Your Profits Through Benchmark Analysis: Pulling Your Basic Financial Information Together. Ohio Florists Association Newsletter.
• Brumfield, R.G. 2009. Striking a Balance: Using financial ratios to survive tough economic times. Greenhouse Product News 9(2):28-31.
• Hodges, A.W., C.R. Hall, B.K. Behe, J.H. Dennis, and R.G. Brumfield. 2009. Regional analysis of the U.S. nursery industry, Part 3: Sales processes. Nursery Management and Production. Dec 17, 2009. http://www.nmpromagazine.com/nm_1209_regional_benchmarking_survey_sal es_processes.aspx.
• Hodges, A.W., C.R. Hall, B.K. Behe, J.H. Dennis, and R.G. Brumfield. 2009. Regional benchmarking survey. Part 2: Production practices. Nursery Management and Production. Nov 17, 2009. http://www.nmpromagazine.com/nm_1109_regional_benchmarking_production _practices.aspx.
• Hodges, A.W., C.R. Hall, B.K. Behe, J.H. Dennis, and R.G. Brumfield. 2009. Regional benchmarking survey, Part 1: Sales and employment. Nursery Management and Production. Oct 13, 2009. http://www.nmpromagazine.com/nm_1009_benchmarking_survey.aspx.
• Behe, B.K., J.H. Dennis, C.R. Hall, A.W. Hodges, and R. G. Brumfield. 2008. Regional marketing practices in the U.S. nursery industry. 53:21-25. S. Nursery Assoc. Res. Conf. Proc. World Congress Center, Atlanta, GA. Aug 7-9, 2008
• Brumfield, R.G., Barbara O'Neill, S. J. Komar, and R. Mickel. 2009. Transferring the Farm and Creating a Retirement Paycheck from Farm Income and Assets. 5th National Small Farm Proc. Prairie Capital Convention Center, Springfield, IL. Sept. 15-17, 2009.
• Brumfield, R.G. 2009. A Record Keeping Tool to Help Farmers Increase Their Profits Through Benchmark Analysis by Pulling Their Basic Financial Information Together. 5th National Small Farm Proc. Prairie Capital Convention Center, Springfield, IL. Sept. 15-17, 2009.
• Brumfield, R.G. 2008. A tool to help greenhouse managers take control of their greenhouse and outdoor costs. 53:32-37. S. Nursery Assoc. Res. Conf. Proc. World Congress Center, Atlanta, GA. Aug 7-9, 2008.
• Brumfield, R.G. 2008. Rutgers University Farm Management News & Views 10(1). Developing Your Marketing Niche: Do What You Do Best
• Brumfield, R.G. 2007. Why worry about energy costs in greenhouses Proceedings National Ag. Risk Management Education Conference. Phoenix, Arizona. Apr. 15-18, 2007.
• Brumfield, R.G.2007. Financial benchmarks. New Jersey Vegetable Growers Meeting. Atlantic City, NJ, January 16-18, 2007, Trump Taj Mahal.
• Brumfield, R.G. and L.S. Martin. 2007. What to do when a big box store moves to town. NJ Vegetable Growers Meeting. Atlantic City, NJ, Jan. 16-18, 2007, Trump Taj Mahal.
• Brumfield, R.G.2007. Financial benchmarks. NJ Vegetable Growers Meeting. Atlantic City, NJ, January 16-18, 2007, Trump Taj Mahal.
• Brumfield, R.G. and L.S. Martin. 2007. What to do when a big box store moves to town. New Jersey Vegetable Growers Meeting. Atlantic City, NJ, January 16-18, 2007, Trump Taj Mahal.
• Brumfield, R.G. 2006. Profitability of producing outdoor cut flowers. 51st Southern Nursery Association Research Conference Proceedings. August 9-10 at the Georgia World Congress Center, Atlanta, GA. Brumfield, R.G.2006. Can you make money growing cut flowers New Jersey Vegetable Growers Meeting. Atlantic City, NJ, January 10, 2006, Borgata Hotel Casino and Spa, January 10, 2006.
• Brumfield R.G., and L.S. Martin. 2006. How to survive the Big Boxes: A Hands-on Workshop on Cost Accounting and Marketing. Indiana Nursery and Landscape Association News, 66(6) 22-24.
• Brumfield, R.G. 2007. How Can Greenhouse Managers Deal with Rising Energy Costs HortScience 42(4):982. Presented at the 104th Annual Meeting of American Society for Horticultural Science, Scottsdale, AZ.
• Brumfield, R.G. 2006. Costs and returns of producing outdoor cut flowers. HortScience 41(4):981. Presented at the 103rd Annual Meeting of American Society for Horticultural Science, New Orleans, LA, July 27-30, 2006.
• Brumfield, R.G. 2009. Matching profitable prodution with labor needs. On the Rutgers Vegetable Working Group Website.
• Brumfield, R.G. 2008. Cost accounting for indoor and outdoor plants, Computer program and documentation for use with IBM compatible computers and Microsoft Excel. Rutgers Cooperative Extension. Version 3.04 Copyright 2008, Rutgers University.

Progress 01/01/08 to 12/31/08

Outputs
OUTPUTS: The greenhouse and nursery industry is the number one agricultural commodity in New Jersey with a value of cash receipts totaling in excess of one third of the state's total farm receipts and 2.3% of the total US value for this commodity. Currently, there are approximately 350 greenhouse and 600 nursery operations in New Jersey. The U.S. floricultural and nursery industry is the second most important sector in U.S. agriculture in terms of economic output. The green industry is the leading sector in agricultural in New Jersey and four other states. Location, demographics, years of growth and subsequent decline all have positioned New Jersey well. We have survived and profited during the booms years; and, have honed our skills in marketing and management to enable the green industry to continue to survive, thrive, and lead the nation. Competition in the nursery and greenhouse industry has become fierce. The recent volatility of fossil fuels and general energy prices, domestic competition, off-shore production, a weakening and stressed economy, and the growth of the mass market add-up to collectively produce downward pressure on prices. Nationally, the number of producers continues to decline as a direct result of the newly defined economic risks. Unlike farmers who produce field crops, floricultural and nursery firms bear the entire price, market, and production risks because these crops have had no government support programs. Thus, to stay competitive, producers must calculate their costs for individual crops so that they can develop the most profitable crop mix for their particular market. To compete in a market with ever increasing input costs and a competitive market that makes increasing prices difficult, greenhouse producers are integrating both vertically and horizontally. Thus, they have requested the ability to include more costs and to calculate costs of outdoor production. I visited greenhouse growers and collected thorough detailed financial data to address producers' current financial risk management needs. A new computer program entitled "Cost accounting for indoor and outdoor plants" allows clientele to monitor labor costs more closely, calculate break-even costs, use more cost categories, and calculate the costs of producing plants outdoors. It includes a section to allow producers to input their income statement and balance sheet so that they can calculate financial ratios and track the financial health of their business over time. The program can aid managers in making decision about pricing, reducing unprofitable crops, controlling costs, and increasing sales of profitable crops. The program can also be used in management classes or extension workshops. The program has been requested by producers and educators all over the U.S. as well as in several foreign countries. A gratis, simplified version is on the Rutgers University Farm Management Website (http://aesop.rutgers.edu/~farmmgmt) and linked to the national risk management website. In addition, an Excel version is distributed through Rutgers Cooperative Extension so that producers can calculate their own costs. PARTICIPANTS: I have organized "My Business - Lean and Mean" workshop jointly with Penn State togive ideas, methods, and objectives to help growers in New Jersey and Pennsylvania manage the nursery and greenhouse businesses during difficult economic times. It is scheduled at the Burlington County Extension Office, February 18, 2009. One of the papers that I co-authored with colleagues at the University of Antalya in Turkey entitled. 'The Agricultural Information System for Farmers in Turkey', published in Information Development was one of the top 10 most popular full text articles downloaded from the Sage Publications website. I have reached producers in New Jersey through a combination of workshops, meetings, field visits, a newsletter, and The Rutgers Farm Management Website. The primary audience is the ornamental industry which includes nurseries, greenhouses, and garden centers. Since its inception, the website has been viewed by an average of 2,905 people per month (over 6,000 last month). Taking into account the 350 greenhouses in New Jersey, it would appear that we are serving the majority of our stakeholders. TARGET AUDIENCES: Over 300 people now have access to the Excel version of the Greenhouse Cost Accounting Program. This represents over 75% of the greenhouses in New Jersey. The average greenhouse in the state is 25,000 square feet in size with annual sales of $350,000. This means that greenhouses representing $105 million in annual sales and 7.5 million square feet of production area are using the program. If by using this program they are 5% more efficient, this would represent $5.25 million in sales and 375,000 square feet of production area. PROJECT MODIFICATIONS: Over 300 people now have access to the Excel version of the Greenhouse Cost Accounting Program. This represents over 75% of the greenhouses in New Jersey. The average greenhouse in the state is 25,000 square feet in size with annual sales of $350,000. This means that greenhouses representing $105 million in annual sales and 7.5 million square feet of production area are using the program. If by using this program they are 5% more efficient, this would represent $5.25 million in sales and 375,000 square feet of production area.

Impacts
Over 300 people now have access to the Excel version of the Greenhouse Cost Accounting Program. This represents over 75% of the greenhouses in New Jersey. The average greenhouse in the state is 25,000 square feet in size with annual sales of $350,000. This means that greenhouses representing $105 million in annual sales and 7.5 million square feet of production area are using the program. If by using this program they are 5% more efficient, this would represent $5.25 million in sales and 375,000 square feet of production area. I have organized "My Business - Lean and Mean" workshop jointly with Penn State togive ideas, methods, and objectives to help growers in New Jersey and Pennsylvania manage the nursery and greenhouse businesses during difficult economic times. It is scheduled at the Burlington County Extension Office, February 18, 2009. One of the papers that I co-authored with colleagues at the University of Antalya in Turkey entitled. 'The Agricultural Information System for Farmers in Turkey', published in Information Development was one of the top 10 most popular full text articles downloaded from the Sage Publications website. I have reached producers in New Jersey through a combination of workshops, meetings, field visits, a newsletter, and The Rutgers Farm Management Website. The primary audience is the ornamental industry which includes nurseries, greenhouses, and garden centers. Since its inception, the website has been viewed by an average of 2,905 people per month (over 6,000 last month). Taking into account the 350 greenhouses in New Jersey, it would appear that we are serving the majority of our stakeholders.

Publications

• Brumfield R.G., and L.S. Martin. 2006. How to survive the Big Boxes: A Hand's-on Workshop on Cost Accounting and Marketing. Indiana Nursery and Landscape Association News, 66(6) 22-24. (Invited).
• Brumfield, R.G. and L.S. Martin. 2006. Marketing strategies for small growers. Greenhouse Product News 16(12) 42-44. (Invited).
• Brumfield, R.G. 2007. Farm Management News & Views 9(1) The Impact of High Energy Costs and What to do About It.
• Brumfield, R.G. 2005. Market, To Market: A Workbook for Selecting Market Options and Strategies for Agricultural Products. http://aesop.rutgers.edu/~farmmgmt/marketing/mktwb00.html.
• Sayın, C., R.G.Brumfield, M.N. Mencet, and B. Ozkan. 2005. The Organic Farming Movement in Turkey. HortTechnology. 15(4): 864-871.
• Brumfield, R.G. 2008. Know your costs. Greenhouse Product News 8(12):20-22. (Invited).
• Brumfield, R.G. 2008. Do what you do best. Greenhouse Product News 8(8):23-26. (Invited).
• Brumfield, R.G. 2007. Dealing with rising energy costs. Greenhouse Product News 17(3):24-31. (Invited).

Progress 01/01/07 to 12/31/07

Outputs
OUTPUTS: I previously developed the Rutgers Greenhouse Cost Accounting program to help floricultural and nursery producers calculate their individual costs for their businesses. It has been well received and hugely successful. Because of increasing competition, I receive inquiries for this program nearly every day. To compete, in with ever increasing input costs and a competitive market that makes increasing prices difficult, producers are integrating both vertically and horizontally. Thus, they have requested the ability to include more costs and to calculate costs of outdoor production. To upgrade the program, I visited greenhouse growers and collected thorough detailed financial data to address producers' current financial risk management needs. Modifications to the program allow clientele to monitor labor costs more closely, calculate break-even costs, use more cost categories, and calculate the costs of producing plants outdoors. In addition, I added a section to allow producers to input their income statement and balance sheet so that they can calculate financial ratios and track the financial health of their business over time. The program can aid managers in making decision about pricing, reducing unprofitable crops, controlling costs, and increasing sales of profitable crops. The program can also be used in management classes or extension workshops. The program has been requested by producers and educators all over the U.S. as well as in several foreign countries. A gratis, simplified version is on the Rutgers University Farm Management Website (http://aesop.rutgers.edu/~farmmgmt) and linked to the national risk management website. In addition, an Excel version is distributed through Rutgers Cooperative Extension so that producers can calculate their own costs. Using the Greenhouse Cost Accounting Program as a tool, I also developed and delivered a cost accounting educational program to help greenhouse growers calculate their individual operating costs. I delivered this hands-on program through OCPE. I have also repeated it after receiving invitations from other states including the top floricultural and nursery producing states of Oregon, Indiana, Michigan, Pennsylvania, and Ohio, as well as Alabama, Virginia, Kentucky, Texas, and New Hampshire. PARTICIPANTS: I worked with Dr. A.J. Both and Dr. George Wulster to conduct a comprehensive greenhouse survey where we asked agents and program associates to help locate all greenhouse operations in their counties as well as solicit key information about these operations through a comprehensive questionnaire. The questions in the survey were discussed and formulated with input from key stakeholders (agents) to ensure all areas of interest are covered. Results of the survey are on the Farm Management Website http://aesop.rutgers.edu/~farmmgmt so that it is available to all agents and specialists with an interest in the New Jersey greenhouse industry. Colleagues and the industry have sought my expertise in horticultural economics both nationally and internationally. I am the Vice Chair for the International Society of Horticultural Science Commission on Management and Economics. I continue to be the Marketing and Economics Editor for the prestigious journal, HortScience and am asked to review papers for other economic and horticultural journals. TARGET AUDIENCES: I have reached producers in New Jersey through a combination of workshops, meetings, field visits, a newsletter, and The Rutgers Farm Management Website. The primary audience is the ornamental industry which includes nurseries, greenhouses, and garden centrs. The website is viewed by an average of 2,563 people per month. Taking into account the 350 greenhouses in New Jersey, it would appear that we are serving the majority of our stakeholders.

Impacts
Over 200 people now have access to the Excel version of the Greenhouse Cost Accounting Program. This represents over 50% of the greenhouses in New Jersey. The average greenhouse in the state is 25,000 square feet in size with annual sales of $350,000. This means that greenhouses representing $70 million in annual sales and 5 million square feet of production area are using the program. If by using this program they are 5% more efficient, this would represent $3.5 million in sales and 250,000 square feet of production area. Comments from the workshops have all been positive, and ask for more of this kind of information to help remain competitive. Requests for information come from New Jersey, many other states, and even other countries.

Publications

• Brumfield, R.G. 2007. Why worry about energy costs in greenhouses? Proceedings National Agricultural Risk Management Education Conference. Phoenix, Arizona. April 15-18, 2007. http://www.agrisk.umn.edu/conference/agenda.aspx?ConfID=4&Output=Sum# .
• Brumfield, R.G. 2007. How Can Greenhouse Managers Deal with Rising Energy Costs?. HortScience 42(4):982. Presented at the 104th Annual Meeting of American Society for Horticultural Science, Scottsdale, AZ.
• Brumfield, R.G. 2007. The Impact of High Energy Costs and What to do About ItFarm Management News & Views9(1).
• Brumfield, R.G. 2007.How Can Small Greenhouses Compete against Big Boxes?Farm Management News & Views 8(1).
• Brumfield, R.G. 2006. Greenhouse cost accounting.with financial ratios and outdoor production Computer program and documentation for use with Microsoft Excel. Rutgers Cooperative Extension. Copyright 2006, Rutgers University.

Progress 01/01/06 to 12/31/06

Outputs
The largest cash-producing agricultural sector in New Jersey is the green industry. Competition in this industry has become fierce. The dominance of big box stores has put downward pressure on prices while costs are increasing. In addition to the current market conditions, New Jersey farmers are faced with high land and labor costs, right-to-farm conflicts, urbanization, and increased regulations. These factors combine with the instability of the international energy market to make New Jersey one of the most difficult places to farm in the United States. To stay competitive, producers must calculate their costs for individual crops so that they can develop the most profitable crop mix for their particular market. I enhanced the Rutgers Greenhouse Cost Accounting program that I developed some years ago to help floricultural and nursery producers calculate their individual costs for their businesses. To upgrade the program, I visited greenhouse growers and collected thorough detailed financial data to address producers' current financial risk management needs. I have also used this information to calculate energy costs and to analyze strategies to cope with rising energy costs. I developed and delivered an educational program to help greenhouse growers calculate their individual operating costs and to help them respond to rising energy costs. I delivered these programs through in New Jersey as well as in Indiana, Michigan, Pennsylvania, and Ohio, as well as Alabama, Virginia, Kentucky, Texas, and New Hampshire. I used funds from two grants with the USDA Risk Management Agency (RMA) to develop an interactive budget template for greenhouse crops which is available on line at the Farm Management Website: http://aesop.rutgers.edu/farmmgmt. Energy costs have increased in the last few years. At a whopping increase of 103% since 2003, gasoline has increased the most, but other types of energy have all gone up as well. In a mature with intense competition, this is a concern for many greenhouse operators. How big is the cost of energy? In a survey of 30 greenhouse businesses, I looked at total costs and found that energy costs averaged 8.5% of sales. This includes heating fuel, gas/diesel, electricity, and trucking costs. How can producers deal with high energy costs in their greenhouses? Since profit = price - cost, to increase profits, either cut costs or increase prices. The options include: reduce fuel costs, conserve energy, evaluate alternative or additional fuel sources or heating systems, change production practices, use space wisely, evaluate costs to look for places to cut, or increase prices. Selecting the final strategy may involve trade-offs among various objectives. One alternative may offer the greatest financial returns, but it may be inconsistent with other objectives. At this point, producers must decide which objectives are most important.

Impacts
Modifications to the cost accounting program allow clientele to monitor labor costs more closely, calculate break-even costs, use more cost categories, and calculate the costs of producing plants outdoors. The program can aid managers in making decision about pricing, reducing unprofitable crops, controlling costs, and increasing sales of profitable crops. The program can also be used in management classes or extension workshops. The program has been requested by producers and educators all over the U.S. as well as in several foreign countries. A gratis, simplified version is on the Rutgers University Farm Management Website (http://aesop.rutgers.edu/~farmmgmt) and linked to the national risk management website. In addition, an Excel version is distributed through Rutgers Cooperative Extension so that producers can calculate their own costs. The Rutgers Farm Management Website is viewed by an average of 2,563 people per month. Taking into account the 350 greenhouses in New Jersey, it would appear that we are serving the majority of our stakeholders. Over 200 people now have access to the Excel version of the Greenhouse Cost Accounting Program. This represents over 50% of the greenhouses in New Jersey. The average greenhouse in the state is 25,000 square feet in size with annual sales of $350,000. This means that greenhouses representing $70 million in annual sales and 5 million square feet of production area are using the program. If by using this program they are 5% more efficient, this would represent $3.5 million in sales and 250,000 square feet of production area.

Publications

• Brumfield, R.G. 2005. To Market, To Market: An On-line Strategy for Selecting Market Options and Strategies FEATURED ARTICLE. DAFRE Dynamics 7 (2).
• Brumfield, R.G. 2007. The Impact of High Energy Costs and What to do About It, Farm Management News & Views 9(1).
• Brumfield, R.G. 2006. How Can Small Greenhouses Compete against Big Boxes? Farm Management News & Views 8(1).
• Brumfield, R.G. 2005. Market, To Market: A Workbook for Selecting Market Options and Strategies for Agricultural Products. http://aesop.rutgers.edu/~farmmgmt/marketing/mktwb00.html.
• Brumfield, R. 2004. Greenhouse cost accounting computer program: extension and teaching tool. Acta Horticulturae 655:479-486. http://www.actahort.org/books/655/655_58.htm.
• Brumfield R.G., and L.S. Martin. 2006. How to survive the Big Boxes: A Hand's-on Workshop on Cost Accounting and Marketing. Indiana Nursery and Landscape Association News, Nov/Dec 2006. (Invited).
• Brumfield, R.G. and L.S. Martin. 2006. Marketing strategies for small growers. Greenhouse Product News 16(12) 42-44. (Invited).
• Brumfield, R.G. and L.S. Martin. 2007. What to do when a big box store moves to town. New Jersey Vegetable Growers Meeting. Atlantic City, NJ, January 16-18, 2007, Trump Taj Mahal.
• Brumfield, R.G.2007. Financial benchmarks. New Jersey Vegetable Growers Meeting. Atlantic City, NJ, January 16-18, 2007, Trump Taj Mahal.
• Brumfield, R.G. 2006. Profitability of producing outdoor cut flowers. 51st Southern Nursery Association Research Conference Proceedings. August 9 to 10 at the Georgia World Congress Center, Atlanta, GA. Martin, L.S. and R.G. Brumfield. 2006. Marketing for a Greener Greenhouse. Southern Nursery Association Research Conference Proceedings. 49:452-463. August 9 to 10 at the Georgia World Congress Center, Atlanta, GA.
• Brumfield, R.G.2006. Market to Market: A new tool for assessing marketing alternatives. New Jersey Vegetable Growers Meeting. Atlantic City, NJ, January 10, 2006, Borgata Hotel Casino and Spa, January 10, 2006.
• Brumfield, R.G.2006. Can you make money growing cut flowers?. New Jersey Vegetable Growers Meeting. Atlantic City, NJ, January 10, 2006, Borgata Hotel Casino and Spa, January 10, 2006.
• Brumfield, R.G. 2005. To Market; To Market: An On-line Workbook for Selecting Market Options and Strategies. National Risk Management Extension Conference. Kansas City, Missouri, April 6-9, 2005.
• Brumfield, R.G. 2005. An On-line Workbook for Selecting Market Options and Strategies for Agricultural Products. World Scientific and Engineering Academy and Society Conference on Mathematics and Computers in Business and Economics. Buenos Aires, Argentina, March 1-3, 2005.
• Brumfield, R.G. 2006. Costs and returns of producing outdoor cut flowers. HortScience 41(4):981. Presented at the 103rd Annual Meeting of American Society for Horticultural Science, New Orleans, LA, July 27-30, 2006.
• Brumfield, R.G. 2006. The economics of organics and sustainable systems: does it pay for the producer? American Society for Horticultural Science Annual Conference. Providence, Rhode Island. Oct.3-6, 2003. (Invited).

Progress 01/01/05 to 12/31/05

Outputs
The green industry is the number one agricultural commodity in NJ. The recent volatility of fossil fuels and general energy prices, domestic competition, off-shore production, a weakening and stressed economy, the growth of the mass market, add-up to collectively produce downward pressure on prices. To stay competitive, producers must calculate their costs for individual crops so that they can develop the most profitable crop mix for their particular market. I developed a cost accounting program to help floricultural and nursery producers calculate their individual costs for their businesses. The information can be used by greenhouse managers to analyze various production, financial, and marketing strategies. The Greenhouse Cost Accounting program uses cost information typically found on income statements. The output can aid managers in making decision about pricing, reducing unprofitable production, controlling costs, and increasing sales of profitable crops. The program can also be used in management classes or extension workshops. A gratis, simplified version is on the Rutgers University Farm Management Website (http://aesop.rutgers.edu/farmmgmt). An Excel version is distributed through Rutgers Cooperative Extension. Through a USDA Risk Management Agency (RMA) grant, I have developed an interactive budget template for greenhouse crops which is available on the Farm Management Website. The Adjusted Gross Revenue (AGR) plan provides insurance coverage for multiple agricultural commodities under one insurance product and uses Schedule F tax information as a base to provide a level of guaranteed revenue for the insurance period. I developed four case studies to introduce the program to New Jersey farmers. I developed a series of fact sheets on risk management for ornamental producers. The case studies and the fact sheets are on the Rutgers Farm Management Website. I worked with Dr. A.J. Both and Dr. George Wulster to conduct a comprehensive greenhouse survey of all greenhouse operations in NJ. Results of the survey are on the Farm Management Website.

Impacts
Results of the greenhouse survey are useful to both agents and specialists and could be used to ensure that all members of the industry have access to and can benefit from the latest research and regulatory developments. The information available through the survey will be a valuable resource for determining future research and education priorities and to develop extension programs delivered by all of our agents (both Ag and FCS agents). The Rutgers Farm Management Website is viewed by an average of 1,911 people per month. Taking into account the 350 greenhouses in New Jersey, it would appear that we are serving the majority of our stakeholders. Over 180 people now have access to the Excel version of the Greenhouse Cost Accounting Program. This represents 50% of the greenhouses in New Jersey. The average greenhouse in the state is 25,000 square feet in size with annual sales of $350,000. This means that greenhouses representing $63 million in annual sales and over 4.5 million square feet of production area are using the program. If by using this program they are 5% more efficient, this would represent $3.1 million in sales and 225,000 square feet of production area. Comments from the workshops have all been positive, and ask for more of this kind of information to help remain competitive. Requests for information come from New Jersey, many other states, and even other countries.

Publications

• Brumfield, R.G. 2005. Benchmarks for Small Greenhouses. 4th National Small Farms Conference. Greensboro, North Carolina, October 16-19, 2005.
• Brumfield, R.G. 2006. Benchmarks for Small Greenhouses. Presented at the 4th National Small Farm Conference, Greensboro, NC, Nov. 16-19, 2005.

Progress 01/01/04 to 12/31/04

Outputs
The greenhouse and nursery industry is the number one agricultural commodity in NJ with a value of cash receipts of $306,000,000, totaling 37.3% of the total farm receipts in New Jersey and 2.2% of the total US value for this commodity (2001 data, Economic Research Service, USDA, Washington, DC). No statistical data exists that separates these two industries. In order to get recent and accurate data relevant to the NJ greenhouse industry, a survey was conducted in the spring of 2003.

Impacts
Results of this survey will be helpful tools to our local extension agents and specialists and the NJ greenhouse industry at large. The survey will provide valuable feedback from the industry that will help determine future research and education priorities. Initial results are available on the Rutgers Farm Management Website at: http://aesop.rutgers.edu/~farmmgmt.

Publications

• Brumfield, R.G. 2004. Strengths and weaknesses of the greenhouse industry in New Jersey. Acta Horticulturae 633:121-126. http://www.actahort.org/books/633/633_14.htm.