W 1125

Sample Budget for Small-Scale Commercial

Tomato Operations
Margarita Velandia, Department of Agricultural and Resource Economics
Zachariah Hansen, Department of Entomology and Plant Pathology
Annette Wszelaki, Department of Plant Sciences
Ty Wolaver, Department of Agricultural and Resource Economics

Tennessee is home to a growing culture of farm-to-table agriculture with numerous farmers markets that allow
consumers to purchase fresh foods directly from producers. These farmers markets sell a wide variety of fresh
produce, and fresh tomatoes are a best seller in Tennessee. Small-scale and/or part-time farming operations are
well-suited for open field-grown tomatoes because of the relatively low start-up cost and marketability through
direct-to-consumer outlets of this crop (Orzolek, Bogash, Harsh, Kime and Harper, 2006). According to the 2017
Census of Agriculture, a large percentage of Tennessee producers growing tomatoes in the open operate less than
1 acre (82 percent); however, newer producers venturing into tomato production may be unfamiliar with production
practices and effective budgeting.
Tomato budgets for large-scale commercial production are available for various states in the southeastern region
(e.g., Mississippi, North Carolina), but only a few states (e.g., Kentucky) have tomato budgets for small farm
operations in this region. Producers looking to grow and market tomatoes on a small scale may not find information
provided by large-scale tomato budgets useful; production practices, per-unit pricing and production volume may
not be the same for large-scale as for small-scale operations. For example, small-scale producers will likely sell
tomatoes at direct-to-consumer outlets such as farmers markets due to lower transaction costs, as well as the lack of
requirements regarding minimum volume of sale. Finally, tomato producers operating at a smaller scale may garner/
collect retail input prices rather than wholesale prices due to minimum order requirements at the wholesale scale.
The objective of this sample budget is to guide small-scale tomato producers on things to consider when estimating
their net returns. Given that the budget presented here is just an example, the actual numbers presented here should
not be used to estimate net revenues. Every operation is unique; therefore, estimated costs and revenue may vary
depending on soil conditions, tomato variety, production practices used and various other factors. The Excel version
of the sample budget described at the end of this publication allows users to adjust values in the budget to more
accurately reflect costs and returns associated with their operation.

Data
Sources of information used to build the sample budget came from personal interviews with two farm operators in
the East Tennessee area, specialists in vegetable production, entomology, and plant pathology at the University of
Tennessee (UT), as well as information from input suppliers in the southeastern region of the United States.

Sample Budget Details and Explanation

This example represents a small operation growing three vegetable crops, including tomatoes, and selling produce
only through farmers markets (Table 1). The land unit of this sample budget is a 100-foot row rather than an acre. We
assume tomatoes are grown in the open field, and varieties grown are traditional round red determinate types such
as Empire and Celebrity. Many small-scale operations use indeterminate varieties. This culture would entail a different
trellis system and a longer harvest period. Budgets for indeterminate varieties would include greater yields but higher
costs for trellising, labor (trellising and marketing), fertilization and pest control. Market prices would be the same for
the two types of varieties. Do not confuse indeterminate varieties with heirloom varieties, which would be associated
with different costs and returns and therefore a different budget. Many indeterminate varieties are not heirlooms.

1 Sample Budget for Small-Scaled Commercial Tomato Operations 2022

 Table 1. An Example of Estimated Cost and Returns for a Small-Scale Tomato Operation

GROSS RETURNS UNIT QUANTITY $/UNIT TOTAL

Tomatoes lb 450.00 $2.00 $900.00

VARIABLE COST
Tomato plants-hybrid1 plant 50 $0.26 $13.10
Fertilizer2
Plant Starter (20-20-20) lb 5.5 $1.50 $8.59
Calcium nitrate lb 3.9 $0.50 $1.95
Potassium nitrate lb 8.1 $0.70 $5.67
Soil Test3 test 1 $15.00 $15.00
Fungicides4
Chlorothalonil 6SC ml 22.8 $0.01 $0.30
Inspire Super ml 24.42 $0.08 $1.89
Fontelis ml 24.42 $0.07 $1.69
Mancozeb lb 0.06 $18.51 $1.11
Copper lb 0.1 $2.85 $0.28
Herbicide5
Metribuzin oz 0.11 $0.92 $0.10
Poast pt 0.03 $14.60 $0.44
Insecticide 5

Dipel DF oz 0.42 $1.10 $0.46

Radiant SC ml 3.24 $0.29 $0.94
Admire Pro ml 3.54 $0.07 $0.25
Plastic mulch 6
sq ft 400 $0.01 $4.47
Stakes7 stake 25 $1.05 $26.16
Twine/string 7
box 1 $8.03 $8.03
Irrigation supplies8
Drip tape linear 100 $0.25 $25.00
ft
Hired labor9
Transplanting, bed preparation (lay plastic and drip) hours 8 $13.89 $111.12
Pruning and training hour 10 $13.89 $138.90
Harvesting hour 9 $13.89 $125.01
Other 10

Machinery (maintenance and repairs) 100-ft

row
Cash rent 100-ft 1 $2.60 $2.60
row
TOTAL VARIABLE COST $493.07
INTEREST ON VARIABLE COST 11
% $246.53 4.53% $10.72

2 Sample Budget for Small-Scaled Commercial Tomato Operations 2022

 Table 1. An Example of Estimated Cost and Returns for a Small-Scale Tomato Operation (Continued)

MARKETING COSTS UNIT QUANTITY $/UNIT TOTAL

Annual fee ((1/No. of products sold) of total annual fee)12 $8.33
Booth fee((1/No. of products sold) of total booth fee cost) 12
day 20 $20.60 $137.33
Hired labor ((1/No. of products sold) of total hired labor)13 hour 80 $13.89 $370.40
Crates14 crate 15 $14.97 $74.83
Gas/Fuel (driving to market, (1/No. of products sold) of total cost)15 100-ft 1 $96.00
row
Other marketing costs16
TOTALS MARKETING COSTS $686.90

TOTAL VARIABLE AND MARKETING COSTS $1,190.69

RETURN ABOVE VARIABLE AND MARKETING COST ($290.69)

Gross Returns
1. Yield – Tomato yields may vary by tomato variety and growing conditions. We use average yields from UT round
red determinate tomato variety evaluations conducted in 2017 and 2018 (i.e., 9 lb/plant).1 It is important to note that
in direct-to-consumer market outlets such as farmers markets, there are no specific quality specifications preventing
farmers from selling produce at the market. Some vendors sell “ugly” or “cosmetically challenged” tomatoes at
discounted prices (e.g., 50 percent off). This information is not incorporated into our sample budget. Additionally,
it is important to know that it is possible that not all tomatoes brought to the market will be sold. It is important to
have a plan for tomatoes not sold at the market. Some vendors sell produce not sold at the market to local chefs
at discounted prices. It is always important to start the planning process from the planting stage and adjust sales
predictions based on the previous years’ sales.

2. Prices – Tomato prices vary greatly by farmers market locations. Prices in farmers markets located in metropolitan
counties, specifically bigger cities (e.g., Knoxville, Murfreesboro), tend to be higher compared to prices in rural
counties, smaller cities with lower population densities and lower average household incomes (e.g., Bolivar,
Morristown). Tomatoes are priced on per pound or per container basis (e.g., quart, basket). In this publication, we
assumed prices are set on a per-pound basis. According to the Tennessee farmers markets price reports, prices in
2022 have fluctuated between $1.5 and $4 per lb, depending on location and variety.2 Tennessee farmers markets
price reports can be found at https://www.uky.edu/ccd/pricereports/TNFM.

Variable Costs
1. Tomato Plants – We estimated 50 tomato plants per 100-foot row. Assuming a 6-foot spacing between rows and
24-inch spacing between plants, we calculated approximately 50 plants per 100-foot row. The cost per tomato plant
is estimated as the average cost per plant in some nurseries from surrounding states. Small-quantity orders may
represent a higher cost per plant.

2. Fertilizer – Based on interviews with two tomato producers located in East Tennessee, we included a plant-starter
mixture, calcium nitrate and potassium nitrate as the fertilizer products for the tomato sample budget. We assumed
that no lime is needed, based on soil test results. We assumed a general-purpose plant starter N-P-K ratio of
20-20-20; however, appropriate N-P-K proportions are determined by soil test results and therefore may vary from
operation to operation. Because of the variability of fertilizer recommendations based on soil test results, suggested
fertilizer quantities are based on recommendations for the absence of a soil test from the latest version of the

1
https://vegetables.tennessee.edu/tomato-variety-trials/
2
https://www.uky.edu/ccd/pricereports/TNFM

3 Sample Budget for Small-Scaled Commercial Tomato Operations 2022

 Southeast U.S. Vegetable Crop Handbook3 for tomato production. Additionally, prices of the fertilizers listed in this
sample budget were gathered from some input suppliers in the southeastern region. The minimum amount sold at
local suppliers is 25-lb bags for plant starter and 50-lb bags for both potassium and calcium nitrates. Fertilizer costs
listed in the sample budget do not represent actual fertilizer expenses. For example, although only about 4 lbs of
calcium nitrate may be necessary for a 100-foot row of tomatoes, the minimum amount of calcium nitrate sold at local
suppliers is generally 50 lbs. It is important to notice that since the sample budget assumes a grower who produces
multiple vegetables, calcium nitrate may be used for other vegetables. On the other hand, producers may be able to
find fertilizer products for sale in smaller quantities but at a higher cost. For example, 5-lb bags of calcium nitrate are
available online at $13.99 per bag.4

3. Soil Test – Soil testing is crucial for tomato crop quality and performance, as many of the causes of poor fruit
development are associated with poor plant nutrition (Orzolek et al., 2006). Soil tests guide fertilizer requirements
for new operations during the initial growing season. Any deficiency or overapplication issues are often identified,
allowing an opportunity for fertilizer application adjustments in subsequent years. Soil test fees in the sample budget
are from UT Extension’s Soil, Plant, and Pest Center Fee Schedule.5

4. Fungicides – The products listed are components of a spray program considered to be a minimum requirement for
the successful control of foliar diseases. Quantities in the sample budget are based on the following recommendations:
a) Mancozeb — 4 applications at 1.15 lb per acre each time — which is equivalent to about 0.015 lb per application for
a 100-foot row for a total of 0.06 lb; b) Copper — 4 applications at 1.75 lb per acre each time — which is equivalent to
0.024 lb per application for a 100-foot row for a total of 0.10 lb; c) Chlorothalonil 6SC — 2 applications at 828 ml per
acre each time — which is equivalent to 11.4 ml per application for a 100-foot row for a total of 22.8 ml; d) Fontelis — 3
applications at 591 ml per acre each time — which is equivalent to about 8.14 ml per application for a 100-foot row for
a total of 24.42 ml; and e) Inspire Super — 3 applications at 591 ml per acre each time — which is equivalent to about
8.14 ml per application for 100-foot feet for a total of 24.42 ml. Both Fontelis and Inspire Super are needed because
the labels limit their usage, so both are needed to complete a full-season spray schedule rotation. For bacterial disease
control, both Mancozeb and Copper are needed; neither is satisfactory alone. Mancozeb substitutes Chlorothalonil for
fungal disease control. Because of the long pre-harvest interval for Mancozeb this one is replaced by Chlorothalonil
during harvest, and Copper is also dropped at this time. Prices of the suggested fungicides were gathered from local
input suppliers. Similar to fertilizers, fungicide costs listed in the sample budget do not represent actual fungicide
expenses. It is important to notice that since the sample budget assumes a grower who produces multiple vegetables,
some fungicides may be used for other vegetables, as long as they are labeled for the other crops. For additional
information on fungicides, contact Dr. Zachariah Hansen (zhansen1@utk.edu).

5. Herbicides, Insecticides & Fumigants – Insect and weed plant pressure may vary from operation to operation;
therefore, different products may be applied based on specific problems. In the sample budget, we suggest some
products for weed and insect control that should be used as examples rather than recommendations. The products
listed in the herbicides section are Metribuzin and Poast. The first product is used to control annual grasses and
broadleaf weeds, including jimsonweed, common ragweed, smartweed and velvetleaf. This product can also be used
as a post-emergent herbicide, but rates in the sample budget only represent rates to be applied before transplanting.
Poast is used as a post-emergent herbicide to control annual and perennial grasses only. Application rates are
taken from the latest version of the Southeast U.S. Vegetable Crop Handbook6; additional recommendations for the
application of this product can be found in the same publication. Insecticide products include Dipel DF, Radiant SC
and Admire Pro. Dipel DF should be used for small caterpillars only for best results, and it should be used a couple of
times early in the fruiting cycle since it is not harmful to beneficial insects. The rate used for this sample budget is two
applications totaling 0.42 oz per 100-foot row. Radiant SC is used for all sizes of caterpillars at a rate of 3.24 ml per
100-foot row. Finally, Admire Pro can be used to control insects such as aphids, Colorado potato beetle, leafhoppers
and whiteflies. This product should be applied to the soil once per year at a rate of 3.54 ml per 100-foot row. We are
assuming fumigants are unnecessary for growers of this size. Like fertilizers, herbicide and insecticide costs listed
in the sample budget do not represent actual fungicide expenses. For more information on herbicides, contact Dr.
Annette Wszelaki (awszelak@utk.edu).

3
https://vegetables.tennessee.edu/wp-content/uploads/sites/167/2022/01/2022-southeast-us-veg-crop-handbook-reduced-size.pdf
4
https://amzn.to/3PICvrX
5
https://soillab.tennessee.edu/brochure-and-fees/
6
https://vegetables.tennessee.edu/wp-content/uploads/sites/167/2022/01/2022-southeast-us-veg-crop-handbook-reduced-size.pdf

4 Sample Budget for Small-Scaled Commercial Tomato Operations 2022

 6. Plastic Mulch – Many farmers use plastic mulch for growing tomatoes. Black plastic mulch warms the soil, retains
moisture and has a positive impact on yield, fruit size and fruit quality in tomatoes planted in the spring. Black plastic
mulch also aids in controlling weed growth and reduces certain diseases (Rutledge et al., 1999). Black plastic mulch
is commonly sold in rolls of 4 by 4,000 feet. However, only about 100 linear feet of plastic mulch, or 400 square feet,
is needed for a 100-feet row of tomatoes. Some input suppliers sell smaller quantities of plastic mulch rolls but at a
higher price. Nonetheless, if a farmer is growing other vegetables, plastic mulch may also be used in the production
of other vegetables, and therefore the cost of a 4 x 4,000-foot plastic mulch roll can be split among the total area of
vegetables grown using plastic mulch. Unused material may also be used in subsequent growing seasons.

7. Stakes and String – The purpose of staking and stringing tomato plants is to maintain plant foliage and elevate
fruit off the ground, which will have an impact on the fruit quality and will facilitate harvesting (Ivors, 2010). Wooden
stakes of 1 square inch by 4 to 4.5 feet long are commonly used. Stakes are usually placed every other plant. Given the
estimated 50 tomato plants per 100-foot row, approximately 25 stakes are required for a 100-foot row area. A box of
string is assumed to be more than enough to cover 100-foot row of tomatoes.

8. Drip Irrigation System – We assume this operation uses a drip irrigation system. Costs associated with irrigation
in this sample budget include only drip tape. Similar to plastic mulch, drip tape is commonly sold in rolls of 750 linear
feet. Approximately 100 linear feet of drip tape are needed for 100-foot row of tomato plants. Drip tape is also used
for the production of other vegetables, and the remaining drip tape can be used for the production of other vegetable
crops or in subsequent growing seasons. Although the sample budget only reflects the cost associated with 100
linear feet of drip tape, actual expenditures can be higher because of the minimum amount of drip tape sold by input
suppliers. Smaller quantities of drip tape may be sold at a premium. Installation cost is not included in the sample
budget but should be considered. Although the cost of water is not included in this budget, if a farm has no access to
a well, the cost of using municipal water can be fairly high as there are no special fees for water used for agricultural
purposes in Tennessee.

9. Hired Labor – Tomatoes, similar to most other vegetables, are a labor-intensive crop; therefore, a separate section
for labor is included in the sample budget. Estimated hours associated with pre-harvest, harvest, and post-harvest
activities comprise the labor expenses. Labor requirements were estimated based on farmer interviews and
conversations with UT vegetable specialist Dr. Annette Wszelaki. Additional labor associated with plastic removal and
other end-of-season cleanup is not included in the sample budget but should be considered when estimating net
returns over variable costs.

10. Other – Other costs include cash rent. Cash rental rates are based on the 2022 USDA-NASS reported cash rental
rates for irrigated cropland in Tennessee ($187/acre). Substantial differences may exist in cash rental rates reported by
NASS and the prevailing rate in each location. Small operations may consider renting equipment, as they may not have
the initial capital to invest in any type of equipment. Machinery and equipment repair and maintenance costs should
be considered. These costs are not included in this budget as they would vary greatly from operation to operation,
depending on the equipment used.

11. Interests on Variable Cost – There is a time delay between some production expenses and the time tomatoes
are sold. These expenses may be covered from savings, but borrowing may be necessary to cover all expenses. We
assume 4.35 percent annual interest is paid on 50 percent of the variable cost listed in the sample budget.

12. Marketing Costs (Farmers Market Free) – There are costs associated with using farmers markets as a market outlet
to sell tomatoes (e.g., annual membership and booth fees). The sample budget assumes there are three vegetable
crops sold at the farmers market; therefore, costs associated with farmers markets participation only represent a third
of the actual costs, as fees are split among the three vegetable crops sold at the market. We use the average annual
participation fees and booth fees from seven farmers markets randomly selected in Tennessee.

13. Marketing Costs (Hired Labor) – Farmers markets in Tennessee last three hours on average although there
are some that can last up to five hours; therefore, three hours of labor are calculated per market day. Additionally,
approximately one hour for booth setup and take-down is included in the marketing hours for a total of four hours
per market day. Assuming a grower offers tomatoes throughout the growing season (June 15 to November 1) and
attends farmers markets each week of the season, a total of 20 days x 4 hours totals 80 hours for selling tomatoes at

5 Sample Budget for Small-Scaled Commercial Tomato Operations 2022

 a farmers market. Only a third (1/3) of this cost is included in the sample budget, as we assume the operation from
the sample budget sells two more vegetable crops at the farmers market, and therefore total hired labor cost is split
between these three crops. Additionally, travel time from farm to farmers market may vary by location but should be
considered when estimating costs associated with selling produce at farmers markets .

14. Crates – Plastic crates of 30-lb capacity are assumed to be used to taking tomatoes to market.

15. Gas (Driving to Market) – The cost is estimated based on the assumption that the farm is 30 miles away from the
farmers market. Gas prices were estimated using average gas prices in Tennessee as of August 15, 2022 ($3.6/gal).
Assuming a vehicle with a gas mileage of 15 miles per gallon, we estimated a total of 4 gallons required to cover 60
miles (round trip).7 If this farmer attends all 20 days of the season, that means a total of 80 gallons is required to cover
1,200 miles. The total cost of gas necessary for transportation from and to the market is divided by three, as this cost
is split among the three vegetable crops sold at the market.

16. Marketing Costs (Other) – There may be additional costs associated with marketing, such as business cards,
bags, signage, tents, tables and other marketing materials that are not included in the sample budget but should be
considered when selling produce at farmers markets.

17. Fixed Costs – Costs associated with land taxes (if land is owned), insurance, depreciation (if equipment is owned)
and management labor are not included in these sample budgets but should be considered when estimating net
returns.

Excel Sample Budget

An Excel spreadsheet version of the sample tomato budget (Table 1) is available on the Department of Agricultural
& Resource Economics website at https://arec.tennessee.edu/extension/budgets/. Growers can modify values and
details in this Excel Workbook highlighted in gray and thus use it to evaluate their own production costs and returns. If
quantities and details of the sample budget are modified, original values can be restored when clicking on the “Reset
Defaults” button on the bottom right of the sample budget. The “Print” button allows the user to print a one-page
summary of the sample budget.

Users should note that input prices used in this sample budget were current as of September 2022 and are subject to
change. Input prices were collected from a handful of randomly selected businesses; therefore, users are encouraged to
conduct a thorough search when sourcing input suppliers.

References
Ivors, K. 2010. Commercial Production of Staked Tomatoes in the Southeast. NC State Cooperative Extension, North
Carolina State University, Revised Bulletin AG-405.

Orzolek, M.D., S. M. Bogash, R. M. Harsh, L. F. Kime, and J. K. Harper. 2006. Agriculture Alternatives: Tomato Production.
College of Agricultural Sciences, Penn State Extension, Penn State University. Available online at http://extension.psu.
edu/business/ag-alternatives/horticulture/vegetables/tomato-production

Rutledge, A.D., J.B. Wills, and S. Bost. 1999. Commercial Tomato Production. Agricultural Extension Service, University
of Tennessee, PB 737. [Accessed February 12, 2015]. Available online at tiny.utk.edu/PB737

For more information, you can reach out to the following authors:
Margarita Velandia, Department of Agricultural and Resource Economics, mvelandia@utk.edu
Zachariah Hansen, Department of Entomology and Plant Pathology, zhansen1@utk.edu
Annette Wszelaki, Department of Plant Sciences, annettew@utk.edu
Ty Wolaver, Department of Agricultural and Resource Economics, tymwola@utk.edu

7
https://www.fueleconomy.gov/trip/ My trip calculator can be used to estimate fuel cost.

6 Sample Budget for Small-Scaled Commercial Tomato Operations 2022

W 1125 11/22 23-0069 Programs in agriculture and natural resources, 4-H youth development, family and consumer sciences, and resource development. University of Tennessee
Institute of Agriculture, U.S. Department of Agriculture and County governments cooperating. UT Extension provides equal opportunities in programs and employment.