Assessing the influence of energy cost and other factors on profitability of greenhouse businesses in Tennessee

Abstract: The greenhouse industry is an important sub-sector of agriculture. On average, greenhouse and nursery farms in the U.S. have 57 percent more cash receipts than all farms (Muhammed, 2000). Tennessee cash receipts for greenhouse and nursery farms was 307 percent above than the average in the US. However, greenhouse operations in Tennessee have declined over the years. The goal of this study was to acquire a better understanding of energy use by greenhouse businesses in Tennessee. The latest database containing greenhouse businesses was provided by the Tennessee Department of Agriculture. A mailed survey was used to collect data that covered questions on energy use, marketing and skill needs of the businesses. The respondents were mixed in terms of size of their operations, education and income levels. Out of the 279 surveys, 56 were returned, resulting in a 20 percent response rate. To determine the different factors affecting profitability of greenhouse operations, this study utilized correlation and chi-square tests using different variables. Results indicate that profitability of greenhouse operations is influenced by the rising energy cost, economic downturn and size of operation. The survey also indicates that growers would consider adopting alternative energy saving methods depending on their income and age. The study shows the need to assist the growers in learning more about alternative energy saving methods and technologies. This study is beneficial not only for greenhouse businesses but also other stakeholders including policy makers and those working with growers. Other researchers can also undertake similar studies using the approach used here with appropriate modification.