Articles
DEVELOPMENT OF A FINANCIAL MODEL TO EVALUATE INVESTMENT IN SUPPLEMENTAL LIGHTING FOR GREENHOUSE FLORICULTURAL PRODUCTION
Article number
580_24
Pages
191 – 196
Language
English
Abstract
A computer decision-support system (DSS), Lighten Up, has been developed to quantify the financial costs and benefits of supplemental lighting with high-pressure sodium (HPS) lamps for greenhouse floricultural crops.
The objective of the DSS is to analyze return on investment in lights given a range of production assumptions, and also to calculate how much additional yield would be necessary to cover investment and operating costs.
The model calculates the return on investment (net present value, internal rate of return, and payback time) with different assumptions of yield response from lights.
The percent increase in cutting production necessary to cover the investment costs is also calculated.
We have focused initially on production of cuttings for vegetatively-propagated crops.
The model has been applied to evaluate whether increased yield of cuttings exceeds the cost of investing in and operating lights.
Based on the experimental response of cuttings produced per week, for Petunia x hybrida Supertunia Sun Snow the investment in supplemental lighting with high-pressure sodium lights was cost-effective.
The model was used to generate charts that help growers estimate costs of lighting, and to quantify how much additional yield response from lighting would be needed to cover those costs.
The objective of the DSS is to analyze return on investment in lights given a range of production assumptions, and also to calculate how much additional yield would be necessary to cover investment and operating costs.
The model calculates the return on investment (net present value, internal rate of return, and payback time) with different assumptions of yield response from lights.
The percent increase in cutting production necessary to cover the investment costs is also calculated.
We have focused initially on production of cuttings for vegetatively-propagated crops.
The model has been applied to evaluate whether increased yield of cuttings exceeds the cost of investing in and operating lights.
Based on the experimental response of cuttings produced per week, for Petunia x hybrida Supertunia Sun Snow the investment in supplemental lighting with high-pressure sodium lights was cost-effective.
The model was used to generate charts that help growers estimate costs of lighting, and to quantify how much additional yield response from lighting would be needed to cover those costs.
Authors
P.R. Fisher, C.S. Donnelly
Keywords
High-pressure sodium, stock plant, cutting, petunia, decision-support
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