Economic Analysis of Southern Highbush Blueberry Production Using Drip Irrigation and Frost Protection in Georgia, USA

Abstract

A partial enterprise budget simply evaluates the costs and returns profile of the agricultural firm. The simplicity in the partial enterprise budget comes with a cost that it lacks accuracy as it uses fixed single estimates and ignores potential variation in the components of the agricultural production processes. We study risk-rated returns from southern highbush blueberry production using a drip irrigation system under 5 scenarios of the blueberry prices and yields. The risk-rated return analysis gauges the returns over total costs under different specified situations addressing possible uncertainty. We show the chance of profit from southern highbush blueberry in Georgia is 69% in any full production year with the expected returns over costs of $952 per acre. This approach is helpful to minimize risk at the farmer’s production level and policy formation level.