Determinants of Hoophouse Profitability: A Case Study of 12 Novice Michigan Farmers

ADDITIONAL INDEX WORDS. season extension, vegetable production, farm management SUMMARY. Quantitative and qualitative data from a group of 12 novice hoophouse farmers over a 3-year period in Michigan were analyzed to better understand factors associated with profitable use of these structures. There was wide variation in labor inputs and effective wages. We used regression analysis and semistructured interviews to better understand the variation in performance. Not all farmers were making use of the hoophouse between outdoor seasons when supply is low and prices arehigh,aseconomictheorywouldpredict.However,highwageearnerswere more likely to push production into the extended season months, hire labor at higher wages, and spend less time in maintaining crops and appeared to harvest more efficiently. Markets played a role in farmers’ success as some farmers were able to make significant profits by organizing community-supported agriculture (CSA)/ direct sales or by finding new markets.