Do you want to know how much money pumpkin farm owners make yearly? If YES, here are 7 factors that determine the income & profit margin for pumpkin farmers.
The major motive behind starting any business is money hence, whenever any entrepreneur wants to start a new business, one of the first questions that they usually ask is how much they are likely to make on the average yearly from the business.
This narrative also applies to entrepreneurs who are looking towards starting a pumpkin farm. They would want to know how much they are likely going to make annually from their pumpkin farm.
The truth is that there is no one-mold-fits-all when it comes to how much a pumpkin farm business is expected to make. There are some factors that we are going to look into before giving an estimate of how much an average pumpkin farm make yearly and these factors are;
7 Factors That Determine How Much Money Pumpkin Farmers Make Yearly
1. The Size of the Pumpkin Farm
One cannot conveniently state the amount a pumpkin farm is expected to make yearly if you do not know the size of the farm.
As a matter of fact, the amount a backyard pumpkin farm is expected to make annually will be far different from the amount a standard pumpkin farm with several supply outlets will make annually even if they operate in same location. Of course, the amount invested in a backyard pumpkin farm is different from the amount invested in a large pumpkin farm hence the amount they will both make will be far different.
One the average, the approximate cost of starting a pumpkin farm could be anywhere between $3,000 and $500,000 and even more depending on what you want to achieve.
2. The Location of the Pumpkin Farm
When it comes to setting up a new business, location plays a major role which is why feasibility studies and market survey are essential. For example, the amount a pumpkin farm that is located in a commercial farming community makes will differ from the amount a pumpkin farm that is in an isolated location perhaps at the backyard will make.
So, if you want to make it big with your pumpkin farm business, then you must be ready to lease or acquire a commercial farm land.
3. The Type of Pumpkin Species Cultivated By The Farm
There are 45 Different Varieties of Pumpkins. While the round orange pumpkin is the most recognizable pumpkin, pumpkins come in many different shapes, sizes, and colors. For example, for cooking, you’ll want to use sugar pumpkins (also called pie or sweet pumpkins), which are small and round.
Long Island Cheese pumpkins, which are more oblong and can look like a wheel of cheese, are also good to eat. Field types are larger; have watery, stringy flesh; and are best used for decorating.
Buff-colored, pear – shaped pumpkin has dense, dry, sweet – tasting flesh, making it the most versatile type for cooking. So, the amount you are supposed to make will be dependent on the species that is in high demand within your target market.
4. Other Related Crops Cultivated by the Pumpkin Farm
Aside from farming and selling different species of pumpkins, farming and selling other related crops (fruits and vegetables) will surely boost the amount you are expected to make from your pumpkin farm.
5. The Management Style of the Pumpkin Farm
Another key factor that will determine the amount a pumpkin farm is expected to make yearly is the management style of the pumpkin farm. Trust me, the results you will get when you have a good manager and an average or bad manager managing same type of business will definitely be different. Even if you give the managers same conditions to work and same employees.
6. The Advertising and Marketing Strategies Adopted by the Pumpkin farm
Another key factor that will determine the amount a pumpkin farm can make yearly is the advertising and marketing strategies adopted by the pumpkin farm. Trust me, there are several advertising and marketing strategies that can help a business increase their earnings but you may be expected to spend more.
But the results you will make will far outweigh the amount you spent on advertising and marketing. Of course, you don’t expect a pumpkin farm that is engaging in aggressive advertising and marketing to make same amount yearly with a pumpkin farm that is passive with its advertising and marketing.
7. The Number of Years the Business is in Existence
In business, the number of years you are in existence will go a long way to determine the amount you will make especially if the business is focused and under the management of a dedicated manager.
This is so because over the years, you would have been able to gain the trust of your customers and it will be easier for you to always have them coming back and also recommending customers to you. For example in your first fiscal year (FY1) you might make a hundred and twenty thousand dollars ($120,000).
In your second fiscal year (FY2) you might make two hundred and twenty thousand dollars ($220,000) and in your third fiscal year (FY3) you might make four hundred and fifty thousand dollars ($450,000). Interestingly, most businesses including pumpkin farm usually breakeven from the third year of operations.
Estimated Profit Margin for a Pumpkin Farm
In order to calculate the profit margin from a standard pumpkin farm, you should be able to place a figure on the number of pumpkin that can grow in a piece of land.
Pumpkins are generally planted as single rows with 30 – 40 inches between plants in the row and 8-12 feet between rows, depending on plant type. Plant populations at these spacing are approximately 1,600 (for pumpkins in excess of 30 pounds) to 2,800 plants per acre (for pumpkins less than 8 pounds).
Research shows that a good yield for an acre is about 1,000 pumpkins. At 7 cents a pound for an average 20 – pound pumpkin, the gross income is $1,400. Labor at harvest reduces by about 50 to 60 percent. In actual sense, a farmer can grow pumpkins without any inputs, and you will probably get something to harvest.
Generally speaking, a pumpkin farm can make a profit margin of over 50 percent gross margin (profit before labor and overhead costs) if careful planning is done when developing the farm and you have access to cheaper labor, minimal or shared equipment, etc.