(GP/GT) for Additional Water Supply in the Lower Rio Grande

EXECUTIVE SUMMARY
A comparative performance analysis has been conducted to examine
the various factors associated with establishing and operating a commercial
rose cut-flower greenhouse in ten different locations across the United States.
The purpose of this study is to compile a consistent, unbiased, and
meaningful comparison of commercial greenhouse industry costs, the
variables affecting those costs, the implications of altering key variables, and
the financial returns associated with the business operation. The results of
this study will provide prospective business ventures with important data for
planning and decision making.
The intent of the analysis is to examine various geographic regions
within the United States to determine sites with greater profitability for a new
business operation. Because profitability is greatly-influenced by a wide
diversity of competing factions, great care was taken to collect accurate
information on each region. Plant productivity, defined as net blooms
produced per plant per year, is largely dependent upon local climatic
conditions and technological improvements. Regional variations in
productivity have been explicitly analyzed.
In this report a hypothetical rose cut-flower operation is placed in ten
geographic regions throughout the nation. The greenhouse operation is
assumed to be four acres in size and the facilities utilize current technologies.
Tne operation is designed as a professionally-organized company with an
owner /manager, grower, and salesperson. The primary product is a red
hybrid tea rose for sale at wholesale. Selling markets vary by location, but in
general they are large metropolitan areas.
An economic model has been created to estimate various cash flow,
financial, and profitability issues that are important to a greenhouse
operation. It is assumed that a new greenhouse business venture is
established at a new location, because- the intent of the model is to compare
the ten sites on a start-up basis. No allowance or consideration is made for
existing greenhouse operations that may be associated with a business
expansion in an already-established location. Estimates and as:;umptions
were developed for the following items: greenhouse capital costs, economic
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