The Economic Viability of Commercial Fresh Vegetable Production in the Northeastern United States

Abstract

The Northeast region with nearly 25 percent of the U.S. population and purchasing power in 1983 is a deficit region in both processing and fresh market vegetable crops. This study explores the underlying factors in the long post-World War II decline in Northeastern vegetable production. It evaluates the economic viability of small-scale, family operated vegetable farms with emphasis on Maryland and the Baltimore-Washington Wholesale Market outlet near Jessup, Maryland.Preliminary results of our study indicate that, under certain conditions, small-scale family farms can grow and commercially market fresh-market vegetables at competitive prices, and generate healthy cash flows. The optimum mix of crops would include up to three, non-competing crop sequences, with four different vegetable crops including spinach, snap beans, tomatoes and broccoli. Family (owner-operator) labor was found to be a major resource constraint on volume of vegetables marketed, especially tomatoes. Potentials for future expansion in selected crops seem to exist with improved technology and better management.