Chapter 18: Ginseng Enterprise Budget 4-29-98

Gross return per/acre, target yield is 3,000 lbs. dried, or 10,000 lbs. fresh

	Prep. work Fall seeding	Year 1 1st (leaf)	Year 2 (2nd leaf)	Year 3 (3 rd leaf)	Year 4 (harvest)
Dried ginseng root valued at $25/lb. Yields have ranged from 3,000 lbs./ac to 4,400 lbs./ac					$75,000-$87,5000
Fresh ginseng root valued at $11-12/pound. Fresh weight yield per acre ranges from 10,000-13,000 lbs. Premium quality, large roots have been going for $15/lb. See Chapter 17: Postharvest Handling Fresh for a further discussion of the markets for fresh root.					$120,0000
Green seed sales ($20/lb at 200 lbs./acre, half of which is sold, while half is stratified for further planting)				$2,000
Green seed sales ($20/lb at 400 lbs./acre or which 300 lbs. are sold and another 100 lbs. are stratified for future planting)					$6,000
Gross margin based on a combination of both fresh and dried root sales					$83,000 to $128,000

Costs incurred in growing and harvesting 1 acre of cultivated ginseng

Direct costs
	Preparation year	Year 1	Year 2	Year 3	Harvest
Stratified seed, 100 lbs.@ $39/lb.	$3,900
Plant nutrients	$200	$100	$200	$300	$400
Sawdust mulch	$1,200	$300
Pesticides	$100	$600	$600	$600	$600
Fuel and lubrication	$100	$100	$100	$100	$200
Machinery repair	$340	$200	$200	$200	$220
Custom work/rentals	$200
Shade cloth ($.149/sq.ft.		$7,400
Posts (171 per acre, $5.25 each)	$890
Cable and hardware	$1,000
Harvesting and Drying
Seed harvest				$300	$1,200
Clean seed, stratify it				$50	$150
Dig root, bunch shade					$1,500
Dryer operation; load/unload					$1,460
Marketing					$1,000
Miscellaneous	$250	$100	$100	$100	$250
Total costs	$8,180	$8,800	$1,200	$1,650	$6,980
Net margin (Gross minus costs)					$56,190- $101,190