Everything you need to evaluate whether a small vertical greenhouse can become a profitable part-time business!
Start Up Cost
$32K-$40K
Footprint
1,000 sqft
Labour
18.5 hours/week
Revenue
$50K seasonally
Potential Net Revenue
$45K+
Why Is This Important?
As farmland disappears and real estate prices rise, controlled-environment agriculture (CEA) enables suburban and urban farmers to establish productive greenhouse businesses. This 1,000 ft” vertical greenhouse can be added as a line of business for existing farmers or used by first-time growers. It can be managed in about 20 hours per week, including harvesting, packaging, and delivery.
- No Weeding/Little Herbicides
- Higher-Density Yields
- Simplified Pest Management
- Faster Crop Turn
Crop Selection and Growing Season
CEA focuses on maintaining optimal growing conditions in an enclosed space so you can consistently supply your customers.
Growers often focus on a few crops that perform well together. Separate greenhouses can be used for different crop environments (e.g., leafy greens vs. fruiting crops) to maximize productivity year-round.
8-Month Production Calendar
Goal: Steady Harvest from March to October (32 Weeks).
Crop Selection and Growing Season
This model focuses on high water-weight crops with rapid crop cycles—primarily leafy greens and herbs. Basil and chives are our main example crops because they grow well together, are profitable, and help target roughly 110 Ibs per week.
Secondary crop options like mini heads of lettuce can diversity your offering.
Other options: oregano, lemongrass, bok choy, arugula, kale, mustard greens. cilantro, tarragon, fennel, nasturtiums, and peppermint.
Other Great Options
Cilantro
Bok Choy
Mint
Kale
Lemongrass
Nasturtiums
Not Sure Where to Start? Hear From One of Our Farmers!
Verified Crop Yields in a Vertical Greenhouse
These results are based on several years of production testing with peer oversight in southeastern Wyoming (Hardiness Zone 4b) using aquaponic techniques.
On mobile, swap over to see more figures.
Crop | Seed to Germination | Germination to Transplant | Transplant to Harvest | Yield Per Tower Per Turn |
|---|---|---|---|---|
Genovese Basil | 7-10 Days | 3-5 Weeks | 6 Weeks | 3.5 lbs |
Chives | N/A | N/A | 4 Weeks | 3.5 lbs |
Pricing Assumptions:
Average wholesale pricing used: Basil $3.50/lb & Chives S2.50/lb.
Wholesale pricing varies by market, season, and buyer relationships.
Potential Net Income
Weekly Revenue
After Crop Loss
Season
Annual Revenue
Costs
Net Income
Figures are based on test data and market assumptions. Results may vary.
Start-Up Cost and Operating Costs
A 20’x 48′ ZipGrow Vertical Greenhouse can total around $35,000, assuming land already exists. Estimated total range: $32k-$40k. Land grading and new electrical/water lines may also be required.
Start-Up Cost Breakdown
Greenhouse – Conley Cold Frame Package
$7,595ZipGrow 150 Tower Package
$8,525ZipGrow Irrigation & Drainage
$1,800System Plumbing Package & Sump Kit
$8,750Shipping & Handling Estimate
$1,000This price does not include the costs for new utility lines. It may be necessary to grade the land for the greenhouse and install an electrical feed and a new water pipe buried below the frost line.
If you know your way around a construction site, you may be able to install this greenhouse in a weekend. Some folks will need to hire a contractor for assistance.
We estimate that total costs will run from $32k to $40k.
The nice thing about this size greenhouse is that it can be managed fairly easily on nights and weekends. Because we are depending on seasonal sunlight, we will plan on shutting down the greenhouse in November and opening it back up on March 1st, when the days start to get longer.
This gives us 8 months of productivity. The weekly workflow looks like this:
18.5 Hours Per Week
This greenhouse model is designed to be manageable as a part-time, owner-operated business on nights and weekends.
Seed Germination
240 seeds
Transplanting
Seedlings into 30 towers
Feed Plants
1 hour, twice per week
Sidewall Venting
Roll up/down twice daily
Harvesting & Packaging
Boxes / clamshells for sale
Obviously, labor costs are near the top of the expense sheet. We have not accounted for a lease or mortgage here. If you are planning on hiring staff or paying a mortgage payment, you may need to wait until you have an established customer base that can justify a lease or mortgage payment.
Instead, the approach we are taking here will depend on having access to land (at least 1,000 ft2) and on running the business yourself. With some good customer service, this will provide a healthy part-time salary for an owner/operator.
Disney’s Living With The Land Attraction
If you choose, you could also pay a neighbor or one of your kids to manage the greenhouse. At $10/hr, this comes out to $740/month in labor costs.
This said labor times can fluctuate depending on production, facility layout, the type of crop you choose, and any special trimming/packaging needs.
Fortunately, the rest of the operation is fairly low-cost. Additional expenses will be for seeds, seed plugs, utility costs (water, gas heating, and electricity) and nutrients. These can be estimated as follows:
- One-time supply of chive seeds: $25
- Annual supply of basil seeds: $20
- Annual supply of seed plugs: $300
- One year supply of nutrients: $200
Estimated Annual Operating Costs
Based on the expense assumptions from the greenhouse business model.
Heating Costs
To calculate utility costs, you will need to factor in several expenses:
- Evaporative cooling in the warmer months
- Heating in the cooler months (roughly 3 months a year out of an 8-month growing season)
- Electricity to run the pumps
- Water
Of these, heating and cooling are the most expensive. According to the U.S. Energy Information Administration, the cost for residential natural gas averaged about $12 per 1,000 cubic feet in 2016. For reference, 1,000 cubic feet of natural gas will provide 1,000,000 BTUs, or roughly enough energy, to warm the greenhouse from 25 (outside temperature) to 75 (inside temperature) for 11 hours.
This means that to heat the greenhouse overnight might require approximately $12 in natural gas costs. We usually expect that the greenhouse will quickly warm up in the morning from the warm sunlight.
While it is difficult to calculate utility costs for every situation, the approach we describe here can be used to estimate your heating or cooling needs.
- Identify optimal growing temperatures. In our case, we want to maintain a temperature of 70-80 ºF for basil and chives.
- Find average temperatures for your region for the season you plan on growing. In our case, we are planning to heat the greenhouse from March 1st through June 1st and also for the month of November while we are planning our final harvest.
- Use a BTU calculator to estimate daily heating needs. 12 hours a day is usually enough since the sun will quickly warm the greenhouse during the day.
- Calculate how many hours of the day the greenhouse will require supplemental heating.
- Estimate costs to provide these BTUs using natural gas or propane.
This approach will “smooth out” the daily highs and lows for your region and give you an estimate of daily costs. This will help you estimate the costs for your region for the months you choose to operate the greenhouse.
For example, we estimated costs for the average greenhouse located in Kansas City, Missouri. The average daily temperatures for our season are:
Monthly Heating Requirements
Example heating costs based on natural gas at $12 per 1,000 cubic feet.
| Month | Avg °F | Daily BTUs | Gas | Daily Cost | Monthly |
|---|---|---|---|---|---|
| March | 43.8° | 668,748 | 0.67 | $8 | $241 |
| April | 54.35° | 450,120 | 0.45 | $5 | $162 |
| May | 64.25° | 235,776 | 0.24 | $3 | $85 |
| Nov. | 42.7° | 707,328 | 0.71 | $8 | $255 |
| Seasonal Heating Total | $742 | ||||
With $1,575 in weekly revenue over an 8 month growing season, we can reasonably anticipate $50,400 in revenue.
With $3,587 in estimated operating costs and leaving some room for miscellaneous expenses, this can provide a net income over $45,000. Even if we only sell half our produce in the first year, this may be enough to get off the ground and to justify a part time greenhouse operation.
Estimated Annual Operating Costs
Based on the original greenhouse business model from the article, excluding labour.
Not including labour
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