November 1967
Agricultural Economics
Series 14
,6A7
PLANNING 
FOR DEVELOPMENT
OF
HORTICULTURAL 
CROPS
in Sand Mountain 
Area of Alabama
AGRICULTURAL EXPERIMENT STATION
OF AUBURN UNIVERSITY
E. V. Smith, Director
)' a V h i
I 
i
I 
I
Auburn, Alabama

Table of Contents
Introduction " .. . *"**"**"*. " " *.*"*"*" *.*.*"*.*" **"*"*"*"*"*"
-i3
Scope andMethod oloSudyStudy......... .. . .
3
Assumptions . . . . " ." . . . . . . . . , f .... e*. 3
Optimum Farm Plans . . " . " . . -. . . . " . " . 8
Commercial Farms . . . ? . . . . . . . ... ...... **** 8
Variability in Farm Plans Related to Net Returns " ." . . .. 9
Noncommercial Farms . . ".?. +.".. . * * t . .*+. ".. f. . 1
Aggregation of Farm Plans in the Short-Run . . . . . . . . . . . 12
Long--Run Effects of Varying Labor Cost on Optimum Farm Plans . . . . . 17
Summary " . . . . . . s ... . . . . f . _. . . . . 22
The Appendix
Acknowledgements
This project was conducted through informal cooperation with the
Tennessee Valley Authority, Agricultural Economics Branch at Muscle
Shoals, Alabama. James G. Dillard of the Tennessee Valley Authority was
a major contributor to the initial analysis and wrote a rough draft of
portions of the manuscript. Contributors to budget information used in
the study were Sam Jones, Department of Horticulture, M. R. Glasscock,
Extension Service, Sidney C. Bell, Department of Agricultural Economics
and Rural Sociology, W. A. Johnson, Department of Horticulture, John
Bagby, Extension Service, and Joe Norton, Department of Horticulture.
PLANNING FOR DEVELOPMENT OF HORTICULTURAL CROPS IN
SAND MOUNTAIN AREA OF ALABAMA2/
B. R. Miller, Assistant Professor
Department of Agricultural Economics and Rural Sociology
Introduction
The Sand Mountain area of Alabama is the southernmost part of the
Cumberland Plateau located in the extreme northeast part of the State,
and is composed of parts of Dekalb, Etowah, Jackson, and Marshall Counties.
Elevation of the area ranges from 1,000 to 1,800 feet. Soils are gray to
brown silt and fine sandy loams. They are well drained and are easy to
till where topography is not too rugged. The soils respond readily to
good management and high fertilization rates.
Cropping patterns in the area have historically been relatively in-
tensive row-crops, primarily cotton and corn. The trend is to even more
intensive enterprises such as potatoes, pimentos, and other horticultural
crops, and poultry. In 1959, sales of horticultural crops were relatively
unimportant, and poultry production was valued at $10.8 million. Accord-
ing to preliminary data from the 1964 Census of Agriculture, sales of
horticultural and poultry products have increased rapidly. Although data
cannot be obtained for the specific area, county data indicate that poul-
try sales have perhaps doubled
s 
and sales of horticultural crops have
increased by 300 per cent or more.
Reasons for this increased intensity of production are several.
Perhaps among the more important forcres are the small farms occurring in
1/ Research on which this report is based was carried out under Hatch
Research Project 195 titled "Supply Response in the Production of Selected
Vegetables in Alabama."
2
the area, and the relatively little amount of cropland available per farm.
In 1959, farms averaged 63 acres of total land and 38 acres of cropland.
Farms are small and numerous and most farms are occupied by a farm family.
The area has been described as the most thicky populated rural area in
the United States. The resulting population-to-land ratio indicates a
labor supply that is good relative to other areas of the state. Another
probable explanation for the shift toward intensive crops has been the
decline of interest in cotton production. There are, no doubt, numerous
forces contributing to the greater incidence of intensive enterprises in
the area.
The shift to horticultural crops creates many new problems for farmers
in the area. Farmers having only limited experience with commercial 
pro-
duction of horticultural crops are faced with many uncertainties such as
choice of crops suited to their individual operations. All horticultural
crop producers are faced with rising labor costs, unstable marketing con-
ditions, plant diseases and insects, in addition 
to weather variables.
Some of the problems connected with individual farm and area planning
have been analyzed in this study from a production standpoint. Specific
objectives were:
1. To develop basic cost and returns data for horticulture and
fruit crops.
2. To develop representative or model resource situations existing
in the area, with emphasis on labor availability.
3. To develop optimum farm plans for the several model 
resource
situations.
4. To determine what extent varying prices of labor 
affect farm
organization.
5. To develop aggregate supply curves for selected vegetable crops.
3
Scope and Method of Study
This study is normative in scope in the sense that it is an analysis
of what can happen with best technology as opposed to a prediction of
what will happen. As such it should be regarded as a tool in establish-
ing programs and plans that have economically feasible goals. Results
are presented that are the consequence of basic assumptions about resource
scarcity, technical efficiency and management. Limitations of the area
are, thus specified in terms of economic feasibility. As other alterna-
tives for agriculture are found they will of course affect the results.
Special tabulations from the 1959 Census of Agriculture were made
for the study area and were used to select five different farm resource
situations. Data for these farms, with the exception of labor, are in
Table 1.
Assumptions
Four classes of labor were identified as part of the resource base.
They were: (1) total operator labor, (2) operator field labor, (3) total
family labor, and (4) family field labor.
Total operator labor was obtained from unpublished data developed
for regional project S-42 in the Department of Agricultural Economics
and Rural Sociology, Auburn University. Monthly distribution of days
when field labor could work was obtained from data on distribution 
of
rainfall./. Estimates of total family labor available were obtained
from the 1960 Census of Population. Based on 
population data on age and
sex, it was estimated that the model farms, except for 
the part-retired
classification, had an operator, wife, one daughter, and one son of
1/ "Effects of Changes in Prices of Cotton 
and Level of Cotton Al-
lotment on Optimum Farm Organization in the Delta 
Area of Mississippi,
unpublished Master's Thesis, 
by James G. Dillard, Department 
of Agri-
cultural Economics, Mississippi State University, May 1963.
4
Table 1. Land Resources for Five Economic Classes of Farms,
Sand Mountain Area, 
1959
Economic.class of farm
Resources of 
Unit $5,000 & $2,500- 
$50- Part- Part-
the area 
over 4,999 
2,499 time retired
Farms 
No. 1,459 1,280 
1,240 1,450 529
Total land per farm A. 
106 71 43 37 39
Openland per farm 
A. 84 52 
31 22 19
Row-crop land per farm 
A. 63 41 22 
12 19
Good pasture per farm A. 8 3 
2 2 3
Poor pasture per farm A. 13 8 
7 8 7
Cotton allotment per farm A. 
19 11 6 5 5
Off-farm work per farm Days 65 45 
26 179 22
SOURCE: 1959 Census 
of Airiculture, Special 
Tabulation,
wcrking age. Labor available from these dependents was converted to man-
month equivalents of total family labor (see Table 2) and added to total
operators labor to yield total labor as shown in Table 3.
Linear programming techniques were used to obtain optimum farm plans
for each model farm. Coefficients for the several models were obtained
from materials on file in the Department of Agricultural Economics, Auburn
University, and Agricultural Economics Branch, TVA. The linear program-
ming matrix (nearly 5,000 cells) is much too large for practical publica-
tion, hence, some of the important budget material is listed in Table 4.
Net returns given in Table 4 are the result of using 
budgets that show
the best technology available. An example of one 
of the budgets is given
in Appendix Table 4 to illustrate the procedure that 
was used. Net re-
turns in Table 4 are primarily returns over cash 
costs and returns have
not been allocated to land, management, family labor 
or machinery invest-
ment. Thus, the analysis is a comparison of horticultural 
crops in the
absence of significant differences in farm resources 
other than land.
Table 2. Family Labor as Man-Equivalents by Season
Total1
Month Wife Son Daughter man-month
equival1ents
January, February, March 0 .1 0 .1
April, May .1 .5 .1 .7
June, July, August .2 .7 .2 1.1
September, October .1 
.5 .1 .7
November, December 0 .1 0 .1
Table 3. Total Hours of Family Labor Available by Months as Determined
by Family Size and Weather, Sand Mountain Area, 
1959
Economic class of farm
Month 5,000 & over
2,500-4,999 Part-time Part-retired
50.2,499
Hours Hours Hours
January 219 66 100
February 209 614 95
March 263 75 120
April 393 112. 120
May 452 109 133
June 540 130 128
July 540- 130 128
August 559 134 133
September 437 105 128
October 406 99 120
November 219 55 100
December 209 64 95
Total 4,446 1,143 1,400
Table 4. Yields, Prices, Total Labor Requirements and 
Net Return Per
Jt UntUsed in Programming Model, Sand Mountain Area, Alabama
Total Net
Enterprise Unit Yield Price labor 1/ return!
uni t2/
Units Per unit Hours Dollars
Horticultural Crops:
Potatoes
Sweet potatoes
Pimento pepper
Sweet corn
Bush beans
Pole beans
Ground tomatoes
Trellis tomatoes
Field peas
Cucumbers
Squash
Strawberries
Sorghum (syrup)
Cabbage
Can taloupe
Potatoes & squash
Potatoes & field peas
Potatoes & sweet corn
Potatoes & pole beans
Potatoes & cucumbers
Other Field Crops:
Cotton (hand harvest)
Cotton (machine harvest)
Corn
Livestock & Poultry:
Beef cattle
Market hogs
Feeder pigs
Broilers
Forestry
Cwt.
Bu.
Ton
Crate
Ton
Bu.
Ton
Bu.
Ton
Bu.
Ton
Qt.
Gal.
Cwt.
Ton
*No
Lb.
Lb.
Bu.
150
250
4.0
185
2.5
215
-15
800
2.0
200
4
4,000
100
180
5
lint
lint
700
650
65
2.75
1.50
90.00
1.25
60.00
3. 00
30.75
4.00
100.00
1 .75
80.00
. 12
2.*00
2.20
40.o0
TM 
o
.356
.341
1.15
25 cows
Sow
10 sows
40, 000
acre
96
130
114
30
28
243
153
846
115
113
127
485
65
166
23
223
211
126
339
209
115
16
9
331
82
286
960
195
147
258
122
62
447
302
2,790
156
200
268
588
104
297
146
463
351
317
642
395
202
172/
48
1,354
242
1,289
1,465
1
2/Assumes hand harvest when not 
indicated otherwise.
2/ Net return to land, management, and family labor as well
ment expense not allocated to enterprise, see Appendix Table 4.
as invest-
3/ Less than hand harvest because of lower yield per acre and price
per pound and also because of custom charges for harvesting.
V V _ _ . ~ r~l U4L~ : -VJLV V V
Activities were included in the models to permit hiring both supple-
mental operator field labor and family field labor by months. Different
wage rates were used to reflect differences in operator and family field
labor. The hiring of an entire family on an annual basis was included
as an alternative. Additional operating and investment capital could be
hired with no restriction other 
than labor cost.
Long and short-run periods of adjustment were studied. The short-
run period was thought of as being about 5 years in length and resulted
principally in restrictions on management decision-making. Horticultural
crops were withheld from an optimum plan in the short-run period (at levels)
greater than (eight) acres per farm. Eight acres planted would represent
a decision to double vegetable acreage on the average farm that was al-
ready in vegetable production. Assumption of limited adjustment was
made primarily to reflect the effect of managerial capacity on aggregate
supply response in the area. Perfect aggregation specifies that the
sum of the solutions for each of the individual farms in a set equals
the estimate obtained by determining the optimum solution for the entire
set directly.
Thus, the final result is a marginal analysis of area management
capacity to move from the present system of agriculture to more inten-
sive horticulture. The present system of agriculture in the area was
fixed in the short-run by specifying minimum levels of cotton, corn,
broilers, beef cattle and market hogs that were consistent with recent
area production levels. Hired labor per farm was also restricted in
the short-run to 258 hours per year, which was about average for the
area. Management decisions were unrestricted with respect to adjust-
ment in vegetable production acreage in the long-run.
8
Optimum Farm Plans
Optimum short-run plans were developed for the five model farm re-
source situations listed in Table 1. Optimum plans for commercial farms
are shown in Table 5. For discussion purposes, commercial classes of
farms will be identified as Class I ($5,000 and over), Class II ($2,500-
4,999), and Class III ($50-2,499). Labor available on these farms was
assumed to be constant; thus, the variability of results stems from dif-
ferences in land resource base.
Commercial Farms
Optimum plans for commercial farms are highly diversified, including
up to 12 different enterprises. Optimum plans are quite similar for
these classes--the most obvious difference being in the plan for Class III,
farms that do not include market hogs and feeder pigs. These enterprises
are included at a low level in plans for Classes I and II, but were forced
out in favor of horticultural crops and broilers as land became more re-
strictive. Surprisingly, net returns are not significantly lower on
Class III farms, which have 40 per cent fewer acres of openland than
Class II farms.
Another point to note is the importance of unused land in the opti-
mum plan. More than half of the openland in the area is not needed to
produce the present agricultural output and the indicated adjustment to
horticultural crops. For example, the plan for Class I farms includes
46.5 acres of pine timber, which occupies 44 per cent of total land and
52 per cent of openland. Although returns from timber are relatively
low, timber production requires an insignificant amount of labor, which
explains the enterprise being in the plan. However, any alternative not
requiring labor would be indicated here. Land rented out would be the
most frequent alternative sought by the individual farmer.
9
Table 5. Optimum Farm Plans for Three Classes of
Sand Mountain Area, Alabama
Commercial Farms
Enterprise 
Unit $5,000 & 
$2,500- $50-
over 4,999 2,499
Cotton Acre 19.1 10.9 5.9
Corn Acre 18.0 18.0 8.6
Pimento Acre 2.8 2.4 2.5
Tomatoes (processing) Acre 0.5 0.5 1.1
Tomatoes (fresh market) Acre 1.7 1.8 2.0
Sweetpotatoes Acre 0.6 0.5 1.4
Sweet corn Acre 2.5 2.8 1.0
Beef cattle Cows 6.0 6.0 4.0
Feeder pigs Sows 16.0 16.0 0
Market hogs Sows 1.0 1.0 0
Broilers Thous. 56.0 60.0 68.0
Pine timber Acre 46.5 20.0 7.7
Hired operator and field labor/ Hours 258.0 258.0 258.0
Operating capital Dol. 2,986.0 2,737.0 1,026.0
Investment capital Dol. 9,804.0 10,060.0 7,367.0
Net roeturns to land, mgt.,
family labor and investment
not allocated to enterprise Dol. 12,244.0 11,513.0 9,468.0
1/ Scarcity of hired labor
further production.
in June and September was restrictive to
Variability in Farm Plans Relate to Net Returns
The optimum farm plans appeared to be relatively stable with respect
to variability of price and yield of horticultural crops. Levels of price
and yield of non-horticultural activities were not varied since these ac-
tivities were in general limited in the short-run to average amounts ac-
cording to historical levels. Net revenue of each vegetable crop in the
plan was allowed to vary from 50 per cent below to 50 per cent above the
net revenue shown in Table 4. A 50 per cent change in net revenue (result-
ing from a change in total revenue) could be interpreted at the extremes as
either a 50 per cent change in selling price, a 50 per cent change in yield,
or some combination.
Varying the net revenues of each of the crops gave the following re-
suits. As the net revenue of pimento peppers went 10 per cent below that
10
expected, sweet corn already in the plan increased and replaced pimentos
as the best crop. Sweet corn remained in the optimum plan even at a 50
per cent decrease in net revenue, although at a lower level. At near 50
per cent decrease, pole beans gained some of the decrease in sweet corn
acreage. Sweetpotatoes stayed in the optimum plan at nearly the same
small acreage regardless of whether net revenues were increased or de-
creased 50 per cent.
Stake tomatoes also remained in the optimum plan at a 50 per cent
decrease in net revenue although acreage was reduced almost to 
half.
Pole beans were again closely competitive with crops in the optimum plan
since they began to replace stake tomatoes when net revenue 
reached a
point of 35 per cent below that in Table 4. Any further reduction in
stake tomato net revenue also made it possible for potatoes to enter the
plan. Potatoes double-cropped with squash, pole beans, slicing cucum-
bers, or sweet corn were indicated in the presence of low net returns
on stake tomatoes. Slicing cucumbers completely replaced ground toma-
toes when ground tomato net revenue went 20 per cent below that specified
in Table 4.
Vegetable crops that came into the optimum plan as a result of de-
creasing net revenues were slicing cucumbers, pole beans, and potatoes
double-cropped with sweet corn, squash, pole beans, or cucumbers, Thus,
three sets of crops are indicated in order of competitiveness, Table 6.
The first set consists of those in the optimum plan. The second set con-
sists of those above that come in when net returns are less favorable on
the first set. The third set consists of those that do not enter into
optimum plans. These were cabbage, bush snap beans, field peas, straw-
berries, and sorghum for syrup.
11
Table 6. Technically Feasible Vegetable 
Crops of the Sand Mountain Area
and Their Estimated Order of Profitability
May be indicated when
Most attractive returns 
are less than Least 
attractive
expected in Set I
Set I Set 2 
Set 3
Pimento Slicing 
Cucumbers Cabbage
Tomatoes Pole 
beans Snap 
beans
Sweetpotatoes Irish 
potatoes doubled 
Field peas
cropped with: 
Strawberries
Sweet corn 
Sorghum (for syrup)
Squash2/
Pole beans
Cucumbers
_/ Could also be considered as 
a crop in Set 3.
Cabbage, bush snap beans, field 
peas, strawberries, and sorghum 
for
syrup were not competitive with 
the best set under any net revenue 
condi-
tions considered in the study. 
Squash was not competitive at any 
price
except when double-cropped with 
potatoes. These crops are ruled 
out,
however, based on average resource 
availability for the area. There 
are,
possibly, special or non-average 
situations in which they 
should be con-
sidered. Cantaloupe was 
also judged to be a speciality 
crop and was de-
leted in the final analysis. 
Labor requirements for 
cantaloupe are low
as compared with other 
horticultural crops and 
could make cantaloupe very
attractive for some farms.
Noncommercial Farms
Labor was limited to the 
amounts shown in Table 3 
on part-time and
part-retired farms; consequently, 
optimum farm organizations 
on these
farms differ distinctively. 
Cotton, corn, and pine forest 
are the major
land using enterprises, whila 
broilers take up most of the 
labor. Toma-
toes were the only horticultural 
crop that appeared in the 
optimum farm
12
plan. As expected, net returns of $2,500 to $3,500 associated 
with op-
timum plans were much lower on noncommercial than on commercial farms.
The lower returns are explained primarily by the fact that noncommercial
farmers, part-time, and part-retired have less farm labor available.
A greater percentage of openland would be rented out or placed in
pine timber in noncommercial farm plans. Labor supplies are exhausted
by land intensive enterprises, and a majority of openland is idle. This
was found true to a lesser extent on optimum plans for commercial farms.
Aggregation of Farm Plans in the Short-Run
The important question of how the area might adjust to optimum farm
plans containing vegetables as the major crop of the area (see appendix
tables) is answered in part by examining how adjustments could take
place within original short-run conditions specified in this analysis.
Adjustment in area production takes place in response to forces of
supply and demand that are national in scope. Local resource availability
and ability to supply are, nevertheless, an important area of study. Ag-
gregate area supply curves for selected crops of the area were estimated
and are shown in Figures 1-6. A characteristic of vegetables that were
economically feasible was that present production could profitably be
expanded over a relatively wide range.
Acreages of area crops compiled from preliminary 1964 census of
agriculture data for the four-county Appalachian area have been compared
with estimates of what the Sand Mountain area could do with its present
resource base. These acreages appear in the following six figures and
are marked with an "x," which matches census acreage with the prices used
in the study, Table 4. Optimum farm plans in Table 5 are also based on
the prices marked "x." Each of the figures indicates the quantities of
supply that would maximize profit given the indicated prices and other
13
assumptions of the study. The effect of the indicated price changes on
the production of other crops in the farm plan, Table 5, may be seen by
referring to the section titled "Variability in Farm Plans Related to
Net Returns."
Pimento pepper production in the area was estimated from census data
to be 3,277 acres, but is unlimited by present resource availability and
net returns until acreages reach about 10,000. Production above this
level would require steady increases in price per ton to bid labor re-
sources away from other profitable enterprises, Figure 1.
Potatoes, another important crop of the area were planted on about
3,600 acres. As indicated by Figure 2, a price of $2.75 per cwt. used
in this study is slightly below the level needed to justify present pro-
duction. About $3.20 per cwt. for potatoes under the assumed cost and
yield conditions would maximize returns to resources used in present po-
tato production. At this price area production could be expanded to near
8,000 acres before serious resource returns problems would be encountered.
Above this level of production more than $4.50 per cwt. would be required
for potatoes to compete with other enterprises.
Tomato acreage on the grounds estimated in the 1964 
census of agri-
culture to be 225 acres, is at least 2,000 acres below the level that
would maximize returns to the area resource base, Figure 3. Stake toma-
to acreage also could be expanded from near zero at present to about 7,000
acres for maximum returns. An increase in price of 25 cents per bushel
would mean that perhaps another 1,000 acres would be profitable. Produc-
tion beyond that level would require an even greater price.
Present sweetpotato acreage was estimated at about 200 acres. Pro-
fitable production could be expected from about 1,000 acres of the area
Dollars/Ton
Present Economic
Feas ibi 1 i ty
Present Acres and
Expected Price
w1e
110,
105
100
95
904
85 4
15 20 25 30 35 40
Tons (Thousands)
0 -.
10,200 10,500
e
116,280
45 50 55 60 65
0 0 "
12,900 15,300 15,800
Acres
"
180,120
Labor Man Days
Figure 1. Sand Mountain Pimento Pepper Supply Present and Economically Feasible
125
120
115
0aa
10
*
3,100
33,3033,340
4.001 Dollars/Cwt.
Present Economic
Feasibility
Present Acres and
( -- s Expected Price
300 400 500 600 700 
800 900 1,000
Hundred Pound Bags (Thousands)
7,700
Acres
73,920
Labor Man Days
Figure 2. Sand Mountain Irish Potato Supply 
Present and Economically Feasible
3*75
3.50
3.25
3.00
2.75
2.50
2.25 blw
100 200
100 2 00
1,900
18,240
3,600
34,560
lr I
40 Dol lars/Ton
Pr
Present Acres
and Expected Price
esent Economic
Feasibility
i i 
w p
0 22 26 3b 34 38 42
Tons (Thousands)
225 1,400 Acres 2,700
3,442 21,420 Labor Man Days 41,310
46 50 54
3,500 3,700
53,550 56,610
Figure 3. Sand Mountain Ground Tomato Supply Present and Economically Feasible
38
36
34
32
30
28
26
24
0
17
at present prices and net returns indicated in the study. Any further
expansion in production might require increases in prices greater than
would normally be expected, Figure 4.
Acreage of cucumbers, which along with potatoes is in the second best
set of crops, was estimated at 212 acres both for slicing and pickling.
Therefore, this is about maximum in terms of the study. Prices in the
range of $2.00 to $2.15 per bushel would, however, indicate up to 2,500
acres for the area, Figure 5. Pole snap beans, also in the second best
set, would be a dominant crop in the area under present conditions if
prices or technology were appreciably different than assumed. A price
of $3.76 per hundredweight, for example, might command resources capable
of producing 30,000 acres.
Sweet corn production also offers a possibility for large expansion.
Present acreage is about 200 acres, whereas the present resource base
could profitably produce up to 8,000 acres. A slight increase in price
of about 5 cents per crate or yields greater than those assumed in the
study could mean profitable production on as much as 20,000 acres,
Figure 6.
Any one of the projected acreages indicated in Figure 1-6 could be on
open land available to commercial farms of the area even though the his-
torical production levels of other crops remained the same. Open land
on the 1,979 non-commercial farms of the area provides an even larger
base for vegetable production.
Long-Run Effects of Varying Labor Cost on 0ptimum Farm Plans
A slightly different model was used to analyze effects of changes
in labor prices on optimum farm organization. Part-retired farms were
omitted from the analysis. The only restriction on quantity of labor
Dollars/Bushel2.20
2.00
1.80
1.60
1.40
1 .20
1.00
n
Present Economic
Feasibi 1 it y
40 80 120 160 200 240 280
Bushels (Thousands)
200 1,000
Acres
13,000
Labor Man Days
Figure 4. Sand Mountain Sweetpotato Supply Present and Economically 
Feasible
Present Acres
and Expected Price
A. .... -ms s
I
2.30
2.20
2.10
2.00
1.90
1.80
1.70
1.60
SDollars/Bushels
'.0
sA r p
u I uu zuu 3uU 400 500
Bushel s (Thousands)
* ." . .
200 
1,500 2,400 
2,500
Acres
16, 50 
27,120
Labor Man 
Days
Figure 5. Sand 
Mountain Slice Cucumber 
Supply Present and 
Economically Feasible
'I
1 i
nnn
A AA
Dollars/Crate
Present
Economic
Feasibili 
ty
Present Acres and
Expected Price
/-
200 4,400 5,600
600 13,200 146800oo
Crates (Million)
8,500
25,500
* *
19,600 22,900
Acres
58,800 68,700
Labor Man Days
Figure 6. Sand Mountain Sweet Corn Supply Present and Economically 
Feasible
1.60
1.50 0
1.40
1.30
1.20
1.10
1.00
90 l
0 "-
0
AOL a a 0
21
hired was price, where five prices were assumed for each of three types
of labor. Prices assumed are given in Table 7. The broiler enterprise
was restricted to a maximum of 80,000 birds, but vegetable crops were
allowed to reach any level. Staked tomatoes and pole beans, labor inten-
sive crops, dominated optimum plans when labor was available at the as-
sumed rates.
Appendix Tables 1-3 reveal less than expected changes in farm organi-
zations as labor prices increase. Pole beans, potatoes and snap beans
double-cropped, and staked tomatoes were the only field crops included
in any of the optimum plans. Timber, beef, feeder pigs, and broilers
were other enterprises included. Potatoes and pole beans double-cropped,
staked tomatoes, timber, feeder pigs, and broilers were included in all
plans at all labor prices considered. Pole beans were included in all
plans after labor prices reached the third highest level. Beginning with
the third wage level, the number of feeder pigs began to decline as labor
price increased, and beef cattle were introduced in the plans.
The total amount of labor hired decreased as expected as wages in-
creased. Reductions in amount of field lor used were slight, but de-
creases in hired substitute operator labor utilized finally reached 70
per cent. The shifts in farm organization that occurred were because
of wage differentials for field and operator labor and(theresulting) increase
in relative profitability of land-using enterprises. As labor prices
were increased, there were shifts to those enterprises requiring rela-
tively less substitute operator labor.
Substitute operator labor is generally, especially in the context
of this study, labor that cannot be replaced by a machine. Substitute
family labor might on the other hand be replaced. The appendix tables
22
Table 7. Five Price Levels Assumed for Analyzing
Effects of Changing Labor Cost
Price Level
Type of labor
S 2 3 4 5
---- --- --- Dollars- - - - - - -
Substitute family field labor (per hour). .7 .85 1.00 1.15 1.30
Substitute operator labor (per hour). . . .87 1.06 1.25 1.44 1.62
Substitute family (annual rate. . . . . .3,150 3,825 4,500 5,175 
5,850
indicate that broilers would continue to compete for operator labor in the
area and some substitute operator labor would need to be hired to carry on
an extensive vegetable operation even if mechanization completely replaced
family field labor. The expected competition of broilers for operator la-
bor is one of the most important long-run factors affecting vegetable pro-
duction in the area. Furthermore, mechanization will increase the demand
for good quality labor. The analysis, however, does show that in the long-
run farmers could pay $1.60 per hour for substitute operator labor used
in a profitable, well-managed vegetable enterprise. Family field labor
or its equivalent in mechanization must be supplied in the quantities in-
dicated, however, and this is substantial as indicated by labor man-day
requirements.
Summary
In the short-run two of the three crops that are most widely grown
in the Sand Mountain area, pimentos and tomatoes, have economic potential
for becoming major crops of the area if farm managers can obtain yields
and net returns approximating the data used in this study. Potatoes,
another important vegetable crop of the area, can also become even more
important if conditions are only slightly better than assumed in this
23
study. Under the most long-run assumption of the study, potatoes continue
to be included in optimum farm plans.
Individual interest of managers is recognized as a major determinant
of actual adjustments and it is anticipated that normative studies of
this type will give confidence to those having a current interest and
will stimulate interest among potential growers. Uncertainty of vegeta-
ble production profitability was not included as a variable affecting
farm plans although uncertainty is recognized as a primary block to many
potential growers. Introduction of irrigation and mechanical harvesting,
however, will put vegetable production on a more consistent basis. Un-
certainties of yield and labor supply will be greatly reduced. The ef-
fect of consistency may be as important as yield increases or cost
savings that might occur. Further work is indicated in this area.
The final, and perhaps most important, set of variables excluded
from this analysis were those concerning market demand. Inadequate level
of demand could mean that the area would not become a major vegetable pro-
ducing area under any condition of supply. However, where economic fea-
sibility of supply can be shown, increased interest has been shown in
recent years by buyers in both the fresh and processing markets.
24
Appendix Table 1. Optimum Combination of Farm Enterprises, Net Income, and
Other Items for Five Prices for Labor, Farms with Gross Sales over $5,000
Price Level for Laborl/
Item Units 1 2 3 4 5
Crops
Pole Beans Acre 0 0 .6 1.2 1.7
Pot. and snap beans Acre 61.0 
61.0 60.4 60.0 59.3
Tomatoes// Acre 2.0 2.0 2.0 2.0 2.0
Livestock and poultry
Beef 25 cows 0 0 .2 .2 .2
Feeder pigs 10 sows 13.0 13.0 8.1 5.4 2.8
Broilers 40,000 2.0 2.0 2.0 2.0 2.0
Pine timber Acre 8.0 8.0 .2 2.8 5.5
Net income Dol. 33,577 29,907 26,384 23,084 19,906
Corn purchased Bu. 7,475 7,475 4,654 3,137 1,582
Operating capital Dol. 16,129 16,129 13,295 11,712 10,092
Investment capital Dol. 30,695 30,695 23,370 
18,691 13,897
Hired type I labor/ Hours 20,551 20,551 20,463 20,256 19,864
Hired type II labor.~/ Hours 3,090 3,090 1,761 1,163 805
Hired type III labor_/ Hours 0 0 0 0 0
Total labor hired Hours 23,641 23,641 22,224 21,419 20,669
I/ Five prices were assumed for three different types of 
labor. Initial
prices for field labor and operator labor were $1 and $1.25 per hour,
respectively. An annual rate of $4,500 was used for hiring an entire
family. All labor prices were varied 15 and 30 per cent in both directior
2/ Tomatoes also would have reached high levels of production, but were re-
stricted to two acres. The purpose of this analysis, however, was to
show the demand for labor which would be similar for either tomatoes or
pole beans double cropped with snap beans.
3/ Field labor.
/ Operator labor.
5/ Whole family.
25
Appendix Table 2. Optimum Combination 
of Farm Enterprises, Net Income 
and
Other Items for Five Prices for 
Labor, Farms with $2,500-
5,000 Gross Sales, Sand Mountain Area, Alabama
Price Level for Labor.
Item Units 1 2 3 
4 5
Crops
Pole beans Acre 0 0 .9 1.2 
1.7
Pot. and ole beans Acre 39.0 
39.0 38.1 37.8 37.3
Tomatoes) Acre 2.0 2.0 2.0 2.0 2.0
Livestock and poultry
Beef 25 cows 0 0 
.1 .1 .1
Feeder pigs 10 sows 
10.8 10.8 7.3 5.7 
3.0
Broilers 40,000 2.0 2.0 
2.0 2.0 2.0
Pine timber Acre 5.2 
5.2 5.2 5.6 8.3
Net income Dol. 
24,832 22,420 20,036 
17,890 15,831
Corn purchased Bu. 
6,210 6,210 4,198 3,264 
1,709
Operating capital Dol. 
12,017 12,017 9,935 8,970 
7,350
Investment capital Dol. 
26,794 26,794 20,967 18,224 
13,431
Hired type I labor3/ Hours 13,577 13,577 
13,434 13,280 12,851
Hired type II labor4/ Hours 1,977 1,977 
1,026 695 373
Hired type III labor?/ Hours 0 
0 0 0 0
Total labor hired Hours 15,554 15,554 
14,460 13,975 13,224
Five prices were assumed for three different types of labor.
Initial
prices for field labor and operator labor were $1 and $1.25 per hour,
respectively. An annual rate of 
$4,500 was used for hiring an entire
family. All labor prices were varied 
15 and 30 percent in both directions
2/ Tomatoes also would have reached high levels 
of production, but were re-
stricted to two acres. The purpose of this analysis, 
however, was to
show the demand for labor which would be similar for 
either tomatoes or
pole beans double cropped with snap beans.
3/ Field labor.
4/ Operator labor.
5/ Whole family.
26
Appendix Table 3. Optimum Combination of Farm Enterprises, Net Income and
Other Items for Five Prices for Labor, Farms with Less
Than $2,500 Gross Sales, Sand Mountain Area, Alabama
Price Level for Labor
Item Units 1 2 3 4 5
Crops
Pole beans Acre 0 0 1.0 1.2 1.5
Pot. and snap beans Acre 16.0 16.0 15.0 14.8 14.5
Tomatoes. Acre 2.0 2.0 2.0 2.0 2.0
Livestock and poultry
Beef 25 cows 0 0 0 .1 .1
Feeder pigs 10 sows 7.0 7.0 6.8 5.4 3.8
Broilers 40,000 2.0 2.0 2.0 2.0 2.0
Pine timber Acre 3.0 3.0 2.7 
.2 1.4
Net income Dol. 15,496 14,468 13,447 12,504 11,618
Corn purchased Bu. 4,025 4,025 3,933 3,078 2,199
Operating capital Dol. 6,835 6,835 6,692 5,830 4,916
Investment capital Dol. 20,057 20,057 19,820 17,617 14,942
Hired type I labor/, Hours 6,264 6,264 6,088 5,898 5,650
Hired type II labor/ Hours 467 467 
416 188 14
Hired type III labor/ Hours 0 0 
0 0 0
Total labor hired Hours 6,731 6,731 6,504 6,086 5,664
j/ Five prices were assumed 
for three different types 
of labor. Initial
prices for field labor and operator labor were $1 and $1.25 per hour,
respectively. An annual rate of $4,500 was used for hiring an entire
family. All labor prices were varied 15 and 30 percent in both directions
2/ Tomatoes also would have reached high levels of production, but were re-
stricted to two acres. The purpose of this analysis, however, was to
show the demand for labor which would be similar for either tomatoes or
pole beans double cropped with snap beans.
1/
f/
Field labor.
Operator labor.
Whole family.
Appendix Table 4. Budget for Tomatoes (on ground), 
Based on Best Management Practices,
Item Description Unit 
Quantity RaeAon
Receipts
Tomatoes One acre
Cash Expenses, per acre
Planting
L ime
Fertilizer
Insecticide
Fungicide
Herbicide
Soil Fumigant
Transplant
Tractor operating
Equipment operating
Total cash expenses
H-arvest, cash expense
Tons
Plants
Custom application
5-15-10
8-8-8
Ammonium Nitrate
Ma l ith ion (57%)
T.D.E. (50%)
Maneb (80x,)
Di phenami de (50%/)
Nemagon (50%)
Labor
Grease, oil, gas, repairs
Grease, oil, gas, repairs
Labor
15
thous. 4
(1 ton/h yr. @ $7.75/ton)
cwt . 8
cwt . 5
cwt. 2.5
qt. 12
l b. 24
lb. 24
lb. 2
gal. 1
hr. 45
hr. 
7.5
hr. 100
94.07
153
Non-cash Expenses
Labor 
Regular operator hr.
Interest on operating capital 
do1.
Equipment Interest, 
taxes, housing, insurance
Total non-cash expenses
Total cash and non-cash expense
Net returns to land, management, and equipment investment.
Total labor cost hr.
Net return to land, management, family labor, and equipment investment
$30.75
6.20
2,6 04
2.*04
3.64+
2.50
.75
.70
2.70
9000
.90
.65
.90
$461.25
24.80
1.94
16.32
10.20
9.10
30.00
18.00
16.80
5m40
9.00
40.50
4+.88
1.20
188. 14
90.00
7.20
7.53
4.00
296o ,7
164.38
137.70
302.08
.08
.90
, , ~