Startup costs

Startup costs usually include seed or purchased transplants, bed preparation, compost or fertilizer, mulch, and drip irrigation. Many growers also need stakes, trellis twine, clips, or cages, which can make this crop more capital intensive than simpler field crops. High tunnel production raises startup costs further but can improve early and late season sales. Packing tables, harvest containers, and washing space also matter if tomatoes are sold at volume.

Ongoing costs

Recurring costs are driven by labor for pruning, tying, suckering, harvesting, sorting, and frequent picking. Water, fertility, replacement twine or clips, and disease related crop management add to seasonal costs. Postharvest handling is also important because cracked or overripe fruit can quickly reduce saleable yield.

Yield & how it sells

Tomatoes can produce high yields per bed foot or acre when trellised and harvested regularly, especially in protected culture. They are commonly sold by the pound, by the basket, or in mixed cases to restaurants, CSAs, and retail outlets. Premium heirloom or specialty types often sell differently than standard slicers or paste tomatoes, so value depends on market fit as much as raw yield.

What makes it profitable

Tomatoes can be very profitable for a small grower when sold through farmers markets, CSA shares, or restaurant accounts that reward quality and freshness. Profit falls quickly when labor is not controlled or when fruit losses from cracking, disease, or missed harvests become common. Wholesale channels are usually harder for small farms unless yields are consistent and harvest systems are efficient. The best margins often come from strong direct sales, good variety selection, and careful harvest timing rather than from maximum acreage alone.

Financial risks

Main financial risks include weather stress, foliar disease pressure, fruit cracking, and labor bottlenecks during peak harvest. Tomatoes are also perishable, so a few missed picking days can turn marketable fruit into culls. Prices can soften in midsummer when many growers have product at the same time.

Tips to improve returns

Use varieties that fit your market, climate, and labor capacity rather than planting too many types. Track labor by task so you know whether trellising and pruning are paying back in saleable yield. Build crop budgets with your local Cooperative Extension and Small Business Development Center before expanding acreage.

General planning information, not financial or investment advice, and not a guarantee of profit. For real budgets, work with your Cooperative Extension office and local Small Business Development Center. Page updated Aug 4, 2026.