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Strawberry production in the U.S. Intermountain West is limited by harsh climatic conditions and competition from domestic producers and imports. Using season extension methods to combat climatic conditions may be effective but generally increases production costs. This study evaluates the economic returns to implementing high tunnels, low tunnels, and in-ground supplemental heating to strawberry production (Seascape and Chandler cultivars) in northern Utah. The high tunnel provided a net return of $1,943.57 or $15,548.56 per hectare assuming eight high tunnels per hectare. The addition of low tunnels within the high tunnel led to a positive increase in net returns for ‘Seascape’ but not for ‘Chandler’ production. Supplemental in-ground heating increased net returns by up to 50% for both cultivars, primarily as a result of higher preseason yield andmarket pricing. Study results find that season extension technologies can successfully increase net returns to strawberry production through early and increased yields, when strawberries are sold primarily through local direct markets. Fruit growers in the U.S. Intermountain West (the region including the states of Montana, Utah, Idaho, Wyoming, and Colorado) are faced with several challenges including decreased agricultural land availability, harsh climatic conditions, and significant competition from both domestic production and imports. Overcoming these challenges is important to maintaining the long-term viability of fruit production in the region as well as sustaining land in agricultural use. Agricultural land in the Intermountain West has steadily declined as populations have expanded. For example, in Utah only 2.3% of the state is devoted to irrigated agriculture (Hutson et al., 2005) and only a small portion of irrigated agriculture is dedicated to fruit production. Utah’s population has grown steadily at an average annual rate of 2.48%. As population has increased, prime fruit-growing acreage has been lost to urban and suburban growth, pushing Utah to become a net importer of most fruits (Ernst et al., 2012). However, as urban development encroaches on agricultural land, farms are often in close proximity to high population centers, which provide the opportunity for direct-toconsumer sales. The growing ‘‘Buy Local’’ movement has created a market of consumers interested in buying local products at premium prices year-round (Curtis, 2014; Martinez et al., 2010). For example, between 1992 and 2007, local food sales grew three times faster in the Far West and Rocky Mountain regions than in other areas of the United States (Low and Vogel, 2011). Nationally, the number of farmers’ markets increased by 76% between 2008 and 2014 (U.S. Department of Agriculture: Agricultural Marketing Service, 2014). Fruit producers have the opportunity to increase production to meet this demand. Ideally, growers could produce year-round to provide a constant supply to the consumer. However, as a result of climatic challenges, year-round fresh fruit production is often cost-prohibitive and requires use of additional technology. Climate is a major challenge to fruit production in the Intermountain West, limiting both the type of fruit crops grown and the length of the growing season. Fruit production is limited in many areas of the region as a result of high elevation and arid climate conditions, resulting in late spring and early fall frosts as well as large diurnal temperature fluctuations during spring and fall. Additionally, the region’s arid and semiarid conditions limit water availability. Finding ways to combat these climatic challenges may increase season length, yields, and, hence, profitability for the region’s fruit producers. Finally, both domestic and import competition limits the financial success of Intermountain West fruit growers as a result of low product pricing, especially during the region’s primary growing season. Other fruitproducing regions of the United States and overseas do not have the climatic challenges Intermountain West growers are faced with; they are able to sell their products at lower wholesale prices. Additionally, the increased ability to ship produce long distances provides a year-round supply of fresh fruits at lower market prices. Fresh Strawberry Market The production window for field-grown strawberries in the northern Intermountain West extends from late May to early July. This period directly overlaps peak domestic production (California and Oregon) and the lowest annual wholesale strawberry prices of $1.63/kg (Naeve, 2014). Average monthly fresh strawberry prices are often highest in December as was the case in 2012 when the average wholesale price was $4.89/kg (a 200% increase over the July price), when only Florida strawberries and imports from Mexico were available (Wu et al., 2012). These pricing differences, combined with year-round consumer demand, create the need for extended fruit production into the off season. The climatic conditions in the Intermountain West require the use of season Fig. 1. Low tunnels inside a high tunnel. Received for publication 3 Oct. 2014. Accepted for publication 31 Dec. 2014. This project is funded in part by the Utah Department of Agriculture and Food under a specialty crop block grant, Utah State University Extension, and the Utah Agricultural Experiment Station, Utah State University, and approved as journal paper number 8715. This paper is a portion of a MS thesis submitted by T. Maughan. To whom reprint requests should be addressed; e-mail kynda.curtis@usu.edu. HORTSCIENCE VOL. 50(3) MARCH 2015 395 MARKETING AND ECONOMICS

Economic Evaluation of Implementing Strawberry Season Extension Production Technologies in the U.S. Intermountain West