Economic feasibility of adopting a hydroponics system on substrate in small rural properties

Clean Technol Environ Policy. 2023 Apr 23:1-15. doi: 10.1007/s10098-023-02529-9. Online ahead of print.

Abstract

Objective is to analyze the economic feasibility of implementing a greenhouse in a hydroponics production system in substrate (sand) on a small family farm as an alternative to hydroponic cultivation using nutrient film technique (NFT). This case study was carried out in the Municipality of Dourados, Mato Grosso do Sul state, Brazil. The location was specifically selected because of the importance of agricultural activities and the need for productive diversification related to the context of the small rural producer. As a criterion for assessing economic viability, the techniques of net present value (NPV), internal rate of return (IRR), modified internal rate of return (MIRR), cost-benefit (C/B), profitability index (PI), equivalent annual value (EAV) and discounted payback (DP) were under consideration. A minimum attractiveness rate adjusted to the risk of emerging countries of 10.25% per year was considered. The viability of the project was verified, even when exposed to risk and uncertainty.

Keywords: Economic viability; Family producer; Hydroponic cultivation.