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page 2 of 2 2. Greenhouse Valuation : Value can be.calculated in.a.multipleof ways and professional appraisers,accountants.and bankers acknowledge this and,thus,they use more than one method and present them all for relevancy.Accordingly,I am doing the same within my means,using on-line information and using Capitalization Formula Computation of value. A:Based upon On-line Information found relevant to my style of greenhouse,and others,@ "How much does a greenhouse costin 2024".Cost Is obviously one way to.calculate value. My greenhouse structure is an upper-professional,commercial,hoop-style with an A- Frame design for strength and air circulation:This style is useful where commercial production is at a high volume and supports.a very high level of plant research and development ie universi- ties at graduate school level instructional &production greenhouses. These greenhouses are also reasonably affordable;as they fallen the middle between $10 and $3.0 per square foot ($20/sq' avg.)plus freight for all materials to be then assembled on owner's site. Our greenhouse is 30'x 144'o.r 4,320 square feet. $20 x 4,320 sq'_*$86,400 valua- tion of the greenhouse materials (less freight).Cost of professional contractors to erect a greenhouse of this size is$1,000/day an avg.8 days=**$8,000,with the site prepared ahead. Information applied: *$86;400 +**$8,000 = $:94,400 estimated value. B. Based upon Capitalization Formula Computation suggested by our professional corporate accountant, being familiar with Agriculture, Forestry and Construction operations and values. Suggested using computation on value by using Capitalization Formula based on the domi- nant factor in this particular business centers in almost every particular of the income on hav- ing this greenhouse.This is reasonable as gives some flexibility on possible greenhouse as- sociated infrastructure changes which aresornetimes necessary. The formula is:(Income x Profit%) x#years to p:ay off investment=Value. Our greenhouse accomplishes a minimum of$150,000/yr. income that could not happen without it's multi-phased use.The use is based on a 20% Profit requirement as is very time consuming and plant.risk work. Payoff of investments necessary in greenhouse deter- mined to be 3 years. Formula applied:{$150,000•X 20%)=$30,000 x 3 yrs.=$90,000 estimated value. Greenhouses,even though they-are not inexpensive,can still provide value added in- comes on a range of levels to create opportunities for smaller operators.We believe that what has worked for us can work for others who want to participate in agriculture. Without creative opportunities,the small agriculture type business is now almost an impossibility. However, with much smaller acreage.needed,and technology favoring greenhouses with plant,pro- duction,the nursery industry can support many more agriculturists. , 1�11,1-L�nh • " Information provided by Walter R. Miller(Rob)Mt.Jefferson Farms Inc. 't� � .+