Economics

What a greenhouse actually earns, per square foot

The revenue math behind a year-round greenhouse: growing area times yield times price, crop by crop, in honest gross dollars, and why the mix and the buyers matter more than the structure.

By the Local Greenhouse Farms team, Lincoln, NebraskaPublished September 11, 2026Last reviewed September 11, 202610 min read

Ask what a greenhouse earns and you will get answers spanning two orders of magnitude, all of them technically true. A hobby house growing tomatoes for a farm stand and a climate-controlled house shipping greens to a school district every week are both “a greenhouse.” The difference is not the structure. It is three numbers multiplied together: square feet in production, pounds each square foot yields in a year, and the price each pound sells for. This guide walks that math honestly, in gross dollars, and is upfront about what it leaves out.

The thirty-second answer

Revenue through a greenhouse is growing area × yield × price, summed across every crop in the house. Here is that math at the planning assumptions our program uses for a 2,700 square foot climate-controlled house, about 1,890 square feet of it usable growing area, harvesting 52 weeks a year:

Crop lineYield, lb per usable sf per yearBlended price per lbGross per usable sf per yearHow much of the house it gets
Leafy greens~12 lb~$7.40~$89A quarter of the growing area: the volume line the weekly accounts are built on
Microgreens~46 lb~$31.50~$1,400Only the area real demand supports; the number is why finding that demand matters
Specialty greens~12 lb~$16.40~$197Splits the remainder: chef and grocer varieties field growers do not carry
Herbs~13 lb~$9.80~$129Splits the remainder: steady, high-margin, light to deliver

Run that crop plan across the whole house and the planning-assumption gross lands a little over $400,000 a year, which works out to roughly $220 per usable square foot, or about $150 per square foot of building. Three caveats before anything else: those are gross dollars, before every operating cost; they are planning assumptions drawn from published hydroponic benchmarks and current specialty prices, not the results of any operating franchisee; and the microgreens line only earns its number if the demand for it exists in your territory. The rest of this guide is what stands behind each of those caveats.

The three numbers, one at a time

Square feet in production.Not the footprint. Aisles, the headhouse, the packing bench, and mechanical space take their share of the floor; 70 percent usable is a common planning figure, and it is the one we use. Towers and multi-tier benches raise the effective canopy above the floor area, which is how greenhouse yields per square foot beat any field figure. When you read someone else’s per-square-foot claim, first find out which denominator they used.

Pounds per square foot.This is where climate control earns its cost. A field grows one crop a season. A greenhouse in the Midwest without heat grows a long season. A climate-controlled house harvests every week of the year, so annual yield is one harvest’s yield times the number of turns, and short-cycle crops turn constantly: lettuce in four to six weeks, microgreens in one to three. Fifty-two harvest weeks is not a slogan; it is the multiplier in the middle of the revenue equation.

Price per pound. The widest lever. The same pound of greens can sell as commodity wholesale, contracted institutional, or direct retail, and the spread between those channels is larger than most yield differences. A blended price, in our planning, 70 percent wholesale to schools and grocers, 30 percent direct, is the honest way to plan, because no real operation sells everything at the farmers-market price.

Why the mix matters more than the max

The table above tempts a simple mistake: fill the house with the highest number. If microgreens gross roughly $1,400 per square foot and leafy greens $89, why grow anything else? Because those numbers assume the crop sells, and microgreens demand in any one territory is real but bounded, restaurants, grocers, and health buyers, not school cafeterias by the ton. The planning approach that survives contact with a real market anchors microgreens to actual accounts, gives leafy greens a fixed share as the volume backbone of the weekly delivery, and lets specialty greens and herbs fill the rest. A house planned that way earns less on paper than a house planned as a microgreens monoculture, and considerably more in practice.

This is also the honest answer to why published “greenhouse income” figures disagree so wildly: they describe different mixes sold into different channels. A commodity tomato house and a greens-and-microgreens house are different businesses that happen to share a roof shape.

The months that carry the year

For a Midwest farm, the most important property of greenhouse revenue is not its size but its timing. Roughly eight months of a year-round house’s harvest, September through April, lands when the fields around it produce nothing and when the biggest local buyers, school districts, are in session and buying every week. That is the window where local supply is scarcest, contracted prices hold, and a greenhouse has no in-county competition.

The buyer side confirms it. Farm businesses selling into institutions and intermediated local markets average several times the gross of direct-to-consumer operations, and farm-to-institution buying has grown into a multi-billion-dollar channel. The gate into that channel is not price; it is reliability and food-safety paperwork, which is why the GAP certification guide is the companion to this one. Certification opens the account; fifty-two harvest weeks keep it.

What this guide will not tell you: gross to net

Between gross revenue and what an owner keeps sit labor, heating and cooling, electricity for lights and pumps, seed and media, nutrients, packaging, delivery, insurance, water, and the payments on whatever financed the house, plus, under a franchise, the royalty and marketing fee. We do not publish a net or a payback figure, and you should be suspicious of any article that does, because the two largest costs, energy and labor, swing enormously by state, by site, and by how much of the work the owner does. Any financial performance representation for our franchise is made only in Item 19 of the FDD.

What we can do is run the top line honestly for your situation, and put real program numbers on the cost side with you on a call.

Run the math on your ground

The revenue calculator runs this exact model, crop by crop, at prices you set: your market’s leafy price, your microgreens demand, your mix. Two minutes, no email required.

Open the calculator

The honest summary

A greenhouse is not a money machine; it is a multiplier on decisions. Choose short-cycle, high-value crops, sell most of them on weekly contracts to buyers who need February supply, keep the house harvesting all fifty-two weeks, and the gross revenue per square foot lands in a range no field operation can reach. Choose a commodity crop, a seasonal schedule, or a market that is only open on Saturdays, and the same structure earns a fraction of it. The building sets the ceiling. The crop plan and the accounts decide how close you get.

Questions growers ask

How much revenue does a greenhouse make per square foot?+

It depends almost entirely on the crop and the buyer. Field vegetables gross a few dollars per square foot per year. A heated greenhouse growing commodity tomatoes for wholesale might gross $15 to $30. A climate-controlled house growing leafy greens, herbs, and microgreens for schools, grocers, and direct accounts can gross in the low hundreds per usable square foot, because it harvests every week of the year and its highest-value line, microgreens, sells for many times the price of field lettuce. These are gross figures before any operating costs, and your mix and your market decide where in the range you land.

Is a small greenhouse business actually profitable?+

Gross revenue is only the top line, and this guide deliberately stops there: what is left after heating, lighting, labor, packaging, delivery, and financing depends on your energy rates, your labor situation, and your loan terms, which no honest article can know. What the small operations that work tend to share is the same short list: year-round production instead of a season, a high-value crop mix, and institutional or wholesale accounts that buy every week instead of when the weather cooperates.

Why are microgreens worth so much more per square foot?+

Speed and price. A microgreens tray goes from seed to harvest in one to three weeks, so the same bench turns over many times while a head of lettuce grows once, and the crop sells by the ounce to chefs, grocers, and health-focused buyers at prices that work out to roughly $30 per pound wholesale. The catch is demand: microgreens are a garnish and an ingredient, not a staple, so a plan that assumes unlimited microgreens sales is a plan that fails. Anchor the microgreens area to real accounts and let sturdier crops fill the rest of the house.

What costs come out of a greenhouse's gross revenue?+

The recurring ones are labor, heating and cooling energy, electricity for lights and pumps, seed and growing media, nutrients, packaging, delivery, insurance, and water. On top of those sit the financing payments on the structure and equipment, and, under a franchise, the royalty and marketing fee. Energy and labor are usually the two largest, and both vary so much by site and state that gross-to-net is a per-farm calculation, not a rule of thumb.

How many square feet of a greenhouse are actually growing crop?+

Less than the footprint. Aisles, the headhouse, packing space, and equipment take their share; a common planning figure is about 70 percent of the floor as usable growing area, and vertical towers or multi-tier benches can put more canopy above each usable square foot. When you compare per-square-foot claims, check whether the writer means the building footprint or the growing area, because the same operation looks 30 to 40 percent better on the smaller denominator.

Does selling to schools really pay better than a farmers market?+

Per pound it usually pays less; per year it usually pays far more. Farm businesses selling into institutions and intermediated markets average several times the gross revenue of direct-to-consumer operations, because institutions buy in volume, on contract, every week of the school year. A market stand sells what the weekend brings. The trade is price for certainty, and a year-round greenhouse is built to win that trade: it is the rare local supplier that can actually deliver in February.

Sources

Informational only. Regulations change and states differ; confirm with USDA, FDA, or your state department of agriculture before you act. Nothing here is legal advice, a franchise offer, or a financial performance representation.