Economics of Turfgrass-Sod Production As Compared to Row Crops in Alabama.

In much of the South, turfgrass-sod has been a profitable alternative to row crops for many years. Turfgrass contributes significantly to the nation’s green industry and Alabama’s agricultural industry. Rapid growth of Alabama's sod industry started in the late 1960s, with acreage expanding from 500 acres to 3,300 acres from 1968 to 1979.  The turfgrass-sod industry developed dramatically in the 1980’s and became an important component of Alabama agriculture.  Turfgrass-sod profits remained strong through the 1990s and early 2000s.  The 2007 Census of Agriculture reported 27,322 acres of sod production in Alabama.  From 2008-2011, a depressed housing market and higher prices for row crops may have made other enterprises more economically attractive than turfgrass-sod. 

The purpose of this study was to investigate profitability of bermudagrass sod production relative to row crops in Alabama.  Factors considered were sod prices, fuel prices, and timeliness of harvest.  The profitability of bermudagrass sod production relative to row crops strongly depended on the price of the sod.  At a price of $1.20 per square yard (13.3 cents per square foot, or $60 per pallet), bermudagrass was not more profitable than irrigated corn or cotton unless it could be harvested and sold twice per year.  However, a price of $1.50 per square yard (17.6 cents per square foot; roughly $80 per pallet) yielded profits above row crops even when bermudagrass was able to be sold only once per year.  Diesel fuel prices and delay of harvest after the sod was ready for cutting also impacted profits.