High tunnels require substantial upfront investment, yet their potential benefits can be difficult to measure because they vary widely across crops and growing conditions. High tunnels can improve crop timing and quality and create opportunities for premium prices through early- or late-season production. At the same time, they involve significant costs, not only for construction, but also for ongoing management, ventilation, and the possibility of increased pest or disease pressure.
Growers can use this article as a starting point for evaluating whether a high tunnel makes sense for their operation. It provides benchmark construction costs, examples of potential revenue benefits, and information on available cost-share programs, along with a simple framework for calculating NPV and payback time. While every farm’s situation is different, these reference points can help growers plug in their own numbers and assess the profitability of a high-tunnel investment based on their specific crops, markets, and site conditions.
Costs of High Tunnel
High tunnels are highly customizable, and even two structures of the same size and materials can differ substantially in cost if one site requires additional work, such as grading, drainage, or other preparation. Construction expenses generally fall into three major categories: materials, labor for installation, and site preparation. Estimates from the University of Florida suggest that the basic structure accounts for around 40% of total construction costs, with installation costs and additional features making up the remainder.
To provide a sense of market prices, I collected cost information from ten companies selling DIY high-tunnel kits. The focus is on the basic structure with manual side roll-ups and sliding-door end walls. Delivery and installation fees are excluded. Basic structures typically range from $3 to $6 per square foot, while upgrades such as extra trusses, automated ventilation, fans, heaters, thermostats, or longer-lasting plastic coverings can raise the cost. Many of these features can also be added later as needed.
Cost Sharing from NRCS EQIP
The USDA’s Environmental Quality Incentives Program (EQIP) offers cost-share assistance that can significantly reduce the upfront investment required for a high tunnel. Through its High Tunnel System Initiative, EQIP typically covers a portion of the installation cost, often in the range of 50–75%. To qualify, producers must meet NRCS eligibility requirements, which generally include owning or leasing the land, having control of the site for the lifespan of the structure, and completing a conservation plan with NRCS. Payments vary based on tunnel size and local payment rates. EQIP funding aims to support high tunnels as a conservation practice, helping farmers extend the growing season, reduce nutrient runoff, and improve soil health.
In New Jersey, the average EQIP high-tunnel contract amount has risen substantially over time. Before 2021, most contracts were under $10,000, but funding levels jumped sharply in 2021 and have remained elevated since then. By 2023, the average contract amount reached approximately $30,000. Looking at total EQIP obligations for high tunnels since 2014, Gloucester County has received the largest share of funding, followed by Cumberland and Burlington counties.
Figure 1: Total NRCS High Tunnel Payment in New Jersey since 2014
Seasonal Price Premiums for High Tunnel Crops
Analysis of weekly prices at the New York and Philadelphia terminal markets (2022–2025 averages) shows strong premium-price opportunities for growers who can supply tomatoes and bell peppers early or late in the season. For New Jersey tomatoes, the market opens in July with peak prices around $30 per 25-lb box, then falls to about $15 by mid-August before climbing again to roughly $22 after late September, creating profitable windows in July, early August and again after late September. Bell peppers show a similar pattern: prices peak in late June at over $30 per 1 1/9-bushel box, fall to $15–$20 from August through October, and then rise sharply again in late October. These seasonal swings indicate consistent $10–15 per unit price premiums for producers able to supply the market in early summer or late fall.
Figure 2: Average Weekly Tomato Price at NY terminal
Making Decisions
To evaluate whether investing in a high tunnel makes financial sense, first you need to estimate the total construction cost, the annual crop revenue, and the annual production costs. You can then calculate the net present value (NPV) and the number of years required to recover the initial investment. NPV represents the value of future net returns in today’s dollars; when NPV is greater than zero, the investment is expected to be profitable. Once you have these numbers, you can use the investment calculator at: https://farmmgmt.rutgers.edu/simple-investment-calculator/ to estimate NPV and the payoff period.
In conclusion, accurately estimating high tunnel construction costs should come first when evaluating a high tunnel investment. Changes in revenue and crop production costs are difficult to predict with precision, so growers should begin with a solid understanding of their current costs and returns. From there, using reasonable assumptions and break-even analysis, they can assess whether a high tunnel is likely to be a sound investment for their operation.
Example Case of Growing Tomato in 2,000sqft High Tunnel
Below is an example crop budget for tomatoes grown in a high tunnel. In this scenario, the investment yields a net present value of $2,818 and reaches payback in year 7.
Table 1: Example Budget
| Revenue ($) | 2,000 | |
| Price ($/lb) | 1 | |
| Tomato harvested (lb) | 2,000 | |
| Production costs ($) | 175 | |
| High Tunnel Construction Costs ($) | 10,000 | |