How Much Does It Cost to Start a Greenhouse or Nursery Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- 1 day ago
- 2 min read
Starting a greenhouse or nursery business can be a profitable and rewarding venture, but it requires careful planning and upfront investment. Costs vary based on size, location, plant types, and whether you operate seasonally or year-round. Below is a breakdown of the key startup expenses you should expect.
1. Land and Location Costs
Land costs depend on whether you lease or purchase property and whether utilities are already available.
Land lease: $500 – $2,500 per month
Land purchase: $50,000 – $500,000+
Rural locations often reduce costs, while urban or suburban areas may offer better customer access.
2. Greenhouse Structure and Construction
Greenhouse structures vary by materials, size, and climate control features.
Small hoop house: $5,000 – $20,000
Mid-sized greenhouse: $25,000 – $100,000
Commercial greenhouse: $100,000 – $500,000+
Costs may include framing, glazing, ventilation, heating, and cooling systems.
3. Equipment and Supplies
Essential equipment ensures efficient operations and plant health.
Benches, shelving, pots, trays
Irrigation and misting systems
Fertilizers, soil, seeds, plants
Climate and monitoring tools
Estimated cost: $10,000 – $75,000
4. Licensing, Permits, and Certifications
Nurseries may need agricultural permits, resale certificates, and environmental approvals depending on location.
Estimated cost: $500 – $5,000
5. Labor and Staffing Costs
Labor needs depend on the size of the operation and whether work is seasonal.
Initial staffing costs: $20,000 – $100,000 annually
6. Marketing and Sales Expenses
Marketing helps attract wholesale buyers, landscapers, and retail customers.
Website and branding
Signage and advertising
Farmers markets or trade shows
Estimated cost: $2,000 – $15,000
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7. Insurance Coverage and Costs for Greenhouse & Nursery Businesses
Insurance is essential to protect your plants, structures, equipment, and employees from unexpected losses.
Protects against customer injuries or property damage on your premises.
Estimated cost: $500 – $2,000 per year
Covers greenhouse structures, equipment, inventory, and plants against fire, storms, theft, or vandalism.
Estimated cost: $1,000 – $5,000 per year
Required if you have employees; covers work-related injuries and illnesses.
Estimated cost: $0.75 – $2.50 per $100 of payroll
Covers vehicles used for deliveries or transporting plants.
Estimated cost: $1,200 – $3,000 per vehicle per year
Protects critical systems like heating, irrigation, and climate controls.
Estimated cost: $300 – $1,500 per year
Total Startup Cost Estimates
Business Size | Estimated Startup Cost |
Small Greenhouse | $25,000 – $75,000 |
Mid-Sized Nursery | $75,000 – $250,000 |
Commercial Operation | $250,000 – $750,000+ |
Estimated Annual Insurance Costs: $3,000 – $15,000 depending on size, staff, and coverage needs.
Final Thoughts
Starting a greenhouse or nursery business requires thoughtful budgeting and risk management. While upfront costs can vary widely, investing in proper infrastructure and insurance is essential for long-term success. Working with a specialized provider like Wexford Insurance ensures your business is protected from weather damage, liability claims, and operational disruptions—so you can focus on growing your plants and profits.
Contact us today.