The effect of capital structure and seasonality of fresh market vegetables was examined via the Target MOTAD model. The level of capital indebtedness and the selection of either a fall or spring season resulted in significantly different levels of enterprise mixes, expected returns, risk magnitudes, rates of change of risk magnitudes, and operating capital requirements. The fall season demonstrated larger initial levels of risk and larger increases in the level of risk due to increases in indebtedness. The spring season showed larger increases in risk between the minimum risk point and the maximum expected return point (linear programming solution) on the risk-efficient frontier. Operating capital requirements were substantially higher for the fall season than for the spring season. The operating capital requirements of the spring season were significantly affected by the level of indebtedness and the magnitude of risk selected by the grower, while the larger operating capital requirements of the fall season were only marginally affected.

Diversification into alternative enterprises appears to be gaining in popularity and economic importance as a way to supplement family income and to provide alternative sources of high-quality food. However, potential rabbit producers lack information about investment requirements and production and marketing costs. The objective of this study was to determine the most profitable operation of small-scale rabbit production by estimating the costs and returns, net present values, and payback periods of two rabbit production systems. Despite a difference in the net income generated, a cash surplus occurred for both systems at the end of the third year. This surplus was the return to land, family labor, and management. Thus, rabbit enterprises may provide economic opportunities for farm families who have limited land and capital.