Economic Analysis of Production of American Ginseng in the Southeastern Region

Avis A Ortiz, Tennessee State University


This study reviewed the unique benefits of producing ginseng, its health promoting attributes, opportunities for forest farmers, the potential profits, as well as financial risks. The study focused more on the three production systems in the southeastern region of the U.S. While American ginseng is a complicated opportunity for forest farmers to understand, within these production systems there are many opportunities and constraints linked to production of ginseng. There are different market demands and prices paid for the various grades of dried roots depending on the system used to cultivate the plant. The objectives of the study were to evaluate current trends in ginseng production and different production methods suitable for the southeast region of the U.S, assess economic returns of producing ginseng under different production systems, and perform sensitive analysis via simulation to determine the effect of uncertainty variables such as production costs, yield, and price of product on economic feasibility. The Monte Carlo simulation was performed to analyze the profitability and risks associated with producing ginseng. The study revealed that growing ginseng under the different production methods can be a potentially profitable business for forest landowners in the southeast region of the U.S. Accordingly there is a need for landowners to have more education and training on the different ginseng production systems, which could provide an opportunity to learn about forest income enterprises.

Subject Area


Recommended Citation

Avis A Ortiz, "Economic Analysis of Production of American Ginseng in the Southeastern Region" (2018). ETD Collection for Tennessee State University. Paper AAI10786751.