New cost estimates for strawberry production released by UC Agricultural Issues Center

The cost study for strawberry production notes that in 2016 new minimum wage and overtime laws were passed in California. Many growers already pay more than the current state minimum wage, but may be affected by the overtime law.

A new costs and returns study for strawberries has been released by UC Agricultural Issues Center and UC Cooperative Extension to help growers make farm management decisions. The study presents sample costs to produce and harvest strawberries for fresh market in Santa Cruz andMonterey counties. The cost study is in Spanish at http://ucanr.edu/files/269041.pdf.

“The study also has an expanded section on labor, which includes information on California's new minimum wage and overtime laws,” said Laura Tourte, UC Cooperative Extension farm management advisor in Santa Cruz, Monterey and San Benito counties, who co-authored the study.

The analysis is based upon a hypothetical well-managed farming operation using practices common to the Central Coast region. The costs, materials, and practices shown in this study will not apply to all farms. Growers, UC ANR Cooperative Extension farm advisors and other agricultural associates provided input and reviewed the methods and findings of the study.

The study assumes a fairly flat farm operation of 50 contiguous acres of rented land. Strawberries are planted on 45 acres. From April through early October, the crop is harvested by hand and packed into trays containing eight 1-pound clamshells. Harvest peaks in June and July. 

The authors describe the assumptions used to identify current costs for production material inputs, cash and non-cash overhead. Ranging analysis tables show net profits over a range of prices and yields. Other tables show the monthly cash costs, the costs and returns per acre, hourly equipment costs, and the whole farm annual equipment, investment and business overhead costs.

Free copies of “Sample Costs to Produce and Harvest Strawberries in the Central Coast Region-2016” and other sample cost-of-production studies for many other commodities are available. To download the cost studies, visit the UC Davis Department of Agricultural and Resource Economics website at https://coststudies.ucdavis.edu

The cost and returns studies program is funded by the UC Agricultural Issues Center and UC Cooperative Extension – both of which are part of the UC Division of Agriculture and Natural Resources – and the UC Davis Department of Agricultural and Resource Economics.

For additional information or an explanation of the calculations used in the study, contact the UC Agricultural Issues Center at (530) 752-4651, Mark Bolda, UC Cooperative Extension advisor in Santa Cruz County, at (831) 763-8025 or Tourte at (831) 763-8005.

UPDATED Sept. 13, 2017, to add link to Spanish version of cost study. 

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