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New avocado study outlines costs and returns of high-density plantings
Growers considering producing avocados in San Diego County with high-density plantings now have help to determine the economic feasibility. A new study on the costs and returns of establishing and producing avocados in San Diego County has been released by UC Agriculture and Natural Resources' Cooperative Extension, UC Agricultural Issues Center and the UC Davis Department of Agricultural and Resource Economics.
Avocado has been one of the prominent crops produced in Southern California since the early 1950s. California avocado production peaked in 1987-88 with about 76,300 acres. San Diego had been the leading producer accounting for about 60% of the acreage.
“Beginning in the early 1980s, there has been a continuous decline of acreage and production of avocados in San Diego County, said Etaferahu Takele, UC Cooperative Extension farm management advisor for Southern California and co-author of the study. “This is mainly because of the expansion of urban development that has increased the cost of producing the crop and especially the cost of water, reaching to up to $2,000 per acre feet in 2020.”
High-density planting increases profitability of avocado production given there is suitable land for high-density orchard development.
Although the cost of water accounts for 44% of the total production cost in the high-density planting, the water cost is proportionally less than in the conventional planting of 145 trees per acre when distributed over a higher yield per acre, the authors write.
Their cost analysis describes production operations for avocados planted at 430 trees per acre, with an expected life span of 40 years. The study includes a detailed summary of costs and returns and a profitability analysis of gross margin, economic profit and a break-even ranging analysis table, which shows profits over a range of prices and yields. Growers can identify their gross margin and returns to management based on their yield and prices received.
Input and reviews were provided by a UC Cooperative Extension farm advisor and grower cooperators in San Diego County. The authors describe the assumptions used to identify current costs for avocado establishment and production, material inputs, cash and non-cash overhead.
The new study, “Avocado Establishment and Production Costs and Profitability Analysis in High Density Planting, San Diego County-2020,” can be downloaded for free from the UC Davis Department of Agricultural and Resource Economics website at http://coststudies.ucdavis.edu and UCCE Riverside County Farm Management website at https://ucanr.edu/sites/Farm_Management/Costs_and_Returns. Sample cost of production studies for many other commodities are also available on the websites.
For additional information or an explanation of the calculations used in the studies, refer to the “Assumptions” section of the report or contact Takele at (951) 683-6491 Ext. 243 or ettakele@ucanr.edu or Donald Stewart at the UC Agricultural Issues Center at destewart@ucdavis.edu.
UC ANR study outlines costs and returns of producing lemons in Southern California
A new study on the costs and returns of establishing and producing lemons in Ventura County has been released by UC Cooperative Extension in Southern California and UC Agricultural Issues Center, both part of UC Agriculture and Natural Resources.
“Coastal agriculture is always in transition and as strawberries and vegetables become less profitable due to markets and labor availability, lemons have returned as a potentially profitable alternative to those crops,” saidBen Faber, UC Cooperative Extension farm advisor for Ventura County and coauthor of the study.
California lemon acreage was at roughly 47,000 acres in 2018-19, of which Ventura County accounts for 31%, according to the 2019 Ventura County Crop Report. Ventura County was growing lemons on 14,407 acres in 2019.
“The profitability of lemon production depends on the price of land,” said Etaferahu Takele, UC Cooperative Extension farm management advisor for Southern California, another coauthor of the study. “If the price of land continues in its current trend, it could be prohibitive for new entrants to make a profit and limit further expansion of lemon production in the county.”
Their cost analysis describes production operations for Eureka lemons on macrophylla rootstock, which are planted at 155 trees per acre with an expected life span of 40 years.
The study includes a detailed summary of costs and returns and a profitability analysis of gross margin, economic profit and a break-even ranging analysis table, which shows profits over a range of prices and yields.
Input and reviews were provided by Ventura County farm advisor and grower cooperators. The authors describe the assumptions used to identify current costs for lemon establishment and production, material inputs, cash and non-cash overhead.
The new study, “2020 - Sample Costs to Establish and Produce Eureka Lemons in Ventura County,” can be downloaded for free from the UC Davis Department of Agricultural and Resource Economics website at http://coststudies.ucdavis.edu and the UCCE Riverside County Farm Management website at https://ucanr.edu/sites/Farm_Management/files/338947.pdf. Sample cost of production studies for many other commodities are also available on the websites.
For additional information or an explanation of the calculations used in the studies, refer to the section of the report titled “Assumptions” or contact Takele at (951) 683-6491 Ext. 243 ettakele@ucanr.edu or Donald Stewart at the UC Agricultural Issues Center at (530) 752-4651, destewart@ucdavis.edu.
For information about production of lemons in Ventura County, contact Faber at bafaber@ucanr.edu.
New UC studies outline costs of producing irrigated pasture in the Sierra Nevada foothills
Two new studies on the costs and returns of establishing and producing irrigated pasture in the Sierra Nevada Foothills have been released by UC Agriculture and Natural Resources' Agricultural Issues Center. Ranchers in Nevada, Placer and surrounding counties may find the cost estimates useful for planning.
Based on 40 acres of leased ground, the studies focus on establishment by tilling the soil, using conventional cultural practices and re-establishment of pasture using no-till cultural practices. The two separate studies, by Dan Macon, UCCE livestock and natural resources advisor, and Donald Stewart of the Agricultural Issues Center, estimate the cost of establishing or re-establishing a pasture and producing pasture over its 30-year life span.
There are two methods of establishing a pasture. One method uses conventional cultural practices, destroying the existing pasture and preparing the soil, or seed-bed, using conventional tillage practices.
The other no-till method of re-establishing the pasture uses high-intensity grazing and herbicides to destroy the existing pasture and plant new pasture using a no-till seed drill.
Their analysis reports the differences of machinery costs and methods. The reported prices for materials, equipment and custom services are based on January 2020 figures.
UC Cooperative Extension farm advisors, specialists, grower cooperators and other agricultural associates provided input and reviews. The authors describe the assumptions used to identify current costs for pasture establishment and production, material inputs, cash and non-cash overhead. A ranging analysis table shows profits over a range of prices and hay yields.
The new studies are “2020 - Sample Costs to Establish or Reestablish and Produce Irrigated Pasture in the Sierra Nevada Foothills, Flood Irrigated” and “2020 - Sample Costs to Produce Irrigated Pasture in the Sierra Nevada Foothills, Flood Irrigated.”
Both studies can be downloaded from the UC Davis Department of Agricultural and Resource Economics website at http://coststudies.ucdavis.edu. Sample cost-of-production studies for many other commodities are also available on the website.
For additional information or an explanation of the calculations used in the studies, contact Donald Stewart at the Agricultural Issues Center at (530) 752-4651 or destewart@ucdavis.edu.
For information about irrigated pasture establishment and production in Placer, Nevada, Sutter and Yuba counties, contact UCCE livestock and natural resources advisor Dan Macon at dmacon@ucanr.edu.
Agriculture to take a hit, but people still need to eat during coronavirus crisis
The shut downs and self isolation sweeping across the country to curb the spread of coronavirus likely will not impact agricultural staple foods, but high-end wines and specialty ag products grown in California may suffer, reported Tim Hearden in Western Farm Press.
Hearden interviewed Dan Sumner, director of UC Agriculture and Natural Resources' Agricultural Issues Center.
He said some California agricultural products see demand increase during tough economic times, such as less expensive wines.
“Central Valley grapes are nearly recession-proof,” he said. “When the stock market collapses or the dot-com busts, nobody's buying $200 bottles of wine anymore.”
Sumner said Midwestern corn and grains will hold their own, however California products like almonds, pistachios, walnuts, strawberries, raspberries and even some leafy greens may "slip off the plate."
Wine sales may also be hurt by California Gov. Gavin Newsom's decision to close winery tasting rooms, restaurants, bars and pubs. Wineries are allowed to remain open for pick-up and winery business and production operations.
Hearden noted in his article that many UC Cooperative Extension workshops and other ag-related public events were canceled, including Ag Day festivities at the state Capitol that were set for March 18.
UC releases new cost studies for mechanized winegrape production
New studies provide details about trellis type, planting density, cost and potential benefit of vineyard mechanization
The studies estimate the cost of establishing a vineyard and producing wine grapes, focusing on four wine grape varieties – Cabernet Sauvignon, Chardonnay, Rubired and Colombard.
“Those studies take into consideration mechanical pruning, leafing, shoot thinning, and harvest on a typical wine grape vineyard with the average production level for this region,” said George Zhuang, UC Cooperative Extension viticulture advisor in Fresno County.
“With farming labor becoming more scarce and expensive, growers will opt to transition into more mechanization,” Zhuang said. “These studies provide detailed information about the trellis type, planting density, cost and potential benefit of vineyard mechanization. Based on these studies, fully implemented mechanization reduces the production cost from $3,000 to $2,500 per acre and that represents 17% cost reduction. This information will ultimately help growers to guide their production practices to more profitable and competitive ways under the new era of farming labor.”
“The investment to purchase and own equipment can be high,” Zhuang said. “Fortunately, it is easy to find a contractor in this region to perform certain vineyard tasks, if the initial investment to purchase equipment is prohibitive.”
Numerous studies, including UC studies, have confirmed the benefits of vineyard mechanization to grape and wine quality with lower production costs.
“It is a win-win-win situation,” Zhuang said. “Growers can improve their farming margins, wineries and juice processing plants can get reliable and higher quality grapes and juice from farms, and average consumers can enjoy better wine and more healthy grape products at an affordable price.”
The studies are based on 200-acre farms with the vineyard established on 40 acres using two types of trellis systems – quadrilateral cordon system and bilateral cordon system. In addition to regular grape production expenses – such as irrigation, fertilization and pest control – the researchers broke out the differences between machinery costs and hand labor hours required for thinning, pruning and harvesting for each variety.The prices for labor, materials, equipment and custom services are based on October 2019 figures.
Input and reviews were provided by UC Cooperative Extension farm advisors, specialists, grower cooperators and other agricultural associates. The authors describe the assumptions used to identify current costs for wine grape establishment and production, material inputs, cash and non-cash overhead. A ranging analysis table shows profits over a range of prices and yields.
The new studies are:
- 2019 - Sample Costs to Establish and Produce Winegrapes in the Southern San Joaquin Valley – Chardonnay Variety
- 2019 - Sample Costs to Establish and Produce Winegrapes in the Southern San Joaquin Valley –Cabernet Sauvignon Variety
- 2019 - Sample Costs to Establish and Produce Winegrapes in the Southern San Joaquin Valley – Rubired Variety
- 2019 - Sample Costs to Establish and Produce Winegrapes in the Southern San Joaquin Valley – Colombard Variety
All four winegrape studies can be downloaded from the UC Davis Department of Agricultural and Resource Economics website at http://coststudies.ucdavis.edu. Sample cost of production studies for many other commodities are also available on the website.
For information about local grape production, contact George Zhuang, UCCE viticulture advisor for Fresno County, at gzhuang@ucanr.edu; UCCE viticulture specialist Matt Fidelibus at mwfidelibus@ucanr.edu; UCCE viticulture specialist Kaan Kurtural at skkurtural@ucdavis.edu; Karl Lund, UCCE viticulture advisor for Madera, Merced and Mariposa counties, at ktlund@ucanr.edu; or Gabriel Torres, UCCE viticulture advisor for Kings and Tulare counties, at gabtorres@ucanr.edu.
