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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.
UC ANR updates cost estimates for growing almonds
UC Agricultural Issues Center has released new studies estimating the cost and returns of establishing an almond orchard and producing almonds for three growing regions of California.
“These cost studies are valuable for agricultural producers all along the continuum – growers considering entering into a new crop production business, less experienced growers, and those with decades of experience,” said Emily Symmes, UC Cooperative Extension integrated pest management advisor for the Sacramento Valley. “The information in these cost studies allows growers to evaluate their production practices and associated costs relative to an exemplary hypothetical orchard specific to their geographic region, and can help with development of business models, crop insurance and lending.”
In 2018, almonds ranked third among California commodities with almond growers receiving nearly $5.5 billion in cash receipts.
The cost analyses are based on hypothetical farming operations of well-managed almond orchards, using cultural practices common to the region. Local growers, UC Cooperative Extension farm advisors and supporting agricultural representatives provided input and reviewed the methods and findings of the studies.
“The recent almond updates for the Sacramento and San Joaquin valleys reflect costs associated with the continually evolving conditions facing agriculture,” said Symmes, who co-authored the almond cost studies. “Some of the notable updates include labor, irrigation and pest management costs – all integral to producing and delivering a high-quality crop.”
The researchers based one study in the Sacramento Valley, one in the northern San Joaquin Valley and the other in the southern San Joaquin Valley.
The southern SJV study is based on an orchard that uses double-line drip irrigation, whereas the other two locations use microsprinkler irrigation. All are multi-year studies, estimating costs from removal of the previous orchard, through almond orchard re-establishment and the production years. The economic life of the orchards used in these analyses is 23 to 25 years.
Navel orangeworm (NOW) is a major pest in almond production; Symmes and her co-authors describe in detail the pesticide applications and winter sanitation methods for each location for NOW control and include the costs.
The authors describe the assumptions used to identify current costs for orchard establishment, almond production, material inputs, cash and non-cash overhead. A ranging analysis table shows net returns over a range of prices and yields.
The new studies are titled:
- Sample Costs to Establish an Orchard and Produce Almonds in the Sacramento Valley - 2019
- Sample Costs to Establish an Orchard and Produce Almonds in the Northern San Joaquin Valley - 2019
- Sample Costs to Establish an Orchard and Produce Almonds in the Southern San Joaquin Valley - 2019
The studies are available for free download at 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 UC Agricultural Issues Center at (530) 752-4651 or destewart@ucdavis.edu. To contact a local UC Cooperative Extension advisor, find the UCCE office in your county at http://ucanr.edu/County_Offices. The Agricultural Issues Center is a statewide program of UC Agriculture and Natural Resources.
Thinking about growing romaine or organic strawberries? UC ANR releases sample costs
Farmers who are considering growing romaine hearts or organic strawberries in California's Central Coast region can get some help determining whether the crop will pencil out for them.
UC ANR Agricultural Issues Center and UC Cooperative Extension have released sample costs to produce and harvest organic strawberries for fresh market and romaine lettuce hearts in Santa Cruz and Monterey counties.
A major difference between growing strawberries organically and the conventional practice is in weed control.
“Weed management is especially challenging for organic strawberry production because soil fumigation and most herbicides are not allowed under organic regulations,” said Mark Bolda, UC Cooperative Extension farm advisor in Santa Cruz County. “Weeds in furrows between the beds can be mechanically cultivated during the growing season, but most of the weeding will need to be done by hand from December through September.”
The cost analyses are based on hypothetical well-managed farming operations using practices common to the Central Coast region. The costs, materials and practices shown in the studies will not apply to all farms and are intended to assist growers in estimating their own costs.
The organic strawberry study assumes a farm with conventionally grown strawberry transplants planted on 27 contiguous acres of rented land. “Organic strawberry transplants are part of the picture now, but not standard by a long shot,” said Bolda, who co-authored the cost studies. The strawberry crop is harvested by hand and packed into trays containing eight 1-pound clamshells, from April through early October with peak harvest in June and July.
For romaine lettuce for the hearts market, the cost study assumes a farm of 1,500 non-contiguous acres of rented land, with romaine planted on 250 acres and rotated with other lettuce and cool season vegetable crops to assist with pest management and soil fertility. Lettuce is planted continuously from late December to mid-August along the Central Coast. To manage lettuce mosaic virus, Monterey County has a host-free period (December 7 – 21), during which time lettuce may not be planted. In this study, lettuce is planted in January.
For both the organic strawberries and romaine, 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. The authors describe the assumptions they used to identify current costs for production material inputs and overhead.
The authors have also expanded the section on labor, which includes information on California's minimum wage and overtime laws.
Growers, UC ANR Cooperative Extension farm advisors and other agricultural associates provided input and reviewed the methods and findings of both studies.
Free copies of these and other sample cost of production studies for many commodities are available. To download the cost studies, visit the UC Davis Department of Agricultural and Resource Economics website at https://coststudies.ucdavis.edu.
For more information about calculations used in the romaine hearts and organic strawberriesstudies, contact the Agricultural Issues Center at (530) 752-4651 or Mark Bolda at UC Cooperative Extension in Santa Cruz County at (831) 763-8025.
The cost and returns studies program is funded by the UC Agricultural Issues Center and UC Cooperative Extension, which are part of the UC Division of Agriculture and Natural Resources, and the UC Davis Department of Agricultural and Resource Economics.
