Posts Tagged: Oranges

New UC study outlines costs of growing oranges in the San Joaquin Valley

A new study outlining the costs and returns of establishing and producing navel oranges with low-volume irrigation in the southern San Joaquin Valley has been released by UC Agriculture and Natural Resources, UC Cooperative Extension and the UC Davis Department of Agricultural and Resource Economics.

“A cost study gives a ‘new' grower a better idea of all the costs that are involved with producing the crop,” said co-author Greg Douhan, UC Cooperative Extension citrus advisor for Tulare and Fresno counties.

Real estate agents, land leasers, bankers evaluating loan applications and others can use the cost study to estimate current costs to plant and produce oranges and expected profits.

This study updates an earlier version, using as an example the Cara Cara navel, which is known for its distinctive pink-colored flesh rather than the conventional orange flesh of the Washington navel. 

“The Cara Cara has been returning very good prices to growers for the past decade or so and is a relatively new navel,” said co-author Craig Kallsen, UC Cooperative Extension farm advisor in Kern County. “Of course, grower returns are driven by consumer demand. Why consumers like it so much I do not know, but I suspect it is because it tastes good and is different. You cut it and get a pink surprise. Its harvest maturity is similar to that of the Washington navel.”   

The updated version takes into consideration “things like inflation, chemical availability, changes in markets both domestic and foreign, governmental regulations and other things,” Kallsen said. 

The study is based on a hypothetical farm that consists of 65 contiguous acres onlandin the San Joaquin Valley previously planted to another tree crop. Establishment and production costs are based on 10 acres being planted to oranges. Mature orange trees are grown on 50 acres and the remaining five acres are roads, equipment, shop area and homestead. The grower owns and farms the orchards.

The two major orange varieties grown in the San Joaquin Valley are navels and valencias. Navels are grouped into three types by harvest timing – early, mid and late season. Due to current planting practices, only navels are included in this budget. Cara Cara is the variety of navel oranges currently most commonly planted.

The Cara Cara orange trees are planted double density, 10-by-20-foot spacing, at 218 trees per acre. At this density, it is possible to start harvesting in year 3 or 4. At year 8 or 9, full maturity is achieved and growers begin pruning back every other tree. This allows the grower to maintain yields while at the same time converting the field to 20-by-20 spacing – maximizing yield for a fully mature orchard.

For pest management, the study includes detailed information and links to UC Integrated Pest Management guidelines for citrus. The narrative contains tables of insecticide treatment cycles for establishment and production years.

The section “Exotic Pests of Economic Concern to Citrus Growers” contains information to meet quarantine regulations on exporting oranges from California to countries such as South Korea.

The authors describe the assumptions used to identify current costs for oranges establishment and production, material inputs, cash and non-cash overhead. A ranging analysis table shows profits over a range of prices and yields.

“2021 - Sample Costs to Establish an Orchard and Produce Oranges in the Southern San Joaquin Valley” can be downloaded for free from the UC Davis Department of Agricultural and Resource Economics website at coststudies.ucdavis.edu. Sample cost of production studies for many other commodities are also available for free on the website.

For additional information or an explanation of the calculations used in the studies, refer to the Assumptions section or contact Donald Stewart at (530) 752-4651, destewart@ucdavis.edu or Karen Jetter at (530) 792-8255 or jetter@ucanr.edu. To discuss this study with a UC Cooperative Extension farm advisor, contact your local UC Cooperative Extension office: http://ucanr.edu/County_Offices.

This study was funded in part by the National Institute of Food and Agriculture, U.S. Department of Agriculture, under award numbers 2017-70016-26755 and 2019-70016-29068.

UC studies estimate cost of production for six crops

Six new studies outlining the cost of production and estimated revenue for orchard and field crops have been released by UC Agriculture and Natural Resources. The crops include lemons and oranges, field corn, paddy rice, silage corn and strawberries.

Each analysis is based upon a hypothetical farm operation using practices common to the region. Input and reviews were provided by growers, UC Cooperative Extension farm advisors and other agricultural associates. The authors describe the assumptions used to identify current costs for individual crops, material inputs and cash and non-cash overhead. A ranging analysis table shows 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 studies for establishing orchards to produce lemons and oranges estimate costs for growing in Kern and Tulare counties. Revenue for the citrus is based on estimated sales to the fresh packaging market.  

The study for organic strawberries takes into consideration growing conditions on the Central Coast of California and complying with the National Organic Program. In particular, it focuses on growing organic strawberries in Santa Cruz and San Benito counties for the fresh packaging market.  

The study for producing paddy rice in the Sacramento Valley focuses on the costs of growing medium-grain rice, under a rice-only rotation in Butte, Colusa, Glenn and Yolo counties.  

The field corn study focuses on the production costs of a full-season corn crop in the Sacramento Valley and the northern San Joaquin Valley. This region would include Colusa, Glenn, Sacramento, Sutter and Yolo counties. The study based costs on a farm using furrow irrigation and Roundup Ready-GMO seed.

The study on silage corn, double cropped under conservation tillage methods, focuses on production costs of corn silage using minimum tillage operations in the northern San Joaquin Valley. The corn is planted in the spring after a winter forage crop is harvested. The study is based its costs on a farm using border/flood irrigation and Roundup Ready-GMO seed.

These new study titles are

• “Sample Costs to Establish an Orchard and Produce Lemons in the San Joaquin Valley-South-2015”
• “Sample Costs to Establish an Orchard and Produce Oranges in the San Joaquin Valley-South-2015”
• “Sample Costs to Produce Organic Strawberries in the Central Coast Region-2014”
• “Sample Costs to Produce Rice in the Sacramento Valley-2015” 
• “Sample Costs to Produce Field Corn in the Sacramento Valley and Northern San Joaquin Valley-2015”  
• “Sample Costs to Produce Silage Corn-Conservation Tillage Practices in the Northern San Joaquin Valley-2015”

These cost-of-production studies can be downloaded for free from the UC Davis Department of Agriculture and Resource Economics website http://coststudies.ucdavis.edu. Sample costs are also available for many other commodities. Many earlier production cost studies for agricultural commodities are also available at http://coststudies.ucdavis.edu/archived.php.

For additional information or an explanation of the calculations used in the studies, contact Don Stewart, staff research associate in the Department of Agriculture and Resource Economics at UC Davis at (530) 752-4651, destewart@ucdavis.edu.

 

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