California Agricultural Issues Lab
of the University of California
To help table grape growers make decisions on which varieties to grow, the UC Agriculture and Natural Resources’ Agricultural Issues Center has released four new studies on the costs and returns of table grapes in the Southern San Joaquin Valley. The studies on different table grape varieties are each based on a 500-acre farm with vineyard established on 40 acres.
The studies focus on four table grape varieties. There are two early maturing varieties, Flame Seedless and Sheegene-21, that begin harvest in July, one mid-season maturing, Scarlet Royal, and one late maturing, Autumn King, which begins harvest in October. The studies estimate the cost of establishing a table grape vineyard and producing fresh market table grapes.
“Labor costs are expected to rise with reduced labor availability, increases in minimum wage rates and new overtime rules that went into effect in 2018,” said Ashraf El-kereamy, UCCE viticulture advisor in Kern County and co-author of the cost studies.
“This analysis reports the hand labor hours required for certain cultural and harvest operations.”
The reported prices for labor, materials, equipment and custom services are based on January 2018 figures. A blank column, titled “Your Cost,” is provided in Tables 2 and 3 for growers to enter their own estimated costs.
“The new California minimum wage law will gradually decrease the number of hours employees can work on a daily and weekly basis before overtime wages are required. There are additional stipulations for overtime wages and scheduling of work that are part of the new law,” said Daniel A. Sumner, Director of the Agricultural Issues Center.
Input and reviews were provided by UC ANR Cooperative Extension farm advisors, specialists, grower cooperators, California Table Grape Commission and other agricultural associates. The authors describe the assumptions used to identify current costs for table 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:
“2018 – Sample Costs to Establish and Produce Table Grapes in the Southern San Joaquin Valley – Flame Seedless, Early Maturing”
“2018 – Sample Costs to Establish and Produce Table Grapes in the Southern San Joaquin Valley – Sheegene-21(Ivory™), Early Maturing”
“2018 – Sample Costs to Establish and Produce Table Grapes in the Southern San Joaquin Valley – Scarlet Royal, Mid-season Maturing”
“2018 – Sample Costs to Establish and Produce Table Grapes in the Southern San Joaquin Valley – Autumn King, Late Maturing”
All four table grape studies can be downloaded from the UC Davis Department of Agricultural and Resource Economics website at https://coststudies.ucdavis.edu. Sample cost of production studies for many other commodities are also available at 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 local table grape production, contact UC Cooperative Extension viticulture specialist Matt Fidelibus at mwfidelibus@ucanr.edu, UCCE viticulture advisor Ashraf El-kereamy in Kern County at aelkereamy@ucanr.edu, UCCE entomology advisor David Haviland in Kern County at dhaviland@ucdavis.edu, UCCE weed advisor Kurt Hembree in Fresno County at kjhembree@ucanr.edu, or UCCE viticulture advisor George Zhuang in Fresno County at gzhuang@ucanr.edu.
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Bloomberg March 14 2018
Click here for full article: https://www.bloomberg.com/graphics/2018-thirst-for-almonds/
“Almonds are “incredibly versatile,” said Daniel Sumner, an economist at the University of California, Davis. “And California is the best place to grow it. Where else can the weather be hot and dry and perfect, but you also have a system where you can bring water from mountains full of snow?” Almond-picking is also highly mechanized, which attracts farmers concerned about migrant-worker labor shortages, and its long history in the state creates a level of expertise competitors can’t match, he said.”
March 19, 2018, ARE News https://are.ucdavis.edu/department/news/2018/3/19/uc-agricultural-cost-and-return-studies-downloaded-users-46607-times-2017/
Agricultural cost and return studies were downloaded by users 46,607 times in 2017, demonstrating the benefit of this collaboration between the University of California Agricultural and Natural Resources, including Cooperative Extension and the Agricultural Issues Center (AIC), and the UC Davis Department of Agricultural and Resource Economics (ARE). There were also 3,279 downloads of tree loss and vine loss calculators from the cost studies website (https://coststudies.ucdavis.edu).
“It’s good to see so many active users of these tools that help farmers and other businesses make sound economic decisions,” said Dr. Daniel Sumner, AIC director and Frank H. Buck, Jr., distinguished professor in ARE. “We especially thank our industry partners, including growers, processors, lenders, suppliers and management companies, for sharing data that ensures the factual nature of these studies.”
Each cost and return study presents the practices typical for a specific commodity in a specific area of California during the year of the study. For example, a 2017 study details the practice used and costs and returns of growing walnuts in the northern San Joaquin Valley. Each study is intended as a guide to help farmers, ranchers, lenders and others assess costs, determine potential returns, prepare budgets, and evaluate loans and make better decisions. They are also used by students, researchers and government agencies. Current and archived studies are available for about 50 commodities, including fruit, vegetable, field, tree, and vine crops, as well as beef cattle, sheep and other animals.
Tree loss and vine loss calculators help determine the loss to future income by assessing the value of any lost tree or vine, either with or without replanting. Additional resources available on the cost studies website include conservation practice studies.
The 5 Most Popular Searches in 2017:
1. Almonds
2. Wine Grapes
3. Tree-Vine Loss Calculator
4. Organic
5. Sacramento Valley
Visit https://coststudies.ucdavis.edu to learn more.
Western Farm Press, March 7 2018
For full article, click here: http://webcache.googleusercontent.com/search?q=cache:PGgWHSLE9BwJ:www.westernfarmpress.com/grapes/raisin-industry-seeks-ways-withstand-rising-labor-costs+&cd=2&hl=en&ct=clnk&gl=us
“The raisin industry may not feel as much pain from the rising minimum wage as some other sectors because wages for farmworkers have already been trending above the minimum, a University of California-Davis agricultural economist says.
But “where we see more of an issue,” says Daniel Sumner, director of the Agricultural Issues Center at the university, “is with the tightening agricultural overtime rules, which are causing growers to make more on-farm adjustments.”
The UC Agriculture and Natural Resources’ Agricultural Issues Center has released two new studies on the costs and returns of producing garbanzo beans (chick peas), in the Sacramento and San Joaquin Valleys. Although acreage is relatively small, garbanzos are an important crop because California growers produce the large, cream-colored seed that’s used for the canning industry, often used for garnishes for salads.
The studies estimate the cost of producing garbanzo beans on 200 acres as part of a row crop rotation, using sub-surface drip irrigation. A 3-row bed tillage implement shallowly chisels, tills and re-shapes the beds, avoiding disturbance of the buried drip tape left in place. Planting of treated seed (for fungal and seedling diseases, Ascochyta rabiei, Rhizoctonia and Pythium), into residual soil moisture occurs in December. Seeding rates for the garbanzo beans are 85 pounds per acre.
Input and reviews were provided by UC ANR Cooperative Extension Farm Advisors and other agricultural associates. Assumptions used to identify current costs for the garbanzo bean crop, material inputs, 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 importance of these studies right now is that they are currently being used to help secure USDA crop insurance for garbanzo production, expected in 2020.
The new studies are titled: “Sample Costs to Produce Garbanzo Beans (Chick Peas), in the Sacramento and Northern San Joaquin Valleys – 2018”
“Sample Costs to Produce Garbanzo Beans (Chick Peas), in the Southern San Joaquin Valley – 2018
These studies and other sample cost of production studies for many commodities are available. They can be downloaded from the UC Davis Department of Agricultural and Resource Economics website at https://coststudies.ucdavis.edu.
For additional information or an explanation of the calculations used in the studies, contact the Agricultural Issues Center at (530) 752-4651 or the local UCCE Farm Advisors; Sarah Light, selight@ucanr.edu, Rachael Long, rflong@ucanr.edu, Michelle Leinfelder-Miles, mmleinfeldermiles@ucanr.edu, or Nicholas E. Clark, neclark@ucanr.edu.
Don Stewart and Bill Matthews presented on the economics of raisin grape production.
Click here for article: cail.ucdavis.edu/aicnews/raisingrapes.pdf
Western Farm Press Feb 3 2018
The UC ANR Agricultural Issues Center has released a new study on the costs and returns to establish an orchard and produce walnuts in the northern San Joaquin Valley.
This study assumes a hypothetical farm size of 100 contiguous acres that is farmer owned and operated. Sixty acres are being established to walnuts and 35 acres are planted to other permanent or annual crops. The walnut orchard is planted on a 24 X 24 foot spacing using ¾ inch caliber nursery grafted trees on a Paradox rootstock. The walnut trees are a late leafing, lateral bearing variety.
Input and reviews were provided by UC ANR Cooperative Extension Farm Advisors and other agricultural associates. The authors describe the assumptions used to identify current costs for the walnut crop, material inputs, cash overhead, 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.
The new study is titled: “Sample Costs to Establish an Orchard and Produce Walnuts, in the San Joaquin Valley North – 2017”
This study and other sample cost of production studies for many commodities are available. They can be downloaded from the UC Davis Department of Agricultural and Resource Economics website at https://coststudies.ucdavis.edu.
For additional information or an explanation of the calculations used in the studies, contact Jeremy Murdock at the Agricultural Issues Center at (530) 752-4651, jmmurdock@ucdavis.edu, or the local UCCE Farm Advisors; Joe Grant, jagrant@ucanr.edu, David Doll, dadoll@ucanr.edu, or Janet Caprile, jlcaprile@ucanr.edu.
The UC Agriculture and Natural Resources’ Agricultural Issues Center has released a new study on the cost and returns of a beef cattle operation.
The study estimates costs for beef cattle production located on Public Lands-San Francisco Bay Area. The study focuses on a 100 head cow-calf operation. The cost calculations in this study are based on economic principles that include all cash costs and uses the rental value of the Animal Unit Month, (AUM) as a cost of operation.
The analysis is based upon a hypothetical cow-calf operation, where the cattle producer leases all range and pasture land. The “typical” ranch in the San Francisco Bay Area is an owner-operated cow-calf operation using multiple private and public leases. The practices described represent production practices and materials considered typical of a well-managed ranch in the region.
Input and reviews were provided by ranch operators, UC ANR Cooperative Extension farm advisors and other agricultural associates. Assumptions used to identify current costs for the cow-calf herd, material inputs, cash and non-cash overhead are described. A ranging analysis table shows profits over a range of average market prices. Other tables show the costs and revenue for production, monthly summary of costs and revenue, and the annual equipment, investment and business overhead costs.
The new study is titled “Sample Costs for Beef Cattle – 100 Head Operation, Cow- Calf Production on Public Lands-San Francisco Bay Area – 2017”.
This study and other sample cost of production studies for many commodities are available. They can be downloaded from the UC Davis Department of Agricultural and Resource Economics website at https://coststudies.ucdavis.edu.
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, destewart@ucdavis.edu, or Sheila Barry at sbarry@ucanr.edu.