Davis, California
August 12, 2008
Source:
University of California, Davis
Higher fuel costs and lower
interest rates affect costs for producing potatoes, tomatoes,
alfalfa, blackeye beans, wine grapes, almonds, prunes,
blackberries and beef.
The University of California, Davis, and UC Cooperative
Extension agricultural economists have released 12 new
cost-of-production studies. The reports reflect the impact of
changes in the 2008 economy on production costs for growing
fresh market potatoes, processing tomatoes, alfalfa, single- and
double-cropped blackeye beans, wine grapes, almonds, prunes,
blackberries and beef cow-calf operation.
Consumers can see food prices rising in the supermarket. On the
production end, costs are also rising. Besides the higher fuel
costs for operating farm equipment, trucking companies add
surcharges to compensate for higher fuel costs. Energy costs may
drive up the cost of drying and processing fruits and nuts.
"People are talking about higher fuel prices, but that leads to
higher chemical and fertilizer costs too," said Richard De
Moura, research associate in the UC Davis Department of
Agricultural and Resource Economics. "On the other hand,
interest rates are lower, reducing operating loan and long term
investment costs."
Each study is based upon a hypothetical farm operation using
practices common in the region. UC Cooperative Extension farm
advisors, growers, researchers, farm accountants, pest control
advisers, industry consultants and other agricultural associates
provided input and reviews. Assumptions used to identify current
costs and operations for the individual crops, material inputs,
cash and non-cash overhead are described.
An analysis table shows profits over a range of prices and
yields. Other tables show the monthly cash costs by cultural
operations, the costs and returns per acre showing material
inputs, hourly equipment costs, and whole farm annual equipment,
investment and business overhead costs.
Vegetable and field crop studies released:
- Sample Costs to Produce
Fresh Market Potatoes, Intermountain by Harry L.
Carlson, Karen M. Klonsky and Pete Livingston
- Sample Costs to Produce
Processing Tomatoes, Sacramento Valley by Gene Miyao,
Karen M. Klonsky and Pete Livingston
- Sample Costs to Produce
Blackeye Beans (Single Cropped), San Joaquin Valley
South by Carol A Frate, Karen M. Klonsky and Richard L. De
Moura
- Sample Costs to Produce
Blackeye Beans (Double Cropped), San Joaquin Valley
South by Carol A Frate, Karen M. Klonsky and Richard L. De
Moura
- Sample Costs to Establish
and Produce Alfalfa (50 acres), San Joaquin Valley by
Carol A. Frate, Shannon C. Mueller, Marsha
Campbell-Matthews, Mick Canevari, Karen M. Klonsky and
Richard L. De Moura
- Sample Costs to Establish
and Produce Alfalfa (300 acres), San Joaquin Valley
by Shannon C. Mueller, Carol A. Frate, Mick Canevari, Marsha
Campbell-Matthews, Karen M. Klonsky and Richard L. De Moura
[...]
The cost studies are available
online at
http://coststudies.ucdavis.edu, at county UCCE offices, by
mail from the University of California, Department of
Agricultural and Resource Economics, One Shields Ave., Davis, CA
95616; or may be requested by calling (530) 752-1517. Internet
downloads are free. There is a $3 handling fee for each mailed
report. |
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