Unive rsity o f Ca lifo rnia F a rm Co st a nd Re turn Studie s - PowerPoint PPT Presentation

Unive rsity o f Ca lifo rnia F a rm Co st a nd Re turn Studie s Pre se nte d to : Ame ric a n Ag Cre dit T urlo c k 7/ 12/ 2017 Je re my Murdo c k Do na ld Ste wa rt Da nie l A. Sumne r UC Ag ric ultura l I ssue s Ce nte r UC Divisio n o f Ag ric ulture a nd Na tura l Re so urc e s UC Da vis De pa rtme nt o f Ag ric ultura l a nd Re so urc e E c o no mic s

I nsig ht I nto F a rm Co st & Re turn Studie s  T he Pa st a nd Pre se nt  Co nte nts a nd Co mmo ditie s Ra ng e  Ho w We Co mpile a Co st Study a nd Why we do it tha t wa y  Co st Study Use s a nd Use rs  F uture I mpro ve me nts a nd Va lue Adding

Co st Studie s- Pa st a nd Pre se nt  E a rlie st Arc hive d Co st Study g o e s b a c k to 1931- Wa lnuts g ro wn in Sta nisla us Co unty  Ove r 3500 Co st Studie s a re ma inta ine d a nd a rc hive d o n the Co st Studie s We b site  Co st Studie s We b site ha d 1.3 Millio n do wnlo a ds in 2016  Ne w Pra c tic e s (i.e . GPS/ GI S, Co nse rva tio n T illa g e , Sub - Surfa c e Drip I rrig a tio n)

Co st Studie s We b site : http:/ / c o ststudie s.uc da vis.e du/

Ra ng e o f Co st Studie s  F o c us o n I mpo rta nt Ca lifo rnia Cro ps  Co mmo ditie s L e a ding Pro duc ing Co untie s  L ive sto c k Pro duc tio n – Be e f  No Da iry (CDF A pro vide s de ta ile d da ta )  Co mplic a tio ns with Cro ps with ve ry fe w Pro duc e rs

Co nte nts o f Co st Studie s CONTENTS INTRODUCTION 2 ASSUMPTIONS 3 Establishment Cultural Practices and Material Inputs 3 Production Cultural Practices and Material Inputs 6 Labor, Equipment and Interest 8 Cash Overhead 9 Non-Cash Overhead 10 REFERENCES 12 Table 1. COSTS PER ACRE TO ESTABLISH AN ALMOND ORCHARD 13 Table 2. COSTS PER ACRE TO PRODUCE ALMONDS 15 Table 3. COSTS AND RETURNS PER ACRE TO PRODUCE ALMONDS 17 Table 4. MONTHLY CASH COSTS – ALMONDS 19 Table 5. RANGING ANALYSIS 20 Table 6. WHOLE FARM EQUIPMENT, INVESTMENT & BUSINESS OVERHEAD 21 Table 7. HOURLY EQUIPMENT COSTS 21 Table 8. OPERATIONS WITH EQUIPMENT AND MATERIALS 22

Co ntrib uto rs  Gro we rs a nd Pro c e sso rs  UC Co o pe ra tive E xte nsio n Adviso rs a nd Spe c ia lists  I ndustry Re pre se nta tive s  Ag ric ultura l L e nde rs  Che mic a l Co mpa nie s  E q uipme nt Ma nufa c ture rs  L a b o r Co ntra c to rs, F a rm Ma na g e me nt Co mpa nie s  Custo m Se rvic e s Pro vide rs (i.e . Ha rve sting Co mpa nie s)

Ho w Co st Studie s a re Co mpile d  Me e ting s with UC F a rm Adviso rs, Gro we rs, a nd UC AI C Re se a rc h Sta ff to disc uss pro duc tio n o pe ra tio ns  I nte re st Ra te s, F ue l Co sts, Ma te ria l Co sts, Ho urly Wa g e s, Pa yro ll Ove rhe a d, & L a nd Pric e a re upda te d  Da ta is E nte re d into Budg e t Pla nne r Co mpute r Pro g ra m  Na rra tive Se c tio n is Writte n in Co lla b o ra tio n with F a rm Adviso rs  Dra fts a re Se nt Out to F a rm Adviso rs a nd Se le c te d Gro we rs fo r Re vie w

E xa mple : Bro c c o li

Co mpiling the Bro c c o li Co st & Re turn Study  Bro c c o li Study fro m 2004 ne e de d to b e upda te d.  F a rm Adviso r L a ura T o urte wa s c o nta c te d in Ma y o f 2016 a nd a g re e d to prio ritizing a b ro c o lli c o st study.  L a ura T o urte c o lle c te d da ta fro m g ro we r c o nta c ts a nd e ma ile d a list o f pro duc tio n o pe ra tio n upda te s. We de te rmine d a c o mmo n “g e ne ric ” pe st ma na g e me nt ma te ria l c o st.  T he c ha ng e s we re a pplie d to the Budg e t Pla nne r so ftwa re a nd upda te d ta b le s we re g e ne ra te d to pro duc e dra ft # 1.  L a ura T o urte re vie we d the dra ft with Gro we rs a nd c ha ng e s we re ma de to the na rra tive . T he c o rre spo nding c ha ng e s we re the n ma de to the b udg e t file s a nd upda te d ta b le s we re g e ne ra te d (Dra ft # 2). Ma ny o pe ra tio n c o sts we re inc re a se d due to slo we r e q uipme nt spe e ds in Sa lina s  I nte re st ra te s, yie ld, pric e , a nd ra ng ing a na lysis we re upda te d in 2017 prio r to po sting o n Co st Studie s We b site .

E xa mple : Pro c e ssing Pe a c he s

Co mpiling the Pro c e ssing Pe a c h Co st & Re turn Study  F a rm Adviso rs wo rke d with Gro we r c o nta c ts to c o lle c t pro duc tio n info rma tio n.  T wo Me e ting with F a rm Adviso rs we re he ld (June a nd July o f 2016) to disc uss pro duc tio n da ta a nd de c ide whic h re g io ns da ta will b e use d in the T a b le s.  Due to b usy sc he dule s the study time line wa s shifte d into 2017.  Study wa s upda te d to re fle c t 2017 inte re st ra te s, la b o r ra te s, fue l c o st, e tc .  Study wa s re vie we d b y F a rm Adviso rs a nd upda te s we re ma de .  A Cro p Asso c ia tio n a nd Gro we rs we re e a g e r fo r the study to b e a va ila b le , so the c o mple tio n o f the study wa s e xpe dite d.  Ano the r dra ft wa s c o mple te d b e fo re po sting o n the Co st Studie s We b site .

E xa mple : Be e f

Example: SAMPLE COSTS FOR BEEF CATTLE  T a b le 1. Ge ne ra l ra nc h o pe ra ting c o sts a nd re turns e stima te s a re liste d in this ta b le

Why We Do I t T his Wa y  Studie s a re Ba se d o n Be st Ma na g e me nt Pra c tic e s fo r tha t Re g io n  Studie s De pic t We ll ma na g e d Ope ra tio ns, No t Ave ra g e Ope ra tio ns fo r tha t Re g io n.  No t Ne c e ssa rily the Mo st Cutting E dg e —F o c us o n Pra c tic e s tha t a re Co mme rc ia lly Via b le .  Ma ximize the Va lue o f the Co st Studie s to o ur Use rs  Ma inta in a Ne utra l T hird Pa rty Sta tus

Use rs o f Co st Studie s  Gro we rs, F a rm Ma na g e me nt Co mpa nie s  Cro p Co mmissio ns/ Asso c ia tio ns/ Co o pe ra tive s  I ndustry Re pre se nta tive s (Che mic a l Co mpa nie s, Ma nufa c ture rs)  L e nding Ag e nc ie s  Unive rsity Re se a rc he rs a nd Stude nts  Go ve rnme nt Ag e nc ie s  I nsura nc e Co mpa nie s, L a wye rs, Advo c a c y Gro ups, Wa te r Ag e nc ie s, Asse sso rs, Co nsulta nts, a nd Audito rs  So me Use rs Outside o f Ca lifo rnia

I ssue s a nd I mpro ve me nts  Ne w Ho urly a nd Ove rtime L a b o r Wa g e L a ws  Ne w Wa te r Pric ing a nd Gro undwa te r Re g ula tio ns  L iste n to the Cha ng ing Ne e ds o f the Ag ric ultura l I ndustry  I nc o rpo ra te Ne w T e c hno lo g ie s into Co st Studie s Whe n Wide ly Ado pte d b y I ndustry (i.e . Dro ne s)  Qua ntifying Amo unt o f L a b o r in Custo m Ope ra tio ns to Be tte r Re fle c t T o ta l L a b o r  Ma ke Studie s Ava ila b le in E le c tro nic F o rma ts  He lp Use rs Ada pt Studie s to T he ir Situa tio ns  Yo ur tho ug hts ?