Tulelake Farm Advisor
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Posts Tagged: Agricultural Issues Center

UC releases new cost studies for mechanized winegrape production

Mechanical removal of winegrape shoots can reduce the amount of hand labor needed for vineyard management. Photo by Kaan Kurtural

New studies provide details about trellis type, planting density, cost and potential benefit of vineyard mechanization

Cabernet Sauvignon
UC Agriculture and Natural Resources' Agricultural Issues Center has released four new studies detailing the costs and returns of wine grape production in the southern San Joaquin Valley. All four cost studies illustrate the cost and benefit of nearly full mechanization on wine grape production.

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.”

Chardonnay
Wine grape growers should look at the costs, particularly expenses associated with mechanization, Zhuang said.

“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.

Rubired
The 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. For more information and to view the California minimum wage and overtime phase-in schedules visit aic.ucdavis.edu.

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.                               

Colombard
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 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.

Posted on Tuesday, December 17, 2019 at 11:11 AM
Focus Area Tags: Agriculture

Eating healthy on a limited budget is possible, but any cuts in SNAP or rise in food costs make it harder

With menu planning and access to stores selling items in bulk, Karen Jetter of the UC Agricultural Issues Center found the average daily cost for serving healthy meals to a family of four was $25 in 2010 dollars.

The affordability of healthy food is often cited as a barrier to low-income families eating nutritious meals. A new study published in the Journal of Nutrition Education and Behavior found that with menu planning and access to stores selling items in bulk, the average daily cost for serving healthy meals to a family of four was $25 in 2010 dollars. This cost was consistent with the US Department of Agriculture (USDA) low-income cost of food meal plan, but higher than the cost of the USDA Thrifty Food Plan. The Thrifty Food Plan is the meal plan used by the USDA to determine food assistance benefits.

“This study determined the likelihood that families living in low-income households could create meals that meet the USDA dietary guidelines presented in MyPlate nutrition education materials,” said lead author Karen M. Jetter, Ph.D., of the UC Agricultural Issues Center, which is part of UC Agriculture and Natural Resources. “In addition to food cost, the other factors considered were access to stores, time for meal preparation, and whether the menus included culturally appropriate foods.”

Jetter also cautioned that any reduction in SNAP, the federal Supplemental Nutrition Assistance Program for people with qualifying low incomes, or increase in food costs would make it hard for economically vulnerable families to eat healthy foods.

This research was part of a larger study to train community members in research methods using community-based participatory research principles.

This project was conducted in collaboration with Northern Valley Indian Health, Inc, and the Mechoopda Indian Tribe of Chico Rancheria where 88 percent of the population surveyed lived in households with an income of less than or equal to $35,000 a year. The menus were created to feed a household with a father, mother, and children ages 7 and 10 with foods the Mechoopda Indian Tribe community liked to eat, met USDA guidelines for healthy eating, and had realistic portions. Menus did not rely on processed foods to reduce the amount of fat and salt in the family diet, were varied so the family would not become bored eating the same foods, did not always require hot meal preparation, and were affordable.

By working closely with the Mechoopda Indian Tribe community researchers, two-weeks of daily menus were developed using meal plans provided by the Mechoopda Indian Tribe community. Although these plans did not meet the nutritional guidelines every day, all categories achieved the recommended levels on average at the end of a two-week period.

“These menus showed that a healthy diet on a budget was achieved by balancing daily targets over two weeks, not every day. This focuses healthy eating on balance rather than being deprived,” said Jetter.

Once the menus were determined, the Mechoopda Indian Tribe community researchers visited 13 grocery stores in Chico to ascertain menu costs. The stores visited were within a 10-minute car ride of 76 percent of the Mechoopda Indian Tribe members and were classified as bulk supermarket, general supermarket, discount market, or specialty market such as a local co-op.

Both bulk and general supermarkets had the highest availability of the items needed for a two-week shopping list, whereas specialty and discount markets lacked as many as 52 of the items needed. Bulk and discount market baskets had the lowest average daily cost of $25, while the specialty market had the highest average cost of $39 per day.

One limitation of the study was the focus on the actual cost of food without considering transactional costs such as the time needed to plan menus, develop shopping lists, research store advertisements, and travel to the bulk supermarket that offered the lowest cost. All of these factors influence a family's ability to sustain a healthy eating plan.

“This research demonstrates that menus that meet USDA guidelines can be purchased by a family of four when shopping at a bulk supermarket, but any reduction in SNAP benefits or increase in food costs would make it difficult for these economically vulnerable families to maintain a healthy lifestyle,” stressed Jetter.

This project was part of a larger project funded by a National Institutes of Health grant.

 

Posted on Wednesday, March 6, 2019 at 9:01 AM
Focus Area Tags: Family Food

U.S. honey industry contributes more than $4.7 billion to economy, according to Ag Issues Center report

The U.S. honey industry is thriving, according to a new study from the University of California Agricultural Issues Center (AIC). The research found that the U.S. honey industry in 2017 was responsible for more than 22,000 jobs and its total economic output was $4.74 billion. Total economic output includes direct effect, such as workers hired to move beehives, indirect effect, like packaging supply companies for honey products, and induced effects, the wages honey industry workers spend at local businesses.  

The study was directed by Daniel A. Sumner, an economist and director of the AIC, an institute which has studied the economic impacts of many farm commodities. The U.S. honey industry is made up of beekeepers, importers, packers and processors.

"The U.S. honey industry contributed significantly to jobs and economic activity across many states and regions in the United States," Sumner said. "In addition to its direct economic contributions, as an important ingredient, honey contributes flavor to a wide variety of food products and stimulates demand across the food industry."

In 2017, the honey industry employed more than 22,000 individuals across the U.S. in production, importation and packing jobs. (Photo: USDA)

The honey industry contributed approximately $2.1 billion in value added to the U.S. gross domestic product (GDP) in 2017. For scale, Vermont Maple contributed $34 million to the Vermont economy in 2013.

"While beekeeping is a labor of love and the true essence of a craft industry, the honey industry's size and scope shows that honey production makes a significant impact on our nation's economy," said Margaret Lombard, CEO of the National Honey Board. "From beekeepers in Washington state to packers in Maine, the honey industry's impact is evident across the country—as well as in the overall U.S. GDP."

In 2017, the honey industry employed more than 22,000 individuals across the U.S. in production, importation and packing jobs. The Vermont Maple industry employed 4,021 in 2013.

In 2017, Americans consumed 596 million pounds of honey or about 1.82 pounds of honey per person. (Photo: Pixabay)

In addition to a thriving industry, the American appetite for honey is growing. In 2017, Americans consumed 596 million pounds of honey or about 1.82 pounds of honey per person, which represents a 65 percent increase in consumption from 2009 to 2017.

To learn more about the University of California Agricultural Issues Center, visit https://aic.ucdavis.edu. Find the full "Contributions of the U.S. Honey Industry to the U.S. Economy" study here. For more information on the National Honey Board, visit www.honey.com.

About National Honey Board
The National Honey Board (NHB) is an industry-funded agriculture promotion group that works to educate consumers about the benefits and uses for honey and honey products through research, marketing and promotional programs. The board's work, funded by an assessment on domestic and imported honey, is designed to increase the awareness and usage of honey by consumers, the food service industry and food manufacturers. The 10-member board, appointed by the U.S. Secretary of Agriculture, represents producers (beekeepers), packers, importers and a marketing cooperative. For more information, visit www.honey.com

About University of California Agricultural Issues Center at UC Davis
The University of California Agricultural Issues Center (AIC) was established in 1985 to research and analyze crucial trends and policy issues affecting agriculture and interlinked natural and human resources in California and the West. The Center, which consists of a director, several associate directors, a small professional staff and an advisory board, provides independent and objective research-based information on a range of critical, emerging agricultural issues such as food and agricultural commodity markets, the value of agricultural research and development, farm costs and returns, consequences of food and agricultural policy and rural resources and the environment. The audience for AIC research and outreach includes decision makers in industry, non-governmental organizations and governments as well as scholars, journalists, students and the general public.

Posted on Tuesday, February 26, 2019 at 8:31 PM
  • Author: Kylie Banks, National Honey Board, Kylie.Banks@porternovelli.com, (310) 754-4126
Focus Area Tags: Agriculture Food

Growers get help from UC in estimating raspberry production costs

When growers are considering a new crop to plant, and penciling out their expenses and income, cost estimates from the University of California may help. A new cost and return study for commercially producing raspberries released by UC ANR Agricultural Issues Center and UC Cooperative Extension includes an expanded section on labor.

Sample costs to establish, produce and harvest raspberries for fresh market in Santa Cruz, Monterey and San Benito counties are presented in “Sample Costs to Produce and Harvest Fresh Market Raspberries in the Central Coast Region – 2017.”

“The study focuses on the many complexities and costs of primocane raspberry production over a three-year period, including crop establishment, fertility practices, overhead tunnel management, harvest and rising labor costs," said Mark Bolda, UC Cooperative Extension farm advisor and co-author of the study.

The analysis is based upon a hypothetical well-managed farming operation using practices common to the region. The costs, materials, and practices shown in this study will not apply to all farms. Growers, UC Cooperative Extension farm advisors and other agricultural associates provided input and reviewed the methods and findings of the study.

“This raspberry cost and return study is the result of significant effort on the part of UC Cooperative Extension, the Agricultural Issues Center and several grower and industry collaborators, who shared their expertise and contributed mightily to the end product,” said Laura Tourte, UC Cooperative Extension farm management advisor and co-author of the study.

This study assumes a farm size of 45 contiguous acres of rented land. Raspberries are planted on 42 acres. The crop is hand-harvested and packed into 4.5-pound trays. There is a fall harvest during production year 1, a spring and fall harvest during production year 2, and a spring harvest during production year 3. Each harvest is three months long.

The authors describe the assumptions used to identify current costs for production material prices and yields. Tables show the phase-in schedules for California's minimum wage and overtime laws through the year 2022. 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.

Free copies of “Sample Costs to Produce and Harvest Fresh Market Raspberries in the Central Coast Region - 2017” can be downloaded from the UC Davis Department of Agricultural and Resource Economics website https://coststudies.ucdavis.edu. Sample cost of production studies for many other commodities are also available at the website.

The cost and returns studies program is funded by the UC Agricultural Issues Center and UC Cooperative Extension, both of which are part of the UC Division of Agriculture and Natural Resources, and the UC Davis Department of Agricultural and Resource Economics.

For additional information or an explanation of the calculations used in the studies, contact the UC Agricultural Issues Center at (530) 752-4651 or UC Cooperative Extension advisors Mark Bolda at (831) 763-8025 or Laura Tourte at (831) 763-8005 in Santa Cruz County.

 

 

 

 

 

Posted on Monday, May 7, 2018 at 2:31 PM

New labor laws factored into UC cost studies for table grape production

Flame Seedless
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 establishment 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.

“We included detailed costs for specialized hand labor of certain cultural and harvest operations.”

Sheegene-21
The sample costs 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 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. 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.

Scarlet Royal
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 http://coststudies.ucdavis.edu. Sample cost of production studies for many other commodities are also available at the website.

Autumn King
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 Matthew 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.

Posted on Tuesday, April 17, 2018 at 8:40 AM

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