November 1, 2016
Attention – southern San Joaquin Valley (SJV) almond growers.
The UC Agricultural Issues Center has completed a study on the cost and returns of establishing an orchard and producing almonds.
The UC cost analysis is based on a hypothetical farm operation - a well-managed orchard using production practices common to the region. Input and methods for the study were provided by UC Cooperative Extension farm advisors and other agricultural specialists.
The southern SJV almond study results are based on using double line drip irrigation, plus estimated costs from the previous crop, including orchard removal through orchard establishment and production years.
The UC study estimates the economic life of a southern SJV almond orchard is 23 years.
Assumptions are used to identify current costs for the almond crop, material inputs, plus cash and non-cash overhead. An analysis table illustrates net returns over a range of prices and yields.
Other tables include monthly cash costs, the costs and returns per acre, hourly equipment costs, and entire farm annual equipment, investment, and business overhead costs.
The new study entitled, “Sample Costs to Establish an Orchard and Produce Almonds in the San Joaquin Valley – South- 2016,” is available online at the UC Agricultural Issues Center Cost Studies website. This is study is in a series of four studies covering three different regions of California published in 2016.
The previous three studies on almond production included a study on almonds grown in the Sacramento Valley, plus two studies on almonds grown in the northern SJV. The northern SJV studies use conventional and organic production methods.
The cost and returns program is funded by the UC Agricultural Issues Center which is part of UC Division of Agriculture and Natural Resources and the UC Davis Department of Agricultural and Resource Economics.
For additional information, Christine Gutierrez at (530) 752-1520 or [email protected].
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