Posts Tagged: Agricultural Issues Center
Among California's agricultural commodities, cattle rank fifth in revenue. The University of California Agriculture and Natural Resources' Agricultural Issues Center has released a new study showing the cost and returns of a beef cattle operation.
“Ranchers can use UC beef-cattle cost studies to guide their production decisions, estimate their own potential revenue, prepare budgets and evaluate production loans,” said Rebecca Ozeran, UC Cooperative Extension livestock and natural resources advisor for Fresno and Madera counties.
The study estimates costs and returns of a representative owner-operated beef cattle operation located on rangeland in the Central San Joaquin Valley and foothills of Madera and Fresno counties. The study describes a 200-head cow-calf operation and includes pasture costs on the basis of the rental per animal unit month.
The analysis is based upon a hypothetical cow-calf operation, where the cattle producer both owns and leases rangeland. The “typical” ranch in the Central San Joaquin Valley is an owner-operated cow-calf operation, often relying on multiple private leases. The operations 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 Cooperative Extension farm advisors and other agricultural associates. The study describes in detail the assumptions used to identify current costs for the cow-calf herd, material inputs, cash and non-cash overhead. The cost calculations in this study are based on economic principles that include all cash costs and overhead costs. The study also includes a “ranging analysis” to show potential net returns over a range of market prices. Other tables show the average costs and revenues, the distribution of monthly costs and revenues over the year, and the annual equipment, investment and business overhead costs.
“In addition to producing meat, cattle play an important role in California's landscape and environment by grazing on vegetation that could fuel wildfire,” Ozeran said. “Ranching therefore has ecological and social impact on rural and fire-prone communities. If we can help ranchers remain economically viable, then we help support local stewardship of productive natural landscapes and contribute to fire resiliency and food security.”
The new study, “Sample Costs for Beef Cattle, Cow-Calf Production - 200 Head Operation, Central San Joaquin Valley - 2019” is authored by Ozeran, Donald Stewart, staff research associate of the University of California Agricultural Issues Center; and Daniel A. Sumner, director of UC Agricultural Issues Center.
This study and other sample cost of production studies for many commodities are available for free download at http://coststudies.ucdavis.edu. The program is supported by UC Agriculture and Natural Resources, including both Agricultural Issues Center and UC Cooperative Extension, and the UC Davis Department of Agricultural and Resource Economics.
For more information, contact Stewart at (530) 752-4651 or firstname.lastname@example.org. To discuss this study with a local UC Cooperative Extension farm advisor, contact your county UC Cooperative Extension office https://ucanr.edu/About/Locations or contact Rebecca Ozeran at (559) 241-6564 or email@example.com.
The first-ever cost study of primocane-bearing blackberries in California has been published by UC ANR's Agricultural Issues Center and UC Cooperative Extension. With primocane-bearing, growers can extend the blackberry production season.
“What differentiates primocane-bearing blackberry from the traditional floricane-bearing is that it bears fruit in the first year rather than the second,” explained co-author Mark Bolda, UC Cooperative Extension advisor.
“Which, of course, opens a world of opportunity for growers, since they are able to produce fruit in the first year rather than the second as has traditionally been the case,” Bolda said. “That's what makes this study so interesting to us.”
Primocanes are the green, vegetative stalks of the blackberry plant, generally the first-year cane. The second year, they become floricanes, flowering and fruiting.
The study presents sample costs to establish, produce and harvest primocane-bearing blackberries in the Central Coast Region of Santa Cruz, Monterey and San Benito counties.
The analysis is based on 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 ANR Cooperative Extension farm advisors and other agricultural associates provided input and reviewed the methods and findings of the study.
This study assumes a farm operation size of 30 contiguous acres of rented land, with primocane-bearing blackberries for fresh market planted on 15 acres. The crop is hand-harvested and packed into 4.5 pound trays. During the establishment year, there is a four-month harvest – July through August. Primocane blackberries can produce fruit on first-year growth. There is also a four-month harvest for each of the four production years.
The authors describe assumptions in detail and present a table of costs and returns based on those assumptions about production, input materials, prices and yields. A ranging analysis shows the impact on net returns of alternative yields and prices. 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 study also has an expanded section on labor, which includes information on California's new minimum wage and overtime laws.
“This work investigating the economics of a newer cultural system for our area came out of a close collaboration between UCCE academics and area growers,” said Bolda, who serves Santa Cruz, Monterey and San Benito counties, “so the level of detail and accuracy is outstanding.”
Free copies of this study and other sample cost of production studies for many commodities are available. To download the cost studies, visit the UC Davis Department of Agricultural and Resource Economics website at https://coststudies.ucdavis.edu
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 (831) 763-8025 or Laura Tourte (831) 763-8005 in Santa Cruz County.
Eating healthy on a limited budget is possible, but any cuts in SNAP or rise in food costs make it harder
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 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.
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."
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 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.
A new study on the costs and returns of producing hybrid sunflower seed in the Sacramento Valley has been released by the UC Agriculture and Natural Resources' Agricultural Issues Center for farmers who are considering growing hybrid sunflower seeds.
“Although the acreage is relatively small – about 50,000 acres in the Sacramento Valley – hybrid sunflower seed is an important crop because California growers produce the seed for planting stock, destined to be planted in many areas around the world for oilseed and confectionary snack food markets,” said Sarah Light, UC Cooperative Extension agronomy advisor and co-author of the cost study.
Authors Rachael Long, Mariano Galla and Light received input and reviews from fellow UC Cooperative Extension farm advisors and agricultural industry cooperators for the study, which is based on a typical farm in the Sacramento Valley producing field and orchard crops.
“One thing new in our cost study is that it's based on a crop that is irrigated with subsurface drip as opposed to flood,” Long said.
The study estimates the cost of hybrid sunflower seed production on 200 acres as part of a row crop rotation, using subsurface drip irrigation. The subsurface drip irrigation tape is replaced every seven years. Annually, 15 percent, or 30 acres, of the subsurface drip tape is replaced.
To avoid cross-pollination with other sunflower varieties, hybrid sunflower seed production requires at least a 1.25-mile field isolation or different planting times. In this study, male sunflower seed is planted in three rows on a single 5-foot bed and female seed is planted in two rows on three 5-foot beds. The field ratio is 25 percent male parent lines to 75 percent female parent lines. With two hives per acre, honey bees are used to cross-pollinate between the parent lines. The male lines are destroyed after pollination to prevent seed contamination of the female lines.
The authors used current production practices to identify costs for the sunflower crop, including material inputs and cash and non-cash overhead. The study includes tables that show profits over a range of prices and net yields, monthly cash costs, costs and returns per acre, hourly equipment costs, and the whole farm annual equipment, investment and business overhead costs.
The new study, “Sample Costs to Produce Sunflowers for Hybrid Seed in the Sacramento Valley – 2018,” can be downloaded for free 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.
For additional information or an explanation of the calculations used in the studies, contact the Agricultural Issues Center at (530) 752-4651 or UC Cooperative Extension advisors Rachael Long at firstname.lastname@example.org, Sarah Light at email@example.com, or Mariano Galla at firstname.lastname@example.org.