Davis, California
August 26, 2005
People who are interested in
growing wild rice in the Intermountain region or safflower or
oat hay in the Sacramento Valley might want to look at the new
cost and return studies for these crops. There are four new
studies by University
of California Cooperative Extension that cover these
commodities.
These new reports estimate the areas' production practices, cost
of production, equipment and other assets needed for production,
and a range of returns received by farmers based on the studies'
costs.
In 2003 almost 4,000 acres of wild rice was grown in the high
valleys of Shasta and Lassen counties. The production practices
and costs in Sample Costs to Produce Wild Rice in the
Intermountain Region, Shasta -- Lassen Counties -- 2005
reflect how wild rice is grown in this area. Rice stands are
naturally reseeded over the five years that they are left in the
ground. This is reflected in establishing the stand the first
year and production in one of the remaining years of life of the
stand.
The wild-rice cost study is based upon a hypothetical 500-acre
farm with 80 acres in the wild rice stand. It is also based on
using practices common in the region. A UCCE farm advisor,
economists, growers, equipment and chemical suppliers, and other
agricultural associates provided input and reviews. Assumptions
used to identify current costs for wild rice production
operations, material inputs, cash and non-cash overhead are
described in the study. Tables show production costs, profits
over a range of prices and yields, monthly cash costs, hourly
equipment costs, and the whole farm annual equipment, investment
and business overhead costs. The study is intended as a guide
only and can be used to make productions decisions, determine
potential returns, prepare budgets and evaluate production
loans.
Safflower is grown in two different ways in the Sacramento
Valley. It can be irrigated on ground that is flat and it can be
grown dryland on heavy or hilly soils. UC has published two
safflower studies, Sample Costs to Produce Safflower in
the Sacramento Valley, Bed Planted and Irrigated -- 2005
and Sample Costs to Produce Safflower in the Sacramento
Valley, Dryland -- 2005, each looking at one of the
production scenarios.
Oat hay is normally grown under dryland conditions. Sample
Costs to Produce Oat Hay in the Sacramento Valley, Dryland --
2005 discusses the adequate yields and prices needed to make
dryland oat hay a profitable crop. Growers also need to
determine that the land used to grow this crop meets its
production requirements.
The two safflower and the oat hay cost studies are based upon an
assumed 2,900-acre farm. The farm has 200 acres in each of the
safflower studies and the oat hay is grown on 100 acres. Both
crops are based on production practices common in the region.
The UCCE farm advisors, economists, growers, equipment and
chemical suppliers, and other agricultural associates provided
input and reviews. Assumptions used to identify current costs
for irrigated and dryland safflower and oat hay production
operations, material inputs, cash and non-cash overhead are
described in the study. Each study's tables show production
practices, costs, profits over a range of prices and yields,
monthly cash costs, hourly equipment costs, and the whole farm
annual equipment, investment and business overhead costs. The
studies are intended as guides only and can be used to make
productions decisions, determine potential returns, prepare
budgets and evaluate production loans.
The wild rice cost study was authored by Daniel Marcum, UCCE
farm advisor, Shasta and Lassen counties; Karen M. Klonsky, UCCE
agricultural economist, UC Davis; and Pete Livingston, UCCE
Staff Research Associate, UC Davis.
The two safflower and the oat hay cost studies were authored by
Rachael Long, UCCE farm advisor, Yolo, Solano, and Sacramento
counties; Jerry Schmierer, UCCE farm advisor, Colusa, Sutter and
Yuba counties; Doug Munier, UCCE farm advisor, Glenn, Tehama and
Butte counties; Kent Brittan, UCCE farm advisor, Yolo, Solano,
and Sacramento counties; Karen M. Klonsky, UCCE agricultural
economist, UC Davis; and Pete Livingston, UCCE Staff Research
Associate, UC Davis.
Cost studies for these and other crops are available from local
UC Cooperative Extension offices and online at
http://coststudies.ucdavis.edu. The Web site can be searched
by commodity and county. Hard copies of studies can also be
ordered by calling (530) 752-2414 or (530) 752-4424 or writing
to the Department of Agricultural and Resource Economics,
University of California, One Shields Avenue, Davis, CA 95616. A
$3 handling fee is charged for each study mailed. |