Three new cost studies by the University of California, Davis, Agricultural Issues Center have been released. These new studies focus on the cost and return of establishing an almond orchard in the Sacramento and San Joaquin Valleys, with one study focusing on organic production. UC explains that the results of the study are to be used as a guide, and may not be applicable to every operation. To reference the studies, please visit the UC Davis website.
Two studies estimated the costs for establishing and producing almonds using microsprinkler irrigation. The report covered six years of data, but the total accumulated net cost per acre after the first year of operation in Sacramento Valley was estimated at $4,102, while total accumulated net cost per acre after one year of operation in the San Joaquin Valley was $5,826. These costs cover the previous crop through orchard establishment and the production years.
The organic production study was focused on operations complying with the National Organic Program, and found a cost per acre of $4,373. The study examines an orchard beginning with the transition period and certification as an organic orchard after the second year of establishment, with trees in this study at full bearing. The organic almond orchard used a solid-set sprinkler system.
The economic life of the orchards used in these studies is 25 years, and is based on hypothetical, well-managed orchards using common regional practices. Information for the studies was gathered from growers, UC Division of Agriculture and Natural Resources Cooperative Extension farm advisors, and other agricultural associates. All participants also reviewed the results of the studies.
The three studies along with other sample studies, can be downloaded here.
