California Ag Network

Category: Ag Economics

  • New UC Studies Estimate Production and Harvest Costs for Coastal Apples

    Two new studies that can help Central Coast growers and other readers estimate costs and potential returns for organically and conventionally produced apples for processing were recently released by University of California Agriculture and Natural Resources, UC Cooperative Extension and the UC Davis Department of Agricultural and Resource Economics.

    “These studies provide growers with a baseline to estimate their own costs, which can help when applying for production loans, projecting labor costs, securing market arrangements, or understanding costs associated with water and nutrient management and regulatory programs,” said Brittney Goodrich, UC Cooperative Extension specialist and co-author of the studies.

    The new studies, “2023 Sample Costs to Produce and Harvest Organic Apples for Processing” and “2023 Sample Costs to Produce and Harvest Apples for Processing,” can be downloaded for free from the UC Davis Department of Agricultural and Resource Economics website at https://coststudies.ucdavis.edu.

    The studies focus on processing apples, not fresh market apples, which makes a difference in farming practices. Apples grown for processing on the Central Coast are mostly pressed for juice and sparkling cider.

    “Ready-to-eat means that looks matter – blemishes and so forth are a big deal. Juice not so much, it all gets smushed in the end,” said co-author Mark Bolda, UC Cooperative Extension farm advisor for Santa Cruz, Monterey and San Benito counties. “Varieties grown here are Gala, Newtown Pippins, Mitsui and some Granny Smith.”

    The cost studies model a management scenario for a 100-acre farm, 20 acres of which are planted to a mature orchard that produces apples for processing. The remaining acres are planted to apples not yet in production, caneberries, strawberries and vegetables. In each study, the authors describe the cultural practices used for organically or conventionally produced apples, including land preparation, soil fertility and pest management, irrigation and labor needs. Harvest costs are also shown.

    In six tables, they show the individual costs of each operation for apples, material input costs, and cash and non-cash overhead costs in a variety of formats. A ranging analysis shows potential profits over a range of prices and yields.

    For a detailed explanation of the assumptions and calculations used to estimate the costs and potential returns for each crop, readers can refer to the narrative portion of each study.

    For more information, contact Mark Bolda at mpbolda@ucanr.edu; Laura Tourte, emeritus UCCE advisor, at ljtourte@ucanr.edu; or Jeremy Murdock of UC Davis Department of Agricultural and Resource Economics at jmmurdock@ucdavis.edu.

    Sample cost of production studies for many other commodities grown in California are also available for free at https://coststudies.ucdavis.edu.

    UC Agriculture and Natural Resources brings UC information and practices to all 58 California counties. Through research and Cooperative Extension in agriculture, natural resources, economic growth, nutrition and youth development, our mission is to improve the lives of all Californians. Learn more at ucanr.edu and support our work at donate.ucanr.edu.

  • Legislation Introduced to Extend Pierce’s Disease Control Program

    Last week, Assemblywoman Dawn Addis, (D-Morro Bay) introduced AB 1861 to extend a vital program within the California Department of Food and Agriculture (CDFA) that protects California’s picturesque vineyards and our iconic wine industry from deadly disease. This legislation is sponsored by the California Association of Winegrape Growers and Wine Institute.

    “The wine industry is integral to the economic success of the Central Coast and all of California,” said Addis. “I’m proud to author AB 1861 that extends a crucial line of defense for our wine industry against invasive disease. We have a track record of collaboration among State, local, federal government and the industry itself when it comes to battling Pierce’s Disease and the Glassy Winged Sharp Shooter. I’m proud to extend this collaboration and to be part of the on-going success of California’s wine regions.”

    “Over the last 23 years, the Pierce’s Disease Control Program has been fundamental in addressing the challenges posed by Pierce’s Disease and other pests and diseases,” said Natalie Collins, President of the California Association of Winegrape Growers. “We thank Assemblymember Addis for her leadership in authoring this important legislation.”

    “Our collaboration with California’s Department of Food and Agriculture continues to protect our vineyards against Pierce’s Disease and the Glassy-Winged Sharpshooter,” said Robert P. Koch, President and CEO of Wine Institute. “AB 1861 will extend critical research, innovation, and mitigation and prevention efforts to safeguard the health and vitality of our winegrapes against this invasive species. We are grateful for the support of Assemblymember Addis and the California legislature.”

    California’s wine industry stands as a formidable economic force, contributing significantly to the state’s prosperity. California leads the nation in wine production, producing 80 percent of all U.S. wine and generating a staggering $170.5 billion in annual economic activity. With 615,000 acres of winegrapes producing 3.6 million tons, California’s commitment to sustainability shines through, with eighty percent of its wine produced in certified sustainable wineries.

    Growers are all too familiar with the significant threat posed to vineyards by Pierce’s Disease (PD), carried between plants by an insect called the glassy-winged sharpshooter (GWSS). Since the 1990s, GWSS has been one of the most invasive and deadly pests for vineyards. When a vine develops PD, its ability to draw in moisture is hindered and the plant will either die or become unproductive. PD has caused millions of dollars in damage throughout the state.

    To safeguard California’s wine industry and support ongoing research, inspection, and control measures for PD, AB 1861 will extend the Pierce’s Disease Control Program (program) and the PD/GWSS Board from 2026 to 2031. This extension is subject to approval of growers through a

    referendum that would be conducted in 2025. The last PD/GWSS referendum, conducted in 2020, passed with 78 percent approval of California winegrape growers.

    California’s first indication of a severe threat posed by this disease occurred in Temecula in August of 1999, when more than 300 acres of vineyards were infected with PD and had to be destroyed. In response, the Legislature enacted a legislative package that year creating the advisory task force. In 2001, the program was created to fight the spread and find solutions for PD and GWSS.

    The program has demonstrated success in controlling the spread of PD and GWSS due to the collaborative efforts involving federal, state, and local agencies, along with grower-funded research. The program is funded through a combination of federal and industry funds, as well as grape grower assessments. These assessment funds are used for research, outreach, and related activities on PD, GWSS, and other designated pests and diseases of winegrapes.

    The research overseen by the PD/GWSS Board is critical to advancing knowledge, improving practices, and guaranteeing the longevity of the California winegrape industry. The focus of current research projects ranges from investigating pests and diseases to evaluating existing control methods to exploring new promising control strategies.

  • Global Bulk Wine Market Challenges to Navigate

    Watch this brief interview with Turrentine Brokerage bulk wine broker Marc Cuneo following his State of the Industry report at Malcolm Media’s Tree & Vine Expo on what’s going on in the bulk wine market and the challenges that lay ahead. Read the State of the California grape industry reports in the January and upcoming issues of American Vineyard Magazine.

  • Waning Demand Concerning Future of the Wine Industry

    At Malcolm Media’s recent Grape, Nut & Tree Fruit Expo, Allied Grape Growers’ Jeff Bitter delivered a State of the Wine & Grape Concentrate Industry report, that left attendees concerned about the near future of the wine industry. Predicting an imminent market correction that will impact most in the industry, watch his interview and read more about it in American Vineyard Magazine.

  • Turrentine Brokerage Reflects on Challenging 2023 Vintage (CA Northern Interior)

    Like many other vineyards in the state, Lodi and the the Northern Interior of California were severely impacted by mildew pressure in 2023. This contributed to significant crop losses, lowering the overall wine grape crush. Watch this brief interview with Mike Needham from Turrentine Brokerage following his State of the Industry report at Malcolm Media’s Tree & Vine Expo.

  • Introducing American Pistachio Growers New VP of Global Marketing

    American Pistachio Growers (APG) has a new Vice President of Global Marketing. Watch this brief interview introducing Scott Fryer to the pistachio industry, and come hear from him at their Pistachio Industry Conference, Feb. 26-28th to see what APG is doing to build demand for American grown pistachios.

  • Producers to Benefit from USDA Awards Providing Organic Market Development, Promotion Support

    The U.S. Department of Agriculture’s (USDA) Agricultural Marketing Service (AMS) has announced $9.75 million awarded to 10 grant projects through the Organic Market Development Grant (OMDG). The funded projects will support the development and expansion of new and existing organic markets to increase the consumption of domestic organic agricultural products. Together these projects will provide information and services to more than 20,000 producers and 20,000 buyers to increase market opportunities for organic farmers.

    “USDA is excited to announce the first round of funding awarded through the Organic Market Development Grant program,” said USDA Under Secretary for Marketing and Regulatory Programs Jenny Lester Moffitt. “The recipients of this funding will be spearheading unprecedented efforts to expand and open new revenue streams for the nation’s organic industry, building more value-added agricultural opportunities for farmers across rural America.”

    Under Secretary Moffitt was in Longmont, Colo., visiting Dry Land Distillery which partners with OMDG grant recipient The Colorado Grain Chain to source locally produced organic grain to craft their products. The Colorado Grain Chain is a non-profit organization that will use OMDG funding to expand on their work enhancing market opportunities for producers, processors, and value-added product makers of organic grain for human consumption.

    In May 2023, USDA announced approximately $75 million available through OMDG to increase the availability and demand for domestically produced organic agricultural products and to address the critical need for additional market paths. This first round of OMDG awards for the Market Development and Promotion project type is funded by the Commodity Credit Corporation (CCC).

    USDA is awarding this first set of awards in California, Colorado, Connecticut, Maine, Montana, Oregon, Pennsylvania, Texas, Vermont, and Washington. USDA will announce additional awards at a later date.

    In addition to the Colorado Grain Chain, recipients of the Market Development and Promotion Project grants include:

    • The Maine Organic Farmers and Gardeners Association is awarded funds to strengthen demand for organic dairy products produced in the Northeast by expanding the farm-to-institution, increasing the number of retailers promoting organic dairy, and implementing targeted consumer marketing to boost demand for Northeast dairy products.
    • The Oregon Organic Coalition will collaborate with partners to increase consumer demand for organic food produced in Oregon and Washington and expand valuable markets for the region’s organic producers by targeting the specialty/craft food and farm-to-school markets.

    A full list of awarded projects is available on the OMDG webpage.

    AMS gave priority consideration to projects addressing specific pinpointed market needs for organic grains and livestock feed, organic dairy, organic fibers, organic legumes and other rotational crops, and organic ingredients currently unavailable in organic form.

    This grant program is part of the USDA Organic Transition Initiative, launched in fall 2022, which offers a suite of programs and resources to help existing organic farmers and those transitioning to organic production and processing. Other efforts under OTI include USDA’s Natural Resources Conservation Service conservation assistance for transitioning producers, including a new organic management practice standard and plans to leverage partnerships to expand relationships within the organic community, and AMS’ Transition to Organic Partnership Program, which builds mentorship relationships between transitioning and existing organic farmers to provide technical assistance and wrap-around support. Additionally, USDA’s Risk Management Agency provided direct support for crop insurance in 2023. More information about these initiatives and more can be found at farmers.gov/organic-transition-initiative.

    AMS supports U.S. food and agricultural product market opportunities, while increasing consumer access to fresh, healthy foods through applied research, technical services, and congressionally funded grants. These projects will support organic producers and further USDA’s goals to develop more and better markets, grow a diverse and equitable food system, and increase climate-smart agricultural practices.

    To learn more about AMS’s investments in enhancing and strengthening agricultural systems, visit www.ams.usda.gov/grants.

  • $207 Million Announced for Clean Energy and Domestic Fertilizer Projects to Strengthen American Farms and Businesses

    U.S. Department of Agriculture (USDA) Secretary Tom Vilsack today announced that USDA is investing $207 million in renewable energy and domestic fertilizer projects to lower energy bills, generate new income, create jobs, and strengthen competition for U.S. farmers, ranchers and agricultural producers. Many of the projects are being funded by President Biden’s Inflation Reduction Act, the nation’s largest-ever investment in combating the climate crisis.

    The announcement was made by Secretary Vilsack at the 105th annual American Farm Bureau Federation convention in Salt Lake City, Utah. This funding advances President Biden’s Investing in America and Bidenomics agenda to grow the nation’s economy from the middle-out and bottom up, create jobs and spur economic growth in rural communities by increasing competition in agricultural markets, lowering costs and expanding clean energy.

    “President Biden and USDA are ensuring farmers, ranchers and small businesses are not only a part of the clean energy economy, but directly benefitting from it,” Secretary Vilsack said. “The investments announced will expand access to renewable energy infrastructure and increase domestic fertilizer production, all while creating good-paying jobs and saving people money on their energy costs that they can then invest back into their businesses and communities.”

    The Department is awarding $207 million in 42 states for projects through the Rural Energy for America Program (REAP) and the Fertilizer Production Expansion Program (FPEP).

    The REAP awards total $157 million for 675 projects in 42 states, including more than $94 million from President Biden’s Inflation Reduction Act. The REAP program delivers on the President’s Justice40 Initiative, which aims to deliver 40% of the overall benefits of certain federal investments to disadvantaged communities that are marginalized by underinvestment and overburdened by pollution. These investments will cut energy costs for farmers and ag producers that can instead be used to create jobs and new revenue streams for people in their communities. For example:

    • In Colorado’s La Plata County, a grant for $187,000 will install a solar array that, through a power purchase agreement, will benefit a wastewater treatment facility. The facility is expected to save $58,000 per year, bringing down costs for residents. It will replace 652,923 kilowatt hours or 98 percent of the plant’s energy use per year, which is enough energy to power 60 homes.
    • A soybean farm in Pennsylvania will install a 1,248 kilowatt solar photovoltaic system that will save $262,000 per year. These funds can be reinvested to grow the business or create more jobs for the local community. It will also save the farm 2,814,000 kilowatt hours per year, which is enough energy to power 259 homes.
    • Sturgis Meats in Meade, South Dakota will install a refrigeration system that will save $32,000 in energy costs per year. It will also save the company 255,000 kilowatt hours per year, which is enough energy to power 23 homes.

    Projects financed through FPEP will help U.S. farmers increase independent, domestic fertilizer production. Today’s investments include $50 million in seven projects in seven states. President Biden committed up to $900 million through the Commodity Credit Corporation for FPEP. Funding supports long-term investments that will strengthen supply chains, create new economic opportunities for American businesses, and support climate-smart innovation. For example:

    • ARE Properties LLC in Nebraska will build a fully automated fertilizer facility designed to manufacture custom products based on the results of plant tissue and soil samples. All equipment in the facility runs on natural gas with the long-range strategy to retrofit the facility for alternative energy sources in the future.
    • Biogas Corporation will purchase and install a new anaerobic digestion facility in Monroe County, North Carolina. This project is expected to create 19 additional positions.  The new state-of-the-art facility will produce 50,000 tons of organic fertilizer and ammonium sulfate annually, all available to farming operations or resellers supporting local producers. Through the unique combustion process, the facility projects to generate 55,000 megawatts of clean energy per year to be purchased and distributed through Duke Energy Carolinas.

    USDA is making the REAP and FPEP awards in Alabama, Alaska, Arizona, Arkansas, California, Colorado, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, Wisconsin and West Virginia.

    Since the start of the Biden-Harris Administration, USDA has invested more than $166 million in 40 projects nationwide to boost domestic fertilizer production through FPEP. USDA has also taken steps to support producers in leveraging these tools through nutrient management assistance and climate-smart management practices. During that same time, USDA has invested more than $1.6 billion through REAP in 5,457 renewable energy and energy efficiency improvements that will help rural business owners lower energy costs, generate new income, and strengthen their resiliency of operations.

    Background

    The Rural Energy for America Program (REAP) provides grants and loans to help ag producers and rural small business owners expand their use of wind, solar and other forms of clean energy and make energy efficiency improvements. These innovations help them increase their income, grow their businesses, address climate change and lower energy costs for American families.

    USDA continues to accept REAP applications and will hold funding competitions quarterly through Sept. 30, 2024. The funding includes a dedicated portion for underutilized renewable energy technologies. For additional information on application deadlines and submission details, see page 19239 of the March 31 Federal Register.

    The Fertilizer Production Expansion Program (FPEP) provides grants to independent business owners to help them modernize equipment, adopt new technologies, build production plants and more. Funding helps boost domestic fertilizer production, strengthen competition and lower costs for U.S. farmers.

    The Biden-Harris Administration and USDA created FPEP to combat issues facing American farmers due to rising fertilizer prices, which more than doubled between 2021 and 2022 due to a variety of factors. Factors included the war in Ukraine, a lack of competition in the fertilizer industry, and more.

    FPEP is part of a broader effort to help producers boost production and address global food insecurity. It is also one of many ways the Administration is promoting fair competition, innovation and resiliency across food and agriculture while combating the climate crisis.

  • Applications Available for California Ag Leadership Program Class 54

    Applications are now being accepted for Class 54 of the California Agricultural Leadership Program (CALP). Applicants should be mid-career growers, farmers, ranchers, horticulturalists, foresters and/or individuals working in other areas of California’s diverse agriculture industry.

    The Ag Leadership Program, operated by the California Agricultural Leadership Foundation (CALF), is considered to be one of the premier leadership development experiences in the United States. Through the program, fellows learn leadership skills that help them expand their impact. More than 1,400 individuals have participated in the program and are influential leaders and active volunteers in agriculture, communities, government, business and other areas.

    Over the course of the intensive 17-month program, fellows are immersed in numerous topics, including leadership theory, effective communication, motivation, critical thinking, change management, emotional intelligence and other skills and tools that contribute to improved performance. Along with individualized leadership development coaching, fellows engage in situations and discussions focused on complex social and cultural issues. They are provided with opportunities to build enhanced critical thinking skills that, combined with a broader perspective, help graduates guide creative solutions throughout their lives.

    “As we open the application process for Class 54, our selection committees are focused on choosing a group of fellows who have the capacity to grow and lead as well as share a commitment to California agriculture,” said CALF President and CEO Dwight Ferguson. “Our experienced-based curriculum, personalized coaching and emphasis on lifelong learning enables the development of leaders who make a difference in their families, communities, companies and ultimately our great industry as a whole.”

    The program includes approximately 55 days of formal program activities. Four partner universities — Cal Poly Pomona, Cal Poly San Luis Obispo, Fresno State and UC Davis — deliver integrated, comprehensive and diverse curriculum at the seminars. Fellows learn from first-rate educators and subject authorities from many professions and backgrounds. As a valuable extension to the monthly seminars, fellows participate in national and international travel seminars that provide further opportunities to understand interconnected systems and governments, dialogue with policy leaders and compare and contrast cultural dynamics.

    CALF invests more than $50,000 per fellow to participate in the Ag Leadership Program, thanks in large part to donations made by individuals and industry organizations and companies. Candidates are strongly encouraged to talk with Ag Leadership alumni about the program and to attend an informational event.

    More information and the application are available at www.agleaders.org/class54apply/. Phase one of the three-phrase application process is due no later than April 17, 2024. Individuals are encouraged to complete the application as soon as possible.

  • UC Strawberry Production Research Meeting, Feb. 14

    Join UC Farm Advisor Mark Bolda and other University and field experts in this virtual meeting to learn about the latest research and advances in strawberry production. Anyone directly involved with the production of strawberries is invited to attend. Live Spanish translation will be available. We will discuss issues pertaining to production of strawberry and provide updates on current research addressing those issues. Continuing Education Credits from CA DPR are pending approval. Register to attend HERE.

    Contacts for More Information
    Logistics: UC ANR Program Support, 530-750-1361 (messages only)

    Program: Mark Bolda, UCCE Farm Advisor