The Economics of Growing Almonds Richard Waycott, Moderator Thank you Green Sponsor The Economics of Growing Almonds Presenters: Karen Klonsky, UC Davis Brian Ezell, Paramount Farms Debbie McMillan, Derco Foods What’s the Real Price of Almonds? Karen Klonsky, Dept. of Agricultural & Resource Economics Cost and Return Study Authors David Doll, UCCE Merced County Roger Duncan, UCCE Stanislaus County Paul Verdegaal, UCCE San Joaquin County Rich DeMoura, Dept. of Ag. & Resource Econ. UCD Karen Klonsky, Dept. of Ag. & Resource Econ. UCD Orchard Assumptions • San Joaquin Valley North, 2011 • 16’ x 22’ spacing, 124 trees per acre • 40 contiguous acres • Microsprinkler irrigation • Custom harvest • 25 year orchard life Costs of Production Terminology Cultural Costs Harvest Costs Cash Overhead Noncash Overhead Costs of Production Cultural Costs • Pruning • Floor management • Disease and pest control • Irrigation and fertilization • ATV and pickup use Harvest Costs Cash Overhead Noncash Overhead Costs of Production Cultural Costs Harvest Costs • Shake, sweep, rake • Pick up and haul • Hull and shell nuts Cash Overhead Noncash Overhead Costs of Production Cultural Costs Harvest Costs Cash Overhead • Office expenses • Liability Insurance • Sanitary Service • Property Taxes and Insurance • Repairs on Buildings and Irrigation System Noncash Overhead