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What Does it Cost to Grow Cherries? A Recent Grower Based Study

What Does it Cost to Grow Cherries? A Recent Grower Based Study. R. Karina Gallardo WSU-Tree Fruit Research and Extension Center, School of Economic Sciences, Wenatchee. Content. Budget Process Where to find these studies? Assumptions made Study components Summary of findings

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What Does it Cost to Grow Cherries? A Recent Grower Based Study

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  1. What Does it Cost to Grow Cherries?A Recent Grower Based Study R. Karina Gallardo WSU-Tree Fruit Research and Extension Center, School of Economic Sciences, Wenatchee

  2. Content • Budget Process • Where to find these studies? • Assumptions made • Study components • Summary of findings • Use of budgets

  3. Budget Process • Convene a group of growers • The budgets are not a survey • Representation of location, size of operations, and experience

  4. Budget Process (2) • Determine the production scenario • Puts everyone on the same page when it comes to our assumptions

  5. Budget Process (3) • Costs depend on the assumptions • Numbers are a reflection of expected costs under a strict set of assumptions

  6. Where is it? 2009 Cost Estimates of Establishing andProducing Sweet Cherries in Washington http://extecon.wsu.edu/

  7. 2009 Cost Estimates of Establishing andProducing Sweet Cherries in Washington – In Excel and PDF http://extecon.wsu.edu/pages/Enterprise_Budgets

  8. Assumptions for Sweet Cherry Study • Sweetheart on Mazzard rootstock • Block size: 10 acres • Orchard size: 150 acres • Irrigation system • Overhead cooling and under tree drip sprinklers • Public irrigation district • Architecture • Two dimensional system (planar canopy), randomly trained w/18 mm radius from tree center • In-row space: 10 feet • Between row: 16 feet • Life of planting: 25 years • Density: 272 trees per acre

  9. Capital Requirement

  10. Machinery and Building Requirement

  11. Interest Costs

  12. Depreciation Costs

  13. Fixed Costs Summary of Costs By Categories (In $/acre)

  14. REMEMBER: Use of These Budgets • Growers • Starting point for comparison and creation of own budgets • Policy makers • Educational tool for understanding the different cost centers in tree fruit production • Lenders and investors • Illustration on operating loans and projected costs and returns • Other researchers • Financial feasibility of new technologies Photo from Northwest Cherries

  15. Thank You R. Karina Gallardo Tree Fruit Research and Extension Center, School of Economic Sciences Washington State University 1100 N. Western Ave. Wenatchee, WA E-mail: karina_gallardo@wsu.edu Phone: (509) 663 – 8181 x. 261

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