What Does it Cost to Grow Bartlett Pears? Recent Grower-Based Study

1. What Does it Cost to Grow Bartlett Pears?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? http://extecon.wsu.edu/

7. Cost Estimates of Establishing andProducing Bartlett Pears are available in both Excel and PDF http://extecon.wsu.edu/pages/Enterprise_Budgets

8. Assumptions for Bartlett Pear Study • Bartlett Pears • Block size: 10 acres • Orchard size: 100 acres • Irrigation system • Under-tree solid set and drip sprinklers • Public irrigation district • Architecture • Free standing • In-row space: 8 feet • Between row: 14 feet • Life of planting: 35 years • Density: 389 trees per acre10% are pollinators (Anjou)

9. Summary of Variable Costs and Returns of Establishing and Producing Bartlett Pears

10. Summary of Fixed Costs of Establishing and Producing Bartlett Pears

11. Capital Requirement Bartlett Pears

12. Machinery and Building Requirement Bartlett Pears

13. Interest Costs – Bartlett Pears

14. Depreciation Costs – Bartlett Pears

15. Full Production Bartlett PearsYears 7 - 35

16. Summary of Variable Costs and Returns of Establishing and Producing Bartlett Pears

17. Summary of Fixed Costs of Establishing and Producing Bartlett Pears

18. Break-Even Return per Bin to Cover Production Costs – Bartlett Pears

19. Fixed Costs Summary of Costs Bartlett Pears by Categories ($/acre)

21. 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

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