Sample Costs to Produce Processing Tomatoes

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TM-SV-08-1

UNIVERSITY OF CALIFORNIA – COOPERATIVE EXTENSION

2008 SAMPLE COSTS TO PRODUCE

PROCESSING TOMATOES

TRANSPLANTED IN THE SACRAMENTO VALLEY
Prepared by: Gene Miyao Karen M. Klonsky Pete Livingston UC Cooperative Extension Farm Advisor, Yolo, Solano, & Sacramento Counties UC Cooperative Extension Specialist, Department of Agricultural and Resource Economics, UC Davis UC Cooperative Extension Staff Research Associate, Department of Agricultural and Resource Economics, UC Davis

UC COOPERATIVE EXTENSION
SAMPLE COSTS TO PRODUCE PROCESSING TOMATOES TRANSPLANTED In the Sacramento Valley – 2008 CONTENTS INTRODUCTION .............................................................................................................................................................................. 2 ASSUMPTIONS ................................................................................................................................................................................. 3 CULTURAL PRACTICES AND MATERIAL INPUTS .................................................................................................................................. 3 CASH OVERHEAD .................................................................................................................................................................................. 5 NON-CASH OVERHEAD ........................................................................................................................................................................ 6 REFERENCES .................................................................................................................................................................................... 8 TABLE 1. COSTS PER ACRE TO PRODUCE PROCESSING TOMATOES .................................................................................................. 10 TABLE 2. COSTS AND RETURNS PER ACRE TO PRODUCE PROCESSING TOMATOES .......................................................................... 12 TABLE 3. MONTHLY CASH COSTS PER ACRE TO PRODUCE PROCESSING TOMATOES ...................................................................... 14 TABLE 4. WHOLE FARM ANNUAL EQUIPMENT, INVESTMENT, AND BUSINESS OVERHEAD COSTS ................................................ 15 TABLE 5. HOURLY EQUIPMENT COSTS .............................................................................................................................................. 17 TABLE 6. RANGING ANALYSIS ........................................................................................................................................................... 18 TABLE 7. COSTS AND RETURNS/ BREAKEVEN ANALYSIS ................................................................................................................. 19 TABLE 8. DETAILS OF O PERATIONS ................................................................................................................................................... 20

INTRODUCTION
The sample costs to produce transplanted processing tomatoes in the Sacramento Valley is based on the 2007 cost and returns study practices using 2008 prices and are presented in this study. The price adjustments are for fuel, fertilizers, pesticides, water, labor rates, interest rates, and some cash overhead costs. This study is intended as a guide only, and can be used to make production decisions, determine potential returns, prepare budgets and evaluate production loans. Practices described are based on production practices considered typical for the crop and area, but may not apply to every situation. Sample costs for labor, materials, equipment, and custom services are based on current figures. Blank columns, “Your Costs”, in Tables 1 and 2 are provided to enter actual costs of an individual farm operation. The hypothetical farm operations, production practices, overhead, and calculations are described under the...
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