UC study examines winegrape costs

A new economic study with sample costs to establish a vineyard and produce winegrapes in the San Joaquin Valley is now available from the University of California Cooperative Extension.

The cost study focuses on spur pruned cultivars like French Colombard, Rubired and Ruby Cabernet that are suitable for production in the San Joaquin Valley. The study is intended as a guideline to help identify establishment costs, make production decisions, determine potential returns, prepare budgets and evaluate production loans. The study is based on hypothetical farms using practices common in the San Joaquin Valley. Analysis, input and reviews were provided by UCCE farm advisors, growers, pest control advisers and other agricultural associates.

Assumptions used to identify the current cost for individual field operations, material inputs, cash and non-cash overhead are described in the reports. Tables show material input cost, including labor, monthly cash expenditures, hourly equipment, investment and business overhead cost. An analysis shows profits over a range of prices and yields.

The studies were prepared by farm advisors Jennifer Hashim, George Leavitt, Bill Peacock and Stephen Vasquez; UCCE specialist Karen Klonsky, and UC Davis staff associate Rich De Moura.

The study is available online at http://coststudies.ucdavis.edu, or may be obtained for $3 at UCCE county offices or by mail from the University of California, Department of Agricultural and Resources Economics, One Shields Avenue, Davis, CA 95616 or by calling UC Davis at (530) 752-4424.

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