Two new University of California studies show the cost of producing table olives using different irrigation methods in the Sacramento Valley. One study shows current per acre establishment and production costs for growers using microsprinklers and the other study shows production costs for growers using flood irrigation.

The studies are intended as a guide only and can be used to make production decisions, determine potential returns, prepare budgets and evaluate production loans. Each study is based upon a hypothetical farm using practices common in the Sacramento Valley. UC Cooperative Extension farm advisors, researchers, growers, farm accountants, pest control advisers, and other agricultural associates provided input and reviews.

Assumptions

Assumptions used to identify current costs for establishing the orchard, production operations, material inputs, cash and non-cash overhead are described in the study. Tables show establishment costs, profits over a range of prices and yields, monthly cash costs, hourly equipment costs, and the whole farm annual equipment, investment and business overhead costs.

The two studies — “Sample Costs to Establish and Produce Table Olives in the Sacramento Valley, Microsprinkler Irrigation” and “Sample Costs to Produce Table Olives in the Sacramento Valley, Flood Irrigation” are available online at http://coststudies.ucdavis.edu, from the Department of Agricultural and Resource Economics, University of California, One Shields Avenue, Davis, CA 95616, and from local UC Cooperative Extension offices.

Both studies were prepared by William H. Krueger, UCCE farm advisor for Glenn County; Joseph H. Connell, UCCE farm advisor for Butte County; Karen M. Klonsky, UCCE Extension specialist, Department of Agricultural and Resource Economics, UC Davis; Pete Livingston, UCCE staff research associate, Department of Agricultural and Resource Economics, UC Davis; and Richard L. De Moura, research associate, Department of Agricultural and Resource Economics, UC Davis.