Broccoli, lettuce production costs are rising, studies say
On top of crop losses, growers face expenses to monitor fields and remove weeds in and around lettuce plantings “to reduce non-crop reservoirs of INSV and thrips,” the study found. “The seed costs shown in this study will likely increase as a result of research that is underway to breed resistance into let- tuce varieties,” the report said. It also not- ed impacts of additional threats such as pythium, fusarium and verticillium, plus lettuce drop and foliar diseases such as downy mildew. On labor costs, the reports noted that employer costs for workers range from $23.68 to $29.60 an hour. Meanwhile, for crops grown with groundwater, costs for pumping and re- lated fees range from $282 to $435 an acre- foot. The cost of fertilizer applied through a drip line has risen to more than $300 for a broccoli crop. There are additional costs in complying with nutrient management regulations intended to reduce nitrate contamination and overdraft of the underground aqui- fer. The studies cite a cost of $150 per acre per year or $75 per acre per crop for compliance and fees under California’s Sustainable Groundwater Management Act and the Central Coast’s Irrigated Lands Regulatory Program. The studies say growers need good yields to just break even on cool-season vegetables. At a grower price of $16 a carton of romaine hearts, the break-even
point is nearly 1,000 cartons an acre. Researchers say it is difficult to evaluate broccoli economically. That’s because in addition to its market value, broccoli resi- dues provide a valuable biofumigant that helps reduce the pathogen levels of many soil-borne diseases that can afflict subse- quent lettuce crops. “Broccoli is more challenging from a profitability perspective, as each ranging analysis will show, but broccoli is an es- sential rotational crop for growers,” the broccoli cost study said. “Broccoli may not be a profitable crop in all market con- ditions but is an essential crop in coastal vegetable production because it helps reduce key soil-borne diseases for subse- quent crop production.” At a price of $17 for bunched broccoli, the study estimated, the break-even point is between 600 and 650 cartons per acre. For broccoli crowns, the break-even point is around 550 cartons per acre when the price is $18 a carton. Tourte said potential profitability depends on yields and prices or mar- ket conditions. For lettuce, for example, she said “at a lower yield and price scenario, growers will likely operate at a loss. She added, “As yields and prices increase, returns cross over into positive net returns territory.” (Bob Johnson is a reporter in Monterey County. He may be contacted at bjohn11135@gmail.com.)
By Bob Johnson The cost of producing broccoli and romaine lettuce hearts has gone up in the Central Coast region, according to new studies released by the University of California Cooperative Extension. In inflationary times, many factors have increased the cost of growing and har- vesting an acre of this common rotation of cool-season vegetables. “Growing costs, in general, have con- tinued to increase over time,” said Laura Tourte, UCCE farm management advisor emeritus. She said rising expenses for labor, custom farming, other inputs and land rents continue to impact growers’ bottom lines. Tourte joined UC vegetable crop advi- sor emeritus Richard Smith, Cooperative Extension specialist Brittney Goodrich and staff research associate Jeremy Murdoch in producing a series of reports on the cost of growing and harvesting broccoli and lettuce in Santa Cruz, Monterey and San Benito counties. The cost studies were based on inter- views with area growers and are intended as guidelines for farmers as they develop their budgets. Researchers used a hypothetical model
of a 1,500-acre coastal vegetable oper- ation in which lettuce and broccoli are rotated with other cool-season vegetable and berry crops. In a statement, Goodrich said the re- search provides growers “a baseline to esti- mate their own costs, which can help when applying for production loans, projecting labor costs, securing market arrangements or understanding costs associated with water and nutrient management and reg- ulatory programs.” As costs go up, Tourte said, Central Coast growers improvise to make their vegetable crops pencil out. “Growers continue to innovate and adjust their businesses and practices to meet multiple pressures and challenges,” she said. Among the innovations, she said, are investments in automated technolo- gies being incorporated into opera- tions. Production challenges include the impatiens necrotic spot virus, or INSV, she said. Lettuce growers face a series of addi- tional costs in their efforts to manage INSV, which has severely impacted the crop in the Salinas Valley in recent years, causing particular damage in 2022.
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August 23, 2023 Ag Alert 17
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