2004 Estimated Cost and Returns for Producing Onions Columbia Basin, Washington
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1 Farm Business Management Reports EB1979E 2004 Estimated Cost and Returns for Producing Onions Columbia Basin, Washington Herbert Hinman Gary Pelter Online at:
2 NOTE Enterprise costs and returns vary from one farm to the next and over time for any particular farm. Variability stems from differences in:! Capital, labor, and management resources! Type and size of machinery complement! Cultural practices! Size of farm and enterprise! Crop yields! Input prices! Commodity prices Costs can also be calculated differently depending on the intended use of the cost estimate. The information in this publication serves as a general guide for onions grown on modern, well-managed farms in the Columbia Basin. To avoid drawing unwarranted conclusions for any particular enterprise, you must closely examine the assumptions used. If they are not appropriate for the situation at hand, you should adjust the costs and/or returns.
3 CONTENTS Page INTRODUCTION... 1 OBJECTIVES OF THE STUDY... 1 SOURCES OF INFORMATION... 2 BUDGET ASSUMPTIONS... 2 DISCUSSION OF BUDGET INFORMATION... 3 Table 1: Schedule of Operations and Estimated Costs Per Acre... 3 Table 2: Materials and Services Used by Operation... 4 Table 3: Itemized Costs Per Acre... 4 Table 4: Break-Even Selling Price Per Ton... 4 Table 5: Returns Per Acre to Management and Risk at Various Price and Yield Levels... 4 Table 6: Machinery and Building Complement... 4 Table 7: Per-Hour/Acre Machinery and Building Cost... 5 CONCLUDING NOTE... 5 APPENDIX A: Budget Tables for Producing Onions Under Rill Irrigation... 6 APPENDIX B: Budget Tables for Producing Onions Under Center Pivot Irrigation APPENDIX C: Budget Tables for Producing Onions Under Drip Irrigation APPENDIX D: Understanding and Using WSU Onion Enterprise Budgets... 31
4 2004 ESTIMATED COST AND RETURNS FOR PRODUCING ONIONS COLUMBIA BASIN, WASHINGTON Herbert Hinman and Gary Pelter * INTRODUCTION In 1992, approximately 8,000 acres of onions were produced in the Columbia Basin. By 1998, the acreage of onions produced had risen to approximately 17,000. In 2004, an estimated 19,000 acres of onions will be produced in the Columbia Basin. This publication presents 2004 projected cost and return information for representative Columbia Basin onion enterprises producing onions under rill irrigation, center pivot irrigation, and drip irrigation. The projected costs are those of producing onions from pre-harvest operations to delivering the onions to storage. Costs for storage and marketing the onions are not included. The projected prices are those prices to the farmer minus storage and marketing costs. Producers, lenders, and others should find this information helpful in identifying enterprise strengths and weaknesses, planning production adjustments, estimating financial requirements, and resolving numerous other business management problems. OBJECTIVES OF THE STUDY The overall objective of this study was to develop enterprise budgets for onions grown under three different irrigation systems. These were the specific objectives: 1. To identify production practices representative of well-managed onion enterprises grown under rill irrigation, center pivot irrigation and drip irrigation in the Columbia Basin 2. To provide estimates of capital requirements, production costs to storage, and returns 3. To provide current and prospective producers with a procedure and tool for analyzing the profitability of their onion enterprise While representative of the Columbia Basin, the resulting budgets will likely not be representative of any particular farm in the Columbia Basin. Therefore, individual producers can use the blank spaces on the right-hand side of the budget tables or the Excel spreadsheets (which will be discussed in Appendix D) to develop a budget representative of their own operation. * Extension Economist and Grant/Adams County Extension Educator, Washington State University Extension, Pullman, Washington
5 SOURCES OF INFORMATION The primary information for this study was obtained from a group of Columbia Basin producers. These producers were considered representative of well-managed farms. Their production practices and requirements for labor, equipment, and supplies are the basis for the assumptions used in this study and represent what is considered to be the latest field practices. Local farm suppliers provided price information on materials and other services commonly used by farmers. Machinery costs were based on current purchase prices and rates of annual use considered typical. BUDGET ASSUMPTIONS The following assumptions were made in developing the enterprise data: 1. The representative farms include 950 acres, with 145 acres in onion production. 2. The cash rent for rill irrigated land used to produce onions is 300 per acre. The landowner furnishes the gravity flow irrigation system (excluding tubes and dams) and the operator pays the irrigation charge of 50 per acre per year and annual repair costs of 4 per acre. The cash rent for center pivot irrigated land used to produce onions is 400 per acre. The landowner furnishes the center pivot irrigation system and the operator pays the water charge of 50 per acre per year, electricity cost of 50 per acre (pumping out of wells), and annual repair costs of 15 per acre. The cash rent for drip irrigated land used to produce onions is 400 per acre. The landowner provides the water to the field. The tenant furnishes the irrigation pump, filters, valves, etc., at a cost of 600 per acre. The irrigation system has a 10-year life. In addition, the irrigation system requires new drip tubes every year at a cost of 270 per acre and an irrigation design cost of 30 per acre. The water charge is 50 per acre, the electrical charge is 40 per acre and the annual repair cost is 100 per acre. 3. Annual yield for onions grown under rill irrigation is assumed to be within a range of 24 to 40 tons per acre (an average of 32 is used for the attached tables). Annual yield for onions grown under center pivot irrigation is assumed to be within a range of 24 to 40 tons per acre (an average of 35 is used for the attached tables). Annual yield for onions grown under drip irrigation is assumed to be within a range of 24 to 55 tons per acre (an average of 45 is used for the attached tables). 4. The price ranges between 70 per ton to 100 per ton (an average price of 80 was used for the attached tables). 2
6 5. Cost of labor is per hour for seasonal labor, per hour for rill irrigators and per hour for full-time labor. These costs include social security, labor and industry payments, and fringe benefits. 6. The interest rate assessed against both producer debt and owner equity is 8%. 7. The acreage on which the onions are grown is preceded by wheat. DISCUSSION OF BUDGET INFORMATION Budget information for onions grown under rill irrigation, center pivot irrigation, and drip irrigation are presented in Appendixes A, B and C, respectively. Each irrigated onion enterprise is reported in seven tables. A summary of the data in each table is presented below. Tables 1Rill, 1CP and 1Drip: Schedule of Operations and Estimated Costs Per Acre Table 1 outlines the schedule of field operations by month, the type of machinery and labor use, the hours of machine use per acre, and total production costs. Production costs are divided into two categories: (1) fixed cost which includes machinery ownership, land costs, and management; (2) variable costs associated with operating machinery, hiring labor, and purchasing services and materials. Total cost is the sum of fixed and variable costs. Machinery fixed costs includes depreciation, interest on the investment, property taxes, insurance, and machine housing costs. These costs are incurred whether or not a crop is grown and do not vary with the enterprise. Machinery fixed cost for a specific field operation was determined by multiplying the machine hours per acre times the per-hour fixed cost. The per-hour fixed costs, shown in Table 8, are determined by dividing the total annual fixed cost by the annual hours of machinery use over all enterprises for the representative farm. Fixed cost per acre for the machine shed and shop, shop tools, irrigation tubes, and dams were determined by dividing the total annual fixed cost by the number of acres. Land fixed cost is equal to gross rental rates typical of the area. Much of the land used for production is rented. Although individual rental arrangements vary, in many situations the tenant pays a cash rent and the landowner pays the taxes. An opportunity cost for management is reported in Table 1. For management, a cost of 150 per acre was used. This is representative of what the producer committee felt was the value of an operator's management skills. Variable costs depend directly on the number of crop acres and type of enterprise. These costs include fuel, oil, repairs, fertilizer, chemicals, custom work, overhead (telephone, utilities, legal, accounting, organization dues, etc.), and interest on operating capital. Both operator labor and hired labor are included as a variable cost. 3
7 Tables 2Rill, 2CP and 2Drip: Materials and Services Used by Operation Table 1 reports under the "Service" column and "Materials" column the dollar amounts spent on services and materials used with the different operations. Table 2 lists by operation, the specific types and quantities of services, and materials used in this study along with their respective prices. Tables 3Rill, 3CP and 3Drip: Itemized Costs Per Acre Table 3 is an itemized list of the costs in Table 1. Most items are self-explanatory. However, "Machine Interest" warrants additional explanation. These costs represent opportunity cost (returns foregone by investing in the machinery and building complement rather than in some alternative) or interest paid to finance machinery and buildings. Total interest cost on these capital purchases is calculated on the average value of the machinery and buildings over their respective years of use. The 8% interest charge made against this "average" value represents the total interest cost. Tables 4Rill, 4CP and 4Drip: Break-Even Selling Price Per Ton Table 4 shows break-even selling prices for different yield levels. The first break-even price is the price needed to cover total variable costs-those costs that occur only if the crop is produced. If the price received does not equal or exceed the variable cost break-even price, the crop becomes uneconomical to produce, even in the short run, because the added costs of production are greater than the added returns. The second break-even price is the price you must receive to recover total costs including cash costs, depreciation, operator labor and management, and opportunity costs for investments in machinery and buildings. Failure to receive this price means the owner-operator will not realize a return on his/her management, labor, and capital contributions equivalent to what could be earned in an alternative use. Realizing a price above the break-even level means that in addition to covering all costs a premium (profit) is earned for the risk assumed in producing the crop. Tables 5Rill, 5CP and 5Drip: Returns Per Acre to Management and Risk at Various Price and Yield Levels Returns per acre at various price and yield levels are summarized in Table 5. These returns are to both management and risk insofar as the 150 per acre management cost has been deducted from the total cost. Tables 6Rill, 6CP and 6Drip: Machinery and Building Complement Table 6 lists the type of machines used to produce onions, plus on a per-unit basis, their replacement value, years of life before trade-in, salvage value, hours of annual use, annual repair cost, fuel type (if applicable), and gallons of fuel used per hour. The same information is provided for the irrigation equipment, fuel and containment tanks, machine shop and shed, and the shop tools, except the number of acres these assets support are specified instead of annual hours of use. 4
8 Tables 7Rill, 7CP and 7Drip: Per-Hour/Acre Machinery and Building Cost Table 7 presents the estimated fixed and variable costs per hour of use for the machinery listed in Table 6. For irrigation equipment, fuel and containment tanks, machine shop and shed, and the shop tools, costs are calculated on a per-acre basis. Equipment fixed costs includes depreciation, interest on investment, property taxes, and insurance. Equipment prices are representative of what growers would currently pay to replace equipment. While this assumption may result in an overstatement of production costs currently experienced by producers, it indicates the enterprise's ability to generate the earnings needed to replace depreciable assets. Continuing increases in prices paid for replacement machinery and equipment due to inflation and improved technology mean that depreciation claimed on assets purchased before price advances understates the amount of capital currently required for asset replacement. When an enterprise is evaluated to determine its long-run viability, it is important to consider its ability to replace depreciable assets on a replaceable cost basis. Note that interest on investment represents an 8% opportunity cost to the enterprise. These are earnings foregone by investing in the equipment complement rather than in the next best alternative investment. Equipment variable costs include equipment repair, fuel, and lubrication costs - costs that vary with the crop grown or the number of acres produced. CONCLUDING NOTE To use these budgets, one should fully comprehend the procedures and assumptions used in this study and interpret the results accordingly. The authors and producers who organized this data recognize that these budgets do not represent any one particular operation. They should be used as a general guide to help derive budgets for individual operations. Moreover, this publication does not recommend production practices. Rather, it presents current technology used to produce onions in the Columbia Basin. It should further be noted that the resulting figures in these budget estimates do not include storage and marketing costs. In Appendix D, a discussion on how producers may use these budgets to generate financial budgets for their own operation is fully covered. In addition, in Appendix D, instructions are given as to how to download Excel spreadsheets that can be used in developing producer budgets. 5
9 APPENDIX A BUDGET TABLES FOR PRODUCING ONIONS UNDER RILL IRRIGATION 6
10 7 TABLE 1RILL: SCHEDULE OF OPERATIONS AND ESTIMATED COSTS PER ACRE FOR PRODUCING ONIONS, FOLLOWING WHEAT, UNDER RILL IRRIGATION IN THE COLUMBIA BASIN, WASHINGTON, VARIABLE COST TOTAL FUEL, TOTAL MACH LABOR FIXED LUBE, & VARIABLE TOTAL OPERATION TOOLING MTH YEAR HOURS HOURS COST REPAIRS LABOR SERVICE MATER. INTER. COST COST SHRED STUBBLE 140HP-WT, 15' SHREDDER FALL DISC/PACK 200HP-WT, 18' DISC/20' PACKER FALL CORRUGATE 140HP-WT, 8-ROW CORRUGATOR FALL MAKE HEADLAND 85HP-WT, HEADLANDER FALL MAKE DRAIN 140HP-WT, 8' BLADE FALL IRRIGATE IRRIGATOR LABOR, TUBES & DAMS SEA SOIL TEST SOIL CONSULTANT FALL APPLY LIME CUSTOM NO CHG. FALL DISC/PACK 200HP-WT, 18' DISC/20' PACKER FALL FUMIGATE FIELD CUSTOM APPLIED FALL EROSION CONTROL THROUGH WATER W/FISH FEEDER SEA FERTILIZE CUSTOM APPLIED MAR PLOW/PACK 140HP-WT, 4BTM PLOW/7' PACKER MAR DISK/PACK (2X) 200HP-WT, 18' DISC/20' PACKER MAR REFINE SEEDBED 140HP-WT, SEEDBED MAKER MAR MARK SEEDBED 140HP-WT, 8-ROW CORRUGATOR MAR PLT/INSECT/CORRU 140HP-WT, 8-ROW MILTON PLANTER MAR MAKE HEADLAND 85HP-WT, HEADLANDER MAR MAKE DRAIN 140HP-WT, 8' BLADE MAR PRE-EMERGE HERB. CUSTOM APPLIED APR CULT/CORRUGATE 140HP-WT, 8-ROW CULTIVATOR APR POST-EMER HB(2X) CUSTOM GROUND APPLICATION MAY CULT/CORRUGATE 140HP-WT, 8-ROW CULTIVATOR MAY APPLY INSECT. 85HP-WT, SPRAYER MAY SIDE DRESS FERT. 85HP-WT, APPLICATOR (NO CHG.) MAY WEED FIELD CONTRACT LABOR JUN SOIL TEST SOIL CONSULTANT JUN SIDE DRESS FERT. 85HP-WT, APPLICATOR (NO CHG.) JUN CULT/CORR/HERB 140HP-WT, 8-ROW CULT/SPRAYER JUN APPLY INSCT/FUNG AERIAL APPLICATION JUN WEED FIELD CONTRACT LABOR JUL APPLY HERBICIDE AERIAL APPLICATION JUL APPLY INSCT/FUNG AERIAL APPLICATION JUL APPLY INSCT/FUNG AERIAL APPLICATION JUL SPROUT INHB/FUNG AERIAL APPLICATION AUG FILL IN HD&DRAIN 140HP-WT, 8' BLADE SEP LIFT ONIONS 85HP-WT, 4-BED ONION LIFTER SEP WINDROW 140HP-WT, WINDROWER SEP HARVEST ONIONS CUSTOM HARVEST SEP HAUL ONIONS CUSTOM HAULING SEP MISC. USE MANAGER'S PICKUP ANN MISC. USE LABOR'S PICKUP ANN MISC. USE SERVICE TRUCK ANN MISC. USE MACHINE SHED & SHOP ANN MISC. USE SHOP TOOLS ANN MISC. USE FUEL TANKS/CONTAINMENT ANN LAND COST LAND RENT ANN OVERHEAD LEGAL, UTILITIES, ACCT., ETC. ANN MANAGEMENT VALUE OF MANAGEMENT ANN TOTAL PER ACRE
11 Table 2Rill. Materials and Services Used by Operation for Producing Onions Under Rill Irrigation. Operation Material and/or Service Irrigate Season Water 50.00/acre Irrigation 4.00/acre Soil Test Fall Soil 5.00/acre Apply Lime Fall /ton (no charge for application) Fumigate Field Fall Custom 45.00/acre 37.5 gal. of metham 3.22/gal. Erosion Control Season 2.0 lbs. of polyacrylamide 2.95/lb. Fertilize March Custom 6.50/acre Pre-plant 95.00/acre Plant/Insecticide/ March 6.5 lbs. of Lorsban 1.99/lb. Corrugate Onion /acre Apply Pre-Emergent April Custom 7.50/acre Herbicide 1.5 pints of 4.55/pint 0.1 pint of 2.22/pint Apply Post-Emergent May Ground 7.50/acre, per Herbicide (2X) application 10 ounces of Goal 2XL, per 12 ounces of Buctril, per Apply Insecticide May 3.8 ounces of 2.68/ounce 0.1 pint of 2.22/pint Side Dress Fertilizer May 30.00/acre Weed Field June Contracted hand /acre Soil Test June Soil 5.00/acre Side Dress Fertilizer June Cultivate/Corrugate/ June Herbicide 30.00/acre 1.5 pints of 3.23/pint Apply Insecticide/ June Aerial 7.50/acre Fungicide 3.8 ozs. of 2.68/oz. 2.0 pints of 6.68/pint 0.1 pint of 2.22/pint 8
12 Table 2Rill: Materials and Services Used by Operation for Producing Onions Under Rill Irrigation (continued). Operation Material and/or Service Weed Field July Contracted hand /acre Apply Herbicide July Aerial 7.50/acre 6 ounces of 1.83/oz. 26 ounces of crop Apply Insecticide/ July Aerial 7.50/acre Fungicide 3 pints of 7.51/pint 2.0 lbs. of 3.09/lb. 0.1 pint of 2.22/pint Apply Insecticide/ July Aerial 7.50/acre Fungicide 3.8 ounces of 2.68/ounce 2.0 pints of 6.68/pint 0.1 pint of 2.22/pint Apply Sprout August Aerial 7.50/acre Inhibitor/Fungicide 10.6 pints of maleic 2.41/pint 2.0 lbs. of 3.09/lb. Harvest Onions Haul Onions September Custom harvest of /ton September Custom haul of /ton Overhead Annual 5% of variable cost 9
13 TABLE 3RILL. ITEMIZED COST PER ACRE FOR PRODUCING ONIONS, FOLLOWING WHEAT, UNDER RILL IRRIGATION IN THE COLUMBIA BASIN, WASHINGTON, PRICE OR VALUE OR YOUR UNIT COST/UNIT QUANTITY COST FARM VARIABLE COSTS SOIL TEST ACRE CUSTOM FUMIGATE ACRE METHAM SODIUM GAL CUSTOM FERTILIZE ACRE PRE-PLANT FERTILIZER ACRE SIDE DRESS FERTILIZER ACRE ONION SEED ACRE CUSTOM AERIAL ACRE LIME TON LORSBAN 15G LB GLYPHOSPHATE PINT SURFACTANT PINT WARRIOR OZ PROWL PINT CHLOROTHALONIL PINT SELECT OZ CROP OIL OZ MACOZEB LB LANNATE PINT MALEIC-HYDRAZIDE PINT POLYACRYLAMIDE LB CUSTOM SPRAY ACRE GOAL OZ BUCTRIL OZ CONTRACT WEEDING ACRE WATER CHARGE ACRE IRRIGATION REPAIR ACRE IRRIGATION LABOR HOUR MACHINERY REPAIRS ACRE MACHINE FUEL/LUBE ACRE LABOR(TRAC/MACH) HOUR CUSTOM HARVEST TON CUSTOM HAUL TON INTEREST ON OP. CAP. ACRE OVERHEAD ACRE TOTAL VARIABLE COST FIXED COSTS MACHINE DEPRECIATION ACRE MACHINE INTEREST ACRE MACHINE INSURANCE ACRE MACHINE TAXES ACRE MANAGEMENT ACRE LAND RENT ACRE TOTAL FIXED COST TOTAL COST
14 TABLE 4RILL. BREAK-EVEN SELLING PRICE PER TON AT VARIOUS YIELD LEVELS FOR ONIONS GROWN UNDER RILL IRRIGATION YIELD LEVEL TONS 28 TONS 32 TONS 36 TONS 40 TONS B-E PRICE NECESSARY TO COVER VARIABLE COSTS B-E PRICE NECESSARY TO COVER TOTAL COSTS TABLE 5RILL. RETURNS PER ACRE TO MANAGEMENT AND RISK AT VARIOUS PRICE AND YIELD LEVELS FOR ONIONS GROWN UNDER RILL IRRIGATION YIELD LEVEL PRICE PER TON 24 TONS 28 TONS 32 TONS 36 TONS 40 TONS , , ,128 1,485
15 TABLE 6RILL. MACHINERY AND BUILDING COMPLEMENT FOR PRODUCING ONIONS UNDER RILL IRRIGATION. DESCRIPTION REPLACE- MENT VALUE YEARS TO TRADE SALVAGE VALUE ANNUAL HOURS OF USE ANNUAL REPAIR FUEL TYPE* 200HP WHEEL TRACTOR 115, , ,300 D 8 140HP WHEEL TRACTOR 90, , ,500 D HP WHEEL TRACTOR 50, , ,850 D 3 MANAGER'S PICKUP 26, , G 2 LABOR'S PICKUP 12, , G 3 SERVICE TRUCK 7, G 3 4-BOTTOM PLOW 7, , ,000 15' SHREDDER 15, , ' OFFSET DISC 20, , ,450 20' PACKER 4, ' PACKER 2, ROW MILTON PLT. 22, , ,200 SEEDBED MAKER 15, , ROW CULTIVATOR 9, , ROW CORRUGATOR 1, HEADLANDER 2, ' BLADE 3, ONION LIFTER, 4-BED 5, , WINDROWER 13, , SPRAY TANK & PUMP 2, ACRES COVERED IRRIGATION TUBES IRRIGATION DAMS FISH FEEDER (PAM) MACHINE SHED & SHOP 60, SHOP TOOLS 25, FUEL TANKS/ CONTAINMENT 17, GAL. PER HOUR 12
16 13 TABLE 7RILL. HOURLY AND PER ACRE MACHINERY COSTS FOR PRODUCING ONIONS UNDER RILL IRRIGATION YEARS TOTAL FUEL TOTAL PURCHASE TO ANNUAL DEPREC- INTER- INSUR- FIXED AND VARIABLE TOTAL MACHINERY PRICE TRADE HOURS IATION EST ANCE TAXES HOUSING COST REPAIR LUBE COST COST COST PER HOUR HP-WT 115, HP-WT 90, HP-WT 50, MANAGER'S PICKUP 26, LABOR'S PICKUP 12, SERVICE TRUCK 7, BTM PLOW 7, ' SHREDDER 15, ' OFFSET DISC 20, ' PACKER 4, ' PACKER 2, ROW MILTON PLANTR 22, SEEDBED MAKER 15, ROW CULTIVATOR 9, ROW CORRUGATOR 1, HEADLANDER 2, ' BLADE 3, ' RIPPER 5, BED ONION LIFT 5, WINDROWER 13, SPRAY TANK & PUMP 2, ACRES COVERED COST PER ACRE IRRIGATION TUBES IRRIGATION DAMS FISH FEEDER (PAM) MACHINE SHED & SHOP 60, SHOP TOOLS 25, TANKS & CONTAINMENT 17,
17 APPENDIX B BUDGET TABLES FOR PRODUCING ONIONS UNDER CENTER PIVOT IRRIGATION 14
18 15 TABLE 1CP. SCHEDULE OF OPERATIONS AND ESTIMATED COSTS PER ACRE FOR PRODUCING ONIONS, FOLLOWING WHEAT, UNDER CENTER PIVOT IRRIGATION IN THE COLUMBIA BASIN, WASHINGTON, VARIABLE COST TOTAL FUEL, TOTAL MACH LABOR FIXED LUBE, & VARIABLE TOTAL OPERATION TOOLING MTH YEAR HOURS HOURS COST REPAIRS LABOR SERVICE MATER. INTER. COST COST SHRED STUBBLE 140HP-WT, 15' SHREDDER FALL RIP 200HP-WT, 15' RIPPER FALL SOIL TEST SOIL CONSULTANT FALL APPLY LIME CUSTOM NO CHARGE FALL PLANT COVER CROP AERIAL APPLICATION FALL FUMIGATE FIELD CUSTOM APPLIED FALL FERT/STRIP TILL 200HP-WT, 15' STRIP ROTOVATOR MAR PLANT/INSEC/FERT 140'HP-WT, 8-ROW MILTON PLANTR MAR IRRIGATE CENTER PIVOT IRRIGATION SYSTEM SEA FERTIGATE CENTER PIVOT IRRIGATION SYSTEM SEA PRE-EMERGE HERB. CUSTOM APPLIED APR CULTIVATE 140HP-WT, 8-ROW CULTIVATOR MAY POST-EMER HB(2X) CENTER PIVOT IRRIGATION SYSTEM MAY APPLY INSECTICID 85HP-WT, SPRAYER MAY BACTERICIDE (5X) CENTER PIVOT IRRIGATION MAY-AUG WEED FIELD CONTRACTED HAND LABOR JUN SOIL TEST SOIL CONSULTANT JUN RESERVOIR TILL 200HP-WT, 8-ROW RESERVOR-TILLR JUN CHEMIGATE CENTER PIVOT IRRIGATION SYSTEM JUN HERBIGATE CENTER PIVOT IRRIGATION SYSTEM JUN WEED FIELD CONTRACTED HAND LABOR JUL APPLY HERBICIDE AERIAL APPLICATION JUL APPLY INSECTICID AERIAL APPLICATION JUL CHEMIGATE CENTER PIVOT IRRIGATION SYSTEM AUG SPROUT INHB/FUNG AERIAL APPLICATION AUG LIFT ONIONS 85HP-WT, 4-BED ONION LIFTER SEP WINDROW 140HP-WT, WINDROWER SEP HARVEST ONIONS CUSTOM HARVEST SEP HAUL ONIONS CUSTOM HAULING SEP MISC. USE MANAGER'S PICKUP ANN MISC. USE LABOR'S PICKUP ANN MISC. USE SERVICE TRUCK ANN MISC. USE MACHINE SHED & SHOP ANN MISC. USE SHOP TOOLS ANN MISC. USE TANKS AND CONTAINMENTS ANN LAND COST LAND RENT ANN OVERHEAD LEGAL, UTILITIES, ACCT., ETC. ANN MANAGEMENT 7% OF GROSS RETURN ANN TOTAL PER ACRE
19 Table 2CP. Materials and Services Used by Operation for Producing Onions Under Center Pivot Irrigation. Operation Material and/or Service Soil Test Fall Soil 5.00/acre Apply Lime Fall /ton (no charge for application) Plant Cover Crop Fall Aerial 7.50/acre Wheat 12.00/acre Fumigate Field Fall Custom 45.00/acre 37.5 gal. of metham 3.22/gal. Fertilize/Strip Till March Pre-plant 150/acre Plant/Insecticide/ March 6.5 lbs. of Lorsban 1.99/lb. Fertilize Onion /acre 60.00/acre Irrigate Season Water 50.00/acre Electrical 50.00/acre Irrigation 15.00/acre 32.00/acre Fertigate Season 150/acre Apply Pre-Emergent April Custom 7.50/acre Herbicide 1.5 pints of 4.55/pint 0.1 pint of 2.22/pint Apply Post-Emergent May 10 ounces of Goal 2XL, per Herbicide (2X).90/oz. 12 ounces of Buctril, per Apply Insecticide May 3.8 ounces of 2.68/ounce 0.1 pint of 2.22/pint Apply Bactericide (5X) May-Aug 1.5 lbs. of ManKocide per 4.00/lb. Weed Field June Contracted hand /acre Soil Test June Soil 5.00/acre Chemigate June 4.0 pints of 9.23/pint Herbigate June 1.5 pints of 3.23/pint Weed Field July Contracted hand /acre 16
20 Table 2CP. Materials and Services Used by Operation for Producing Onions Under Center Pivot Irrigation (continued). Operation Material and/or Service Apply Herbicide July Aerial 7.50/acre 6 ounces of 1.83/oz. 26 ounces of crop Apply Insecticide/ July Aerial 7.50/acre Fungicide 3 pints of 7.51/pint 2.0 lbs. of 3.09/lb. 0.1 pint of 2.22/pint Chemigate July 4.0 pints of 9.23/pint. Apply Sprout Inhibitor August Aerial 7.50/acre 10.6 pints of maleic 2.41/pint Harvest Onions Haul Onions September Custom harvest of /ton September Custom haul of /ton Overhead Annual 5% of variable cost 17
21 TABLE 3CP. ITEMIZED COST PER ACRE FOR PRODUCING ONIONS, FOLLOWING WHEAT, UNDER CENTER PIVOT IRRIGATION IN THE COLUMBIA BASIN, WASHINGTON, PRICE OR VALUE OR YOUR UNIT COST/UNIT QUANTITY COST FARM VARIABLE COSTS SOIL TEST ACRE CUSTOM FUMIGATE ACRE METHAM SODIUM GAL WHEAT SEED ACRE ONION SEED ACRE PRE-PLANT FERTILIZER ACRE FERTILIZER ACRE FERTIGATE MATERIAL ACRE CUSTOM APPLIED ACRE CUSTOM AERIAL ACRE LIME TON LORSBAN 15G LB GLYPHOSPHATE PINT SURFACTANT PINT WARRIOR OZ GOAL OZ BUCTRIL OZ PROWL PINT VYDATE PINT SELECT OZ CROP OIL OZ LANNATE PINT MANCOZEB LB MANKOCIDE LB MALEIC-HYDRAZIDE PINT LIQUICHLOR ACRE CONTRACT WEEDING ACRE WATER CHARGE ACRE ELECTRICITY ACRE IRRIGATION REPAIR ACRE MACHINERY REPAIRS ACRE MACHINE FUEL/LUBE ACRE LABOR HOUR CUSTOM HARVEST TON CUSTOM HAUL TON INTEREST ON OP. CAP. ACRE OVERHEAD ACRE TOTAL VARIABLE COST FIXED COSTS MACHINE DEPRECIATION ACRE MACHINE INTEREST ACRE MACHINE INSURANCE ACRE MACHINE TAXES ACRE MANAGEMENT ACRE LAND RENT ACRE TOTAL FIXED COST TOTAL COST
22 TABLE 4CP. BREAK-EVEN SELLING PRICE PER TON AT VARIOUS YIELD LEVELS FOR ONIONS GROWN UNDER CENTER PIVOT IRRIGATION YIELD LEVEL TONS 28 TONS 32 TONS 35 TONS 36 TONS 40 TONS B-E PRICE NECESSARY TO COVER VARIABLE COSTS B-E PRICE NECESSARY TO COVER TOTAL COSTS TABLE 5CP. RETURNS PER TON TO MANAGEMENT AND RISK AT VARIOUS PRICE AND YIELD LEVELS FOR ONIONS GROWN UNDER CENTER PIVOT IRRIGATION YIELD LEVEL PRICE PER TON 24 TONS 28 TONS 32 TONS 35 TONS 36 TONS 40 TONS , ,254
23 TABLE 6CP. MACHINERY AND BUILDING COMPLEMENT FOR PRODUCING ONIONS UNDER CENTER PIVOT IRRIGATION. DESCRIPTION REPLACE- MENT VALUE YEARS TO TRADE SALVAGE VALUE ANNUAL HOURS OF USE ANNUAL REPAIR FUEL TYPE* GAL. PER HOUR 200HP WHEEL TRACTOR 115, , ,300 D 8 140HP WHEEL TRACTOR 90, , ,500 D HP WHEEL TRACTOR 50, , ,850 D 3 MANAGER'S PICKUP 26, , G 2 LABOR'S PICKUP 12, , G 3 SERVICE TRUCK 7, G 3 15' SHREDDER 15, , ROW MILTON PLT. 22, , ,200 8-ROW CULTIVATOR 9, , RIPPER 5, STRIP ROTOVATOR 14, , ,000 8-ROW RESERV-TILLER 16, , ,400 ONION LIFTER, 4-BED 5, , WINDROWER 13, , SPRAY TANK & PUMP 2, ACRES COVERED MACHINE SHED & SHOP 60, SHOP TOOLS 25, FUEL TANKS/ CONTAINMENT 17,
24 21 TABLE 7CP. HOURLY AND PER ACRE MACHINERY COSTS FOR PRODUCING ONIONS UNDER CENTER PIVOT IRRIGATION YEARS TOTAL FUEL TOTAL PURCHASE TO ANNUAL DEPREC- INTER- INSUR- FIXED AND VARIABLE TOTAL MACHINERY PRICE TRADE HOURS IATION EST ANCE TAXES HOUSING COST REPAIR LUBE COST COST COST PER HOUR HP-WT 115, HP-WT 90, HP-WT 50, MANAGER'S PICKUP 26, LABOR'S PICKUP 12, SERVICE TRUCK 7, ' SHREDDER 15, ROW MILTON PLANTR 22, ROW CULTIVATOR 9, ' RIPPER 5, ' STRIP ROTOVATOR 14, ROW RESERV-TILLER 16, BED ONION LIFT 5, WINDROWER 13, SPRAY TANK & PUMP 2, ACRES COVERED COST PER ACRE MACHINE SHED & SHOP 60, SHOP TOOLS 25, TANKS & CONTAINMENT 17,
25 APPENDIX C BUDGET TABLES FOR PRODUCING ONIONS UNDER DRIP IRRIGATION 22
26 23 TABLE 1DRIP. SCHEDULE OF OPERATIONS AND ESTIMATED COSTS PER ACRE FOR PRODUCING ONIONS, FOLLOWING WHEAT, UNDER DRIP IRRIGATION IN THE COLUMBIA BASIN, WASHINGTON, VARIABLE COST TOTAL FUEL, TOTAL MACH LABOR FIXED LUBE, & VARIABLE TOTAL OPERATION TOOLING MTH YEAR HOURS HOURS COST REPAIRS LABOR SERVICE MATER. INTER. COST COST SHRED STUBBLE 140HP-WT, 15' SHREDDER FALL DISC/PACK 200HP-WT, 18' DISC/20' PACKER FALL CORRUGATE 140HP-WT, 8-ROW CORRUGATOR FALL MAKE HEADLAND 85HP-WT, HEADLANDER FALL MAKE DRAIN 140HP-WT, 8' BLADE FALL RILL IRRIGATE IRRIGATOR LABOR, TUBES & DAMS FALL SOIL TEST SOIL CONSULTANT FALL APPLY LIME NO CHARGE APPLICATION FALL DISC/PACK 200HP-WT, 18' DISC/20' PACKER FALL FUMIGATE FIELD CUSTOM APPLIED FALL FERTILIZE CUSTOM APPLIED MAR PLOW/PACK 140HP-WT, 4BTM PLOW/7' PACKER MAR DISK/PACK (2X) 200HP-WT, 18'DISC/20' PACKER MAR REFINE SEEDBED 140HP-WT, SEEDBED MAKER MAR LAY TAPE 140HP-WT, TAPE INJECTOR MAR PLANT/INSECT. 140HP-WT, 8-ROW MILTON PLANTER MAR LAY FLAT TAPE 85HP-WT, LAY FLAT MACHINE MAR IRRIG ASSEMBLY CUSTOM ASSEMBLED MAR IRRIGATE DRIP IRRIGATION SEA PRE-EMERGE HERB. CUSTOM APPLIED APR FERTIGATE DRIP IRRIGATION SYSTEM SEA POST-EMER HB(2X) CUSTOM GROUND APPLICATION MAY APPLY INSECT. 85HP-WT, SPRAYER MAY WEED FIELD CONTRACTED HAND LABOR JUN SOIL TEST SOIL CONSULTANT JUN APPLY HERBICIDE AERIAL APPLICATION JUN CHEMIGATE DRIP IRRIGATION SYSTEM JUN APPLY FUNGICIDE CUSTOM GROUND APPLICATION JUN WEED FIELD CONTRACTED HAND LABOR JUL APPLY HERBICIDE AERIAL APPLICATION JUL APPLY INSCT/FUNG AERIAL APPLICATION JUL CHEMIGATE DROP IRRIGATION SYSTEM AUG APPLY FUNGICIDE AERIAL APPLICATION AUG SPROUT INHB/FUNG AERIAL APPLICATION AUG LAY FLAT RETRIEV 85HP-WT, LAY FLAT MACHINE SEP TAPE REMOVABLE 85HP-WT, REMOVAL TOOL SEP TAPE DISPOSAL PER ACRE COST SEP LIFT ONIONS 85HP-WT, 4-BED ONION LIFTER SEP WINDROW 140HP-WT, WINDROWER SEP HARVEST ONIONS CUSTOM HARVEST SEP HAUL ONIONS CUSTOM HAULING SEP
27 TABLE 1DRIP. SCHEDULE OF OPERATIONS AND ESTIMATED COSTS PER ACRE FOR PRODUCING ONIONS, FOLLOWING WHEAT, UNDER DRIP IRRIGATION IN THE COLUMBIA BASIN, WASHINGTON, 2004, (CONTINUED) VARIABLE COST TOTAL FUEL, TOTAL MACH LABOR FIXED LUBE, & VARIABLE TOTAL OPERATION TOOLING MTH YEAR HOURS HOURS COST REPAIRS LABOR SERVICE MATER. INTER. COST COST MISC. USE MANAGER'S PICKUP ANN MISC. USE LABOR'S PICKUP ANN MISC. USE SERVICE TRUCK ANN MISC. USE MACHINE SHED & SHOP ANN MISC. USE SHOP TOOLS ANN MISC. USE FUEL TANKS/CONTAINMENT ANN LAND COST LAND RENT ANN OVERHEAD LEGAL, UTILITIES, ACCT., ETC. ANN MANAGEMENT VALUE OF MANAGEMENT ANN TOTAL PER ACRE
28 Table 2Drip. Materials and Services Used by Operation for Producing Onions Under Drip Irrigation. Operation Material and/or Service Rill Irrigate Season Water 5.00/acre Irrigation Soil Test Fall Soil 5.00/acre Apply Lime Fall /ton (no charge for application) Fumigate Field Fall Custom 45.00/acre 37.5 gal. of metham 3.22/gal. Fertilize March Custom 6.50/acre Pre-plant 80.00/acre Lay Tape March Design 30.00/acre. Drip /acre Plant/Insecticide/ March 6.5 lbs. of Lorsban 1.99/lb. Corrugate Onion /acre Irrigation Assembly March Custom 35.00/acre Irrigate Season Water 18.00/acre. Water 50.00/acre /acre Apply Pre-Emergent April Custom 7.50/acre Herbicide 1.5 pints of 4.55/pint 0.1 pint of 2.22/pint Fertigate Season /acre Drip line 10/acre Apply Post-Emergent May Ground 7.50/acre, per Herbicide (2X) application 10 ounces of Goal 2XL, per 12 ounces of Buctril, per Apply Insecticide May 3.8 ounces of 2.68/ounce 0.1 pint of 2.22/pint Weed Field June Contracted hand /acre Soil Test June Soil 5.00/acre 25
29 Table 2Drip. Materials and Services Used by Operation for Producing Onions Under Drip Irrigation (continued). Operation Material and/or Service Apply Herbicide June Aerial 7.50/acre 1.5 pints of 3.23/pint Chemigate June 4.0 pints of 9.23/pint Apply Fungicide June Custom 7.50/acre 2.0 pints of 6.68/pint 0.1 pint of 2.22/pint Weed Field July Contracted hand /acre Apply Herbicide July Aerial 7.50/acre 6 ounces of 1.83/oz. 26 ounces of crop Apply Insecticide/ July Aerial 7.50/acre Fungicide 3.8 ozs. of 2.68/oz. 2.0 lbs. of 3.09/lb. 0.1 pint of 2.22/pint Chemigate August 4.0 pints of 9.23/pint Apply Fungicide August Aerial 7.50/acre 2.0 pints of 6.68/pint 0.1 pint of 2.22/pint Apply Sprout August Aerial 7.50/acre Inhibitor/Fungicide 10.6 pints of maleic 2.41/pint 2.0 lbs. of 3.09/lb. Tape disposal Harvest Onions Haul Onions September per acre September Custom harvest of /ton September Custom haul of /ton Overhead Annual 5% of variable cost 26
30 TABLE 3DRIP. ITEMIZED COST PER ACRE FOR PRODUCING ONIONS, FOLLOWING WHEAT, UNDER DRIP IRRIGATION IN THE COLUMBIA BASIN, WASHINGTON, PRICE OR VALUE OR YOUR UNIT COST/UNIT QUANTITY COST FARM VARIABLE COSTS SOIL TEST ACRE CUSTOM FUMIGATE ACRE METHAM SODIUM GAL DESIGN COST ACRE IRRIGATION ASSEMBLY ACRE DRIP TAPE ACRE CUSTOM FERTILIZE ACRE PRE-PLANT FERTILIZER ACRE FERTIGATE MATERIAL ACRE DRIP LINE CLEANER ACRE ONION SEED ACRE CUSTOM APPLICATION ACRE CUSTOM AERIAL ACRE LIME ACRE GLYPHOSPHATE PINT LORSBAN 15G LB SURFACTANT PINT GOAL OZ BUCTRIL OZ WARRIOR OZ CHLOROTHALONIL PINT VYDATE PINT PROWL PINT SELECT OZ CROP OIL OZ MACOZEB LB MALEIC-HYDRAZIDE PINT CONTRACT WEEDING ACRE WATER CHARGE ACRE WATER MONITOR ACRE ELECTRICAL CHARGE ACRE TAPE DISPOSAL ACRE CUSTOM HARVEST TON CUSTOM HAUL TON MACHINERY REPAIRS ACRE MACHINE FUEL/LUBE ACRE RILL IRRIGA. REPAIR ACRE RILL IRRIGA. LABOR HOUR HAND LABOR HOUR LABOR(TRAC/MACH) HOUR INTEREST ON OP. CAP. ACRE OVERHEAD ACRE TOTAL VARIABLE COST FIXED COSTS MACHINE DEPRECIATION ACRE MACHINE INTEREST ACRE MACHINE INSURANCE ACRE MACHINE TAXES ACRE MANAGEMENT ACRE LAND RENT ACRE TOTAL FIXED COST TOTAL COST
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