Costs of Growing Pecans in the Western US. Richard Heerema Extension Pecan Specialist New Mexico State University
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1 Costs of Growing Pecans in the Western US Richard Heerema Extension Pecan Specialist New Mexico State University
2 Pecans in the West Region mainly characterized by desert. High pecan yields ~2000 lbs/acre (inshell) average.
3 Index ( =100) Prices Paid by Farmers Fertilizer Chemicals Fuels Year Source: USDA NASS (
4 Wages ($/hour) Labor Farm labor is becoming scarcer in the West: Tighter immigration. Oil fields. Growers must often make due with fewer workers. Wages continue to increase now $10-11 per hr plus 25-35% overhead in many western pecan producing areas. July Wages (Field Labor) NM & AZ CA Year Pecan operations in the west are highly mechanized, but still require hrs of labor / acre annually. Source: USDA NASS (
5 Diesel Fuel Diesel fuel powers most orchard equipment gallons per acre annually. Price $3.75/gallon in 2014 season. Total cost in 2014 at least $90/acre. Diesel prices up ~30% since 2010 season.
6 Irrigation Annual Water Needs: 5-6 acre-foot/acre ( million gal/acre) Water Sources: Irrigation District Usually limited to 2-3 acre-ft. Recent years limited to 6 inches or less (!). Historically was the *less* expensive option in some places. But now is ~$150/acre-foot (!)
7 Irrigation Water Sources (continued) Groundwater (aquifer) Supplies some irrigation water on all farms throughout west and all irrigation water on many farms (!) feet below surface. Pumps PUMPING FUEL COSTS account for more than half of irrigation expense for many growers. $4.16/Acre-inch (combined electric & natural gas pumps) Total Water Costs: Pumping costs $ /acre Surface water costs $75/acre
8 Fertilizers: Macronutrients Nitrogen Critical for maintaining nut quality and yields Rates: units/acre N annually Costs: $ /unit ~$ /acre Phosphorus Many growers in the west apply P fertilizers. Rates: units/acre P annually Costs: $0.60/unit ~$30-90 /acre Potassium Rates: lbs/a $0-50/A Total Macronutrients $ /acre total material cost
9 Fertilizers: Micronutrients Zinc Critical for yields. Applied foliarly with air blast sprayer. 5 times every spring lbs zinc sulfate/acre total. Other Micronutrients: Manganese, iron, copper and nickel. Total Micronutrients Costs Material Costs: $ per acre PLUS Application Costs: $10-15/acre
10 Insect Pest Management Pecan Aphids Present throughout the western region Insecticide controls: Closer, Movento, & Lorsban $75-100/acre material costs Pecan Nut Casebearer Present in NM and TX Insecticide controls: Lorsban & Intrepid 1 trt each ($50/acre material) Total Pest Management Costs Material costs: $150/acre PLUS APPLICATION COSTS: $10-15/acre
11 Herbicides Weed Management Historically could rely on only glyphosate (e.g., Roundup) 5 applications is ~$100/acre Now herbicide-resistance means higher glyphosate application rates or use of more expensive herbicides. Examples: Prowl H 2 0 pre-emergent $70/acre (2 apps) Pindar pre & post-emergent $110/acre (2 apps)
12 Harvest & Nut Cleaning Custom Harvest $0.21/lb x 2000 lbs/acre $420/acre Custom Cleaning $0.08/lb x 2000 lbs $160/acre Total harvest and cleaning costs: $580/acre
13 Pruning & Brush Removal Custom Pruning $280/acre pruned x ½ acreage $140/acre Custom Shredding $300/acre pruned x ½ acreage $150/acre Total pruning & brush removal costs: $290/acre
14 Cost of Production ($/acre) Total Cost to Grow Pecans in the West in 2014 VARIABLE COSTS: >$2000 *TOTAL (VARIABLE + FIXED) COSTS of producing pecans in 2014: >$2,600/acre 3000 Cost of Production ( ) *Source: Dr. Jerry Hawkes, NMSU agricultural economist
15 Cost of Production in Mexico Labor $US 140/acre Fertilizer $US 250/acre Water costs $US 190/acre Pesticides $US 170/acre Harvest $US 110/acre Source: Dr. Humberto Nuñez
16 Data from Brian Driscoll (FICO) Cost of Production in South Africa Production Costs $US Labor $US 12/day Water $US 100/acre No cleaning or cold storage
17 Cost of Production in Australia Labor: $US 20/hour Diesel: $US 5.50/gallon Fertilizers: $US 110/Acre Irrigation: $155/Acre Harvest + Cleaning (not custom): $US 350/Acre
18 Thank you for your attention!
19 Cost of Pecan Production in the Southeastern U.S. Lenny Wells UGA Horticulture NPSA 2014
20 # New Orchard Acres Previous Yr. In-Shell Price/Lb Trends in the Georgia Pecan Industry New Acres Planted Previous Yr Pecan Price---Improved Previous Year Pecan Price---All
21 Trends in the Georgia Pecan Industry Percentage of Trees Planted to New Orchards Tree Density Avg. Orchard Size Planted
22 Insect Management Black Aphids and Scorch Mites Heavy pressure from July-September Number of applications and cost of insecticides has gone up
23 Fungicide Resistance Fungicide Resistance Leads to more expensive products & application of higher rates, both of which increase cost
24 Value of Irrigation Water Application (Gal/Day/Acre) Yield/Ac re (lbs) % Increase * 0 0 Value of Increase ($) (@ $2.00/lb) *Non-Irrigated pecan orchards rarely produce >1000 lbs/acre Stuart Daniel, J.W. 1982
25 Costs of Drip Irrigation Most irrigation in the SE uses well water No water quality issues System Parts and Installation: $800 per acre Well & Pump: hp = $ hp = $34,000 Operation Cost: $40-$60 per acre
26 Orchard Establishment Items Units Quantity Price Amount Lime Ton Fertilizer Lbs Zinc Sulfate Lbs Foliar Zn Acre Herbicide Acre Trees Trees Labor Hrs Fuel Gallons Repair/Maintenance Acre Irrigation System* Acre Irrigation Operation Acre Interest *Includes 6 well+pump, materials, installation
27 Variable Cost of SE Pecan Production Items Units Quantity Price Amount Lime Ton Nitrogen Lbs Phosphorous Lbs Potassium Acre Zinc Sulfate Acre Foliar Zn Trees Foliar Boron Hrs Fungicides Acre Herbicides Acre Insecticides Acre Labor Hours Fuel Gal Repairs & Maint. Acre Irrigation Op & Maint Acre Interest Harvest Variable Cost Acre Total
28 Variable Cost of SE Pecan Production Items Units Quantity Price Amount Lime Ton Nitrogen Lbs 125 (-17%) Phosphorous Lbs Potassium Acre Zinc Sulfate Acre 25 (-50%) Foliar Zn Trees Foliar Boron Hrs Fungicides Acre 10 (+25%) 16 (+43.7%) 160 Herbicides Acre 4 (+33%) Insecticides Acre 8 (+33%) (+39%) Labor Hours Fuel Gal (-11%) Repairs & Maint. Acre 1 55 (+8%) 55 Irrigation Acre 1 70 (+7.5%) 70 Interest Harvest Variable Cost Acre Total (+3.9%)
29 Variable Cost of SE Pecan Production Items Units Quantity Price Amount Lime Ton Nitrogen Lbs Phosphorous Lbs Potassium Acre Zinc Sulfate Acre Foliar Zn Trees Foliar Boron Hrs Fungicides Acre 16 (+60%) (+60%) Herbicides Acre Insecticides Acre Labor Hours Fuel Gal Repairs & Maint. Acre Irrigation Acre Interest Harvest Variable Cost Acre Total (+9.5%)
30 Hedging Average Cost=$200/acre Most hedging in SE on 4-5 yr cycle, so: $200 X.25=$40-50/acre/year
31 Net Returns/acre Assumes $ /acre cost
32 Net Returns/acre Assumes $ /acre cost
33 Pecan Production in Brazil
34 Pecan Production Costs in Brazil Rate Price (U.S. $) Amount SE U.S. cost Diff. Nitrogen P & K Fungicide 1 acre X 10 gal Labor Fuel 40 gal Totals
35 Questions?
Total PRODUCTION Units Price Quantity $/Acre Pecans Lbs. $ $ 1, Other Income Acre $ - Total Receipts $ 1,160.00
Irrigated Improved Pecan Enterprise Budget 40 acres farmed. Total PRODUCTION Units Price Quantity $/Acre Pecans Lbs. $ 1.16 1000 $ 1,160.00 Other Income Acre 0 Total Receipts $ 1,160.00 OPERATING INPUTS
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