1992
U.C. COOPERATIVE EXTENSION
SAMPLE COSTS TO PRODUCE ORGANIC WINE GRAPES
IN THE NORTH COAST
With Resident Vegetation
U.C. COOPERATIVE EXTENSION
SAMPLE COSTS TO PRODUCE ORGANIC WINE GRAPES
IN THE NORTH COAST
With Resident Vegetation
- 1992- U.C. Cooperative Extension Overview of Organic Wine Grape Production in the North Coast
- 1992 - U.C. Cooperative Extension Organic Wine Grape Cost and Return Study
- Assumptions For Producing Organic Wine Grapes In The North Coast With Resident Vegetation
- Ordering Information
Prepared by:
Karen Klonsky, Extension Economist, U.C. Davis
Laura Tourte, Postgraduate Researcher, U.C. Davis
Chuck Ingels, Information Analyst, Sustainable Agriculture
Research and Education Program, U.C. Davis
Contributing Authors:
Rachel Elkins, Farm Advisor, Lake County
Pete Livingston, Staff Research Associate, U.C. Davis
Glenn McGourty, Farm Advisor, Mendocino County
Rhonda Smith, Farm Advisor, Sonoma County
Ed Weber, Farm Advisor, Napa County
Cooperating Growers:
Ron Bartolucci, Fetzer Vineyards, Mendocino County
John Clendenen, Preston Vineyards, Sonoma County
Bob Ellis, Mark West Winery, Sonoma County
Mary Hall, Buena Vista Winery & Vineyards, Sonoma County
Clay Shannon, Sutter Home Vineyards and Winery, Lake County
The University of California Cooperative Extension in compliance with the Civil Rights Act of 1964. Title IX of the Education Amendments of 1972, and the Rehabilitation Act of 1973 does not discriminate on the basis of race, creed, religion, color, national origins, or mental or physical handicaps in any of its programs or activities, or with respect to any of its employment practices or procedures. The University of California does not discriminate on the basis of age, ancestry, sexual orientation, marital status, citizenship, medical condition (as defined in section 12926 of the California Government Code) or because the individuals are disabled or Vietnam era veterans. Inquiries regarding this policy may be directed to the Personnel Studies and Affirmative Action Manager, Agriculture and Natural Resources, 2120 University Avenue, University of California, Berkeley, California 94720, (510) 644-4270.
University of California and the United States
Department of Agriculture cooperating.
Return to the top of this document
1992 - U.C. COOPERATIVE EXTENSION
OVERVIEW OF ORGANIC WINE GRAPE PRODUCTION
IN THE NORTH COAST
OVERVIEW OF ORGANIC WINE GRAPE PRODUCTION
IN THE NORTH COAST
Introduction:
Recently, many wine grape growers in the North Coast region
of California have shown an interest in organic agricultural production
techniques. This interest may be influenced by concerns about
long-term soil health and crop viability and such factors as a
desire to decrease the use of pesticides and synthetic fertilizers.
Growers may also view organic production as a marketing tool to
appeal to environmentally conscious consumers.
This overview is meant to guide the reader through topics and issues that are integral to organic wine grape farming. Like conventional farming, there are numerous approaches to farming grapes organically, from vineyard spacing and trellis design to floor management and agricultural inputs. The following is a discussion of common practices and issues related to organic wine grape production.
The first section of this overview describes the seasonal flow of operations for the production of organic wine grapes. Next, the cover crop and pest management sections give greater details of these practices. Finally, the current status of regulations for organically grown grapes and organic wine are discussed.
Production Practices:
Cultural operations often begin each year after harvest with
a postharvest irrigation. Soil amendments are then applied to
vineyard soils where tissue and soil analysis, as well as grower
experience, have shown it to be appropriate. Mined limestone is
commonly applied once every third year in many North Coast vineyards.
This practice helps neutralize soil acidity (where applicable),
adds calcium to soils, improves drainage, soil tilth and the overall
availability of nutrients for crop production. Alternatively,
growers in some areas may apply gypsum to manage soil fertility
and soil nutrient levels. Gypsum adds calcium and sulfur for crop
production and can be used to improve soil tilth with soils high
in sodium. Soils deficient in phosphorus may receive applications
of rock phosphate and/or bone meal. Sulfate of potash may be banded
under the vines each year to boost and maintain potassium levels.
A compost of various materials (including manures and grape pomace)
can be spread either in vine rows and centers or vine rows only
depending upon the amount applied and the purpose of the application.
For example, growers may spread compost in vine rows and centers
to increase soil organic matter throughout the vineyard, stimulate
soil microbial activity and increase overall nutrient levels.
Alternatively, growers may choose to spread compost in vine rows
only as a means of supplying nutrients specifically for crop production.
The above operations are performed in September, October or November
depending upon when harvest occurs. Seeded cover crops are planted
and irrigated up directly after these operations. Alternatively,
if resident vegetation is used as a cover crop, then no specific
seeding operations or cover crop irrigation is performed.
Vineyard pruning takes place in December, January and February. Vine training wires are moved downward during pruning operations to prepare the trellis system for the new year's growth. This is included as an operational cost for pruning. The timing of pruning operations is critical; early pruning causes wounds to be more susceptible to Eutypa dieback (Eutypa lata) if rains should occur in December and also may expose spurs and canes to freeze damage following a mild fall, especially in the northern mountain areas. Prunings are thrown into the centers and shredded and chopped with a mower/chopper. This practice is performed either immediately after pruning or later in the season in conjunction with spring mowing, depending on vineyard floor management practices.
A dormant spray of lime sulfur may be applied in January in some vineyards. This practice can help decrease disease and insect pressures from powdery mildew (Uncinula necator), mite pests and overwintering insects within the vineyard. One trade-off, however, is that lime sulfur applications usually increase mortality rates for predaceous mites. The use of lime sulfur is therefore not a common practice among many organic growers, but might be used as an alternative pest control measure following years with severe pest pressure.
Powdery mildew is controlled by multiple applications of sulfur in the spring and summer months. In general, and depending on management technique, a wettable sulfur is applied with an air blast sprayer every 7 to 14 days beginning mid to late March when growth is between budbreak and two inches. Alternatively, some growers may choose to apply dusting sulfur with a duster during this time. Later in the season, however, most growers will apply dusting sulfur to vines every 7 to 14 days to speed operations, decrease costs and increase the material's effective coverage. Grower experience indicates that sulfur dust applications may also increase mortality rates for predaceous mites.
Frost protection can be accomplished by either overhead sprinklers
or wind machines. When vines are irrigated with drip irrigation,
frost protection by either method represents an additional investment.
Substantial variation exists among the counties in the number
of nights per year that frost protection is necessary. The following
table lists the average frost protection requirements by overhead
sprinklers among the North Coast counties.
| County | Nights/Year | Hours/Night |
| Lake | 12-18 | 8 |
| Mendocino | 10 | 6 |
| Napa | 6 | 6 |
| Sonoma | 6 | 6 |
Hand vine care, which takes place from April through July, includes a number of operations. Shoot thinning and suckering (removal of water sprouts), takes place in April and May. Vine training wires are moved three times (in April, May and June or May, June and July depending on the vineyard location) to support and accommodate vine and grape growth. Leaf removal is performed after bloom and fruit-set to help control bunch rot (Botrytis cinerea) and possibly decrease leafhopper populations.
The delivery method and the amount of water applied to vines may vary from county to county and vineyard to vineyard. Water is generally applied to vines from May through August. Most of the water is applied early to mid season, with less applied closer to harvest. Total applied water will be dependent on seasonal rains, rooting depth, the amount of moisture stored in the soil profile and how vineyard floor vegetation is managed. Also, soils with increased levels of organic matter may be better able to retain moisture and therefore decrease the amount of applied water.
Harvesting may be done by hand or by machine depending on the vineyard design. Generally, a custom operator manages the harvest. Depending on the county, grape variety and the yearly conditions, harvest can take place over the period of late August through mid November.
Yields of organically grown and conventionally produced wine grapes
are similar, and can range from approximately three to nine tons
per acre. Yields will vary depending on a number of factors including
the vineyard design, grape variety, vineyard age, county of production
and yearly growing conditions. Average yields for all grape production
are shown for the various counties in the following table.
| Average Yields for all Grape Production in the North Coast* Average Yields (tons/ac) | ||
| County | White | Red |
| Lake | 5.90 | 4.50 |
| Mendocino | 5.07 | 4.09 |
| Napa | 4.81 | 4.44 |
| Sonoma | 5.54 | 4.42 |
| *Source: Final Grape Crush Report 1991 Crop | ||
Commodities that are produced organically can often be sold for
a higher price than conventionally grown products. However, few
pricing premiums for organic wine grapes currently exist. Therefore,
grower returns for both organic and conventional wine grapes are
usually the same, and can range from approximately $300 to $1,700
per ton depending on the grape variety and quality, county of
production and current market conditions. Average returns for
white and red varieties are shown for the various counties in
the following table.
| Average Value for all North Coast Wine Grapes* Average Returns ($/ton) | ||
| County | White | Red |
| Lake | 773 | 783 |
| Mendocino | 839 | 707 |
| Napa | 1,199 | 1,257 |
| Sonoma | 1,034 | 990 |
| *Source: Final Grape Crush Report 1991 Crop | ||
Cover Crops:
Cover crops can be beneficial for the production of organic
wine grapes in a number of ways. If leguminous cover crops are
used, soil nitrogen may be increased through nitrogen fixation.
Water penetration and infiltration may be improved by root growth
of the cover crop and by returning organic matter to soils. Microbial
activity, often stimulated by cover crop root exudates and organic
matter additions to soils, has been shown to promote soil aggregate
stability. Microbes also enhance the decomposition process by
breaking down organic matter and releasing nutrients in a form
that crops can more readily use. Increased organic matter can
also improve the soil's ability to retain moisture. Hilly North
Coast vineyards with substantial bare ground may benefit from
planting cover crops to help control erosion. Cover crops increase
the plant diversity of the vineyard and can provide nectar to
attract and sustain beneficial arthropods (insects, spiders, and
predatory mites). Cover crops can also reduce dust problems in
vineyard systems which in turn can help reduce spider mite pests.
Weed suppression may be another direct benefit of cover cropping
depending on the species or mix selected. Lastly, farm machinery
may be able to enter vineyards earlier and later in the season
in situations where a cover crop's (especially perennial cover
crops) mat of root and vegetative growth provides support on wet
soil. This may also serve to reduce soil compaction.
There may also be some disadvantages with using cover crops in vineyards. Cover crops increase cash costs for seed and labor, and may require the rental or purchase of additional farm machinery. Competition between vines and cover crops may increase the need for additional inputs such as water and nutrients. This should be taken into consideration because water may be in short supply in some North Coast vineyards. Some growers, however, view the cost of planting and maintaining a cover crop as the cost of producing nitrogen and/or improving soil quality for the long-term. Vine row cover crops, which are sometimes used to suppress weeds in notill systems, may provide a habitat for vertebrate pests which can damage vines. Cover crops may also attract arthropod pests to the vineyard. Another disadvantage of cover cropping may be that air and soil temperatures are lowered by substantial vegetative growth on the vineyard floor. This could increase the possibility of frost damage. Cover crops are often closely mowed or disced under during critical frost periods to overcome this problem. Reduced soil and air temperatures may also delay bud break.
Selection of a particular cover crop species should take into account the yearly production cycle of the vine crop as well as the climate, which dictates the planting time and winter cold tolerance of the cover crop. Also, growers should select cover crops for the specific needs of a vineyard. For example, if soil nitrogen is in short supply, then a leguminous cover crop may be preferred. If, however, increased soil organic matter is desired, then a cover crop that includes legumes, grasses and other species for biomass production may be the best alternative. In addition, the soil type and the irrigation system should be taken into consideration. Growers in some areas may find that certain cover crop species and mixes are not suitable for their soils and conditions. Often, the most suitable cover crop in each situation is determined by observation and experimentation over a period of years.
In this production region several different legumes, perennial grasses, and annual grasses are commonly planted as cover crops. Alternatively, resident vegetation is often managed as a cover crop. There are a number of options for managing annually sown cover crops. If sown in the fall, the cover crop is generally irrigated up with one to three inches of water depending on the planting date, the amount of moisture stored in the soil profile and seasonal rains. After this time, cover crop growth is often dependent on fall and winter rains. In years when sufficient soil moisture exists and/or early fall rains occur, no irrigation for cover crop germination may be necessary. Also, vineyards without overhead sprinkler systems generally rely on fall rains for cover crop germination.
In the spring months management practices for annually sown cover crops depend upon grower preference and the needs of the vineyard. For example, some growers will mow the cover crop and incorporate the residue by discing to reduce competition between the cover crop and vines for water and nutrients. This practice is also performed to speed decomposition of the vegetation and recycling of nutrients. As an alternative after the initial cover crop mowing, the residue may be left on the soil surface to decompose more slowly. This practice is often preferred by those growers whose goal is to minimize tillage operations and improve soil tilth and structure for the long-term. Growers may then disc or mow periodically during the summer to keep vineyard floors free of vegetative growth, or plant a summer annual cover crop to maintain a diverse habitat within the vineyard. Costs will vary accordingly.
Some growers may use yet another strategy for managing annually sown cover crops. In this case, only a portion of the rows of the cover crop are mowed initially to reduce some of the above ground biomass. The remaining cover crop rows will continue to provide sufficient habitat to sustain beneficial insect populations that are already present in the vineyard. Grower experience indicates that the number of insect pests that move to the vines may be reduced when a portion of the cover crop remains. With regrowth of the cover crop in the mowed rows, the remaining (unmowed) rows are then mowed and disced. Therefore, a portion of the cover crop will remain growing in the vineyard for a longer period of time as an insect attractant. The disced rows may be left bare or reseeded with a summer annual cover crop depending on the management practices and the availability of water. Later in the season or after germination and growth of the planted summer cover crop occur, the remainder of the winter sown cover crop will generally be mowed and disced under. Periodic discings may be performed in these rows during the summer months.
Fall irrigation is generally unnecessary when resident vegetation
is managed as a cover crop. Growth of this cover crop is dependent
on moisture in the soil profile from fall and winter rains. No
tillage operations are generally performed in the spring to incorporate
vegetative growth, however resident vegetation is mowed periodically
in the spring and summer months to reduce the above ground biomass.
In the warmer summer months resident vegetation dies back; little
or no management is therefore required during this time. However,
overall vineyard irrigation requirements are increased because
of competition between the vegetation and the vine growth. Alternatively,
resident vegetation may be handled similarly to a planted cover
crop in that it is disced in the spring.
Pest Management:
Most pesticides that are currently used by producers of conventionally
grown wine grapes are not approved for use by organic wine grape
growers. Sulfur is a notable exception. In general, pest control
products used by organic growers are not as effective for immediate
or acute problems as are those products used by conventional growers.
The cost for some organically acceptable pest control methods
may also be prohibitive for some growers. Therefore, vineyard
monitoring, pest identification and pest prevention are essential
elements of successful organic wine grape production.
The incidence of certain diseases such as bunch rot and powdery mildew can be increased by moist, humid weather and spring and fall rains. Bunch rot can often be decreased by removing leaves around grape clusters after bloom and fruit-set to open the vine canopy to sunlight and increase air circulation. Vineyard leaf removal is generally performed one time only, however, in years with increased bunch rot incidence, a second leaf removal operation may be necessary. The incidence of powdery mildew is lessened with sulfur applications. In spite of the potentially greater disease incidence in organic vineyards, yields for organic wine grapes in the North Coast are generally equal to those in conventional culture.
Leafhopper and mite problems may be lessened with applications of insecticidal soap and pyrethrin. Insecticidal soaps are derived from plant oils or animal fats and are allowed for use by organic growers. Pyrethrin is considered a botanical pesticide, or a pesticide derived from a naturally occurring plant source. Therefore, it is an acceptable method of insect control in organic farming in California, provided it does not contain the synergist piperonyl butoxide. A soap/pyrethrin mix may be applied one time only in late spring or early summer when temperatures, and thus insect activity, increase. However, many organic growers use pyrethrin and/or soap on a limited basis or as an emergency pest control measure only. For one reason, grower experience indicates that pyrethrin use will decrease the number of predatory mites and beneficial insects in the vineyard. The exact application rate and the number of acres treated will depend on the vineyard location and the extensiveness of pest infestations. Leafhopper populations may also be lessened when leaf removal operations are performed, as some nymphs (young leafhoppers) will be removed at the same time. Also, coverage by the pyrethrin and/or soap spray in the fruit zone will be greater when the vine canopy is opened. Growers should be certain that any materials used are in compliance with the rules and regulations of state and third party organic certification agencies. (Refer to the Regulations of Organically Grown Commodities section.)
Many beneficial arthropods, such as parasites and predators, occur naturally within organic vineyards. When the parasitic wasp, Anagrus epos, is present in vineyards, it can be helpful in controlling the grape leafhopper (Erythroneura elegantula). However, A. epos requires an overwintering habitat with alternate hosts to survive in or near vineyards on a year-round basis. Research indicates that refuges, which can occur naturally (wild blackberries) or are planted (prune trees), harbor alternate host leafhoppers and may therefore attract and sustain this parasitic wasp during the winter. When these plants are growing in or near the vineyard, parasite activity will usually be higher earlier in the spring. It should be noted that blackberries and other plant species growing in neighboring riparian areas can also serve as a host to sharpshooter leafhoppers, which are vectors of Pierce's Disease. Predaceous arthropods such as spiders, lacewings, and lady beetles can also lessen overall insect pest damage within the vineyard and should therefore be encouraged to proliferate by providing an appropriate habitat (cover crops) and avoiding insect and dormant sprays whenever possible.
Vineyard weeds are most often controlled by discing or mowing
centers and by cultivation with a French plow (or a comparable
implement) in the vine rows. Hand weeding is often used in addition
to mechanical cultivations as a means of vine row weed control.
The number of mechanical cultivations, mowings and/or hand weedings
may vary among growers. Therefore, production costs may also vary.
Some growers are currently using or experimenting with flame weed
control in the vine rows. Weeds are not actually burned back;
the plant's cells burst upon exposure to the high temperatures
a flame weeder produces. This practice essentially kills and eliminates
the targeted plants. A few growers are also testing the "mow
and move" approach, where cover crop clippings are deposited
under the vine row to suppress weed growth.
Regulations of Organically Grown Commodities:
As of January 1, 1992 all growers of organic commodities must
register on a yearly basis with the State of California under
the California Organic Foods Act of 1990, AB 2012. Enforced under
this act are the provisions of Article 4.5 (commencing with Section
26569.20) of Chapter 5 of Division 21 of the California Health
and Safety Code. These provisions contain rules and regulations
which must be adhered to by all producers and handlers of organic
commodities. State law requires that growers follow the necessary
guidelines for at least 12 months prior to becoming organic. State
registration fees are levied based on the previous year's gross
sales. Fees are payable before any sales of the commodity occur.
In addition to state registration, some growers may choose to be certified by a third party certification agency. Third party agencies were formed to set forth and monitor standards for organic production. Before state laws began to govern organic commodities, third party agencies were often the only means to verify that products were, in fact, organically grown. Third party organizations must adhere to all state laws regulating organic commodities, and in addition may enforce standards and procedures specific to their own agencies. Differences between organizations may also occur in the certification process and the associated costs. Farm advisors in your area of interest may be able to provide additional information or assistance.
California Certified Organic Farmers (CCOF) is one of a number of third party organizations in the United States which can certify organic growers within the State of California. CCOF adheres to the standards of the California Organic Foods Act of 1990 as well as its own procedures and standards. Certification by CCOF is voluntary. CCOF currently requires a three year transition period when converting from conventional production practices to organically acceptable methods.
On October 1, 1993, the federal Organic Foods Production Act of 1990 was to become effective. However, due to budget constraints, implementation of the law will be delayed for at least one year. When implemented, the act will regulate all organic commodities on the national level and will preempt state law where state law is less stringent than federal law. The Secretary of Agriculture has appointed a National Organic Standards Board (NOSB) to make recommendations for implementing the law, including the compilation of a national materials list. This list will indicate which agricultural materials are permissible and which are prohibited in organic agriculture on the national level. The original directive of the Organic Foods Production Act stated that organic growers did not need to register on the federal level. Growers were, however, to be certified by a third party certification agency or a state agency. This requirement was to be different from, and in addition to, California state registration. Because of budget cuts and implementation changes, organic grower's registration requirements may be different than the original directive when the law is finally enacted. Therefore, organic growers and other interested parties should use this information as a guideline only. To comply with the federal law in its current form, growers making the change from conventional to organic must complete a three year transitional period. This means that growers within California must already be in transition to be certified organic on the federal level by the law's anticipated implementation in 1994.
Organic Production Versus Organic Processing:
California has seen a substantial increase in acreage dedicated
to the production of organic wine grapes in the last two years.
In 1990 CCOF reported that wine grape acreage certified organic
or pending certification totaled 5,816 acres. By 1991 this figure
had increased to 10,120. Because this figure does not necessarily
include all state registered growers, it may represent only a
portion of the total organic acreage. However, it is the only
data currently available.
California currently follows the standards and guidelines of the Organic Foods Act of 1990 to regulate processed organic products, including organic wine. At issue in the winemaking process is the matter of naturally occurring versus added sulfites. Sulfites are naturally produced at extremely low levels during the wine fermentation process (generally 10 parts per millions (ppm) or less). Also, sulfites are normally added during wine processing to decrease the risk of oxidation and microbial spoilage. Under the California Organic Foods Act of 1990, sulfite additives are prohibited. Therefore, wines with added sulfites may not be labeled organic by California state law regardless of whether or not the wine grapes used in processing were organically grown. However, these wines may claim to be processed from organically grown wine grapes. When no sulfites are added, but do occur naturally, wines may be labeled organic under California state law provided all regulations governing organic commodities are adhered to and that 100% organically grown wine grapes are used. Organic wines currently represent only a very small segment of the market.
In addition to state rules and regulations, the United States Bureau of Alcohol, Tobacco, and Firearms (BATF) mandates that any wine that contains greater than 10 ppm sulfites be labeled as a product that contains sulfites. The maximum level of sulfites currently allowed in any wine by the BATF is 350 ppm.
An organization of wine grape growers, winemakers, distributors,
and wholesalers, the Organic Grapes Into Wine Alliance, is currently
addressing the issue of organic wine standards on the federal
level with the NOSB. The alliance would like to develop a standard
definition of organic wine, and to develop minimum standards by
which organic wines can be processed, including the limitation
and regulation of sulfites. Federal standards for processed organic
foods and wines are targeted for enactment in late 1994. It is
not yet clear how this will ultimately affect California legislation
governing organic wines. However, the alliance hopes that eventually
standards will be initiated on both state and federal levels which
are in alignment with international regulations, thus enabling
trade throughout the United States and the world.
Return to the top of this document
1992 - U.C. COOPERATIVE EXTENSION
ORGANIC WINE GRAPE COST AND RETURNS STUDY
ORGANIC WINE GRAPE COST AND RETURNS STUDY
General Information
The practices described for the hypothetical organic vineyard
used in this report are considered common for wine grapes in the
North Coast. Sample costs given for labor, materials, equipment
and contract services are based on 1992 prices. The use of trade
names is not an endorsement or a recommendation. A blank Your
Cost column is provided to enter your actual costs on Table 1 Costs Per Acre to Produce Organic Wine Grapes Operations and Table 2 Detail of Costs Per Acre To Produce Organic Wine Grapes Inputs.
Some costs and practices detailed in this study may not be applicable
to your situation. This study is only intended as a guide and
can be used in making production decisions, determining potential
returns, preparing budgets and evaluating production loans.
This report consists of the set of Assumptions For Producing Organic Wine Grapes and six tables.
Table 1. Costs Per Acre To Produce Organic Wine Grapes - Operations
Table 2. Detail of Costs Per Acre To Produce Organic Wine Grapes - Inputs
Table 3. Monthly Cash Costs Per Acre To Produce Organic Wine Grapes
Table 4. Annual Equipment, Investment And Business Overhead Costs
For Organic Wine Grape Production
Table 5. Hourly Equipment Costs For Organic Wine Grape Production
Table 6. Ranging Analysis
For an explanation of calculations used for the study refer
to the attached assumptions, call the Department of Agricultural
Economics, Cooperative Extension, University of California, Davis,
California, (916) 752-9376 or call the farm advisor in the county
of interest.
A second cost study entitled "Sample Costs To Produce Organic Wine Grapes In The North Coast With An Annually Sown Cover Crop" is also available in conjunction with, or as an alternative to, this report.
A companion study entitled "Sample Costs To Establish A Vineyard And Produce Wine Grapes In Sonoma County - 1992" is available for those interested in vineyard establishment costs and for production costs of conventionally grown wine grapes.
The above studies can be requested through the Department of Agricultural
Economics, U.C. Davis, or from selected county Cooperative Extension
offices.
The University of California Cooperative Extension in compliance with the Civil Rights Act of 1964. Title IX of the Education Amendments of 1972, and the Rehabilitation Act of 1973 does not discriminate on the basis of race, creed, religion, color, national origins, or mental or physical handicaps in any of its programs or activities, or with respect to any of its employment practices or procedures. The University of California does not discriminate on the basis of age, ancestry, sexual orientation, marital status, citizenship, medical condition (as defined in section 12926 of the California Government Code) or because the individuals are disabled or Vietnam era veterans. Inquiries regarding this policy may be directed to the Personnel Studies and Affirmative Action Manager, Agriculture and Natural Resources, 2120 University Avenue, University of California, Berkeley, California 94720, (510) 644-4270.
University of California and the United States
Department of Agriculture cooperating.
Assumptions For Producing
Organic Wine Grapes
In The North Coast
With Resident Vegetation
In The North Coast
With Resident Vegetation
This study reflects the practices and costs associated with a production system for organically grown wine grapes in the North Coast region of California. While every effort is made to model a production system based on real world practices, this report cannot fully represent the costs and practices that are specific to each vineyard, or the variations that exist between the four counties which comprise this region. Therefore, this study should be interpreted as a representative operation and not as a statistical average.
The vineyard in this report is assumed to have been established as a conventional vineyard for wine grape production. It is considered to have completed the transition period and is registered and certified as organic. Changing a farming system from conventional to organic practices requires a transition period. State and third party certification agency rules and regulations which are specific to organic commodities must be adhered to during this time period. Crops grown in transition years may not be sold or labeled as organic. Commodities that are produced organically can often be sold for a higher price than conventionally grown products. However, few pricing premiums for organic wine grapes currently exist.
The following is a description of general assumptions pertaining to sample costs for organic wine grape production with resident vegetation in the North Coast region. The costs are based on common practices used by local growers and may not be applicable to all situations. Production practices and vineyard management techniques are generally individualized to meet the specific needs of each grower. These costs are represented on an annual per acre basis.
1. LAND:
The total vineyard size is 37 acres. Land is owned by the
grower and is valued at $13,000 per acre. This figure is within
the low and high ranges of values for undeveloped land with vineyard
potential for the four counties that comprise this region. Land
costs per acre will vary within the region and within each county.
Land is not depreciated. Land is assumed to be level, with
well drained soils of moderate depth and fertility. The following
table shows the range of values for land suitable for vineyards
in each county.
| Range of Vineyard Land Values in the North Coast Counties* | |
| County | Land Value Ranges ($/ac) |
| Lake | 4,000-5,500 |
| Mendocino | 6,000-7,000 |
| Napa | 17,000-30,000 |
| Sonoma | 10,000-25,000 |
| *Source: Thomas Jordan, Associated Service Appraisal Partners, Napa, Ca. | |
2. VINEYARD ESTABLISHMENT:
The establishment cost is the sum of the costs for the land preparation,
trellis system, planting, vines, cash overhead and production
expenses for growing the vines through the first year that grapes
are harvested (year three). The vineyard establishment cost is
used to determine the non-cash overhead expenses, depreciation
and interest on investment during the production years. (For more
detailed information on this cost refer to the companion study
Sample Costs To Establish A Vineyard And Produce Wine Grapes
In Sonoma County - 1992).
3. VINES:
Grape variety is not specified in this study. Vines are planted
on a 7' x 11' spacing with 566 vines per acre. Vines are cordon
trained and spur pruned. The vineyard life is assumed to be 22
years beyond three establishment years.
4. TRELLIS SYSTEM:
A vertical shoot positioned trellis is utilized with a five
wire design; a lower, or fruiting wire, and two pair of movable
wires above. Wires are attached to lodgepoles which are placed
at every fourth vine. The drip irrigation line is attached to
the permanent (lower) wire. The movable wires are adjusted three
times (May, June and July) during the growing season to accommodate
vine and grape growth.
5. DRIP IRRIGATION:
Water for the drip irrigation system is pumped from a depth
of 150 feet in a 200 foot well using a 10 horsepower (hp) pump.
Pressure at the discharge head is 35 pounds per square inch (psi)
and produces a flow of 125 gallons per minute (gpm). The cost
for the drip irrigation system includes the 10 hp pump, the filtration
system, all drip lines, emitters and labor charges for installation.
In addition, 100% of the cost to refurbish the well is included
in the cost of the drip irrigation system. The irrigation system
has a 25 year lifespan, is an improvement to the property, and
is therefore included in Table 4 as
an investment.
The amount of drip irrigation water applied for crop growth is assumed to be 400 gallons per vine per year or approximately two-thirds of an acre-foot per acre. The amount of water applied through the drip system to irrigate the vines relates to the vineyard floor management practices. Resident vegetation will complete with vines for soil moisture. Therefore, additional water must be applied to vines. (See the cover crop section below). The pumping cost for irrigation water is estimated at $23.40 per acre-foot. This vineyard is irrigated with the drip system between May and August.
6. OVERHEAD SPRINKLERS/FROST PROTECTION:
In this study, an overhead sprinkler system is used for frost
protection and for postharvest irrigation. The entire system consists
of a 20 acre-foot reservoir, a 1500 gpm pump powered by a diesel
engine, a permanent underground pipeline, and solid set sprinklers.
Water for the indicated operation is pumped from the well into
the reservoir and stored there until needed. This system has an
expected 25 year life, is considered an improvement to the property,
and is therefore included as an investment in Table 4.
Three inches of water per acre is applied for the postharvest irrigation. Frost protection is assumed to be necessary 12 nights per year at six hours per night. Each frost protection application is equal to approximately one-half inch of water per night per acre. Frost protection takes place over the period from March through May. Annual water application through this system on all 37 acres is 19.70 acre-feet total for the postharvest irrigation and for frost protection. The cost of the water for overhead sprinkler operations is $51.00 per acre-foot. The cost difference between water for drip irrigation and for sprinklers is due to the extra pumping required to move the water from the reservoir through the overhead sprinklers. These figures are within a range of use and costs for the North Coast and will vary among the counties.
7. YIELD & RETURN RANGES FOR ORGANIC WINE GRAPES:
For the hypothetical vineyard in this study no pricing premium
is assumed. Net returns above total costs are positive at a price
for grapes of $1,000 per ton when yields reach 4.25 tons per acre.
For prices at or below $500 per ton and for yields at or below
9 tons per acre, it is not profitable to produce organic wine
grapes. At a high price of $1,700 per ton, the breakeven yield
is 2.4 tons per acre. A ranging analysis for varying yields and
prices is shown in Table 6.
8. PRODUCTION PRACTICES:
Production practices in this study are listed in Table 1.
This table shows the order in which the operations are performed,
as well as the hours per acre required for each operation. Labor
and custom rates, material and fuel and repair costs are also
included in this table. In addition, Table 3 shows
the monthly cash costs and sequence of operations.
To increase soil tilth, fertility, and nutrient availability,
some soil amendments are applied to the organic vineyard analyzed
in this study, as shown in the following table. Soil amendments
are added if warranted by appropriate tissue and soil sampling.
Chart not available
9. COVER CROPS:
In this study, resident vegetation is managed as the cover
crop. No yearly planting or irrigation to germinate the cover
crop is required. Resident vegetation is often dominated by grasses,
mustards and malva, but can include other broadleaf plants. The
cover crop is mowed three times yearly in April, May and June
to control flushes of weed growth. Because resident vegetation
dies back in the warm summer months, little or no management is
needed during this time.
10. PEST MANAGEMENT:
The incidence of disease, as well as invertebrate and vertebrate
pest damage is assumed to be low. However, some treatments are
commonly used to minimize pest damage. The following table indicates
the pest management techniques used in this study.
Chart not available
Because many beneficial arthropods occur naturally within organic vineyards, costs for release or augmentation of parasites and predators are not considered in this study. Weeds in the vineyard centers are controlled by discing. A French plow is used to cultivate vine row weeds. Hand weeding is used in the vine rows in addition to mechanical cultivations. No other means of weed control are used in this report.
11. HARVEST:
Harvest operations are performed by a custom operator at a
cost of $120 per ton. This rate reflects the cost for hand harvesting.
This study assumes that harvest takes place in the month of September.
For more information on custom harvesting contact the farm advisor or companies contracting for grapes in the area of interest. If growers choose to do their own harvesting, equipment for the required operations should be inventoried and labor, fuel, repairs, depreciation and interest on investment should be added as a cost of production to Tables 1 and 3. Custom charges, then, would not be included.
12. LABOR:
Basic hourly wages for workers are $8.00 and $6.00 per hour
for machine operators and field workers, respectively. Adding
34% for SDI, FICA, insurance and other benefits increases the
labor rates shown to $10.72 per hour for machine labor and $8.04
per hour for non-machine labor. The labor hours for operations
involving machinery are 20% higher than operation time to account
for extra labor involved in equipment set-up, moving, maintenance
and repair. Wages for managers are not included as a cash cost.
Any returns above total costs are considered returns to management
and risk.
13. INVESTMENT:
The investments shown in Table 4 are
those that are allocated to the entire vineyard. The totals in
Table 4 are used for the costs in
Tables 2, 4
and 6. Annual investments
shown in Table 1 represent depreciation
and opportunity cost for each investment on an annual per acre
basis.
14. BUSINESS OVERHEAD:
County taxes are calculated as 1% of the average value of equipment,
buildings and improvements. Property insurance is charged at 0.5%
of the average value of all assets over their useful life. Liability
insurance covers accidents on the farm and costs $300 per year.
Office and business costs are estimated at $250 per acre for the
farm. These expenses include office supplies, telephones, bookkeeping,
accounting, legal fees, road preparation and maintenance. Leaf
and soil analyses are included at $4 per acre.
15. ASSESSMENTS:
In this study, a stepped scale organic grower's registration
fee of $300 is assessed by the State of California on the gross
sales amount of $175,750. The fee is calculated by multiplying
the yield (4.75 tons per acre) by the price received ($1,000 per
ton) and the number of acres (37). This is only an estimate of
potential fees and will vary depending on yields and returns.
Contact the County Agricultural Commissioner in your area for
further details.
The grower is assumed to be certified by California Certified Organic Farmers (CCOF). CCOF adheres to the standards of the California Organic Foods Act of 1990 as well as its own specific procedures and standards. Certification by CCOF is voluntary. Before January 1, 1992, CCOF required a one year transition period when converting from conventional production practices to organically acceptable methods. The requirement is now three years. Annual membership fees are $125. Inspection fees are $115. An assessment fee of 0.5% of gross sales, or $879, is included as a cost of production. These fees are specific to this study. Fees are based on the number of acres and parcels contained in an operation as well as whether or not the farm is totally organic. Therefore, individual situations may vary.
16. INTEREST:
Interest on operating capital is based on a short term interest
rate charged against cash costs and is calculated monthly until
harvest at a nominal interest rate of 9% per year. Interest is
also charged on investment at a real interest rate of 4% per year
to account for income foregone that could be received from an
alternative investment (opportunity cost) and is calculated using
a long term interest rate charged on the average value of the
land, improvements to the property and equipment. A real interest
rate indicates the return for the use of capital and does not
include any adjustment for inflation. A nominal interest rate
would include an inflation factor.
17. EQUIPMENT COSTS:
In allocating the equipment costs per acre, the following
calculations were made and shown in Table 5:
(a) Original Cost of equipment is the cost of the new equipment
plus sales tax. (b) Depreciation is straight line with
a 10% salvage value. (c) Interest on investment is calculated
as the average value per acre of the equipment during its useful
life multiplied by a real interest rate of 4%. Average value per
acre equals new cost plus salvage value divided by 2 then divided
by the number of acres. (d) The Total Investment Costs
are calculated as 60% of the depreciation and the interest costs
for all new equipment to reflect a mix of the new and used equipment.
These values are also used in Table 1,
4, and 6.
All of this equipment is used on the entire 37 acre vineyard.
18. FUEL & REPAIR:
The fuel and repair cost per acre for each operation in Table 1 is
determined by multiplying the total hourly operating cost for
each piece of equipment in Table 5 by
the number of hours per acre for that operation. Prices for on-farm
delivery of gasoline and diesel are $0.98 and $0.71 per gallon,
respectively.
19. ACKNOWLEDGEMENT:
Several organic wine grape producers assisted in furnishing
information for this study. Appreciation is expressed to those
growers and other individuals who provided assistance.
This study was funded by the University of California's Sustainable
Agriculture Research and Education Program (SAREP) and Giannini
Foundation.
Return to the top of this document
REFERENCES
1. California Agricultural Statistics Service. 1992. Final
Grape
Crush Report 1991 Crop. Sacramento, California.
2. California Certified Organic Farmers, Inc. (CCOF). 1992. California
Certified Organic Farmers 1992 Handbook. agAccess.
Davis, California.
3. Debach, P. and D. Rosen. 1991. Biological control by natural
enemies. Cambridge University Press. Cambridge, U.K.
4. Finch, Clarence U. and W. Curtis Sharp. 1976. Cover Crops
in California
Orchards & Vineyards. USDA Soil Conservation Service.
5. Flint, Mary Louise. 1990. Pests of the Garden and Small
Farm.
A Grower's Guide to Using Less Pesticide. University of
California, Statewide Integrated Pest Management Project,
Division of Agriculture and Natural Resources. Publication 3332.
6. Integrated Pest Management Education and Publications. 1991.
U.C. IPM Pest Management Guidelines. University of California,
Statewide Integrated Pest Management Project, Division of
Agriculture and Natural Resources. Publication 3339.
7. Miller, P.R., et al. 1989. Covercrops for California Agriculture.
University of California, Division of Agriculture and Natural
Resources. Leaflet 21471.
8. Vaupel, Suzanne. 1992. What a Farmer Needs to Know. A Summary
of
California & Federal Organic Production Laws. Suzanne
Vaupel, Vaupel Associates. Sacramento, California.
Return to the top of this document
Table 1
U.C. COOPERATIVE EXTENSION
COSTS PER ACRE TO PRODUCE ORGANIC WINE GRAPES - 1992 - OPERATIONS
WITH RESIDENT VEGETATION
Labor Rate: $ 10.72/hr. machine labor Interest Rate: 9.00%
$ 8.04/hr. non-machine labor Yield per Acre: 4.75 ton
====================================================================================================================================
Operation ---------------------- Cash and Labor Costs per Acre -----------------------
Time Labor Fuel & Material Custom/ Total Your
Operation (Hrs/A) Cost Repairs Cost Rent Cost Cost
------------------------------------------------------------------------------------------------------------------------------------
Cultural:
Postharvest Irrigation 0.40 3.22 0.00 8.70 0.00 11.92
Lime Application - 1 of 3 years 0.00 0.00 0.00 36.47 10.00 46.47
Potassium Application 1.00 36.98 4.29 48.75 0.00 90.03
Compost Application 0.00 0.00 0.00 75.08 10.00 85.08
Pruning 19.99 160.72 0.00 0.00 0.00 160.72
Chop Brush/Mow Centers 0.65 8.36 3.82 0.00 0.00 12.18
Frost Protection 1.92 15.44 0.00 17.40 0.00 32.84
Sulfur Application - 9X 1.95 25.08 11.92 12.51 0.00 49.51
Thin Shoots/Sucker* 40.00 321.60 0.00 0.00 0.00 321.60
Mow - 3X 1.50 19.30 8.82 0.00 0.00 28.11
Under Vine Weeds - Cultivate 1.00 12.86 5.34 0.00 0.00 18.21
Move Wires 9.00 72.36 0.00 0.00 0.00 72.36
Under Vine Weeds - Hand Hoe 2X** 8.00 64.32 0.00 0.00 0.00 64.32
Irrigation 5.28 42.45 0.00 15.60 0.00 58.05
Leaf Removal*** 27.00 217.08 0.00 0.00 0.00 217.08
Soap/Pyrethrin Application 1/3 of Acreage 0.08 1.03 0.53 16.92 0.00 18.48
Pickup Use 7.75 99.70 35.06 0.00 0.00 134.76
---------- ---------- ---------- ---------- ---------- ----------
TOTAL CULTURAL COSTS 125.52 1100.50 69.78 231.43 20.00 1421.72
------------------------------------------------------------------------------------------------------------------------------------
Harvest:
Harvest - Contract 0.00 0.00 0.00 0.00 570.00 570.00
---------- ---------- ---------- ---------- ---------- ----------
TOTAL HARVEST COSTS 0.00 0.00 0.00 0.00 570.00 570.00
------------------------------------------------------------------------------------------------------------------------------------
Assessments:
Ca. State Organic Registration Fees 0.00 0.00 0.00 8.11 0.00 8.11
CCOF Inspection Fees 0.00 0.00 0.00 3.11 0.00 3.11
CCOF Membership Fees 0.00 0.00 0.00 3.38 0.00 3.38
CCOF .5% of Gross Sales 0.00 0.00 0.00 23.75 0.00 23.75
---------- ---------- ---------- ---------- ---------- ----------
TOTAL ASSESSMENT COSTS 0.00 0.00 0.00 38.35 0.00 38.35
------------------------------------------------------------------------------------------------------------------------------------
Interest on operating capital @ 9.00% 69.55
------------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING COSTS/ACRE 1100.50 69.78 269.78 590.00 2099.62
TOTAL OPERATING COSTS/TON 442.02
------------------------------------------------------------------------------------------------------------------------------------
* Costs for Thin Shoots/Sucker can range from $150-350 per acre
** Costs for Hand Hoeing can range from $50-100 per acre
*** Costs for Leaf Removal can range from $60-225 per acre
U.C. COOPERATIVE EXTENSION
ORGANIC WINE GRAPES - 1992 - WITH RESIDENT VEGETATION
Table 1. continued
------------------------------------------------------------------------------------------------------------------------------------
Total Your
Cost Cost
------------------------------------------------------------------------------------------------------------------------------------
CASH OVERHEAD:
Office Expense 250.00
Leaf & Soil Analyses 4.00
Liability Insurance 8.11
Property Taxes 218.23
Property Insurance 109.11
Investment Repairs 20.95
----------
TOTAL CASH OVERHEAD COSTS 610.39
------------------------------------------------------------------------------------------------------------------------------------
TOTAL CASH COSTS/ACRE 2710.01
TOTAL CASH COSTS/TON 570.53
------------------------------------------------------------------------------------------------------------------------------------
NON-CASH OVERHEAD:
Per producing ------------ Annual Cost ------------
Investment Acre Depreciation Interest @ 4.00%
---------- -------- ------------ ------------------
Buildings 425.68 14.16 8.53 22.69
Shop tools 270.27 16.22 5.95 22.16
Land 13000.00 520.00 520.00
Drip Irrigation System 1474.59 53.09 32.44 85.53
Frost Protection System 1289.73 46.43 28.37 74.80
Vineyard Establishment 11039.00 501.77 220.78 722.55
Pruning Equipment 32.43 2.92 0.71 3.63
ATV - 4WD 175.68 31.62 3.86 35.49
Reservoir - 20 acft 1351.35 40.54 29.73 70.27
Equipment 1023.97 86.16 22.53 108.68
---------- ---------- ---------- ----------
TOTAL NON-CASH OVERHEAD COSTS 30082.70 792.90 872.91 1665.81
------------------------------------------------------------------------------------------------------------------------------------
TOTAL COSTS/ACRE 4375.82
TOTAL COSTS/TON 921.23
====================================================================================================================================
Return to the top of this document
Table 2
U.C. COOPERATIVE EXTENSION
DETAIL OF COSTS PER ACRE TO PRODUCE ORGANIC WINE GRAPES - 1992 - INPUTS
WITH RESIDENT VEGETATION
Labor Rate: $ 10.72/hr. machine labor Interest Rate: 9.00%
$ 8.04/hr. non-machine labor
===============================================================================
Price or Value or Your
Quantity/Acre Unit Cost/Unit Cost/Acre Cost
-------------------------------------------------------------------------------
OPERATING COSTS
Water:
Sprinkler 9.00 acin 2.90 26.10
Drip 8.00 acin 1.95 15.60
Soil Amendments:
Mined Limestone 1.00 ton 36.47 36.47
Sulfate of Potash 0.13 ton 375.00 48.75
Compost 2.00 ton 37.54 75.08
Custom:
Spread Lime 1.00 acre 10.00 10.00
Spread Compost 1.00 acre 10.00 10.00
Fungicide:
Wettable Sulfur 10.50 lb 0.22 2.31
Dusting Sulfur 60.00 lb 0.17 10.20
Soap:
Insecticidal Soap 0.67 gal 13.26 8.88
Botanical:
Pyrethrin 0.67 pint 12.00 8.04
Contract:
Harvest 4.75 acre 120.00 570.00
Assessments:
Ca. St. Org. Reg. Fees 1.00 acre 8.11 8.11
CCOF Inspection Fees 1.00 acre 3.11 3.11
CCOF Membership Fees 1.00 acre 3.38 3.38
CCOF .5% of Gross Sales 1.00 acre 23.75 23.75
Labor (machine) 7.42 hrs 10.72 179.20
Labor (non-machine) 114.59 hrs 8.04 921.30
Fuel - Diesel 34.53 gal 0.71 24.52
Lube 3.68
Machinery repair 41.54
Interest on operating capital @ 9.00% 69.55
----------
TOTAL OPERATING COSTS/ACRE 2099.62
TOTAL OPERATING COSTS/TON 442.02
-------------------------------------------------------------------------------
U.C. COOPERATIVE EXTENSION
ORGANIC WINE GRAPES - 1992 - WITH RESIDENT VEGETATION
Table 2. continued
-------------------------------------------------------------------------------
Cost/ Your
Acre Cost
-------------------------------------------------------------------------------
CASH OVERHEAD COSTS:
Office Expense 250.00
Leaf & Soil Analyses 4.00
Liability Insurance 8.11
Property Taxes 218.23
Property Insurance 109.11
Investment Repairs 20.95
----------
TOTAL CASH OVERHEAD COSTS/ACRE 610.39
-------------------------------------------------------------------------------
TOTAL CASH COSTS/ACRE 2710.01
TOTAL CASH COSTS/TON 570.53
-------------------------------------------------------------------------------
NON-CASH OVERHEAD COSTS (DEPRECIATION & INTEREST):
Buildings 22.69
Shop tools 22.16
Land 520.00
Drip Irrigation System 85.53
Frost Protection System 74.80
Vineyard Establishment 722.55
Pruning Equipment 3.63
ATV - 4WD 35.49
Reservoir - 20 acft 70.27
Equipment 108.68
----------
TOTAL NON-CASH OVERHEAD COSTS/ACRE 1665.81
-------------------------------------------------------------------------------
TOTAL COSTS/ACRE 4375.82
TOTAL COSTS/TON 921.23
-------------------------------------------------------------------------------
===============================================================================
Return to the top of this document
Table 3
U.C. COOPERATIVE EXTENSION
MONTHLY CASH COSTS PER ACRE TO PRODUCE ORGANIC WINE GRAPES - 1992
WITH RESIDENT VEGETATION
===================================================================================================================================
Begining OCT 91 OCT NOV DEC JAN FEB MAR APR MAY JUN JUL AUG SEP TOTAL
Ending SEP 92 91 91 91 92 92 92 92 92 92 92 92 92
-----------------------------------------------------------------------------------------------------------------------------------
Cultural:
Postharvest Irrigation 11.92 11.92
Lime Application-1 of 3 yr. 46.47 46.47
Potassium Application 90.03 90.03
Compost Application 85.08 85.08
Pruning 53.55 53.55 53.63 160.72
Chop Brush/Mow Centers 12.18 12.18
Frost Protection 10.95 10.95 10.95 32.84
Sulfur Application - 9X 5.63 11.26 10.87 10.87 10.87 49.51
Thin Shoots/Sucker 160.80 160.80 321.60
Mow - 3X 9.37 9.37 9.37 28.11
Under Vine Weeds-Cultivate 18.21 18.21
Move Wires 24.12 24.12 24.12 72.36
Under Vine Weeds-Hand Hoe 2X 32.16 32.16 64.32
Irrigation 19.36 19.36 9.67 9.67 58.05
Leaf Removal 217.08 217.08
Soap/Pyrethrin App 1/3 of Ac 18.48 18.48
Pickup Use 134.76 134.76
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
TOTAL CULTURAL COSTS 233.49 53.55 53.55 53.63 28.76 210.59 267.63 331.44 44.66 9.67 134.76 1421.72
-----------------------------------------------------------------------------------------------------------------------------------
Harvest:
Harvest - Contract 570.00 570.00
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
TOTAL HARVEST COSTS 570.00 570.00
-----------------------------------------------------------------------------------------------------------------------------------
Assessments:
Ca. St. Org. Reg. Fees 8.11 8.11
CCOF Inspection Fees 3.11 3.11
CCOF Membership Fees 3.38 3.38
CCOF .5% of Gross Sales 23.75 23.75
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
TOTAL ASSESSMENT COSTS 38.35 38.35
-----------------------------------------------------------------------------------------------------------------------------------
Interest on oper. capital 1.75 1.75 2.15 2.55 2.96 3.17 4.75 6.76 9.24 9.58 9.65 15.23 69.55
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL OPERATING COSTS/ACRE 235.25 1.75 55.70 56.10 56.58 31.93 215.34 274.39 340.69 54.24 19.32 758.33 2099.62
TOTAL OPERATING COSTS/TON 49.53 0.37 11.73 11.81 11.91 6.72 45.33 57.77 71.72 11.42 4.07 159.65 442.02
-----------------------------------------------------------------------------------------------------------------------------------
CASH OVERHEAD:
Office Expense 20.83 20.83 20.83 20.83 20.83 20.83 20.83 20.83 20.83 20.83 20.83 20.83 250.00
Leaf & Soil Analyses 4.00 4.00
Liability Insurance 8.11 8.11
Property Taxes 109.11 109.11 218.23
Property Insurance 109.11 109.11
Investment Repairs 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 1.75 20.95
------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- ------- -------
TOTAL CASH OVERHEAD COSTS 22.58 22.58 131.69 139.80 22.58 22.58 131.69 22.58 26.58 22.58 22.58 22.58 610.39
-----------------------------------------------------------------------------------------------------------------------------------
TOTAL CASH COSTS/ACRE 257.82 24.33 187.39 195.90 79.16 54.51 347.03 296.96 367.26 76.82 41.90 780.91 2710.01
TOTAL CASH COSTS/TON 54.28 5.12 39.45 41.24 16.67 11.48 73.06 62.52 77.32 16.17 8.82 164.40 570.53
===================================================================================================================================
Return to the top of this document
Table 4
U.C. COOPERATIVE EXTENSION
ANNUAL EQUIPMENT, INVESTMENT, AND BUSINESS OVERHEAD COSTS FOR ORGANIC WINE GRAPE PRODUCTION - 1992
WITH RESIDENT VEGETATION
ANNUAL EQUIPMENT COSTS
=========================================================================================
- Non-Cash Over. - - Cash Overhead -
Yrs Depre- Insur-
Yr Description Price Life ciation Interest ance Taxes Total
-----------------------------------------------------------------------------------------
92 60 HP 4WD Tractor 29900 15 1794.00 657.80 82.23 164.45 2698.48
92 Air Blast Sprayer 4560 10 410.40 100.32 12.54 25.08 548.34
92 Duster 3035 10 273.20 66.76 8.35 16.69 365.00
92 French Plow 3650 15 219.00 80.30 10.04 20.07 329.41
92 Mower/Chopper 8' 5500 10 495.00 121.00 15.13 30.25 661.38
92 Pick up - 1/2 ton 16500 7 2121.43 363.00 45.37 90.75 2620.55
-----------------------------------------------------------------------------------------
TOTAL 63145 5313.03 1389.18 173.66 347.29 7223.16
=========================================================================================
60% of New Cost * 37887 3187.82 833.51 104.20 208.37 4333.90
-----------------------------------------------------------------------------------------
* Used to reflect a mix of new and used equipment.
ANNUAL INVESTMENT COSTS
===================================================================================================
- Non-Cash Over. - ------ Cash Overhead ------
Yrs Depre- Insur-
Yr Description Price Life ciation Interest ance Taxes Repairs Total
---------------------------------------------------------------------------------------------------
INVESTMENT
ATV - 4WD 6500 5 1170.00 143.00 17.88 35.75 50.00 1416.63
Buildings 15750 30 524.00 315.60 39.45 78.90 100.00 1057.95
Drip Irrigation System 54560 25 1964.16 1200.32 150.04 300.08 300.00 3914.60
Vineyard Establishment 408443 22 18565.50 8168.86 1021.11 2042.22 0.00 29797.69
Frost Protection System 47720 25 1717.92 1049.84 131.23 262.46 200.00 3361.45
Land 481000 19240.00 2405.00 4810.00 0.00 26455.00
Pruning Equipment 1200 10 108.00 26.40 3.30 6.60 25.00 169.30
Reservoir - 20 acft 50000 30 1500.00 1100.00 137.50 275.00 0.00 3012.50
Shop tools 10000 15 600.00 220.00 27.50 55.00 100.00 1002.50
---------------------------------------------------------------------------------------------------
TOTAL INVESTMENT 1075173 26149.58 31464.02 3933.01 7866.01 775.00 70187.62
---------------------------------------------------------------------------------------------------
===================================================================================================
ANNUAL BUSINESS OVERHEAD COSTS
===============================================================
Units/ Price/ Total
Description Farm Unit Unit Cost
---------------------------------------------------------------
Leaf & Soil Analyses 37.00 acre 4.00 148.00
Liability Insurance 1.00 year 300.00 300.00
Office Expense 37.00 acre 250.00 9250.00
===============================================================
Return to the top of this document
Table 5
U.C. COOPERATIVE EXTENSION
HOURLY EQUIPMENT COSTS FOR ORGANIC WINE GRAPE PRODUCTION - 1992
WITH RESIDENT VEGETATION
==================================================================================================================
------------------------- COSTS PER HOUR -----------------------------------
Actual -Non-Cash Over.- - Cash Overhead - -------- Operating --------
Hours Depre- Insur- Fuel & Total Total
Yr Description Used ciation Interest ance Taxes Repairs Lube Oper. Costs/Hr.
------------------------------------------------------------------------------------------------------------------
92 60 HP 4WD Tractor 251.5 4.28 1.57 0.20 0.39 1.49 2.41 3.90 10.34
92 Air Blast Sprayer 30.7 8.02 1.96 0.25 0.49 2.29 0.00 2.29 13.00
92 Duster 44.4 3.69 0.90 0.11 0.23 1.52 0.00 1.52 6.46
92 French Plow 37.0 3.55 1.30 0.16 0.33 1.05 0.00 1.05 6.39
92 Mower/Chopper 8' 79.6 3.73 0.91 0.11 0.23 1.58 0.00 1.58 6.57
92 Pick up - 1/2 ton 286.8 4.44 0.76 0.09 0.19 2.99 1.53 4.52 10.01
==================================================================================================================
Return to the top of this document
Table 6 U.C. COOPERATIVE EXTENSION RANGING ANALYSIS ORGANIC WINE GRAPES - 1992 - WITH RESIDENT VEGETATION COSTS PER ACRE AT VARYING YIELDS TO PRODUCE ORGANIC WINE GRAPES ------------------------------------------------------------------------------- YIELD (TON/ACRE) 3.00 3.50 4.25 4.75 6.25 7.75 9.00 ------------------------------------------------------------------------------- OPERATING COSTS/ACRE: Cultural Cost 1322 1322 1322 1322 1322 1322 1322 Harvest Cost 360 420 510 570 750 930 1080 Assessment Cost 38 38 38 38 38 38 38 Interest on operating capital 67 68 68 69 70 72 73 TOTAL OPERATING COSTS/ACRE 1788 1848 1939 1999 2181 2362 2513 TOTAL OPERATING COSTS/TON 595.87 528.01 456.17 420.88 348.88 304.76 279.22 CASH OVERHEAD COSTS/ACRE 610 610 610 610 610 610 610 TOTAL CASH COSTS/ACRE 2398 2458 2549 2610 2791 2972 3123 TOTAL CASH COSTS/TON 799.33 702.41 599.79 549.38 446.55 383.52 347.04 NON-CASH OVERHEAD COSTS/ACRE 1666 1666 1666 1666 1666 1666 1666 TOTAL COSTS/ACRE 4064 4124 4215 4275 4457 4638 4789 TOTAL COSTS/TON 1354.601178.36 991.75 900.08 713.08 598.46 532.13 ------------------------------------------------------------------------------- U.C. COOPERATIVE EXTENSION RANGING ANALYSIS - 1992 - Table 6. continued NET RETURNS PER ACRE ABOVE OPERATING COSTS FOR ORGANIC WINE GRAPES ------------------------------------------------------------------------------- PRICE YIELD (TON/ACRE) (DOLLARS PER TON) 3.00 3.50 4.25 4.75 6.25 7.75 9.00 ------------------------------------------------------------------------------- 300.00 -888 -798 -664 -574 -306 -37 187 500.00 -288 -98 186 376 944 1513 1987 750.00 462 777 1249 1563 2507 3451 4237 1000.00 1212 1652 2311 2751 4069 5388 6487 1250.00 1962 2527 3374 3938 5632 7326 8737 1500.00 2712 3402 4436 5126 7194 9263 10987 1700.00 3312 4102 5286 6076 8444 10813 12787 ------------------------------------------------------------------------------- NET RETURNS PER ACRE ABOVE CASH COSTS FOR ORGANIC WINE GRAPES ------------------------------------------------------------------------------- PRICE YIELD (TON/ACRE) (DOLLARS PER TON) 3.00 3.50 4.25 4.75 6.25 7.75 9.00 ------------------------------------------------------------------------------- 300.00 -1498 -1408 -1274 -1185 -916 -647 -423 500.00 -898 -708 -424 -235 334 903 1377 750.00 -148 167 638 953 1897 2840 3627 1000.00 602 1042 1701 2140 3459 4778 5877 1250.00 1352 1917 2763 3328 5022 6715 8127 1500.00 2102 2792 3826 4515 6584 8653 10377 1700.00 2702 3492 4676 5465 7834 10203 12177 ------------------------------------------------------------------------------- NET RETURNS PER ACRE ABOVE TOTAL COSTS FOR ORGANIC WINE GRAPES ------------------------------------------------------------------------------- PRICE YIELD (TON/ACRE) (DOLLARS PER TON) 3.00 3.50 4.25 4.75 6.25 7.75 9.00 ------------------------------------------------------------------------------- 300.00 -3164 -3074 -2940 -2850 -2582 -2313 -2089 500.00 -2564 -2374 -2090 -1900 -1332 -763 -289 750.00 -1814 -1499 -1027 -713 231 1174 1961 1000.00 -1064 -624 35 475 1793 3112 4211 1250.00 -314 251 1098 1662 3356 5049 6461 1500.00 436 1126 2160 2850 4918 6987 8711 1700.00 1036 1826 3010 3800 6168 8537 10511 -------------------------------------------------------------------------------
ORDERING INFORMATION
- To order contact:
- Linda Fugitt
- Department of Agricultural Economics
- University of California,
- Davis, CA 95616
- Tel. (916) 752-9376
- Department of Agricultural Economics