New cost studies on iceberg lettuce and broccoli from the University of California reveal that money can still be made with one while the other is largely unprofitable.
The cost studies by the by University of California (UC) ANR Agricultural Issues Center and UC Cooperative Extension show sample costs of the crops for fresh markets in Monterey, Santa Cruz and San Benito counties show that at an assumed level of $13 per carton for iceberg lettuce, a grower producing at least 1,100 42-pound cartons per acre can net a profit, based on a hypothetical well-managed farming operation using practices common to the Central Coast Region.
Such cannot be said for broccoli, which even at the highest prices and yields, net income remains negative, according to the study. Both studies assume a farm operation of 1,500 non-contiguous acres of rented land and assumed a $2,700-per-acre rent price.
Free copies of the iceberg lettuce and broccoli studies, along with other cost studies undertaken by the UC Davis Department of Agricultural and Resource Economics can be accessed online at https://coststudies.ucdavis.edu.
source: westernfarmpress.com
