The UC Agricultural Issues Center has released a new study on the cost and returns of establishing an orchardgrass stand and producing orchardgrass hay in the Intermountain Region of northern California.
The cultural practices described represent production operations and materials of a well-managed farm in this region. Growers, UC ANR Cooperative Extension farm advisors and other agricultural associates provided input and reviewed the methods and findings of the study. The costs, materials and practices shown in this study will not apply to all farms.
The study focuses on growing orchardgrass for hay to be sold in small bales to the horse feed industry. If planted for hay production, the expected stand life for orchardgrass is a minimum of five years, which is the expected stand life used in this study. The study provides costs and returns for the Intermountain Region with a focus on Shasta, Lassen and Siskiyou counties.
The authors describe the assumptions used to identify current costs for the establishment and production of orchardgrass, material inputs, cash and non-cash overhead. A ranging analysis table shows profits over a range of prices and yields. Other tables show the monthly cash costs, the costs and returns per acre, hourly equipment costs, and the whole farm annual equipment, investment and business overhead costs.
The new study is titled “Sample Costs to Establish and Produce Orchardgrass Hay in the Intermountain Region – 2016.”
Free copies of this study and sample cost of production studies for many commodities are available. To download the cost studies, visit the UC Davis Department of Agricultural and Resource Economics website at http://coststudies.ucdavis.edu.
The cost and returns program is funded by the UC Agricultural Issues Center, which is part of UC Division of Agriculture and Natural Resources, and the UC Davis Department of Agricultural and Resource Economics.
For additional information or an explanation of the calculations used in the study, contact the Agricultural Issues Center at (530) 752-1520 or Christine Gutierrez at cagut@ucdavis.edu.