2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of...

48
2015 Cost of Potato Production for Idaho With Comparisons to 2014 Project Conducted by: Paul E. Patterson Agricultural Economist [email protected] Report Submitted to: The Cost of Potato Production Advisory Committee, and the Idaho Potato Commission R & E Committee November 15, 2015 This project was funded by the Idaho Potato Commission.

Transcript of 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of...

Page 1: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

2015 Cost of Potato Production for Idaho

With Comparisons to 2014

Project Conducted by:

Paul E. Patterson Agricultural Economist [email protected]

Report Submitted to:

The Cost of Potato Production Advisory Committee, and the Idaho Potato Commission R & E Committee

November 15, 2015

This project was funded by the Idaho Potato Commission.

Page 2: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

ii

Table of Contents Table of Contents Page ii-iv Idaho Potato Production Costs Project: Goal and Objectives Page 1 Cost of Production Background Page 1 2015 Crop Input Costs Page 2 Potato Cost of Production Overview Page 3-6 Farm Size and Potato Acreage Input Costs Potato Yields Fumigation Yield and Cost Dilemma Page 6-7 Unresolved Yield Issue : Field-Run vs. Paid Yield Page 8 2015 Cost of Potato Production Overview and Comparison Page 8-9 Cost of Production Summaries and Comparisons by Region Adjustments for 2015 Page 9-11 Table 1.Idaho commercial potato costs and returns estimates by region for 2015 Page 12

Table 2. Model farm size and potato acreage assumptions by region Page 12

Table 3. Interest rates, labor rates and power rates used in costs and returns Page 13 Estimates: 2012 – 2015 and percentage changes

Table 4. Current and historical fuel, and water assessment prices: 2012 - 2015

4-a Southwestern Idaho Page 13 4-b Southcentral Idaho Page 14 4-c Eastern Idaho Page 14

Table 5. Current and historical fertilizer component prices for southern Idaho: Page 15 2012 – 2015 and percentage change from 2014 to 2015 Table 6. Potato yields by region for published and unpublished University of Idaho Page 15 costs and returns estimates, both with and without fumigation

Table 7. Historical potato yields published by USDA-NASS for 2010 – 2014 and Page 15 Historical 3-year averages.

Table 8. Historical potato yields reported by USDA-NASS for primary commercial Page 16 potato counties of eastern Idaho and historical 3-year averages. Table 9. Fumigation yield adjustment and estimated fumigation percentages by region Page 16

Page 3: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

iii

Table 10-A. Change in per acre cost of production by major cost category from 2014 Page 17 to 2015 for fumigated potatoes by region

Table 10-B. Change in per acre cost of production by major cost category from 2014 Page 18 to 2015 for non-fumigated potatoes by region

Table 11-A. Cost of production per acre summary for fumigated Russet Burbank Page 19 potatoes by region from 2014 to 2015 and change in costs between these years. Table 11-B. Cost of production per acre summary for non-fumigated Russet Burbank Page 19 potatoes by region from 2014 to 2015 and change in costs between these year

Table 12-A. Cost of production per hundredweight for fumigated Russet Burbank Page 20

potatoes by region for 2014 and 2015 and change in costs between these years

Table 12-B. Cost of production per hundredweight for non-fumigated Russet Burbank Page 20 potatoes by region for 2014 and 2015 and change in costs between these years

Appendices

Appendix A Southwestern Idaho Fumigated Russet Burbank Potato Page 21- 24 Table A-1. 2015 Costs to grow, harvest, and sort southwestern Idaho fumigated Page 22-23 Russet Burbank potatoes and comparison with 2014.

Table A-2. 2015 Cost per hundredweight to grow, harvest and store southwestern Page 24

Idaho fumigated Russet Burbank potato based on both field-run and paid yield, Storage operating costs by month from Octoaber to June

Appendix B Southcentral Idaho Fumigated Russet Burbank Potato Page 25 - 28 Table B-1. 2015 Costs to grow, harvest, and sort southcentral Idaho fumigated Page 26-27 Russet Burbank potatoes and comparison with 2014.

Table B-2. 2015 Cost per hundredweight to grow, harvest and store southcentral Page 28

Idaho fumigated Russet Burbank potato based on both field-run and paid yield, Storage operating costs by month from October to June

Appendix C Eastern Idaho-South Fumigated Russet Burbank Potato Page 29 - 32 Table C-1. 2015 Costs to grow, harvest, and sort eastern Idaho-south Page 30-31 Fumigated Russet Burbank potatoes and omparison with 2014.

Table C-2. 2015 Cost per hundredweight to grow, harvest and store eastern Idaho- Page 32

south fumigated Russet Burbank potato based on both field-run and paid yield, Storage operating costs by month from October to June

Page 4: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

iv

Appendix D Southcentral Idaho Non-Fumigated Russet Burbank Potato Page 33- 36 Table D-1. 2015 Costs to grow, harvest, and sort southcentral Idaho non-fumigated Page 34-35 Russet Burbank potatoes and comparison with 2014.

Table D-2. 2015 Cost per hundredweight to grow, harvest and store southcentral Page 36

Idaho non-fumigated Russet Burbank potato based on both field-run and paid yield, Storage operating costs by month from Octoaber to June

Appendix E Eastern Idaho-South Non-Fumigated Russet Burbank Potato Page 37-40 Table E-1. 2015 Costs to grow, harvest, and sort eastern Idaho-South non-fumigated Page 38-39 Russet Burbank potatoes and comparison with 2014.

Table E-2. 2015 Cost per hundredweight to grow, harvest and store eastern Idaho- Page 40

south non-fumigated Russet Burbank potato based on both field-run and paid yield, Storage operating costs by month from October to June

Appendix F Eastern Idaho-North Non-Fumigated Russet Burbank Potato Page 41 - 44 Table F-1. 2015 Costs to grow, harvest, and sort eastern Idaho-North Page 42-43 Non-fumigated Russet Burbank potatoes and omparison with 2014.

Table F-2. 2015 Cost per hundredweight to grow, harvest and store eastern Idaho- Page 44

south non-fumigated Russet Burbank potato based on both field-run and paid yield, Storage operating costs by month from October to June

Page 5: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

pcop-15.doc Paul Patterson November 15, 2015

1 Cost of Potato Production in Idaho

The overall goal of this project is to provide the Idaho potato industry with an unbiased and consistently

calculated estimate of the cost of producing potatoes in three regions of Idaho and to track the change in

production costs per acre and per hundredweight over time.

The following objectives are designed to meet the project goal:

1. To collect data from input suppliers, machinery and equipment dealers, and growers as appropriate. 2. To revise and update existing potato costs and returns estimates to reflect current input costs and

production practices. 3. To develop cost of production estimates for new varieties and/or new or proposed production

systems as needed or as requested. 4. To calculate changes in production costs per acre and per hundredweight and include both the

detailed and summary cost changes in an annual report. 5. To make the annual report available to the Idaho potato industry and to present the information as

requested. 6. To maintain a Cost of Production Advisory Committee representing the different segments of the

Idaho potato industry and to meet with this group to review the CAR estimates and to obtain input on proposed revisions.

I would like to acknowledge the cooperation and support that I receive from all segments of the Idaho

potato industry, including growers, processors, equipment dealers, and input suppliers. I would also like

to thank the Idaho Potato Commission for the funding I receive to support this project. This project has

been funded 22 of the past 24 years.

One major change for 2015 is that the project was not contracted through the University of Idaho. Paul

Patterson, who is the author of this report, retired from the University of Idaho at the ende of June. He

contracted directly with the Idaho Potato Commission to produce this report.

Cost of Production Background No procedural changes were made in terms of how the data was collected and processed. The cost of

production estimats found in this report are done consistently with those produced by the University of

Idaho. The cost of production estimates show the typical or representative production costs by region

based on documented production practices. These are not area averages. To simplify comparisions with

historical cost of production estimates, the publication code used by the Univeristy of Idaho was used for

Page 6: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

pcop-15.doc Paul Patterson November 15, 2015

2 the six commercial potato budgets found in this report. Crop cost of production estimates and earlier

reports can still be found at

http://web.cals.uidaho.edu/idahoagbiz/ Click on Cost of Production

The crop and livestock enterprise budgets and the annual input cost summary are located here. A database

search routine has replaced the old listing of crop budgets by region. Simply fill in one or more of the

search items (Year, Region, Commodity and Format) and then click Search. Copies of earlier reports on

changes in potato production costs in Idaho can be found at the same web address. Click on Publications

and then scroll down to the Potato Bulletins and Reports section.

2015 Crop Input Costs Prices used to value inputs in the 2015 potato CAR estimates came from data collected from input

suppliers by the University of Idaho and by Paul Patterson. Data were collected between February and

October. Sources included irrigation districts and canal companies, agricultural lenders, crop insurance

companies, trucking companies, aerial and other custom applicators, fuel suppliers, and chemical and

fertilizer dealers. Information on seed potato prices and the cost to cut and treat potato seed was taken

from a survey of Idaho seed potato growers and commercial growers. A charge for handling and

transportation is added to the FOB seed farm-based seed potato prices to derive a seed potato cost for

each region.

Machinery and equipment prices used in these cost of production estimates were mostly obtained from a

survey of dealers conducted between August and December of 2010, and published in 2011 as PNW 346:

The Cost of Owning and Operating Farm Machinery in the Pacific Northwest: 2011. These prices were

increased by approximately 16% based on the annual change in USDA’s Prices Paid Machinery Index

from 2011 to 2014.

Potato Cost of Production Overview

Cost of production estimates are influenced by assumptions made in depicting a representative or typical

farm. Farm size and acreage planted to different crops will influence costs, particularly machinery

ownership costs. It is important to recognize this when making comparisons between regions where

assumptions differ or within a region over time as the underlying assumptions change. The University of

Idaho currently publishes seven potato CAR estimates. Six CAR estimates are for commercial potato

production and one is for seed production. Only the commercial potato cost of production estimates are

included in this report. Prior to 2013, there was a separate non-storage (with transloading) and storage

budgets for each of the three southern Idaho commercial production regions. The current format, adopted

in 2013, shows the cost to grow, harvest and sort potatoes in the base budget. Basically all costs to the

Page 7: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

pcop-15.doc Paul Patterson November 15, 2015

3 “end of the piler boom.” Storage costs are shown in a separate table and begin with the base budget

values. A list of CAR estimates by region and variety is found in Table 1.

Farm Size and Potato Acreage Table 2 shows the farm size and potato acreage for each region’s model farm since 2009. For 2015 the

model farm in southwestern Idaho is 1,600 acres with 500 acres in potatoes. The model farm for

southcentral Idaho is 2,200 with 550 acres in potatoes. The model farm for eastern Idaho is 2,400 acres

with 800 acres in potatoes. The size of the model farm and the number of potato acres were increased in

2013 for all three regions.

In general, operating costs are not influenced by farm size. However, ownership costs do change with

farm size, primarily because of economies of size and scale with equipment. Equipment ownership costs

per acre are strongly influenced by the number of acres over which these costs are spread. The more

acres, the lower the cost. In setting the farm size and selecting the machinery compliment, we attempt to

achieve an economically efficient combination. Equipment that is under utilized has high ownership

costs, while equipment with too many hours of use results in unrealistically low ownership costs.

Input Costs Some input prices are region specific, while other input prices are standardized for the entire state since

they don’t vary consistently by region. Table 3 contains information on three such items: interest rates,

labor wage and benefit rates, and power cost per acre-inch of water applied based on Idaho Power’s

Irrigation Service Schedule 24. Table 3 has values for 2015, the previous 3 years and the percentage

changes from 2014 to 2015. In the costs and returns estimates, interest is charged from the time

expenditures are made until the harvest month using the operating interest rate shown in Table 3.

Operating interest is identified as a separate line item in the CAR estimates. The intermediate interest rate

is used in calculating non-cash machinery costs. The labor used in crop production falls into one of the six

classes shown in Table 3. Labor used to operate machinery, drive trucks, and manage pivot irrigation

systems, including chemigation and fertigation, receive a higher wage than irrigation labor used on set-

move systems (handlines and wheellines) and unskilled general farm labor used primarily during harvest

to pick clods and rocks and to help with storage and trans-loading operations. Prior to 2012, irrigation

labor was not differentiated between set-move and continuous move irrigation systems. The labor costs

include the base wage rate plus payroll taxes and benefit costs. These are shown as a percentage.

Additional labor information is included in the background and assumptions page that accompanies each

CAR estimate.

While Idaho Power’s service area does not extend to all irrigated areas of southern Idaho, it is by far the

largest supplier of power to Idaho farms and ranches and that is why it is used in the CAR estimates. The

Page 8: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

pcop-15.doc Paul Patterson November 15, 2015

4 power rates shown in Table 3 are used with a center pivot irrigation system to derive the cost per acre-

inch of water applied. The power demand used in the calculation is for pressurization only. The standard

assumption for each region is that surface water is delivered to the farm from a canal. Cost per acre-inch

of water applied by different irrigation systems and with different pumping lifts have traditionally been

found in Table 3 of the University of Idaho’s annual Crop Input Cost Summary referenced earlier.

Tables 4-a, 4-b and 4-c contain cost information on commonly used inputs where prices generally vary by

region. These include fuel (gas, farm diesel and road diesel) and irrigation water assessments. Table 4-a

shows these costs for southwestern Idaho, Table 4-b shows the costs for southcentral Idaho and Table 4-c

shows the costs for eastern Idaho.

Prior to 2008, fuel prices were determined by a survey conducted at a single point in time, typically

August. Since 2008, fuel prices found in the Crop Input Cost Summary and used in CAR estimates are the

simple average of prices collected at four times during the year: February, April, June and August. This

change was made at the request of the potato cost of production advisory committee.

Table 5 contains the fertilizer component prices from 2013 through 2015 used in the CAR estimates, and

the percentage changes from 2014 to 2015. Prior to 2009 fertilizer prices were collected and summarized

separately for the three southern Idaho regions.

Potato Yields The yield in a CAR estimate is used to calculate gross revenue and break-even prices needed to cover

costs in different categories. Yield is also the basis for certain costs, such as promotion or inspection fees

paid by growers. Yield also drives storage and sorting costs, which are calculated on a hundredweight

basis. Table 6 shows the potato yields used in the University of Idaho’s 2015 commercial potato CAR

estimates, as well as the previous four years. Some values are shown only as a reference and indicate the

value we would use if the University of Idaho published a CAR estimate for that area and with those

production practices. Only those shown in bold type are used in CAR estimates.

Prior to 1991 there was not a consistent method used to determine potato yields in CAR estimates for all

three regions. Starting in 1991, yields in all three regions were based on USDA-NASS county or regional-

level yield data. From 1991 to 1995, the yield was calculated using a 5-year rolling average. From 1995

through 2003 the yields used were based on a projected yield using exponential smoothing with

an alpha value of .20. This procedure eliminated the negative bias that resulted from using

historical data to calculate averages when yields were increasing rapidly. Unfortunately,

exponential smoothing also produced projected yields that varied widely from actual yield when

Page 9: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

pcop-15.doc Paul Patterson November 15, 2015

5 potato yield variation from one year to the next was substantial. To avoid this problem, the

yield calculation for CAR estimates was switched to a projected 3-year average starting in 2005.

For 2006, the 3-year average consisted of two years of historical data and the third year was

projected, based on the November USDA crop production report. Starting in 2007, the 3-year

average was switched to the three most recent years of published USDA data. For the 2015 CAR

estimates, yield data for the 2012, 2013 and 2014 crops were used. The 2015 county-level data

for Idaho will not be published until October 2016, so the yields used in calculating the average

will always be lagged by one year. Yields used in the CAR estimates are rounded to the nearest 5

hundredweight. These base area yields are then adjusted to account for fumigation, a procedure described

later in the report.

For crop reporting purposes, the Idaho NASS Field Office breaks Idaho into regions. The USDA

calculates potato yields both for individual counties within a region and for the region itself. The yield

estimates used in southwestern and southcentral Idaho CAR estimates are based on the USDA-NASS

regions and includes all the counties in that region. Prior to 2001, yields in eastern Idaho CAR estimates

were based on four major commercial potato counties: Bannock, Bingham, Bonneville and Power.

Starting in 2001, separate CAR estimates were made for commercial potato production in the southern

counties, Bannock, Bingham and Power, and the northern counties: Bonneville, Jefferson and Madison.

Starting in 2012, Jefferson County was removed from the northern county’s average. (See Tables 6-8.)

Because of changes in how yields were calculated and other procedural changes, it can be difficult to

make historical comparisons going back more than one year. In this report when procedural changes

occur in cost calculations, the previous year’s CAR estimate is re-calculated using the new procedure so

that the year-to-year change is based on the price and quantity change of inputs, not based on procedural

changes. Because of this, the resulting costs for the previous year can be different than those published

the previous year.

The potato yields for the non-fumigated 2015 CAR estimates are 10 cwt lower than 2014 for

southwestern, 5 cwt higher for southcentral Idaho, and 5 cwt higher for eastern Idaho. The potato yields

for the fumigated 2015 CAR estimates are 10 cwt lower than 2014 for southwestern, 5 cwt higher for

southcentral Idaho, and 5 cwt higher for eastern-South, and eastern-North. (See Table 6.) Note that for

the fifth year, the yield for Southwestern Idaho uses the Russet Burbank Adjusted Yield, which is 97% of

the region’s average yield. The increasing use of higher yielding varieties, such as Rangers, made this

adjustment necessary.

Page 10: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

pcop-15.doc Paul Patterson November 15, 2015

6 The following section explains how the yield values used in the fumigation and non-fumigation CAR

estimates are derived.

Fumigation Yield and Cost Allocation Dilemma Fumigation can have a significant impact on per acre production costs and can also have a large impact on

potato yield and quality. For an individual grower, this is does not pose a problem because the cost and

yield increases correspond. In budgeting procedures used to generate potato CAR estimates, the cost

increase is not a problem when fumigation is included. There are, however, two yield questions that must

be considered. The first question: how much of a yield increase should be attributed to fumigation? The

second question: what should the base yield in the non-fumigation CAR estimate be? Since the county

and regional yields published by USDA contain both fumigated and non-fumigated potato acreage,

USDA values are not appropriate for either a CAR estimate with fumigation or one without fumigation

unless some attempt is made to identify and separate the fumigation yield impact in the data.

Historic yields based on USDA data are too low if used in a CAR estimate with the full cost of

fumigation included. Historic yields are too high if used in a CAR estimate when no fumigation cost is

included. Including only a partial cost for fumigation would be appropriate in calculating average

production costs, but not for calculating typical costs where fumigation is either used or it is not. In

addition, the methods used by the University of Idaho to obtain farmer production practice data is not

consistent with calculating average production costs for a region. Using the USDA yield data and

including a partial fumigation cost in a typical budget is not appropriate as it gives the appearance that

fumigation is less expensive then it actually is.

The USDA county-level or regional potato yield data are used to calculate a 3-year average yield for a

given area. These procedures were discussed in the previous section. This base area yield value is set

equal to the weighted average of the fumigated yield and the non-fumigated yield as shown in the

following formula. The weights are estimated percentages of potato acres in that region that are fumigated

and not fumigated, respectively. The yield adjustment attributable to fumigation as well as the estimated

percentage of acres fumigated in each region is shown in Table 9.

Fumigation Yield Adjustment Factor

(% of acres not fumigated x Y) + (% acres fumigated x FY) = Area Average Yield,

Where Y = non-fumigation yield,

FY = fumigation yield, and

FY = Y + fumigation yield adjustment

Page 11: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

pcop-15.doc Paul Patterson November 15, 2015

7 The following example illustrates how the fumigation adjustment factor was used, given an area yield of

400 cwt, with 60 percent of the potato acreage fumigated and a fumigation yield adjustment of 50

hundredweight per acre. Set up the equation as shown below and solve for Y.

.4Y + .6 (Y+50) = 400 .4Y + .6Y + 30 = 400 1.0 Y + 30 = 400 Y = 370 And FY = 420 Check: .4 x 370 + .6 x 420 = 400

Fumigation yield in this example is 420 and non-fumigation yield is 370, while the area average is 400.

The fumigation CAR estimate would include the full cost of fumigation and the non-fumigation would

have no fumigation costs. Thus, the costs and yields would correspond.

Note: There are limitations to this type of adjustment and there is a lack of publicly available data on

which to base fumigation estimates. While not perfect, using this methodology does reduce the previous

negative bias that occurred when calculating costs per hundredweight when the benefit of fumigation on

yield was included in the region or county yields, but the cost of fumigation was not. Using the

percentages of acres fumigated from Table 9 and the number of potato acres grown in each region

produces a statewide weighted-average of approximately 50 percent of the potato acreage being

fumigated. This falls within the ranges of values of 50-60 percent given by knowledgeable people in the

industry.

Unresolved Yield Issue: Field-Run vs. Paid Regardless of how the area potato yields are calculated, how does this yield compare to the grower’s paid

yield? The answer will vary depending on whether the potatoes are sold in the fresh or in the process

market. The yield data from USDA includes all tubers greater than 1-1/2 inches. Since the University of

Idaho CAR estimates do not segment yield into size and grade components that would sell for different

prices, the breakeven prices shown in the CAR estimates are what the grower would have to average if

paid on a field-run yield in order to cover costs. The issue of paid yield is dealt with in the storage tables

for each crop budget found in the Appendix: Tables A-2, B-2, C-2, D-2, E-2 and F-2. One column in each

table shows the field-run breakeven prices and an adjacent column shows paid-yield breakeven prices for

an assumed paid yield of 95%.

Page 12: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

pcop-15.doc Paul Patterson November 15, 2015

8 2015 Cost of Potato Production Overview and Comparison Direct comparisons with previously published estimates should not be made without accounting for

differences in procedures and assumptions. There are no longer separate storage and non-storage potato

budgets as had been published for many years. The base budget contains the operating cost of sorting

potatoes, including labor, electricity and repair costs, as well as the ownership costs associated with the

equipment used in this operation. Costs in the base budget are to “the end of the piler boom”. If potatoes

are being transloaded and hauled to a processor or fresh pack shed, the cost of hauling would need to be

added. Storage costs are added to the base cost in a separate table, including the storage ownership costs,

annual repairs, and monthly storage operating costs. This is done on both a field-run and paid-yield basis.

Table 10-A summarizes the dollar cost per acre and percentage changes from 2014 to 2015 for major

input cost categories, total operating, total ownership, and total costs for the Idaho fumigated cost of

production estimates. Table 10-B contains the same information for Idaho’s non-fumiated cost of potato

production istimates.

Detailed cost of production estimates for 2014 and 2015 from which the data in Tables 10-A and 10-B

were taken are found in the appendix. Appendix A, B, and C,containing the fumigated cost of production

estimates for southwestern, southcentral and the eastern south region, respectively. While Appendix D, E,

and F contain the non-fumiaged cost of productin estimates for southcentral, eastern south, and eastern

north regions, respectively.

In general, the cost of seed was unchanged, but the cost of hauling seed was lower, which effectively

lowered the the cost of seed slightly. Fertilizer, pesticides and chemicals, custom and consultants, and

labor costs were all higher. The higer cost of pesticides and chemicals includes both higher prices of some

products, but mostly an increase in the number of foliar applications of insecticides and fungicides. (See

summary for each region shown on pages 10-11.) Viewing the color-coded detailed budgets in the

appendix shows that price changes for pesticides is a mixed bag, some up and some down. The cost of

power was down in 2015, because of the lower PCA rate (See Table 3 for more detail.). No adjustment

was made to the quantity of water applied, except for southwestern Idaho where the rate applied was

decreased by 1 acre-inch because of declining yields. Higher irrigation repair costs offset the power cost

savings, however. Fuel costs were lower (See Table 4 for more detail.), and provided substantial cost

savings. Higher repair costs on machinery offset only a small portion of the lower fuel costs, keeping

overall machinery operating expenses substantially lower in 2015. Labor costs were up approximately 2%

across the board.

Page 13: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

pcop-15.doc Paul Patterson November 15, 2015

9 In spite of the substantial savings on fuel, overall, operating costs per acre and per hundredweight were

higher in 2015. Operating costs per acre increased between $15 and $65 per acre, or 3 to 20 cents per

hundredweight. The exception was in eastern Idaho-south, where there was a 2 cent drop in operating

costs per hundredweight. Ownership costs per acre were up across all regions, reflecting both higher

equipment prices, which pushes up depreciation and interest (capital recovery), as well as higher land

costs in all regions except southwestern Idaho. Ownership costs were up 3 – 6 cents per hundredweight.

Total costs per acre and per hundredweight were up in all three regions. With a yield decrease in

southwestern Idaho, the percentage change in total costs per hundredweight was the greatest of any

region. Total costs per acre increases ranged from $41 to $103, while total cost per hundredweight

increased by 2 to 26 cents.

Cost of Production Summaries and Comparisons by Region Table 11-A and 11-B summarizes production costs for 2014 and 2015 for operating, ownership and total

costs per acre, as well as per acre dollar and percentage changes between these years. Table 11-A has the

fumigated and 11-B contains the non-fumigated budgets.Table 12-A and 12-B summarizes production

costs for 2014 and 2015 for operating, ownership and total costs per hundredweight, and the change per

hundredweight and percentage between years. Because the yields used in budgets for 2014 were different

than those used in 2013, the percentage changes per hundredweight were different than the percentage

changes per acre.

The total cost to raise, harvest and sort potatoes in the three regions of southern Idaho for 2015 presented

in this report ranged from a low of $2,372 per acre in eastern Idaho-north (nonfumigation) up to $3,734 in

southwestern Idaho (with fumigation). (See Tables 11-A and 11-B.) There is a 57% difference from low

to high. The range in values per hundredweight is not so extreme, only a 10% difference. The 2015 total

cost to raise, harvest and sort potatoes ranged from $6.59 per hundredweight in eastern Idaho-north up to

$7.25 in southwestern Idaho. (See Tables 12-A and 12-B.)

Adjustments for 2015

There were a number product changes in the potato cost of production estimates shown in this report, as

well as quantity changes on some inputs. These changes were primarily associated with foliar fungicides

and foliar insecticides. Changes in products or quantities shown in the detailed cost estimates found in the

appendix are shown in green. Changes in the number of applications and products applied for herbicides,

insecticides and fungicides are summarized below. Changes in foliar fungicide applications was mostly

driven by late blight, while changes in foliar insecticides were related to increased psyllid numbers.

Page 14: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

pcop-15.doc Paul Patterson November 15, 2015

10 Southwestern Idaho Foliar Applications $ %

2015 Applic. Products 2014 Applic. Products Change Change

Herbicides $45.79 2 3 $45.66 2 3 $0.13 0.3%

Fungicides $153.92 8 10 $128.52 6 7 $25.40 19.8%

Insecticides $132.60 7 7 $127.75 5 5 $4.85 3.8% Total

Fungicides $180.68 $155.48 $25.20 16.2%

Insecticides $144.60 $140.55 $4.04 2.9% Note: Total includes foliar applications and at-planting soil applied products.

Southcentral Idaho Foliar Applications $ % 2015 Applic. Products 2014 Applic. Products Change Change

Herbicides $41.19 1 3 $42.26 1 3 -$1.07 -2.5%

Fungicides $123.51 7 8 $107.02 5 7 $16.49 15.4%

Insecticides $89.10 7 7 $76.50 5 5 $12.60 16.5% Total

Fungicides $141.91 $127.82 $14.09 11.0%

Insecticides $101.10 $89.30 $11.80 13.2% Note: Total includes foliar applications and at-planting soil applied products.

Eastern Idaho - South Foliar Applications $ %

2015 Applic. Products 2014 Applic. Products Change Change

Herbicides $41.49 1 3 $41.34 1 3 $0.15 0.4%

Fungicides $112.86 6 8 $103.34 5 7 $9.52 9.2%

Insecticides $34.40 4 4 $28.26 3 3 $6.14 21.7% Total Fungicides $146.31 $137.04 $9.26 6.8%

Insecticides $46.40 $41.06 $5.34 13.0%

Note: Total includes foliar applications and at-planting soil applied products.

Page 15: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

pcop-15.doc Paul Patterson November 15, 2015

11

Eastern Idaho - North Foliar Applications $ % 2015 Applic. Products 2014 Applic. Products Change Change

Herbicides $39.15 1 3 $40.06 1 3 -$0.91 -2.3%

Fungicides $86.41 5 6 $47.13 3 3 $39.28 83.4%

Insecticides $42.48 3 3 $33.00 2 2 $9.48 28.7%

Total

Fungicides $86.41 $47.13 $39.28 83.4%

Insecticides $64.98 $56.30 $8.68 15.4% Note: Total includes foliar applications and at-planting soil applied products.

Page 16: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

pcop-15.doc Paul Patterson November 15, 2015

12 Table 1.Idaho potato costs and returns estimates by region for 2015.

Region/Publication No.

Variety

Fumigation

Storage Costs

Commercial Potatoes Southwestern: EBB2-Po2-15 Russet Burbank Yes Yes Southcentral: EBB3-Po2-15 Russet Burbank No Yes EBB3-Po3-15 Russet Burbank Yes Yes Eastern – South Counties: EBB4-Po5-15 Russet Burbank No Yes EBB4-Po6-15 Russet Burbank Yes Yes Eastern – North Counties: EBB4-Po2-15 Russet Burbank No Yes

Eastern – South Counties: Bannock, Bingham and Power. Eastern – North Counties: Bonneville and Madison. Jefferson County was dropped in 2012. Note: the potato publication codes (EBB2-Po1-15 for example) are used in this report to simplify historical comparisons. Table 2. Model farm size and potato acreage by region. 2009 - 2012 2013 - 2015

Farm Potato Farm Potato

Southwestern 1200 300 1600 500

Southcentral 1800 450 2200 550

Eastern 1800 600 2400 800

Page 17: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

pcop-15.doc Paul Patterson November 15, 2015

13 Table 3. Interest rates, labor charges and power rates used in CAR estimates: 2012 – 2015 and percentage changes from 2014 to 2015. 2012 2013 2014 2015 Change Operating Interest Rate 6.0% 5.75% 6.0% 5.75% -4.2% Intermediate Interest Rate 6.25% 6.0% 5.75% 5.50% -4.3% Labor Class (overhead) Equipment Operator Labor (25%) $17.50 $17.80 $18.10 $18.50 +2.2% Truck Driver Labor $13.50 $13.80 $14.05 $14.40 +2.5% Irrigation Labor: HL & WL (30%) $12.35 $12.60 $12.85 $13.15 +2.3% Irrigation Labor: CP (25%) $17.50 $17.80 $18.10 $18.50 +2.2% Irrigation Labor: Chem-Fert (25%) $17.80 $18.10 $18.50 +2.2% General Farm Labor (15%) $10.05 $10.25 $10.40 $10.65 +2.4% Power Rate: Idaho Power Irrigation Service Schedule 24 Monthly Service Charge $22.00 $22.00 $22.00 $22.00 +0% Demand Charge: irrigation season $6.54 $7.01 $7.01 $7.01 +0% Base Rate: per kWh 4.584¢ 4.9133¢ 5.6453¢ 5.6453¢ +0%

< 165 kWh per kW of Demand 5.0596 5.7916 5.7916 +0% >165 kWh per kW of Demand 4.7670 5.4990 5.4990 +0%

Power Cost Adjustment per kWh 0.1295¢ 1.1767¢ 0.5263¢ 0.4435¢ -15.7% Effective Rate: per kWh 4.7135¢ 6.090¢ 6.1716¢ 6.0888¢ -1.3% Pumping Cost per Acre Inch $1.56 $1.90 $1.91 $1.90 -0.5%

Pumping cost is calculated using Idaho Power Company rates for a 160-acre center pivot with a corner system: 69% pumping plant efficiency and with zero lift.

Table 4-a. Current and historical fuel and water assessment prices for southwestern Idaho: 2011 – 2014 and percentage change from 2013 to 2014. 2012 2013 2014 2015 Change Gasoline $3.60 $3.70 $3.60 $2.65 -26.4% Off-Road Diesel $3.55 $3.60 $3.55 $2.45 -31.0% Road Diesel $4.05 $4.10 $4.05 $2.95 -27.2% Water Assessment $45.85 $48.85 $50.60 $50.60 +0%

Page 18: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

pcop-15.doc Paul Patterson November 15, 2015

14 Table 4-b. Current and historical fuel and water assessment prices for southcentral Idaho: 2012 – 2015 and percentage change from 2014 to 2015. 2012 2013 2014 2015 Change Gasoline $3.55 $3.60 $3.55 $2.50 -29.6% Off-Road Diesel $3.50 $3.55 $3.50 $2.30 -34.3% Road Diesel $4.00 $4.10 $4.00 $2.85 -28.8% Water Assessment $44.15 $45.30 $45.60 $45.60 +0%

Table 4-c. Current and historical fuel and water assessment prices for eastern Idaho: 2011 – 2014 and percentage change from 2012 to 2013. 2012 2013 2014 2015 Change Gasoline $3.50 $3.60 $3.50 $2.50 -28.6% Off-Road Diesel $3.50 $3.50 $3.45 $2.35 -31.2% Road Diesel $4.00 $4.00 $3.95 $2.85 -27.8% Water Assessment: All $14.70 $15.80 $15.90 $15.90 +0%

E. Idaho South District $30.00 $35.00 $35.00 $35.00 +0% E. Idaho North District $11.65 $11.95 $12.05 $12.05 +0%

Table 5. Current and historical fertilizer component prices for southern Idaho: 2012 – 2015 and percentage change from 2014 to 2015. 2012 2013 2014 2015 Change Dry Nitrogen (46-0-0) $0.69 $0.66 $0.58 $0.55 -5.1% Liquid Nitrogen (32-0-0) $0.75 $0.82 $0.72 $0.73 +1.4% P2O5 Dry (11-52-0)* $0.60 $0.53 $0.48 $0.53 +10.4% P2O5 Liquid (10-34-0)* $0.91 $0.76 $0.61 $0.72 +18.0% K2O (0-0-60) $0.57 $0.50 $0.41 $0.44 +7.3% Sulfur $0.25 $0.25 $0.25 $0.27 +8.0%

*Nitrogen in 11-52-0 and 10-34—0 was valued at the price of N in urea and Solution 32, respectively.

Page 19: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

pcop-15.doc Paul Patterson November 15, 2015

15 Table 6. Calculated potato yields used in published University of Idaho costs and returns estimates by region, both with and without fumigation: 2011 - 2015. *

Area 2011 2012 2013 2014 2015 cwt cwt cwt Southwest Region: Base Yield 528 528 538 530 522 Potatoes: No Fumigation 490 485 490 490 480 Potatoes: Fumigation 555 550 550 540 530 Adj. Russet Burbank: Fumigation 530 530 530 525 515 Southcentral Region: Base Yield 445 440 431 443 449 Russet Burbank: No Fumigation 420 415 410 420 425 Russet Burbank: Fumigation 475 470 445 465 470 Eastern Region: Russet Burbank: Base South Counties* : Base Yield 385 395 392 395 400 South: No Fumigation 365 375 375 380 385 South: Fumigation 410 420 410 420 425 North Counties*: Base Yield 345 360 360 368 373 North: No Fumigation 335 350 350 355 360 North: Fumigation 375 390 380 385 390

Note: Values in bold indicate published CAR estimates. There are no published CAR estimates for those not in bold. These are shown only for reference and comparison. *Eastern Idaho North Counties: Bonneville and Madison. Jefferson County was dropped in 2012. *Eastern Idaho South Counties: Bannock, Bingham and Power. Note: Russet Burbank adjustment factor on SWI is -3%. This was first used in 2011.

Table 7. Potato yields published by USDA for crop years 2010 - 2014 and the 3-year averages based on the most recent published data.

Area

2010

2011

2012

2013

2014

3-Year Average

Southwest Region 545 540 530 520 515 522 Southcentral Region 428 429 435 465 447 449 Eastern Region 357 383 394 388 395 392

South District 375 399 406 395 400 400 North District 339 369 373 364 383 373

Statewide 384 404 412 415 415 414

Source: USDA-NASS. Note: Yields for Eastern – North District are the revised yields that include only Bonneville and Madison Counties. South District contains only Bingham County data. Power and Bannock not published.

Page 20: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

pcop-15.doc Paul Patterson November 15, 2015

16

Table 8. Historical potato yields reported by USDA for the primary commercial potato counties in eastern Idaho for 2009 - 2013 and historical 3-year average for crop year.

Area

2010

2011

2012

2013

2014

3-Year Average

North District Counties: Bonneville 355 370 360 359 381 367 Madison 323 367 385 369 384 379 2-county Average 339 369 372 364 383 373 Jefferson 412 471 na na na South District Counties: Bannock 367 na 400 na na Bingham 367 384 406 395 400 400 Power 391 414 na na na 3-county Average 375 399 403

Source: USDA-NASS. Note: Jefferson County was dropped from the North District in 2012 (2011 potato crop year). Values for previous years were re-calculated using only Bonneville and Madison counties. 3-Year averages are based on the last three years where data was published. Note: County-level data was not published for either Bannock or Power counties for 2013. Table 9. Fumigation percentage by region and yield adjustment factors by region. Region Acres Fumigated Fumigation Adjustment Southwest 80% + 50 cwt Southcentral 60% + 40 cwt Southeastern

South District 50% + 35 cwt North District 40% + 30 cwt

Notes: Southwest increased from 65% to 80% in 2013 and yield increase dropped from 65 to 50 Southcentral increased from 55% to 60% in 2013 and yield increase dropped from 55 to 40 cwt South District increased from 45% to 50% in 2013 and yield increase dropped from 45 to 35 cwt North District increased from 30 to 45% in 2013 and yield increase dropped from 40 to 30 cwt

Page 21: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

17

T 10-A Per Acre & % COP Changes Idaho

Item

Yield -10 -1.9% 5 1.1% 5 1.2%

Operating Inputs $ % $ % $ %

Seed & Cutting: -$1.20 -0.3% -$1.15 -0.3% -$1.05 -0.4%

Fertilizer: $4.10 0.8% $27.25 5.9% $25.25 6.0%Pesticides & Chemicals: $48.27 8.3% $25.42 4.9% $31.01 7.0%

Custom & Consultants: $37.75 31.4% $21.60 15.9% $5.75 5.0%

Irrigation: Water, Power & Repairs -$2.41 -1.9% $0.00 0.0% -$0.01 0.0%

Machinery: Fuel & Repairs -$34.57 -18.2% -$30.42 -19.6% -$31.61 -19.9%Field Labor $5.02 2.3% $5.38 3.1% $3.53 2.3%Sorting: Labor, Repairs & Power $0.47 0.6% $1.69 2.6% $2.91 5.1%Other: Fees & Crop Insurance -$1.80 -1.1% $0.00 0.0% $1.80 1.2%Operating Interest -$1.75 -2.0% -$3.42 -4.5% -$0.76 -1.2%Total Operating Costs $53.88 2.2% $46.35 2.1% $36.82 1.9%Operating Costs per Cwt $0.20 4.2% $0.05 1.0% $0.03 0.7%

Ownership Costs:$3.00 1.5% $5.00 2.7% $2.00 1.2%

Potato Handling Equipment $1.00 1.4% $3.00 4.5% $2.00 3.4%$0.00 0.0% $25.00 4.2% $20.00 3.9%$1.50 2.4% $1.50 3.3% $0.50 1.2%$3.00 1.7% $3.00 2.2% $2.00 1.7%

Total Ownership Costs $8.70 0.7% $37.76 3.6% $26.65 2.9%Ownership Costs per Cwt $0.06 2.7% $0.06 2.5% $0.04 1.7%

Total Costs:Total Costs per Acre $62.58 1.7% $84.11 2.6% $63.47 2.2%

Total Cost per Cwt $0.26 3.7% $0.11 1.5% $0.07 1.0%

See appendix for detailed cost comparison and for storage costs by month.

EBB4-Po2 EBB3-Po3 EBB4-Po6Fumigated Fumigated Fumigated

Table 10-A. Change in per acre cost of production by major cost category from 2014 to 2015 for fumigated Russet Burbank potatoes in three production regions of Idaho.

Southwestern Idaho Southcentral Idaho Eastern Idaho -S.Change from 2014 Change from 2014 Change from 2014

Tractors, Trucks & Field Equip.

Land *OverheadManagement Fee

Note: Cost of production refers to the cost to grow, harvest and sort potatoes. The cost of on-farm storage is not included.

Page 22: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

18

T 10-B Per Acre & % COP Change Idaho

Item

Yield 5 1.2% 5 1.3% 5 1.4%

Operating Inputs $ % $ % $ %

Seed & Cutting: -$1.15 -0.3% -$1.05 -0.4% $0.00 0.0%

Fertilizer: $22.85 5.4% $19.15 4.8% $18.95 5.1%Pesticides & Chemicals: $47.42 17.5% $15.25 6.1% $45.30 23.4%

Custom & Consultants: $19.60 20.9% $6.75 9.7% $8.25 14.0%

Irrigation: Water, Power, Repairs $0.00 0.0% $0.00 0.0% $0.20 0.3%

Machinery: Fuel & Repairs -$30.25 -19.6% -$31.58 -20.0% -$32.68 -20.5%Field Labor $5.43 3.3% $3.46 2.3% $3.29 2.1%Sorting: Labor, Repairs & Power $2.22 3.8% $2.08 4.0% $1.98 4.0%Other: Fees & Crop Insurance $0.90 0.7% $0.90 0.6% $0.90 0.7%Operating Interest -$1.21 -2.2% -$1.23 -2.5% -$0.58 -1.3%Total Operating Costs $65.82 3.7% $13.73 0.8% $45.61 3.0%Operating Costs per Cwt $0.10 2.4% -$0.02 -0.5% $0.07 1.6%

Ownership Costs:$5.00 2.8% $3.00 1.8% $3.00 1.8%

Potato Handling Equipment $2.00 3.4% $1.90 3.5% $2.00 4.0%$25.00 4.2% $20.00 3.9% $15.00 3.5%$1.50 3.3% $0.50 1.2% $1.00 2.6%$3.00 2.2% $2.00 1.7% $2.00 1.8%

Total Ownership Costs $36.76 3.6% $27.57 3.1% $23.17 2.9%Ownership Costs per Cwt $0.06 2.4% $0.04 1.7% $0.03 1.5%

Total Costs:Total Costs per Acre $102.58 3.6% $41.30 1.6% $68.78 3.0%

Total Cost per Cwt $0.16 2.4% $0.02 0.3% $0.10 1.6%

See appendix for detailed cost comparison and for storage costs by month.

OverheadManagement Fee

Note: Cost of production refers to the cost to grow, harvest and sort potatoes. The cost of on-farm storage is not included.

Non-Fumigated Non-Fumigated Non-FumigatedEBB3-Po2 EBB4-Po5 EBB4-Po2

Tractors, Trucks & Field Equip.

Land *

Table 10-B. Change in per acre cost of production by major cost category from 2014 to 2015 for non-fumigated Russet Burbank potatoes in three production regions of Idaho.

Southcentral Idaho Eastern Idaho - S. Eastern Idaho - N.Change from 2014 Change from 2014 Change from 2014

Page 23: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

19

T 11 Summary per Acre Idaho

Eastern -South

Russet Burbank with Fumigation

Russet Burbank with Fumigation

Russet Burbank with Fumigation

Po2 Po3 Po6

2014 Operating Cost $2,457 $2,182 $1,956

2015 Operating Cost $2,511 $2,228 $1,993

$ Change $54 $46 $37

% Change 2.2% 2.1% 1.9%

2014 Ownership Cost $1,214 $1,035 $911

2015 Ownership Cost $1,223 $1,073 $938

$ Change $9 $38 $27

% Change 0.7% 3.7% 3.0%

2014 Total Cost $3,671 $3,217 $2,867

2015 Total Cost $3,734 $3,301 $2,931

$ Change $63 $84 $64

% Change 1.7% 2.6% 2.2%

Note: values are rounded an may not add up.

Eastern -South Eastern -North

Russet Burbank with No Fumigation

Russet Burbank with No Fumigation

Russet Burbank with No Fumigation

Po2 Po5 Po2

2014 Operating Cost $1,803 $1,656 $1,508

2015 Operating Cost $1,868 $1,669 $1,554

$ Change $65 $13 $46

% Change 3.6% 0.8% 3.1%

2014 Ownership Cost $1,025 $902 $795

2015 Ownership Cost $1,061 $930 $818

$ Change $36 $28 $23

% Change 3.5% 3.1% 2.9%

2014 Total Cost $2,828 $2,558 $2,303

2015 Total Cost $2,929 $2,599 $2,372

$ Change $101 $41 $69

% Change 3.6% 1.6% 3.0%

Note: values are rounded an may not add up.

Southcentral

Table 11-A. Cost of production per acre for irrigated Russet Burbank potatoes by region for 2014 and 2015 and change in costs between these years.

Southwestern Southcentral

Table 11-B. Cost of production per acre for irrigated Russet Burbank potatoes by region for 2014 and 2015 and change in costs between these years.

Page 24: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

20

T 12 Summary per CWT Idaho

Eastern -South

Russet Burbank with Fumigation

Russet Burbank with Fumigation

Russet Burbank with Fumigation

Po2 Po3 Po6

2014 Operating Cost $4.68 $4.69 $4.48

2015 Operating Cost $4.88 $4.74 $4.34

$ Change $0.20 $0.05 -$0.14

% Change 4.3% 1.1% -3.1%

2014 Ownership Cost $2.31 $2.23 $2.38

2015 Ownership Cost $2.37 $2.28 $2.39

$ Change $0.06 $0.05 $0.01

% Change 2.6% 2.2% 0.4%

2014 Total Cost $6.99 $6.92 $6.86

2015 Total Cost $7.25 $7.02 $6.73

$ Change $0.26 $0.10 -$0.13

% Change 3.7% 1.4% -1.9%

Note: values are rounded an may not add up.

Eastern -South Eastern -North

Russet Burbank with No Fumigation

Russet Burbank with No

FumigationRusset Burbank

with No FumigationPo2 Po5 Po2

2014 Operating Cost $4.29 $4.36 $4.25

2015 Operating Cost $4.40 $4.34 $4.32

$ Change $0.11 -$0.02 $0.07

% Change 2.6% -0.5% 1.6%

2014 Ownership Cost $2.44 $2.37 $2.24

2015 Ownership Cost $2.50 $2.42 $2.27

$ Change $0.06 $0.05 $0.03

% Change 2.5% 2.1% 1.3%

2014 Total Cost $6.73 $6.73 $6.49

2015 Total Cost $6.90 $6.76 $6.59

$ Change $0.17 $0.03 $0.10

% Change 2.5% 0.4% 1.5%

Note: values are rounded an may not add up.

Southcentral

Table 12-A. Cost of production per hundredweight for irrigated Russet Burbank potatoes by region for 2014 and 2015 and change in costs between these years.

Southwestern Southcentral

Table 12-B. Cost of production per hundredweight for irrigated Russet Burbank potatoes by region for 2014 and 2015 and change in costs between these years.

Page 25: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

21

Appendix A Southwestern Idaho

Irrigated Russet Burbank Potato Fumigated

Page 26: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

22

SWI-Po2-15 EBB2-Po2

Quantity Price or Value orItem Per Acre Unit Cost Cost/Acre Comparison

Gross Returns 2014Potatoes 515 cwt $7.50 $3,862.50 525 -10 -1.9%

Operating Inputs $ Change % Change

Seed: $356.40 $357.60 -$1.20 -0.3%G-3 Burbank Potato Seed 24 cwt $13.15 $315.60 $318.00 -$2.40 -0.8%Seed Cutting 24 cwt $1.70 $40.80 $39.60 $1.20 3.0%

Fertilizer: $545.45 $541.35 $4.10 0.8%Dry Nitrogen - Preplant 175 lb $0.55 $96.25 $101.50 -$5.25 -5.2%Dry P2O5 220 lb $0.53 $116.60 $110.40 $6.20 5.6%K2O 255 lb $0.44 $112.20 $108.65 $3.55 3.3%Sulfur 115 lb $0.27 $31.05 $28.75 $2.30 8.0%Micronutrients & Foliars 2 ac $22.00 $44.00 $48.00 -$4.00 -8.3%Liquid Nitrogen 135 lb $0.73 $98.55 $104.40 -$5.85 -5.6%Liquid P2O5 65 lb $0.72 $46.80 $39.65 $7.15 18.0%

Pesticides & Chemicals: $632.96 $584.69 $48.27 8.3%Vapam HL 42% 42 gal $5.95 $249.90 $231.00 $18.90 8.2%Potato Seed Treatment 24 cwt $0.50 $12.00 $12.00 $0.00 0.0%Admire Pro 8.0 fl oz $1.50 $12.00 $12.80 -$0.80 -6.3%Moncut 70DF 0.8 lb $33.45 $26.76 $26.96 -$0.20 -0.7%Eptam 7E 4.0 pt $6.25 $25.00 $25.40 -$0.40 -1.6%Metribuzin 75DF 0.75 lb $14.65 $10.99 $10.76 $0.23 2.1%Prowl 3.3EC 2.0 pt $4.90 $9.80 $9.50 $0.30 3.2%Ridomil Gold MZ 2.5 lb $14.55 $36.38 $39.63 -$3.25 -8.2%Endura (3x) 10.50 oz $4.70 $49.35 $43.20 $6.15 14.2%Revus Top (2x) 12.0 fl oz $2.42 $29.04 $13.64 $15.40 112.9%Bravo Weather Stik (2x) 3.0 pint $4.65 $13.95 $14.85 -$0.90 -6.1%Manzate Pro-Stick 2.0 lb $4.85 $9.70 $9.70Gavel 75DF 2.0 lb $7.75 $15.50 $17.20 -$1.70 -9.9%Fulfill WDG 5.50 oz $6.25 $34.38 $33.00 $1.38 4.2%Brigadier (2x) 12.00 fl oz $1.35 $16.20 $0.00 $16.20Movento 5.00 fl oz $7.50 $37.50 $71.50 -$34.00 -47.6%Reaper 0.15EC (2x) 24.0 fl oz $0.70 $16.80 $23.25 -$6.45 -27.7%Beleaf 50SG 2.8 oz $9.90 $27.72 $0.00 $27.72

Custom & Consultants: $158.00 $120.25 $37.75 31.4%Custom Fumigate: Deep Inject 1 ac $48.00 $48.00 $35.00 $13.00 37.1%Custom Fertilize: 400 - 800 lbs 1 ac $8.75 $8.75 $9.25 -$0.50 -5.4%Custom Fertilize: 0 - 400 lbs 1 ac $8.25 $8.25 $9.00 -$0.75 -8.3%Custom Air Spray-5G 7 ac $9.00 $63.00 $45.00 $18.00 40.0%Consultant & Soil/Pet. Test 1 ac $30.00 $30.00 $22.00 $8.00 36.4%

$0.00

Irrigation: $125.31 $127.72 -$2.41 -1.9%Water Assessment 1 ac $50.60 $50.60 $50.60 $0.00 0.0%Irrigation Power-CP * 31 acin $1.90 $58.90 $61.12 -$2.22 -3.6%Irrigation Repairs-CP * 31 acin $0.51 $15.81 $16.00 -$0.19 -1.2%

Machinery: $155.07 $189.64 -$34.57 -18.2%Fuel - Gas 5.32 gal $2.65 $14.10 $19.15 -$5.05 -26.4%Fuel - Farm Diesel 22.37 gal $2.45 $54.81 $79.41 -$24.61 -31.0%Fuel - Road Diesel 2.32 gal $2.95 $6.84 $9.40 -$2.55 -27.2%Lube 1 ac $11.36 $11.36 $16.20 -$4.84 -29.9%Machinery Repairs 1 ac $67.96 $67.96 $65.48 $2.48 3.8%

Field Labor: $222.79 $217.76 $5.02 2.3%Equipment Operator Labor 4.78 hr $18.50 $88.43 $86.52 $1.91 2.2%Truck Driver Labor 3.6 hr $14.40 $51.84 $50.58 $1.26 2.5%Irrigation Labor: CP* 1.28 hr $18.50 $23.68 $23.17 $0.51 2.2%Irrigation Labor: Chem-Fert 1.20 hr $18.50 $22.20 $21.72 $0.48 2.2%General Farm Labor 3.44 hr $10.65 $36.64 $35.78 $0.86 2.4%

Sorting: $72.92 $72.46 $0.47 0.6%Sorting Labor Costs 515 cwt $0.108 $55.41 $55.13 $0.28 0.5%Sorting Equip. Repairs & Power 515 cwt $0.034 $17.51 $17.33 $0.19 1.1%

Other: $158.02 $159.82 -$1.80 -1.1%Crop Insurance 1 ac $70.00 $70.00 $70.00 $0.00 0.0%Fees & Assessments 489 cwt $0.18 $88.02 $89.82 -$1.80 -2.0%Operating Interest @ 5.75% $83.81 $85.56 -$1.75 -2.0%

Total Operating Costs $2,511 $2,457 $53.88 2.2%Operating Costs per Unit $4.88 $4.68 $0.20 4.2%

Net Returns Above Operating Expenses $1,352 $1,350

Table A-1. 2015 Costs to grow, harvest and sort southwestern Idaho irrigated Russet Burbank potatoes with fumigation. Comparison with 2014. Final 10/24/2015

Yield Change

Page 27: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

23

SWI-Po2-15 EBB2-Po2

Quantity Price or Value orItem Per Acre Unit Cost Cost/Acre Comparison

Table A-1. 2015 Costs to grow, harvest and sort southwestern Idaho irrigated Russet Burbank potatoes with fumigation. Comparison with 2014. Final 10/24/2015

Ownership Costs:$5.82 $5.62 $0.20 3.6%

$201.00 $198.00 $3.00 1.5%$75.00 $74.00 $1.00 1.4%

$700.00 $700.00 $0.00 0.0%$63.00 $61.50 $1.50 2.4%

$178.00 $175.00 $3.00 1.7%

Total Ownership Costs $1,223 $1,214 $8.70 0.7%Ownership Costs per Unit $2.37 $2.31 $0.06 2.7%

Total Costs per Acre $3,734 $3,671 $62.58 1.7%Total Cost per Unit $7.25 $6.99 $0.26 3.7%

Returns to Risk $129

Notes:

Breakeven Analysis: - Base +5% 5%

YieldPrice 489.25 515 540.75

Operating Cost Breakeven $5.13 $4.88 $4.64Ownership Cost Breakeven $2.50 $2.37 $2.26Total Cost Breakeven $7.63 $7.25 $6.90

PriceYield $7.13 $7.50 $7.88

Operating Cost Breakeven 352.4 334.8 318.8Ownership Cost Breakeven 171.6 163.0 155.3Total Cost Breakeven 524.0 497.8 474.1

Tractors & Equipment InsuranceTractors & Equipment Depreciation & InterestPotato Handling Equipment Deprec. & InterestLand **OverheadManagement Fee

Procedureal changes can result in different costs than were published the previous year.

* Center pivot. ** Includes irrigation system ownership costs.Blue font indicates an increase.A red font indicates a decrease.A green font indicates a change in product or procedure to derive the cost.

Page 28: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

24

EBB2-Po2

10/24/2015Storage Costs

Field Run Cost per Cwt

Paid Yield Cost per Cwt

Field-Run Yield 515

Paid Yield % 95% 489

Base Cost to Grow, Harvest and Sort $7.25 $7.63

Storage System Annual Ownership Costs $0.357 $0.357 $0.376

Base Cost + Storage Ownership Cost $7.61 $8.01

Storage System Annual Repairs $0.041 $0.041 $0.043

Base + Storage System Ownership & Repairs $7.65 $8.05

Cumulative Cumulative CumulativeStorage Op.

CostsBase + All

Storage CostsBase + All

Storage CostsOctober $0.218 $7.87 $8.28

November* $0.390 $8.04 $8.46December $0.480 $8.13 $8.56

January $0.568 $8.22 $8.65February $0.657 $8.30 $8.74

March $0.746 $8.39 $8.84April* $0.936 $8.58 $9.04May $1.045 $8.69 $9.15

June $1.172 $8.82 $9.28

Base cost of production includes cost to grow, harvest & sort potatoes,both operating and ownership.Ownership costs for potato handling equipment are included in the base cost of production.Storage system includes: storage facility, air system, and the equipment used to place

Storage operating costs include: repairs (shown separately), plus monthly operating costs:labor, power, chemicals, interest, shrink & insurance.

Storage costs do not include the cost of removing the potatoes from storage.

* Indicates month when sprout inhibitor applied.

Cumulative storage operating expenses are calculated to the end of the month.

Table A-2. 2015 Cost per hundredweight to grow, harvest, sort and store Southwestern Idaho irrigated Russet Burbank potato with fumigation based on both field-run and paid yield.

Data entered directly by user. All other values are calculated.Calculated values.

Page 29: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

25

Appendix B Southcentral Idaho

Irrigated Russet Burbank Potato Fumigated

Page 30: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

26

SCI-Po3-15 EBB3-Po3

Quantity Price or Value orItem Per Acre Unit Cost Cost/Acre Comparison

Gross Returns 2014Potatoes 470 cwt $7.25 $3,407.50 465 5 1.1%

Operating Inputs $ Change % Change

Seed: $330.05 $331.20 -$1.15 -0.3%G-3 Burbank Potato Seed 23 cwt $12.65 $290.95 $293.25 -$2.30 -0.8%Seed Cutting 23 cwt $1.70 $39.10 $37.95 $1.15 3.0%

Fertilizer: $489.25 $462.00 $27.25 5.9%Dry Nitrogen - Preplant 175 lb $0.55 $96.25 $98.60 -$2.35 -2.4%Dry P2O5 220 lb $0.53 $116.60 $103.20 $13.40 13.0%K2O 235 lb $0.44 $103.40 $94.30 $9.10 9.7%Sulfur 90 lb $0.27 $24.30 $21.25 $3.05 14.4%Micronutrients & Foliars 2 ac $18.00 $36.00 $38.00 -$2.00 -5.3%Liquid Nitrogen 110 lb $0.73 $80.30 $79.20 $1.10 1.4%Liquid P2O5 45 lb $0.72 $32.40 $27.45 $4.95 18.0%

Pesticides & Chemicals: $544.30 $518.88 $25.42 4.9%Metam CLR (42%) 40.0 gal $5.65 $226.00 $248.00 -$22.00 -8.9%Seed Treatment 23.0 cwt $0.50 $11.50 $11.50 $0.00 0.0%Admire Pro 8.0 oz $1.50 $12.00 $12.80 -$0.80 -6.3%Quadris Flowable 8.0 fl oz $2.30 $18.40 $20.80 -$2.40 -11.5%Outlook 6EC 20.0 fl oz $1.02 $20.40 $22.00 -$1.60 -7.3%Prowl 3.3 EC 2.0 pt $4.90 $9.80 $9.50 $0.30 3.2%Metribuzin 75DF 0.75 lb $14.65 $10.99 $10.76 $0.23 2.1%Endura 5.5 oz $4.70 $25.85 $24.30 $1.55 6.4%Dithane F45 Rainshield (3X) 5.6 qt $8.70 $48.72 $29.70 $19.02 64.0%Headline 0.0 fl oz $2.78 $0.00 $19.32 -$19.32 -100.0%Tanos 6.0 oz $2.75 $16.50 $16.50 $0.00 0.0%Gavel 75DF 2.0 lb $7.75 $15.50 $17.20 -$1.70 -9.9%Revus Top 7.0 fl oz $2.42 $16.94 $0.00 $16.94Brigadier (3x) 18.0 fl oz $1.35 $24.30 $18.00 $6.30 35.0%Movento 5.0 fl oz $7.50 $37.50 $35.25 $2.25 6.4%Agri-Mek .75SC (2X) 10.5 fl oz $2.60 $27.30 $23.25 $4.05 17.4%Reglone 1.0 qt $22.60 $22.60 $0.00 $22.60

Custom & Consultants: $157.25 $135.65 $21.60 15.9%Cutom Fumigate: Deep inject. 1 ac $44.00 $44.00 $42.00 $2.00 4.8%Custom Fertilize: 400 - 800 lbs 1 ac $7.75 $7.75 $8.75 -$1.00 -11.4%Custom Fertilize: 0 - 400 lbs 1 ac $7.25 $7.25 $7.90 -$0.65 -8.2%Custom Air Spray-7.5G 7 ac $9.75 $68.25 $55.00 $13.25 24.1%Consultant Soil/Pet. Testing 1 ac $30.00 $30.00 $22.00 $8.00 36.4%

Irrigation: $115.49 $115.49 $0.00 0.0%Water Assessment 1 ac $45.60 $45.60 $45.60 $0.00 0.0%Irrigation Power-CP 29 acin $1.90 $55.10 $55.39 -$0.29 -0.5%Irrigation Repairs 29 acin $0.51 $14.79 $14.50 $0.29 2.0%

Machinery: $125.09 $155.50 -$30.42 -19.6%Fuel - Gas 4.59 gal $2.50 $11.48 $16.29 -$4.82 -29.6%Fuel - Farm Diesel 19.41 gal $2.30 $44.64 $65.80 -$21.16 -32.2%Fuel - Road Diesel 2.28 gal $2.85 $6.50 $9.12 -$2.62 -28.8%Lube 1 ac $9.39 $9.39 $13.68 -$4.29 -31.4%Machinery Repairs 1 ac $53.08 $53.08 $50.61 $2.47 4.9%

Field Labor: $176.45 $171.06 $5.38 3.1%Equipment Operator Labor 4.52 hrs $18.50 $83.62 $80.36 $3.26 4.1%Truck Driver Labor 2.0 hrs $14.40 $28.80 $28.10 $0.70 2.5%Irrigation Labor: CP 1.16 hr $18.50 $21.46 $21.00 $0.46 2.2%Irrigation Labor: Chem-Fert 1.0 hr $18.50 $18.50 $18.10 $0.40 2.2%General Farm Labor 2.26 hr $10.65 $24.07 $23.50 $0.57 2.4%

Sorting: $66.55 $64.86 $1.69 2.6%Sorting Labor Costs 470 cwt $0.108 $50.57 $49.35 $1.22 2.5%Sorting Equip. Repairs & Power 470 cwt $0.034 $15.98 $15.51 $0.47 3.0%

Other: $150.28 $150.28 $0.00 0.0%Fees & Assessments 446 cwt $0.18 $80.28 $80.28 $0.00 0.0%Crop Insurance 1 ac $70.00 $70.00 $70.00 $0.00 0.0%Operating Interest @ 5.75% $73.24 $76.66 -$3.42 -4.5%

Total Operating Costs $2,228 $2,182 $46.35 2.1%Operating Costs per Unit $4.74 $4.69 $0.05 1.0%

Net Returns Above Operating Expenses $1,180 $1,143

Table B-1. 2015 Costs to grow, harvest and sort southcentral Idaho irrigated Russet Burbank potatoes with fumigation. Comparison with 2014. Final 10/25/2015

Yield Change

Page 31: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

27

SCI-Po3-15 EBB3-Po3

Quantity Price or Value orItem Per Acre Unit Cost Cost/Acre Comparison

Table B-1. 2015 Costs to grow, harvest and sort southcentral Idaho irrigated Russet Burbank potatoes with fumigation. Comparison with 2014. Final 10/25/2015

Ownership Costs:$5.56 $5.30 $0.26 4.9%

$188.00 $183.00 $5.00 2.7%$69.00 $66.00 $3.00 4.5%

$625.00 $600.00 $25.00 4.2%$47.00 $45.50 $1.50 3.3%

$138.00 $135.00 $3.00 2.2%

Total Ownership Costs $1,073 $1,035 $37.76 3.6%Ownership Costs per Unit $2.28 $2.23 $0.06 2.5%

Total Costs per Acre $3,301 $3,216 $84.11 2.6%Total Cost per Unit $7.02 $6.92 $0.11 1.5%

Returns to Risk $107

Notes:

Breakeven Analysis: - Base +5% 5%

YieldPrice 446.5 470 493.5

Operating Cost Breakeven $4.99 $4.74 $4.51Ownership Cost Breakeven $2.40 $2.28 $2.17Total Cost Breakeven $7.39 $7.02 $6.69

PriceYield $6.89 $7.25 $7.61

Operating Cost Breakeven 323.5 307.3 292.7Ownership Cost Breakeven 155.7 147.9 140.9Total Cost Breakeven 479.2 455.2 433.6

Procedureal changes can result in different costs than were published the previous year.

* Center pivot. ** Includes irrigation system ownership costs.Blue font indicates an increase.A red font indicates a decrease.A green font indicates a change in product or procedure to derive the cost.

OverheadManagement Fee

Tractors & Equipment Depreciation & InterestPotato Handling Equipment Deprec. & InterestLand *

Tractors & Equipment Insurance

Page 32: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

28

Storage EBB3-Po3

10/25/2015Storage Costs

Field Run Cost per Cwt

Paid Yield Cost per Cwt

Field-Run Yield 470

Paid Yield % 95% 446.5

Base Cost to Grow, Harvest and Sort $7.02 $7.39

Storage System Annual Ownership Costs $0.338 $0.338 $0.356

Base Cost + Storage Ownership Cost $7.36 $7.75

Storage System Annual Repairs $0.040 $0.040 $0.042

Base + Storage System Ownership & Repairs $7.40 $7.79

Cumulative Cumulative CumulativeStorage Op.

CostsBase + All

Storage CostsBase + All

Storage CostsOctober $0.208 $7.61 $8.01

November* $0.376 $7.78 $8.19December $0.461 $7.86 $8.28

January $0.545 $7.95 $8.36February $0.630 $8.03 $8.45

March $0.714 $8.11 $8.54April* $0.899 $8.30 $8.74May $1.003 $8.40 $8.85

June $1.124 $8.52 $8.97

Base cost of production includes cost to grow, harvest & sort potatoes,both operating and ownership.Ownership costs for potato handling equipment are included in the base cost of procution.

Storage system includes: storage facility and air system.

Storage operating costs include: repairs (shown separately), plus monthly operating costs:power, chemicals, interest, shrink & insurance.

Storage costs do not include the cost of removing the potatoes from storage.

* Indicates month when sprout inhibitor applied.

Cumulative storage operating expenses are calculated to the end of the month.

Table B-2. 2015 Cost per hundredweight to grow, harvest, sort and store southcentral Idaho irrigated Russet Burbank potato with fumigation based on both field-run and paid yield.

Data entered directly by user. All other values are calculated.Calculated values.

Page 33: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

29

Appendix C Eastern Idaho Southern Region Irrigated Russet Burbank Potato

Fumigated

Page 34: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

30

EIS-Po6-15 EIS-Po6

Quantity Price or Value orItem Per Acre Unit Cost Cost/Acre Comparison

Gross Returns 2014Potatoes 425 cwt $7.25 $3,081.25 420 5 1.2%

Operating Inputs $ Change % Change

Seed: $289.80 $290.85 -$1.05 -0.4%G-3 Russet Burbank Seed S 21 cwt $12.10 $254.10 $256.20 -$2.10 -0.8%Potato Seed Cutting 21 cwt $1.70 $35.70 $34.65 $1.05 3.0%

Fertilizer: $448.20 $422.95 $25.25 6.0%Dry Nitrogen - Pre-plant 140 lb $0.55 $77.00 $78.30 -$1.30 -1.7%Dry P2O5 185 lb $0.53 $98.05 $86.40 $11.65 13.5%K2O 215 lb $0.44 $94.60 $86.10 $8.50 9.9%Sulfur 85 lb $0.27 $22.95 $21.25 $1.70 8.0%Liquid Nitrogen 120 lb $0.73 $87.60 $86.40 $1.20 1.4%Liquid P2O5 50 lb $0.72 $36.00 $30.50 $5.50 18.0%Micronutrients/Humic Acid - CP 1 acre $32.00 $32.00 $34.00 -$2.00 -5.9%

Pesticides & Chemicals: $475.55 $444.54 $31.01 7.0%Vapam 42% 35.0 gal $5.95 $208.25 $192.50 $15.75 8.2%Potato Seed Treatment 21.0 cwt $0.50 $10.50 $10.50 $0.00 0.0%Admire Pro 8.0 fl oz $1.50 $12.00 $12.80 -$0.80 -6.3%Moncut 700DF 1.0 lb $33.45 $33.45 $33.70 -$0.25 -0.7%Metribuzin 75DF 0.67 lb $14.65 $9.82 $9.61 $0.20 2.1%Eptam 7E 3.5 pint $6.25 $21.88 $22.23 -$0.35 -1.6%Prowl 3.3EC 2.0 pint $4.90 $9.80 $9.50 $0.30 3.2%Quadris Flowable 8.0 fl oz $2.30 $18.40 $20.80 -$2.40 -11.5%Omega 500DF 5.5 fl oz $3.40 $18.70 $19.25 -$0.55 -2.9%Endura 5.5 oz $4.70 $25.85 $29.70 -$3.85 -13.0%Bravo Weatherstik (2x) 2.0 pint $4.65 $9.30 $4.95 $4.35 87.9%Dithane F45 Rainshield (2x) 3.2 qt $8.65 $27.68 $28.64 -$0.96 -3.4%Ranman 2.75 fl oz $4.70 $12.93 $12.93Agri-Mek 0.75SC (2x) 7.0 fl oz $2.60 $18.20 $10.46 $7.74 74.0%Brigadier (2x) 12.0 fl oz $1.35 $16.20 $17.80 -$1.60 -9.0%Reglone 2.0 pint $11.30 $22.60 $22.10 $0.50 2.3%

Custom & Consultants: $120.00 $114.25 $5.75 5.0%Custom Fumigation: Deep injec. 1 acre $44.00 $44.00 $45.00 -$1.00 -2.2%Custom Fertilize: 400 - 800 lbs 1 acre $7.75 $7.75 $8.50 -$0.75 -8.8%Custom Fertilize: 0 - 400 lbs 1 acre $7.25 $7.25 $8.00 -$0.75 -9.4%Consultants/Soil Testing - CP 1 acre $26.00 $26.00 $22.00 $4.00 18.2%Custom Air Spray - 5.0 gal. rate 4 acre $8.75 $35.00 $30.75 $4.25 13.8%

Irrigation: $96.46 $96.46 -$0.01 0.0%Irrigation Power - Center Pivot* 25.5 ac-in $1.90 $48.45 $48.71 -$0.26 -0.5%Irrigation Water Assessment-S 1 acre $35.00 $35.00 $35.00 $0.00 0.0%Irrigation Repairs - CP* 25.5 ac-in $0.51 $13.01 $12.75 $0.26 2.0%

Machinery: $127.40 $159.01 -$31.61 -19.9%Fuel - Gas 4.52 gal $2.50 $11.30 $15.82 -$4.52 -28.6%Fuel - Farm Diesel 20.47 gal $2.35 $48.10 $70.62 -$22.52 -31.9%Fuel - Road Diesel 2.02 gal $2.85 $5.76 $7.98 -$2.22 -27.8%Lube 1 acre $9.77 $9.77 $14.16 -$4.39 -31.0%Machinery Repair 1 acre $52.47 $52.47 $50.43 $2.04 4.0%

Field Labor: $157.98 $154.44 $3.53 2.3%Equipment Operator Labor 3.88 hrs $18.50 $71.78 $70.23 $1.55 2.2%Truck Driver Labor 1.98 hrs $14.40 $28.51 $27.82 $0.69 2.5%Irrigation Labor-CP 1.02 hrs $18.50 $18.87 $18.46 $0.41 2.2%Irrigation Labor: Chem-Fert 0.82 hr $18.50 $15.17 $14.84 $0.33 2.2%General Farm Labor 2.22 hrs $10.65 $23.64 $23.09 $0.55 2.4%Sorting: $60.18 $57.28 $2.91 5.1%Sorting Labor Costs 425 cwt $0.108 $45.73 $43.58 $2.15 4.9%Sorting Equip. Repairs & Power 425 cwt $0.034 $14.45 $13.70 $0.76 5.5%

Other: $152.72 $150.92 $1.80 1.2%Crop Insurance: MP + Hail 1 acre $80.00 $80.00 $80.00 $0.00 0.0%Potato Fees & Assessments 404 cwt $0.18 $72.72 $70.92 $1.80 2.5%Operating Interest @ 5.75% $64.97 $65.73 -$0.76 -1.2%

Total Operating Costs $1,993 $1,956 $36.82 1.9%Operating Costs per Unit $4.69 $4.66 $0.03 0.7%

Net Returns Above Operating Expenses $1,088 $1,058

Table C-1. 2015 Costs to grow, harvest and sort eastern Idaho southern region irrigated Russet Burbank potatoes with fumigation. Comparison with 2014. Final 10/25/2015

Yield Change

Page 35: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

31

EIS-Po6-15 EIS-Po6

Quantity Price or Value orItem Per Acre Unit Cost Cost/Acre Comparison

Table C-1. 2015 Costs to grow, harvest and sort eastern Idaho southern region irrigated Russet Burbank potatoes with fumigation. Comparison with 2014. Final 10/25/2015

Ownership Costs:$5.12 $4.97 $0.15 3.0%

$172.00 $170.00 $2.00 1.2%$61.00 $59.00 $2.00 3.4%

$535.00 $515.00 $20.00 3.9%$41.50 $41.00 $0.50 1.2%

$123.00 $121.00 $2.00 1.7%

Total Ownership Costs $938 $911 $26.65 2.9%Ownership Costs per Unit $2.21 $2.17 $0.04 1.7%

Total Costs per Acre $2,931 $2,867 $63.47 2.2%Total Cost per Unit $6.90 $6.83 $0.07 1.0%

Returns to Risk $150

Notes:

Breakeven Analysis: - Base +5% 5%

YieldPrice 403.75 425 446.25

Operating Cost Breakeven $4.94 $4.69 $4.47Ownership Cost Breakeven $2.32 $2.21 $2.10Total Cost Breakeven $7.26 $6.90 $6.57

PriceYield $6.89 $7.25 $7.61

Operating Cost Breakeven 289.4 274.9 261.8Ownership Cost Breakeven 136.1 129.3 123.2Total Cost Breakeven 425.5 404.3 385.0

Procedureal changes can result in different costs than were published the previous year.

* Center pivot. ** Includes irrigation system ownership costs.Blue font indicates an increase.A red font indicates a decrease.A green font indicates a change in product or procedure to derive the cost.

OverheadManagement Fee

Tractors & Equipment Depreciation & InterestPotato Handling Equipment Deprec. & InterestLand *

Tractors & Equipment Insurance

Page 36: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

32

Storage EBB4-Po6

10/25/2015Storage Costs

Field-Run Cost per Cwt

Paid Yield Cost per Cwt

Field-Run Yield 425

Paid Yield % 95% 404

Base Cost to Grow, Harvest and Sort $6.90 $7.26

Storage System Annual Ownership Costs $0.357 $0.357 $0.376

Base Cost + Storage Ownership Cost $7.25 $7.63

Storage System Annual Repairs $0.041 $0.041 $0.04

Base + Storage System Ownership & Repairs $7.29 $7.68

Cumulative Cumulative CumulativeStorage Op.

CostsBase + All

Storage CostsBase + All

Storage CostsOctober $0.205 $7.50 $7.89

November* $0.372 $7.67 $8.07December $0.456 $7.75 $8.16

January $0.539 $7.83 $8.25February $0.623 $7.92 $8.33

March $0.706 $8.00 $8.42April* $0.890 $8.18 $8.61May $0.992 $8.29 $8.72

June $1.112 $8.41 $8.85

Base cost of production includes the cost to grow, harvest & sort potatoes, both operating & ownersOwnership costs for potato handling equipment are included in the base cost of production.

Storage system includes: storage facility and air system.

Storage operating costs include: repairs (shown separately), plus monthly operating costs:power, chemicals, interest, shrink & insurance.

Storage costs do not include the cost of removing the potatoes from storage.

* Indicates month when sprout inhibitor applied.

Cumulative storage operating expenses are calculated to the end of the month.

Table C-2. 2015 Cost per hundredweight to grow, harvest, sort, and store eastern Idaho southern region irrigated Russet Burbank potato with fumigation based on both field-run and paid yield.

Calculated values.Data entered directly by user. All other values are calculated.

Page 37: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

33

Appendix D Southcentral Idaho

Irrigated Russet Burbank Potato Non-Fumigated

Page 38: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

34

SCI-Po2-15 SCI-Po2

Quantity Price or Value orItem Per Acre Unit Cost Cost/Acre Comparison

Gross Returns 2014Potatoes 425 cwt $7.25 $3,081.25 420 5 1.2%

Operating Inputs $ Change % Change

Seed: $330.05 $331.20 -$1.15 -0.3%G-3 Burbank Potato Seed 23 cwt $12.65 $290.95 $293.25 -$2.30 -0.8%Seed Cutting 23 cwt $1.70 $39.10 $37.95 $1.15 3.0%

Fertilizer: $449.30 $426.45 $22.85 5.4%Dry Nitrogen - Preplant 155 lb $0.55 $85.25 $87.00 -$1.75 -2.0%Dry P2O5 205 lb $0.53 $108.65 $98.40 $10.25 10.4%K2O 215 lb $0.44 $94.60 $86.10 $8.50 9.9%Sulfur 85 lb $0.27 $22.95 $20.00 $2.95 14.8%Micronutrients & Foliars 2 ac $18.00 $36.00 $38.00 -$2.00 -5.3%Liquid Nitrogen 105 lb $0.73 $76.65 $75.60 $1.05 1.4%Liquid P2O5 35 lb $0.72 $25.20 $21.35 $3.85 18.0%

Pesticides & Chemicals: $318.30 $270.88 $47.42 17.5%Seed Treatment 23.0 cwt $0.50 $11.50 $11.50 $0.00 0.0%Admire Pro 8.0 oz $1.50 $12.00 $12.80 -$0.80 -6.3%Quadris Flowable 8.0 fl oz $2.30 $18.40 $20.80 -$2.40 -11.5%Outlook 6EC 20.0 fl oz $1.02 $20.40 $22.00 -$1.60 -7.3%Prowl 3.3 EC 2.0 pt $4.90 $9.80 $9.50 $0.30 3.2%Metribuzin 75DF 0.75 lb $14.65 $10.99 $10.76 $0.23 2.1%Endura 5.5 oz $4.70 $25.85 $24.30 $1.55 6.4%Dithane F45 Rainshield (3X) 5.6 qt $8.70 $48.72 $29.70 $19.02 64.0%Headline 0.0 fl oz $2.78 $0.00 $19.32 -$19.32 -100.0%Tanos DF 6.0 oz $2.75 $16.50 $16.50 $0.00 0.0%Gavel 75DF 2.0 lb $7.75 $15.50 $17.20 -$1.70 -9.9%Revus Top 7.0 fl oz $2.42 $16.94 $0.00 $16.94Brigadier (3X) 18.0 fl oz $1.35 $24.30 $18.00 $6.30 35.0%Movento 5.0 fl oz $7.50 $37.50 $35.25 $2.25 6.4%Agri-Mek .75SC (3X) 10.5 fl oz $2.60 $27.30 $23.25 $4.05 17.4%Reglone 1.0 qt $22.60 $22.60 $0.00 $22.60

Custom & Consultants: $113.25 $93.65 $19.60 20.9%Custom Fertilize: 400 - 800 lbs 1 ac $7.75 $7.75 $8.75 -$1.00 -11.4%Custom Fertilize: 0 - 400 lbs 1 ac $7.25 $7.25 $7.90 -$0.65 -8.2%Custom Air Spray-7.5G 7 ac $9.75 $68.25 $55.00 $13.25 24.1%Consultant Soil/Petiole Testing 1 ac $30.00 $30.00 $22.00 $8.00 36.4%

Irrigation: $110.67 $110.67 $0.00 0.0%Water Assessment 1 ac $45.60 $45.60 $45.60 $0.00 0.0%Irrigation Power-CP 27 acin $1.90 $51.30 $51.57 -$0.27 -0.5%Irrigation Repairs 27 acin $0.51 $13.77 $13.50 $0.27 2.0%

Machinery: $124.06 $154.30 -$30.25 -19.6%Fuel - Gas 4.59 gal $2.50 $11.48 $16.29 -$4.82 -29.6%Fuel - Farm Diesel 19.41 gal $2.30 $44.64 $65.80 -$21.16 -32.2%Fuel - Road Diesel 2.13 gal $2.85 $6.07 $8.52 -$2.45 -28.8%Lube 1 ac $9.33 $9.33 $13.60 -$4.27 -31.4%Machinery Repairs 1 ac $52.54 $52.54 $50.09 $2.45 4.9%

Field Labor: $170.49 $165.05 $5.43 3.3%Equipment Operator Labor 4.49 hrs $18.50 $83.07 $79.64 $3.42 4.3%Truck Driver Labor 1.83 hrs $14.40 $26.35 $25.71 $0.64 2.5%Irrigation Labor: CP 1.08 hr $18.50 $19.98 $19.55 $0.43 2.2%Irrigation Labor: Chem-Fert 0.92 hr $18.50 $17.02 $16.65 $0.37 2.2%General Farm Labor 2.26 hr $10.65 $24.07 $23.50 $0.57 2.4%

Sorting: $60.18 $57.96 $2.22 3.8%Sorting Labor Costs 425 cwt $0.108 $45.73 $44.10 $1.63 3.7%Sorting Equip. Repairs & Power 425 cwt $0.034 $14.45 $13.86 $0.59 4.3%

Other: $137.72 $136.82 $0.90 0.7%Fees & Assessments 404 cwt $0.18 $72.72 $71.82 $0.90 1.3%Crop Insurance 1 ac $65.00 $65.00 $65.00 $0.00 0.0%Operating Interest @ 5.75% $54.31 $55.52 -$1.21 -2.2%

Total Operating Costs $1,868 $1,803 $65.82 3.7%Operating Costs per Unit $4.40 $4.29 $0.10 2.4%

Net Returns Above Operating Expenses $1,213 $1,227

Table D-1. 2015 Costs to grow, harvest and sort southcentral Idaho irrigated Russet Burbank potatoes. Comparison with 2014. Final 10/24/2015

Yield Change

Page 39: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

35

SCI-Po2-15 SCI-Po2

Quantity Price or Value orItem Per Acre Unit Cost Cost/Acre Comparison

Table D-1. 2015 Costs to grow, harvest and sort southcentral Idaho irrigated Russet Burbank potatoes. Comparison with 2014. Final 10/24/2015

Ownership Costs:$5.46 $5.20 $0.26 5.0%

$185.00 $180.00 $5.00 2.8%$61.00 $59.00 $2.00 3.4%

$625.00 $600.00 $25.00 4.2%$47.00 $45.50 $1.50 3.3%

$138.00 $135.00 $3.00 2.2%

Total Ownership Costs $1,061 $1,025 $36.76 3.6%Ownership Costs per Unit $2.50 $2.44 $0.06 2.4%

Total Costs per Acre $2,930 $2,827 $102.58 3.6%Total Cost per Unit $6.89 $6.73 $0.16 2.4%

Returns to Risk $151

Notes:

Breakeven Analysis: - Base +5% 5%

YieldPrice 403.75 425 446.25

Operating Cost Breakeven $4.63 $4.40 $4.19Ownership Cost Breakeven $2.63 $2.50 $2.38Total Cost Breakeven $7.26 $6.89 $6.57

PriceYield $6.89 $7.25 $7.61

Operating Cost Breakeven 271.3 257.7 245.4Ownership Cost Breakeven 154.1 146.4 139.4Total Cost Breakeven 425.4 404.1 384.9

Procedureal changes can result in different costs than were published the previous year.

* Center pivot. ** Includes irrigation system ownership costs.Blue font indicates an increase.A red font indicates a decrease.A green font indicates a change in product or procedure to derive the cost.

OverheadManagement Fee

Tractors & Equipment Depreciation & InterestPotato Handling Equipment Deprec. & InterestLand *

Tractors & Equipment Insurance

Page 40: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

36

Storage EBB3-Po2

10/24/2015Storage Costs

Field Run Cost per Cwt

Paid Yield Cost per Cwt

Field-Run Yield 425

Paid Yield % 95% 403.75

Base Cost to Grow, Harvest and Sort $6.89 $7.26

Storage System Annual Ownership Costs $0.357 $0.357 $0.376

Base Cost + Storage Ownership Cost $7.25 $7.63

Storage System Annual Repairs $0.041 $0.041 $0.043

Base + Storage System Ownership & Repairs $7.29 $7.68

Cumulative Cumulative CumulativeStorage Op.

CostsBase + All

Storage CostsBase + All

Storage CostsOctober $0.208 $7.50 $7.89

November* $0.376 $7.67 $8.07December $0.461 $7.75 $8.16

January $0.545 $7.84 $8.25February $0.630 $7.92 $8.34

March $0.714 $8.01 $8.43April* $0.899 $8.19 $8.62May $1.003 $8.29 $8.73

June $1.124 $8.42 $8.86

Base cost of production includes cost to grow, harvest & sort potatoes,both operating and ownership.Ownership costs for potato handling equipment are included in the base cost of procution.

Storage system includes: storage facility and air system.

Storage operating costs include: repairs (shown separately), plus monthly operating costs:power, chemicals, interest, shrink & insurance.

Storage costs do not include the cost of removing the potatoes from storage.

* Indicates month when sprout inhibitor applied.

Cumulative storage operating expenses are calculated to the end of the month.

Table D-2. 2015 Cost per hundredweight to grow, harvest, sort and store southcentral Idaho irrigated Russet Burbank potato based on both field-run and paid yield.

Data entered directly by user. All other values are calculated.Calculated values.

Page 41: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

37

Appendix E Eastern Idaho Southern Region Irrigated Russet Burbank Potato

Non-Fumigated

Page 42: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

38

EIS-Po5-15 EIS-Po5

Quantity Price or Value orItem Per Acre Unit Cost Cost/Acre Comparison

Gross Returns 2014Potatoes 385 cwt $7.25 $2,791.25 380 5 1.3%

Operating Inputs $ Change % Change

Seed: $289.80 $290.85 -$1.05 -0.4%G-3 Russet Burbank Seed S 21 cwt $12.10 $254.10 $256.20 -$2.10 -0.8%Potato Seed Cutting 21 cwt $1.70 $35.70 $34.65 $1.05 3.0%

Fertilizer: $414.00 $394.85 $19.15 4.8%Dry Nitrogen - Pre-plant 135 lb $0.55 $74.25 $78.30 -$4.05 -5.2%Dry P2O5 160 lb $0.53 $84.80 $76.80 $8.00 10.4%K2O 195 lb $0.44 $85.80 $77.90 $7.90 10.1%Sulfur 85 lb $0.27 $22.95 $21.25 $1.70 8.0%Liquid Nitrogen 100 lb $0.73 $73.00 $72.00 $1.00 1.4%Liquid P2O5 60 lb $0.72 $43.20 $36.60 $6.60 18.0%Micronutrients/Humic Acid - CP 1 acre $30.00 $30.00 $32.00 -$2.00 -6.3%

Pesticides & Chemicals: $267.30 $252.04 $15.25 6.1%Potato Seed Treatment 21.0 cwt $0.50 $10.50 $10.50 $0.00 0.0%Admire Pro 8.0 fl oz $1.50 $12.00 $12.80 -$0.80 -6.3%Moncut 700DF 1.0 lb $33.45 $33.45 $33.70 -$0.25 -0.7%Metribuzin 75DF 0.67 lb $14.65 $9.82 $9.61 $0.20 2.1%Eptam 7E 3.5 pint $6.25 $21.88 $22.23 -$0.35 -1.6%Prowl 3.3EC 2.0 pint $4.90 $9.80 $9.50 $0.30 3.2%Quadris Flowable 8.0 fl oz $2.30 $18.40 $20.80 -$2.40 -11.5%Omega 500DF 5.5 fl oz $3.40 $18.70 $19.25 -$0.55 -2.9%Endura 5.5 oz $4.70 $25.85 $29.70 -$3.85 -13.0%Bravo Weatherstik (2x) 2.0 pint $4.65 $9.30 $4.95 $4.35 87.9%Dithane F45 Rainshield (2x) 3.2 qt $8.65 $27.68 $28.64 -$0.96 -3.4%Ranman 2.8 fl oz $4.70 $12.93 $12.93Agri-Mek 0.75SC (2x) 7.00 fl oz $2.60 $18.20 $10.46 $7.74 74.0%Brigadier (2x) 12.0 fl oz $1.35 $16.20 $17.80 -$1.60 -9.0%Reglone 2.0 pint $11.30 $22.60 $22.10 $0.50 2.3%

Custom & Consultants: $76.00 $69.25 $6.75 9.7%Custom Fertilize: 400 - 800 lbs 1 acre $7.75 $7.75 $8.50 -$0.75 -8.8%Custom Fertilize: 0 - 400 lbs 1 acre $7.25 $7.25 $8.00 -$0.75 -9.4%Consultant Soil/Pet. Testing - CP 1 acre $26.00 $26.00 $22.00 $4.00 18.2%Custom Air Spray - 5.0 gal. rate 4 acre $8.75 $35.00 $30.75 $4.25 13.8%

Irrigation: $92.84 $92.84 $0.00 0.0%Irrigation Power - Center Pivot* 24 ac-in $1.90 $45.60 $45.84 -$0.24 -0.5%Irrigation Water Assessment-S 1 acre $35.00 $35.00 $35.00 $0.00 0.0%Irrigation Repairs - CP* 24 ac-in $0.51 $12.24 $12.00 $0.24 2.0%

Machinery: $126.65 $158.23 -$31.58 -20.0%Fuel - Gas 4.52 gal $2.50 $11.30 $15.82 -$4.52 -28.6%Fuel - Farm Diesel 20.47 gal $2.35 $48.10 $70.62 -$22.52 -31.9%Fuel - Road Diesel 1.92 gal $2.85 $5.47 $7.58 -$2.11 -27.8%Lube 1 acre $9.73 $9.73 $14.10 -$4.37 -31.0%Machinery Repair 1 acre $52.04 $52.04 $50.10 $1.94 3.9%

Field Labor: $154.98 $151.52 $3.46 2.3%Equipment Operator Labor 3.88 hrs $18.50 $71.78 $70.23 $1.55 2.2%Truck Driver Labor 1.86 hrs $14.40 $26.78 $26.13 $0.65 2.5%Irrigation Labor-CP 0.96 hrs $18.50 $17.76 $17.38 $0.38 2.2%Irrigation Labor: Chem-Fert 0.80 hr $18.50 $14.80 $14.48 $0.32 2.2%General Farm Labor 2.24 hrs $10.65 $23.86 $23.30 $0.56 2.4%Sorting: $54.52 $52.44 $2.08 4.0%Sorting Labor Costs 385 cwt $0.108 $41.43 $39.90 $1.53 3.8%Sorting Equip. Repairs & Power 385 cwt $0.034 $13.09 $12.54 $0.55 4.4%

Other: $145.88 $144.98 $0.90 0.6%Crop Insurance: MP + Hail 1 acre $80.00 $80.00 $80.00 $0.00 0.0%Potato Fees & Assessments 366 cwt $0.18 $65.88 $64.98 $0.90 1.4%Operating Interest @ 5.75% $47.50 $48.73 -$1.23 -2.5%

Total Operating Costs $1,669 $1,656 $13.73 0.8%Operating Costs per Unit $4.34 $4.36 -$0.02 -0.5%

Net Returns Above Operating Expenses $1,122 $1,106

Table E-1. 2015 Costs to grow, harvest and sort eastern Idaho southern region irrigated Russet Burbank potatoes. Comparison with 2014. Final 10/25/2015

Yield Change

Page 43: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

39

EIS-Po5-15 EIS-Po5

Quantity Price or Value orItem Per Acre Unit Cost Cost/Acre Comparison

Table E-1. 2015 Costs to grow, harvest and sort eastern Idaho southern region irrigated Russet Burbank potatoes. Comparison with 2014. Final 10/25/2015

Ownership Costs:$5.06 $4.89 $0.17 3.5%

$170.00 $167.00 $3.00 1.8%$55.50 $53.60 $1.90 3.5%

$535.00 $515.00 $20.00 3.9%$41.50 $41.00 $0.50 1.2%

$123.00 $121.00 $2.00 1.7%

Total Ownership Costs $930 $902 $27.57 3.1%Ownership Costs per Unit $2.42 $2.37 $0.04 1.7%

Total Costs per Acre $2,600 $2,558 $41.30 1.6%Total Cost per Unit $6.75 $6.73 $0.02 0.3%

Returns to Risk $192

Notes:

Breakeven Analysis: - Base +5% 5%

YieldPrice 365.75 385 404.25

Operating Cost Breakeven $4.56 $4.34 $4.13Ownership Cost Breakeven $2.54 $2.42 $2.30Total Cost Breakeven $7.11 $6.75 $6.43

PriceYield $6.89 $7.25 $7.61

Operating Cost Breakeven 242.4 230.3 219.3Ownership Cost Breakeven 135.0 128.3 122.2Total Cost Breakeven 377.4 358.6 341.5

Procedureal changes can result in different costs than were published the previous year.

* Center pivot. ** Includes irrigation system ownership costs.Blue font indicates an increase.A red font indicates a decrease.A green font indicates a change in product or procedure to derive the cost.

OverheadManagement Fee

Tractors & Equipment Depreciation & InterestPotato Handling Equipment Deprec. & InterestLand *

Tractors & Equipment Insurance

Page 44: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

40

Storage EBB4-Po5

10/25/2015Storage Costs

Field-Run Cost per Cwt

Paid Yield Cost per Cwt

Field-Run Yield 385

Paid Yield % 95% 366

Base Cost to Grow, Harvest and Sort $6.75 $7.11

Storage System Annual Ownership Costs $0.357 $0.357 $0.376

Base Cost + Storage Ownership Cost $7.11 $7.48

Storage System Annual Repairs $0.041 $0.041 $0.04

Base + Storage System Ownership & Repairs $7.15 $7.53

Cumulative Cumulative CumulativeStorage Op.

CostsBase + All

Storage CostsBase + All

Storage CostsOctober $0.205 $7.35 $7.74

November* $0.372 $7.52 $7.92December $0.456 $7.61 $8.01

January $0.539 $7.69 $8.09February $0.623 $7.77 $8.18

March $0.706 $7.86 $8.27April* $0.890 $8.04 $8.46May $0.992 $8.14 $8.57

June $1.112 $8.26 $8.70

Base cost of production includes the cost to grow, harvest & sort potatoes, both operating & ownersOwnership costs for potato handling equipment are included in the base cost of production.

Storage system includes: storage facility and air system.

Storage operating costs include: repairs (shown separately), plus monthly operating costs:power, chemicals, interest, shrink & insurance.

Storage costs do not include the cost of removing the potatoes from storage.

* Indicates month when sprout inhibitor applied.

Cumulative storage operating expenses are calculated to the end of the month.

Table E-2. 2015 Cost per hundredweight to grow, harvest, sort, and store eastern Idaho southern region irrigated Russet Burbank potato based on both field-run and paid yield.

Calculated values.Data entered directly by user. All other values are calculated.

Page 45: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

41

Appendix F Eastern Idaho Northern Region Irrigated Russet Burbank Potato

Non-Fumigated

Page 46: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

42

EIN-Po2-15 EBB4-Po2

Quantity Price or Value orItem Per Acre Unit Cost Cost/Acre Comparison

Gross Returns 2014Potatoes 360 cwt $7.00 $2,520.00 355 5 1.4%

Operating Inputs $ Change % Change

Seed: $279.30 $279.30 $0.00 0.0%G-3 Russet Burbank Seed S 21 cwt $11.60 $243.60 $244.65 -$1.05 -0.4%Potato Seed Cutting 21 cwt $1.70 $35.70 $34.65 $1.05 3.0%

Fertilizer: $390.90 $371.95 $18.95 5.1%Dry Nitrogen - Pre-plant 145 lb $0.55 $79.75 $84.10 -$4.35 -5.2%Dry P2O5 155 lb $0.53 $82.15 $72.00 $10.15 14.1%K2O 180 lb $0.44 $79.20 $73.80 $5.40 7.3%Sulfur 100 lb $0.27 $27.00 $25.00 $2.00 8.0%Liquid Nitrogen 80 lb $0.73 $58.40 $57.60 $0.80 1.4%Liquid P2O5 45 lb $0.72 $32.40 $27.45 $4.95 18.0%Micronutrients/Humic Acid - CP 1 acre $32.00 $32.00 $32.00 $0.00 0.0%

Pesticides & Chemicals: $238.73 $193.43 $45.30 23.4%Potato Seed Treatment 21.0 cwt $0.50 $10.50 $10.50 $0.00 0.0%Admire Pro 8.0 fl oz $1.50 $12.00 $12.80 -$0.80 -6.3%Regent 4SC 3.2 fl oz $8.00 $25.60 $27.84 -$2.24 -8.0%Metribuzin 75DF 0.75 lb $14.65 $10.99 $10.76 $0.23 2.1%Outlook 6EC 18.0 fl oz $1.02 $18.36 $19.80 -$1.44 -7.3%Prowl 3.3EC 2.0 pint $4.90 $9.80 $9.50 $0.30 3.2%Quadris Flowable 8.0 fl oz $2.30 $18.40 $20.80 -$2.40 -11.5%Bravo ZN (2x) 2.5 pint $4.55 $11.38 $7.43 $3.95 53.2%Endura 5.5 oz $4.70 $25.85 $18.90 $6.95 36.8%Dithane F45 1.6 qt $8.65 $13.84 $0.00 $13.84Revus Top 7.0 fl oz $2.42 $16.94 $0.00 $16.94Brigadier 6.0 fl oz $1.35 $8.10 $0.00 $8.10Fulfill WDG 5.50 oz $6.25 $34.38 $33.00 $1.38 4.2%Reglone 2.0 pint $11.30 $22.60 $22.10 $0.50 2.3%

Custom & Consultants: $67.25 $59.00 $8.25 14.0%Custom Fertilize: 400 - 800 lbs 1 acre $7.75 $7.75 $8.50 -$0.75 -8.8%Custom Fertilize: 0 - 400 lbs 1 acre $7.25 $7.25 $8.00 -$0.75 -9.4%Consultants/Soil Testing - CP 1 acre $26.00 $26.00 $22.00 $4.00 18.2%Custom Air Spray - 5.0 gal. rate 3 acre $8.75 $26.25 $20.50 $5.75 28.0%

Irrigation: $67.68 $67.48 $0.20 0.3%Irrigation Power - Center Pivot* 23 ac-in $1.90 $43.70 $43.93 -$0.23 -0.5%Irrigation Water Assessment-S 1 acre $12.25 $12.25 $12.05 $0.20 1.7%Irrigation Repairs - CP* 23 ac-in $0.51 $11.73 $11.50 $0.23 2.0%

Machinery: $126.53 $159.21 -$32.68 -20.5%Fuel - Gas 4.51 gal $2.50 $11.28 $15.79 -$4.51 -28.6%Fuel - Farm Diesel 21.30 gal $2.35 $50.06 $73.49 -$23.43 -31.9%Fuel - Road Diesel 1.91 gal $2.85 $5.44 $7.54 -$2.10 -27.8%Lube 1 acre $10.01 $10.01 $14.52 -$4.51 -31.1%Machinery Repair 1 acre $49.75 $49.75 $47.88 $1.87 3.9%

Field Labor: $156.59 $153.30 $3.29 2.1%Equipment Operator Labor 4.03 hrs $18.50 $74.56 $72.94 $1.61 2.2%Truck Driver Labor 1.86 hrs $14.40 $26.78 $26.13 $0.65 2.5%Irrigation Labor-CP 0.92 hrs $18.50 $17.02 $16.65 $0.37 2.2%Irrigation Labor: Chem-Fert 0.76 hr $18.50 $14.06 $13.76 $0.30 2.2%General Farm Labor 2.27 hrs $10.65 $24.18 $23.82 $0.36 1.5%Sorting: $50.98 $49.00 $1.98 4.0%Sorting Labor Costs 360 cwt $0.1076 $38.74 $37.28 $1.46 3.9%Sorting Equip. Repairs & Power 360 cwt $0.034 $12.24 $11.72 $0.53 4.5%

Other: $131.56 $130.66 $0.90 0.7%Crop Insurance: MP + Hail 1 acre $70.00 $70.00 $70.00 $0.00 0.0%Potato Fees & Assessments 342 cwt $0.18 $61.56 $60.66 $0.90 1.5%Operating Interest @ 5.75% $44.15 $44.73 -$0.58 -1.3%

Total Operating Costs $1,554 $1,508 $45.61 3.0%Operating Costs per Unit $4.32 $4.25 $0.07 1.6%

Net Returns Above Operating Expenses $966 $973

Table F-1. 2015 Costs to grow, harvest and sort eastern Idaho northern region irrigated Russet Burbank potatoes. Comparison with 2014. Final 10/27/2015

Yield Change

Page 47: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

43

EIN-Po2-15 EBB4-Po2

Quantity Price or Value orItem Per Acre Unit Cost Cost/Acre Comparison

Table F-1. 2015 Costs to grow, harvest and sort eastern Idaho northern region irrigated Russet Burbank potatoes. Comparison with 2014. Final 10/27/2015

Ownership Costs:$5.08 $4.91 $0.17 3.5%

$170.00 $167.00 $3.00 1.8%$52.00 $50.00 $2.00 4.0%

$440.00 $425.00 $15.00 3.5%$39.00 $38.00 $1.00 2.6%

$112.00 $110.00 $2.00 1.8%

Total Ownership Costs $818 $795 $23.17 2.9%Ownership Costs per Unit $2.27 $2.24 $0.03 1.5%

Total Costs per Acre $2,372 $2,303 $68.78 3.0%Total Cost per Unit $6.59 $6.49 $0.10 1.6%

Returns to Risk $148

Notes:

Breakeven Analysis: - Base +5% 5%

YieldPrice 342 360 378

Operating Cost Breakeven $4.54 $4.32 $4.11Ownership Cost Breakeven $2.39 $2.27 $2.16Total Cost Breakeven $6.93 $6.59 $6.27

PriceYield $6.65 $7.00 $7.35

Operating Cost Breakeven 233.6 222.0 211.4Ownership Cost Breakeven 123.0 116.9 111.3Total Cost Breakeven 356.7 338.8 322.7

Tractors & Equipment InsuranceTractors & Equipment Depreciation & InterestPotato Handling Equipment Deprec. & InterestLand *OverheadManagement Fee

Procedureal changes can result in different costs than were published the previous year.

* Center pivot. ** Includes irrigation system ownership costs.Blue font indicates an increase.A red font indicates a decrease.A green font indicates a change in product or procedure to derive the cost.

Page 48: 2015 Cost of Potato Production for Idaho With Comparisons ... Idaho Cost of... · 2015 Cost of Potato Production . for Idaho . With Comparisons to 2014. Project Conducted by: Paul

44

Storage EBB4-Po2

10/27/2015Storage Costs

Field-Run Cost per Cwt

Paid Yield Cost per Cwt

Field-Run Yield 360

Paid Yield % 95% 342

Base Cost to Grow, Harvest and Sort $6.59 $6.93

Storage System Annual Ownership Costs $0.357 $0.357 $0.376

Base Cost + Storage Ownership Cost $6.95 $7.31

Storage System Annual Repair Costs $0.041 $0.041 $0.04

Base + Storage System Ownership & Repairs $6.99 $7.35

Cumulative Cumulative CumulativeStorage Op.

CostsBase + All

Storage CostsBase + All

Storage CostsOctober $0.205 $7.19 $7.57

November* $0.372 $7.36 $7.75December $0.456 $7.44 $7.83

January $0.539 $7.53 $7.92February $0.623 $7.61 $8.01

March $0.706 $7.69 $8.10April* $0.890 $7.88 $8.29May $0.992 $7.98 $8.40

June $1.112 $8.10 $8.52

Calculated values.

Cumulative storage operating expenses are calculated to the end of the month.

Table F-2. 2015 Cost per hundredweight to grow, harvest, sort, and store eastern Idaho northern region irrigated Russet Burbank potato based on both field-run and paid yield.

Data entered directly by user. All other values are calculated.

Ownership costs for potato handling equipment are included in the base cost of production.

Storage system includes: storage facility and air system.

Base includes the cost to grow, harvest and sort potatoes, both operating and ownership.

Storage operating costs include: repairs (shown separately), plus monthly operating costs:power, chemicals, interest, shrink & insurance.

Storage costs do not include the cost of removing potatoes from storage.

* Indicates month when sprout inhibitor applied.