Cost of Production
Cost of Production. I'm Greg Martin with today's Fruit Grower Report.
What does it cost you to do business? Suzette Galinato, Research Associate with WSU School of Economic Sciences recently spoke with a group of tree fruit producers and explained what an enterprise budget is.
GALINATO: It is a planning and informational tool designed to help estimate the production costs, returns and profits for an enterprise. We updated conventional Gala and conventional Red Delicious enterprise budgets for 2014 and used them as a basis for developing the organic budgets. Both conventional and organic budgets were done in the same way and in the same year which makes them ideal to use in comparing the costs and returns under the different management systems.
She says these budgets are available for use on the WSU School of Economic Sciences web page.
GALINATO: In order to understand the WSU enterprise budgets, the first note is that it's based on established assumptions about production which may not fit every individual farm. That's why we provide interactive Excel workbooks so that people can enter their own numbers and evaluate their own production or situation.
And keep in mind these are economic budgets.
GALINATO: The budgets assume that trees start bearing fruits in the third year and full production is achieved during the sixth year.
That's today's Fruit Grower Report. I'm Greg Martin on the Ag Information Network of the West.
