2012 Cost of Potato Production Report

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2012 Cost of Potato ProductionComparisons for Idaho

Commercial Potato Production

Prepared byUniversity of Idaho

Extension Agricultural EconomistPaul E. Patterson

Agricultural Economics Extension Series No. 12-03

November 15, 2012

Department of Agricultural Economics

and Rural SociologyMoscow, Idaho 83844-2334


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2012 Cost of Potato Production

Comparisons for Idaho

Commercial Potato Production

Conducted by:

University of Idaho College of Agricultural and Life Sciences

Department of Agricultural Economics & Rural Sociology

Paul E. Patterson

Extension Agricultural Economist [email protected]

Report Submitted to:

The Idaho Potato Commission R & E Committee, Potato Processors,

and Grower Organizations

November 15, 2012

This project is funded in part by the Idaho Potato Commission, IPC Project No. 8742, UI

Project No. BDK902, Cost of Potato Production.

Copies of the report and earlier reports can be found at: http://www.cals.uidaho.edu/aers

Click Resources then Project Reports


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Table of Contents

Table of Contents Page ii

Idaho Potato Production Costs Project: Goal and Objectives Page 1

Cost of Production Background Page 1

2012Crop 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 Page 8

2012 Cost of Potato Production Overview and Comparison Page 8-10Cost Summaries

Cost Comparisons

Adjustments

Table 1.Listing of 2012 Idaho potato costs and returns estimates by region Page 11

Table 2. Current & historical farm size and potato acreage assumptions by region Page 11

Table 3.Current and historical interest rates, labor charges and power rates used Page 12

in costs and returns estimates

Table 4. Current and historical fuel, water assessments and fertilizer component prices4-a Southwestern Idaho Page 12

4-b Southcentral Idaho Page 13

4-c Eastern Idaho Page 13

Table 5. Current and historical fertilizer component prices for southern Idaho: Page 13

2010 – 2012 and percentage change from 2011 to 2012

Table 6. Potato yields by region for published and unpublished University of Idaho Page 14

costs and returns estimates, both with and without fumigation

Table 7. Historical potato yields published by IASS for 2007 – 2011 and historical Page 14

3-year averages.

Table 8. Historical potato yields reported by IASS for primary commercial Page 15

potato counties of eastern Idaho and historical 3-year averages.

Table 9. Fumigation yield adjustment and percentage fumigation factors by region Page 15

Table 10. Cost changes per acre by region from 2011 to 2012. Page 16


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Table 11. Cost changes per hundredweight by region from 2011 to 2012. Page 17

Table 12. Per acre and percentage change in costs from 2011 to 2012 for Page 18

Irrigated Russet Burbank potatoes: no storage costs

Table 13. Per acre and percentage change in costs from 2011 to 2012 for Page 19Irrigated Russet Burbank potatoes: with storage costs and no fumigation

Table 14. Per acre and percentage change in costs from 2011 to 2012 for Page 20

Irrigated Russet Burbank potatoes: with storage costs and no fumigation

Table 15.Idaho potato cost of production and storage costs by month Page 21

Appendix Page 22

Table 16. 2012 Southwestern Idaho commercial Russet Burbank: Page 23-24

fumigation and no storage potato costs and returns with comparison

to 2011

Table 17. 2012 Southwestern Idaho commercial Russet Burbank: Page 25-26

fumigation and storage potato cost and returns with comparison to 2011

Table 18. 2012 Southcentral Idaho commercial Russet Burbank: Page 27-28

no storage potato cost and returns with comparison to 2011

Table 19. 2012 Southcentral Idaho commercial Russet Burbank: Page 29-30

storage potato cost and returns and comparison with 2011

Table 20. 2012 Southcentral Idaho commercial Russet Burbank: Page 31-32fumigation and storage potato cost and returns with comparison to 2011

Table 21. 2012 Eastern Idaho- South commercial Russet Burbank: Page 33-34

no storage potato cost and returns with comparison to 2011


storage potato cost and returns with comparison to 2011


fumigation and storage potato cost and returns with comparison to 2011

Table 24. 2012 Eastern Idaho- North commercial Russet Burbank: Page 39-40storage potato cost and returns with comparison to 2011

Table 25. 2012 Eastern Idaho- North Russet Burbank G3 seed: Page 41-42

storage potato cost and returns with comparison to 2011


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pcop-12.doc University of Idaho November 15, 2012

1

Costs 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 asappropriate.

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 or new or proposed production systemsas needed or as requested.

4. To calculated changes in production costs per acre and per hundredweight and include both thedetailed 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 asrequested.

6. To maintain a Cost of Production Advisory Committee representing the different segments of theIdaho potato industry and to meet with this group to review the CAR estimates and to obtaininput 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, and input suppliers. I would also like to thank the Idaho

Potato Commission for the funding I receive to support this project, IPC Project Number 8742, UI Project

number BDK902.

Cost of Production Background

The University of Idaho Department of Agricultural Economics and Rural Sociology (AERS) develops

and publishes crop costs and returns (CAR) estimates – also referred to as enterprise budgets or cost of

production estimates -- for many of the major crops grown in Idaho. CAR estimates are revised and

published every other year in odd-numbered years, typically in the early winter. Crop CAR estimates

have historically been developed for four geographic regions of the state: southwestern Idaho,

southcentral Idaho, eastern Idaho, and northern Idaho. Enterprise budgets are tied to region-specific

production management systems that reflect climate and soil conditions as well as current cultural

practices. Production practices depicted in the University of Idaho CAR estimates are typical or

representative for that crop and region, recognizing that there is a wide range in production practices


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among growers, or even between fields on the same farm. Primarily because of data collection limitations

relating to sample size, these costs of production estimates do not represent a regional average.

Information used in developing production practices modeled in the CAR estimates comes from a variety

of sources, including: information from individual growers, information from grower panels, industry

fieldmen, as well as University of Idaho county Extension educators and production specialists. Both crop

and livestock CAR estimates are available from the Internet at the following URL:

http://www.cals.uidaho.edu/aers Click on Resources and then either Crops or Livestock. The crop

CAR estimates are organized by year and by region. Copies of this report and earlier reports on changes

in potato production costs in Idaho can be found at the same web address. Click on Resources and then

Project Reports.

2012 Crop Input Costs

Prices used to value inputs in the 2012 potato CAR estimates came from data collected from input

suppliers by the University of Idaho. This information is published in the Agricultural Economics

Extension Series. The Idaho Crop Input Price Summary for 2012 is available at

http://www.cals.uidaho.edu/aers/IdahoCropInputCostSummary2012.pdf

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 were 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 5% based on the annual

change in USDA’s Prices Paid Machinery Index from 2010 to 2011. Irrigation equipment prices and costs

were based on Extension Bulletin 788, Economics of Sprinkler Irrigation Systems: handline, solid set &

wheelline, and Extension Bulletin 787, Economics of Low-Pressure Sprinkler Irrigation Systems: center

pivot and linear move. Irrigation system costs were also adjusted using the USDA Prices Paid Machinery

Index.


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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 ofIdaho currently has ten potato CAR estimates. Nine CAR estimates are for commercial potato production

and one is for seed production. A list of CAR estimates by region and variety is found in Table 1. Table 1

also indicates whether the CAR estimates include storage or fumigation costs.

Farm Size and Potato Acreage

Table 2 shows the farm size and potato acreage for each region’s model farm for the five most recent

years when cost of production estimates were made. For 2012 the model farm in southwestern Idaho is

1,200 acres with 300 acres in potatoes, while the model farms for southcentral and eastern Idaho are 1,800acres with 450 acres and 600 acres in potatoes, respectively. 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 costs based on Idaho Power’s Service Schedule 24, and the

resulting cost per acre inch of water applied. Table 3 has values for 2012, the previous 3 years and the

percentage change from 2011 to 2012. In the costs and returns estimates, interest is charged from the time

an expenditure is 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 rateis used in calculating non-cash machinery costs. The labor used in crop production falls into four classes

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

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 split between set-move and

continuous move irrigation systems. The labor costs include the base wage rate plus payroll taxes and


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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

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 are found in Table 2 of

the Crop Input Cost Summary for 2012 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 2010 through 2012 used in the CAR estimates, and

the percentage changes from 2011 to 2012. Prior to 2009 fertilizer was collected and summarized by

region.

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 transloading costs which are calculated on a

hundredweight basis. Table 6 shows the potato yields used in the University of Idaho’s 2012 commercial

potato CAR estimates, as well as the previous four yearss. Some values are shown only as a reference and

indicate the value we would use if we 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-


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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

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 2012 CAR

estimates, yield data for the 2009, 2010 and 2011 crops were used. The 2012 county-level data

for Idaho will not be published until October 2013, 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.

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 used in the 2012 CAR estimates are 10 cwt higher than those used in 2011 for eastern

Idaho, both South and North districts. Yields are the same for southwestern Idaho and are 5 cwt lower for


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southcentral Idaho. (See Table 6.) Note that for the second year, the yield for Southwestern Idaho was

switched to a Russet Burbank Adjusted Yield, which is 96% of the region’s average yield.

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 has 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 fumigate, respectively. The yield adjustment attributable to fumigation as well as the percentage

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

Fumigation Yield Adjustment Factor


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(% 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

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. Comments from the

potato industry on how to improve this procedure are encouraged, particularly on how to improve the

values shown in Table 9. 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 45 percent of the

potato acreage being fumigated. This falls within the ranges of values of 45-55 percent given by

knowledgeable people in the industry.

Unresolved Yield Issue

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


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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 the 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 in order to cover costs. The implicit assumption is that the yields shown in the CAR estimates are

a paid yield. But with unusable averaging around 8 percent for processing potatoes, the yield shown in the

UI CAR estimates is greater than what growers would be paid on. This issue may not be resolved in the

CAR estimates, but it certainly needs to be addressed if the potato industry uses the values from these

CAR estimates to justify contract base prices and incentives. The underlying issue is whether per the per

acre cost and the changes in per acres costs from year-to-year is a better measure to use than cost per

hundredweight and the change in per hundredweight costs from year-to-year.

2012 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. Procedural adjustments were made in several calculations

between 2011 and 2012. These are discussed later.

Note that beginning with the 2003 CAR estimates, the non-storage CAR estimates model a

situation where potatoes are trans-loaded to a semi-trailer, rather than being hauled directly to

the plant or processor storage in field trucks, which was the assumption prior to 2003. The semi-

trailer is hired, not owned, so it shows up as a custom hauling expense. The labor costs for the

crew at the transloading point must also be accounted for. The assumption used in the U of I

CAR estimates is that the transloading crew is the same as the “cellar” crew used when potatoes

are placed in storage. Transloading labor is included in the transloading operating expense, and

is not included in the labor cost category. There is also an ownership cost in the non-storage

CAR estimates to account for depreciation, interest and insurance on the trans-loading

equipment. The trans-loading equipment includes most but not all the equipment that is used in

the storage CAR estimates and includes: conveyers, even-flow bin, eliminator/sizer, and piler.

Information regarding the specific farm situation for each CAR estimate, i.e. farm size, tillage,

cultivation, fertilization practices, irrigation method, etc., is discussed on the background and

assumptions page that is included with published CAR estimates, but not included in this report.

Cost Summaries

Table 10 summarizes the dollar values per acre for operating, ownership and total costs for 2011 and

2012, as well as the change per acre between these two years measured both in dollars and as a


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percentage. Table 10 includes eight of the nine commercial potato budgets published by the University of

Idaho. The CAR estimates in Table 10 are grouped by region. The changes in operating costs per acre

were all positive, ranging from a $133 to $240. Ownership costs increased for potato CAR estimates,

ranging from $37 to $71 per acre. Total costs per acre increased for all the CAR estimates, ranging from

$180 to $311. On a percentage basis, operating costs changes ranged from 6.3% to 9.2%. Percentage

ownership costs per acre increases ranged from 3.1 to 5.7%, while total costs percentage increases ranged

from 5.2% to 8.1%.

Table 11 is organized the same as Table 10, but shows the dollar values and percentage cost change per

hundredweight. When yield from one year to the next remains the same, the percentage change per acre

and per hundredweight are the same. But with yields used in the CAR estimates up in eastern Idaho and

down in southcentral Idaho, percentage increases per hundredweight were different in those regions in

comparison to percentage changes in costs per acre. The change in operating costs per hundredweight

ranged from $0.22 to $0.45. The increase in ownership costs per hundredweight ranged from $0.05 to

$0.13. Increases in total costs per hundredweight ranged from $0.27 to $0.59. On a percentage basis, the

operating costs per hundredweight increases ranged from 4.3% to 9.2%. Percentage increases in

ownership costs per hundredweight ranged from 1.9% to 5.7%, while total cost increases ranged from

3.5% to plus 8.1%.

Tables 12, 13 and 14 show the dollar and percentage changes per acre by major cost category for the non-

storage, storage and storage with fumigation CAR estimates, respectively. This allows for a side-by-side

comparison across regions of potato CAR estimates in the same production category. Making cost

comparisons between regions may not always be appropriate, however, because of difference in the

assumed management practices and farm sizes. Management practices for southcentral and southeastern

Idaho are fairly similar, making direct comparisons more meaningful. The detailed CAR estimates for

each production system and region are shown in the appendix, starting on page 23.

Cost Comparisons

CAR estimates without storage ranged from $2,776 per acre in eastern Idaho (nofumigation) up to $4,167

in southwestern Idaho (with fumigation). CAR estimates with the standard 4-1/2 months of storage costs

ranged from $3,038 in eastern Idaho (no fumigation) to a high of $4,528 in southwestern Idaho (with

fumigation). The range in values per hundredweight is not so extreme. Without storage costs, cost per

hundredweight ranged from $$7.40 in eastern Idaho up to $7.86 in southwestern Idaho In storage CAR

estimates, costs per hundredweight ranged from a low of $8.10 in eastern Idaho without fumigation up to

$8.54 in southwestern Idaho where fumigation is the standard.


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Seed costs were down in 2012 compared to 2011. Operating interest paid was also down in 2012

compared to 2011 because of the lower interest rate, in spite of an overall increase in operating expenses.

Storag operating costs declined in southcentral Idaho because of the lower yields, and in southwestern

Idaho because the lower interest rate more than offset the increase in other storage operating costs.

Depreciation and interest on equipment was only slightly higher in spite of a 5% increase in machinery

prices. The lower interest rate used kept the increase to aound 1%. Land costs were up as rental rates

move higher with the higher commodity prices. Because operating costs increased, overhead went up as

well since it is calculated as a percentage of the overall operating expenses.

Adjustments for 2012

Changes in insectides applied because of the threat of Zebra Chip was factored in. The biggest change

was in southwestern Idaho and the smallest change was in eastern Idaho. Treating for potato psyllids also

increased custom costs as the additional insecticides were often applied by air. Assumptions used to

calculate miles on pickups and trucks were reviewed and applied consistently across all regions, which

resulted in some minor changes in fuel use. The wage rate used for irrigation labor was increased to the

same rate as that used for machinery labor to reflect the higher quality of labor used to manage pivots

compared to the labor used for set-move irrigation systems.

A new table, Table 15, was added this year. This table shows the base cost of rasing and harvesting

potatoes. It then shows the storage repair and operating costs, and the resulting cost of production and

storage by month. The numbers shown in bold are for the 4-1/2 months of storage used in the storage

CAR estimates.

The values shown for 2011 were re-calculated using the new procedures for consistency.

.


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11Table 1.Idaho potato costs and returns estimates by region for 2012.

Region/Publication No. Variety Storage Fumigation

Commercial Potatoes

Southwestern:EBB2-Po1-12 Russet Burbank No YesEBB2-Po3-12 Russet Burbank Yes Yes

Southcentral: EBB3-Po1-12 Russet Burbank No NoEBB3-Po2-12 Russet Burbank Yes NoEBB3-Po3-12 Russet Burbank Yes Yes

Eastern – South Counties:EBB4-Po1-12 Russet Burbank No NoEBB4-Po5-12 Russet Burbank Yes NoEBB4-Po6-12 Russet Burbank Yes Yes

Eastern – North Counties:EBB4-Po2-12 Russet Burbank Yes No

Seed

Eastern – Seed CountiesEBB4-Po4-12 G3 Russet Burbank Yes No

Eastern – South Counties: Bannock, Bingham and Power.Eastern – North Counties: Bonneville and Madison. Jefferson County was dropped in 2012.

Table 2. Model farm size and potato acreage assumptions by region: 2008- 2012.2008 2009 2010 2011 2012

Farm Potato Farm Potato Farm Potato Farm Potato Farm Potato

Southwestern 1000 250 1200 300 1200 300 1200 300 1200 300

Southcentral 1500 375 1800 450 1800 450 1800 450 1800 450

Eastern 1500 500 1800 600 1800 600 1800 600 1800 600


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Table 3. Interest rates, labor charges and power rates used in CAR estimates: 2009 – 2012 and

percentage changes from 2011 to 2012.

2009 2010 2011 2012 Change

Operating Interest Rate 6.75% 7.0% 6.75% 6.0% -11.1%Intermediate Interest Rate 7.0% 7.5% 7.0% 6.25% -10.7%

Labor Class (overhead)Equipment Operator Labor (30%) $15.60 $15.80 $16.25 $17.50 +7.7%Truck Driver Labor $12.50 $13.00 $13.50 +3.8%Irrigation Labor (30%) $11.05 $11.25 $11.55Irrigation Labor: HL & WL (30%) $11.55 $12.35 +6.9%Irrigation Labor: CP (25%) $16.25 $17.50 +7.7%General Farm Labor (15%) $9.20 $9.30 $9.55 $10.05 +5.2%

Power Rate: Idaho Power Irrigation Service Schedule 24Monthly Service Charge $15.75 $17.92 $18.18 $22.00 +21%

Demand Charge: irrigation season $4.90 $ 5.57 $5.65 $6.54 +16%Base Rate: per kWh 3.9397¢ 4.4822¢ 4.6168¢ 4.584¢ -0.7%Power Cost Adjustment per kWh 1.4022¢ 0.3114¢ 0.0114¢ 0.1295¢ +1,036%Effective Rate: per kWh 5.3419¢ 4.7936¢ 4.6282¢ 47135¢ +1.84%

Pumping Cost per Acre Inch $1.72 $1.50 $1.47 $1.56 +6.1%

Pumping cost is calculated using Idaho Power Company rates for a 160-acre center pivot with a cornersystem: 69% pumping plant efficiency and with zero lift. Pumping costs per acre-inch at different lifts (0-,100-, 200- and 300-feet) and different irrigation systems (center pivots without corner systems andwheellines) can be found in the Idaho Crop Input Cost Summary for 2012.

Table 4-a. Current and historical fuel and water assessment prices for southwestern Idaho: 2009 –

2012 and percentage change from 2011 to 2012.

2009 2010 2011 2012 Change

Gasoline $2.30 $3.00 $3.50 $3.60 +2.9%Off-Road Diesel $2.00 $2.65 $3.50 $3.55 +1.4%Road Diesel $2.50 $3.15 $4.00 $4.05 +1.25%

Water Assessment $43.25 $45.55 $45.85 $45.85 +0%


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Table 4-b. Current and historical fuel and water assessment prices for southcentral Idaho: 2009 –

2012 and percentage change from 2011 to 2012.

2009 2010 2011 2012 Change

Gasoline $2.25 $3.00 $3.50 $3.55 +1.43%Off-Road Diesel $1.95 $2.60 $3.45 $3.50 +1.45%

Road Diesel $2.45 $3.10 $3.95 $4.00 +1.25%

Water Assessment $38.20 $42.20 $41.30 $44.15 +6.9%

Table 4-c. Current and historical fuel and water assessment prices for eastern Idaho: 2009 – 2012

and percentage change from 2011 to 2012.

2009 2010 2011 2012 Change

Gasoline $2.20 $2.90 $3.45 $3.50 +1.45%Off-Road Diesel $1.95 $2.55 $3.35 $3.50 +4.5%Road Diesel $2.45 $3.05 $3.85 $4.00 +3.9%

Water Assessment $14.55 $14.80 $14.60 $14.70 +0.7%E. Idaho South District $25.00 $25.00 $30.00 $30.00 +0%E. Idaho North District $11.05 $11.40 $11.55 $11.65$ +0.9%

Table 5. Current and historical fertilizer component prices for southern Idaho: 2009 – 2012 and

percentage change from 2011 to 2012.

2009 2010 2011 2012 Change

Dry Nitrogen (46-0-0) $0.50 $0.47 $0.61 $0.69 +13%Liquid Nitrogen (32-0-0) $0.56 $0.48 $0.70 $0.75 +7.1%P2O5 Dry (11-52-0)* $0.46 $0.34 $0.57 $0.60 +5.3%P2O5 Liquid (10-34-0)* $0.63 $0.50 $0.76 $0.91 +20%K 2O (0-0-60) $0.69 $0.43 $0.51 $0.57 +12%Sulfur $0.19 $0.17 $0.22 $0.25 +14%

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


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14

Table 6. Calculated potato yields used in published University of Idaho costs and returns

estimates by region, both with and without fumigation: 2006 - 2011. *

Area 2008 2009 2010 2011 2012

cwt cwt cwt

Southwest Region: Base Yield 480 500 510 530 530

Potatoes: No Fumigation 440 465 470 490 485Potatoes: Fumigation 505 530 535 555 550

Adj. Russet Burbank: Fumigation 515 515 530 530

Southcentral Region: Base Yield 425 435 445 445 440

Russet Burbank: No Fumigation 400 410 415 420 415

Russet Burbank: Fumigation 455 465 470 475 470

Eastern Region: Russet Burbank: Base 350

South Counties* : Base Yield 365 370 385 385 395

South: No Fumigation 345 350 365 365 375South: Fumigation 390 395 410 410 420

North Counties*: Base Yield 345 360

North: No Fumigation 335 350

North: Fumigation 375 390

Note: Values in bold indicate published CAR estimates. There are no published CAR estimates for thosenot 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 -4%. This was first used in 2011.

Table 7. Potato yields published by USDA for crop years 2007 - 2011 and the 3-year averages basedon the most recent published data.

Area 2007 2008 2009 2010 20113-Year

Average

Southwest Region 490 540 500 545 540 528Southcentral Region 420 445 466 428 429 441Eastern Region 347 350 390 357 383 377

South District 368 376 405 375 399 393 North District 300 325 377 339 369 380

Statewide 373 383 415 384 404 401

Source: USDA-NASS. Note: Yields for Eastern – North District are the revised yields that include only Bonneville and MadisonCounties.


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15

Table 8. Historical potato yields reported by USDA for the primary commercial potato counties

in eastern Idaho for 2007 - 2011 and historical 3-year average for crop year.

Area 2007 2008 2009 2010 2011

3-Year

Average

North District Counties:Bonneville 278 330 373 355 370 366Madison 321 319 381 323 367 357

2-county Average 300 325 377 339 369 362

Jefferson 426 391 472 412 471 452

South District Counties:Bannock 372 386 409 367 naBingham 346 367 385 367 384 379

Power 386 376 422 391 414 4093-county Average 368 376 405 375 399 393

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.

Table 9. Fumigation percentage by region and yield adjustment factors by region.

Region Acres Fumigated Fumigation Adjustment

Southwest 60% + 65 cwtSouthcentral 50% + 55 cwtSoutheastern

South District 45% + 45 cwt North District 30% + 40 cwt

Note: current values have been used since 2007 when fumigated percentages were increased by 5 percentage points in all regions.


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16

R . B

u r b a n k :

F u m

i g a t i o n &

N o S

t o r a g e

R . B

u r b a n k :

F u m

i g a t i o n &

S t o r a g e

R . B u

r b a n k :

N o S

t o r a g e

R . B u

r b a n k :

S t o r a g e

R . B u

r b a n k :

F u m

i g a t i o n

&

S t o r a g e

R . B u

r b a n k :

N o S

t o r a g e

R . B u

r b a n k :

S t o r a g e

R . B u

r b a n k :

F u m

i g a t i o n &

S t o r a g e

Po1 Po3 Po1 Po2 Po3 Po1 Po5 Po6

2011 Op. Cost $2,606 $2,783 $2,006 $2,159 $2,568 $1,741 $1,872 $2,209

2012 Op. Cost $2,846 $3,014 $2,173 $2,305 $2,730 $1,887 $2,006 $2,366

$ Change $240 $231 $167 $146 $162 $146 $133 $157

% Change 9.2% 8.3% 8.3% 6.8% 6.3% 8.4% 7.1% 7.1%

2011 Own. Cost $1,250 $1,443 $1,030 $1,192 $1,222 $848 $986 $1,010

2012 Own. Cost $1,321 $1,513 $1,069 $1,229 $1,259 $889 $1,032 $1,056

$ Change $71 $70 $39 $37 $37 $41 $46 $46

% Change 5.7% 4.9% 3.8% 3.1% 3.1% 4.9% 4.7% 4.6%

2011 Total Cost $3,856 $4,226 $3,036 $3,351 $3,790 $2,589 $2,858 $3,219

2012 Total Cost $4,167 $4,528 $3,242 $3,534 $3,989 $2,776 $3,038 $3,423

$ Change $311 $302 $206 $183 $199 $187 $180 $204

% Change 8.1% 7.1% 6.8% 5.5% 5.2% 7.2% 6.3% 6.3%

Note: rounded values may not add up.

Op. = Operating and Own. = Ownership

Table 10. Cost changes per acre by region from 2011 to 2012, University of Idaho.

Southwestern Idaho Southcentral Idaho Eastern Idaho-South

Summary per Acre University of Idaho 11/7/2012Summary per Acre University of Idaho 11/7/2012


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17

R . B

u r b a n k :

F u m

i g a t i o n &

N o S

t o r a g e

R . B

u r b a n k :

F u m

i g a t i o n &

S t o r a g e

R . B u

r b a n k :

N o S

t o r a g e

R . B u

r b a n k :

S t o r a g e

R . B u

r b a n k :

F u m

i g a t i o n

&

S t o r a g e

R . B u

r b a n k :

N o S

t o r a g e

R . B u

r b a n k :

S t o r a g e

R . B u

r b a n k :

F u m

i g a t i o n &

S t o r a g e

Po1 Po3 Po1 Po2 Po3 Po1 Po5 Po6

2011 Op. Cost $4.92 $5.25 $4.78 $5.14 $5.41 $4.77 $5.13 $5.39

2012 Op. Cost $5.37 $5.69 $5.24 $5.55 $5.81 $5.03 $5.35 $5.63

$ Change $0.45 $0.44 $0.46 $0.41 $0.40 $0.26 $0.22 $0.25

% Change 9.2% 8.3% 9.6% 8.0% 7.4% 5.5% 4.3% 4.6%

2011 Own. Cost $2.36 $2.72 $2.45 $2.84 $2.57 $2.32 $2.70 $2.46

2012 Own. Cost $2.49 $2.86 $2.58 $2.96 $2.68 $2.37 $2.75 $2.51

$ Change $0.13 $0.13 $0.12 $0.12 $0.11 $0.05 $0.05 $0.05

% Change 5.7% 4.9% 5.0% 4.4% 4.2% 2.1% 1.9% 2.1%

2011 Total Cost $7.28 $7.97 $7.23 $7.98 $7.98 $7.09 $7.83 $7.85

2012 Total Cost $7.86 $8.54 $7.81 $8.52 $8.49 $7.40 $8.10 $8.15

$ Change $0.59 $0.57 $0.58 $0.54 $0.51 $0.31 $0.27 $0.30

% Change 8.1% 7.1% 8.1% 6.7% 6.4% 4.4% 3.5% 3.8%

Note: rounded values may not add up.

Op. = Operating and Own. = Ownership

Table 11. Cost changes per hundredweight by region from 2011 to 2012, University of Idaho.

Southwestern Idaho Southcentral Idaho Eastern Idaho-South

Summary per CWT University of Idaho 11/7/2012


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18

Item

Yield 0 0.0% -5 -1.2% 10 2.7%

Operating Inputs $ % $ % $ %

Seed: -$18.00 -4.6% -$17.25 -4.8% -$15.75 -5.0%

Fertilizer: $73.50 11.4% $56.05 11.0% $59.60 12.8%

Pesticides & Chemicals: $115.83 22.6% $72.89 29.4% $49.94 27.2%

Custom & Consultants: $40.20 13.5% $30.00 13.5% $25.70 13.8%

Irrigation: $4.20 3.7% $6.22 6.5% $2.77 3.7%

Machinery: Fuel & Repairs $6.70 3.9% $6.16 3.7% $8.38 5.5%

Labor $10.31 6.4% $9.41 6.5% $8.60 6.4%

Transload $5.30 6.9% $3.43 5.6% $5.20 9.8%Other: Fees & Crop Insurance $2.00 1.4% $1.15 0.9% $3.70 3.1%

Operating Interest -$0.46 -0.5% -$0.78 -1.2% -$2.41 -4.3%

Total perating Costs 239.58 9.2% 167.28 8.3% 145.72 8.4%

Operating Costs per Unit $0.45 9.2% $0.46 9.6% $0.26 5.5%

Ownership Costs:$4.00 5.3% $2.50 4.2% $2.00 3.8%

$2.00 0.9% $2.00 1.1% $1.00 0.6%

$50.00 7.1% $25.00 4.2% $30.00 6.7%

$5.00 7.7% $4.00 8.2% $3.00 7.0%$10.00 5.4% $5.00 3.6% $5.00 3.8%

Total Ownership Costs $71.39 5.7% $38.78 3.8% $41.28 4.9%

Ownership Costs per Unit $0.13 5.7% $0.12 5.0% $0.05 2.1%

Total Costs:Total Costs per Acre $310.97 8.1% $206.06 6.8% $187.00 7.2%

Total Cost per Unit $0.59 8.1% $0.58 8.1% $0.31 4.4%

http://www.cals.uidaho.edu/aers

Table 12. Per acre and percentage change in costs from 2011 to 2012 for irrigatedRusset Burbank potatoes: no storage costs.

Southwestern Idaho Southcentral Idaho Eastern Idaho

Change from 2010 Change from 2010 Change from 2010

Click on: Resources Click on: Project Reports

Transloading Equipment

Tractors & Equipment

Land *

OverheadManagement Fee

No Stor % Change University of Idaho 11/7/2012


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19

Item

Yield -5 -1.2% 10 2.7%

Operating Inputs $ % $ %

Seed: -$17.25 -4.8% -$15.75 -5.0%

Fertilizer: $56.05 11.0% $59.60 12.8%

Pesticides & Cehmicals: $72.89 29.4% $49.94 27.2%

Custom & Consultants: $19.30 25.5% $10.95 18.6%

Irrigation: $6.22 6.5% $2.77 3.7%

Machinery: $6.16 3.7% $8.38 5.5%Labor: $9.41 6.5% $8.60 6.4%

Storage: -$6.39 -1.8% $6.77 2.1%

Other: Fees & Crop Insurance $1.15 0.9% $3.53 3.0%

Operating Interest -$1.66 -2.5% -$1.31 -2.4%

Total Operating Costs 145.88 6.8% 133.47 7.1%

Operating Costs per Unit $0.41 8.0% $0.22 4.3%

Ownership Costs:$2.00 1.0% $7.00 4.1%

$2.00 1.1% $1.00 0.6%$25.00 4.2% $30.00 6.7%

$3.00 5.6% $3.00 6.4%

$5.00 3.1% $5.00 3.4%

Total Ownership Costs $37.28 3.1% $46.28 4.7%

Ownership Costs per Unit $0.12 4.4% $0.05 1.9%

Total Costs:Total Costs per Acre $183.16 5.5% $179.75 6.3%

Total Cost per Unit $0.54 6.7% $0.27 3.5%

Eastern Idaho

Change from 2010Change from 2010

Southcentral Idaho

Table 13. Per acre and percentage change in costs from 2011 to 2012 forirrigated Russet Burbank potatoes: with storage costs & no fumigation.

Click on: Project Reports

Potato Storage System

Tractors & EquipmentLand *

Overhead

Management Fee

http://www.cals.uidaho.edu/aers Click on: Resources

Stor % Change University of Idaho 11/7/2012


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20

Item

Yield 0 0.0% -5 -1.1% 10 2.4%

Operating Inputs $ % $ % $ %

Seed: -$18.00 -4.6% -$17.25 -4.8% -$15.75 -5.0%

Fertilizer: $73.50 11.4% $60.45 10.9% $69.70 13.9%

Pesticides & Chemicals: $115.82 22.6% $78.89 16.3% $67.39 19.0%

Custom & Consultants: $40.60 42.7% $24.30 22.0% $7.30 7.1%

Irrigation: $4.20 3.7% $6.45 6.5% $3.13 3.9%

Machinery: $6.75 3.9% $6.38 3.7% $8.57 5.5%

Labor: $10.31 6.4% $9.72 6.4% $8.92 6.4%

Storage: -$2.65 -0.6% -$6.67 -1.6% $6.54 1.8%

Other: Fees & Crop Insurance $2.00 1.4% $2.15 1.6% $3.53 2.8%

Operating Interest -$1.14 -1.2% -$2.88 -3.3% -$2.10 -2.8%

Total perating osts 231.39 8.3 161.54 6.3 157.22 7.1

Operating Costs per Unit $0.44 8.3% $0.40 7.4% $0.25 4.6%

Ownership Costs:$3.00 1.2% $2.00 0.9% $7.00 3.6%

$2.00 0.9% $2.00 1.1% $1.00 0.6%

$50.00 7.1% $25.00 4.2% $30.00 6.7%

$5.00 7.1% $3.00 5.6% $3.00 6.4%

$10.00 5.0% $5.00 3.1% $5.00 3.4%

Total Ownership Costs $70.39 4.9% $37.33 3.1% $46.28 4.6%

Ownership Costs per Unit $0.13 4.9% $0.11 4.2% $0.05 2.1%

Total Costs:Total Costs per Acre $301.78 7.1% $198.87 5.2% $203.50 6.3%

Total Cost per Unit $0.57 7.1% $0.51 6.4% $0.30 3.8%

http://www.cals.uidaho.edu/aers Click on: Resources Click on: Project Report


Tractors & Equipment

Land *

Overhead

Management Fee

Table 14. Per acre and percentage change in costs from 2011 to 2012 for irrigatedRusset Burbank potatoes: with storage costs & fumigation.

Southwestern Idaho Southcentral Idaho Eastern IdahoChange from 2010 Change from 2010 Change from 2010

Stor & Fum % Change University of Idaho 11/7/2012


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21

Storage Op.Costs SWI SCI EI-S EI-N

Base $7.21 $7.18 $6.77 $6.69

Storage Ownership $0.48 $0.48 $0.48 $0.48

Base + Storage Ownership $7.69 $7.66 $7.25 $7.17

Storage System Repairs $0.061

Cumulative

Storage Op.Costs

October $0.34 $8.09 $8.06 $7.65 $7.57

November* $0.52 $8.27 $8.24 $7.83 $7.75

December $0.61 $8.36 $8.33 $7.92 $7.84

January $0.71 $8.45 $8.42 $8.01 $7.93

February $0.80 $8.55 $8.52 $8.11 $8.03

March $0.89 $8.64 $8.61 $8.20 $8.12

April* $1.09 $8.83 $8.80 $8.39 $8.31

May $1.20 $8.95 $8.92 $8.51 $8.43

June $1.33 $9.08 $9.05 $8.64 $8.56

SWI = Southwestern IdahoSCI - Southcentral Idaho (Magic Valley), No FumigationSEI-S = Eastern Idaho - Southern Counties (Bannock, Bingham & Power), No FumigationEI-N = Eastern Idaho - Northern Counties (Bonneville & Madison), No Fumigation

Base includes the cost to grow and harvest potatoes, not including storage or transloading.

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

* Sprout inhibitor applied.

The values shown in bold correspond to the standare 4-1/2 months of storage assumed in thepotato costs and returns estimates that include storage.

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

Table 15. 2012 Idaho potato base cost of production, monthly storage costs andcumulative production and storage costs by region: base + monthly storage costs.

Monthly Storage University of Idaho 11/7/12


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Appendix


27/46

23

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

Gross Returns 2011Potatoes 530 cwt $7.50 $3,975.00 530 0 0.0%

Operating Inputs $ Change % Change

Seed: $369.60 $387.60 -$18.00 -4.6%G-3 Burbank Potato Seed 24 cwt $13.75 $330.00 $349.20 -$19.20 -5.5%Seed Cutting 24 cwt $1.65 $39.60 $38.40 $1.20 3.1%

Fertilizer: $720.10 $646.60 $73.50 11.4%Dry Nitrogen - Preplant 210 lb $0.69 $144.90 $122.00 $22.90 18.8%Dry P2O5 230 lb $0.60 $138.00 $128.25 $9.75 7.6%K2O 265 lb $0.57 $151.05 $135.15 $15.90 11.8%Sulfur 115 lb $0.25 $28.75 $25.30 $3.45 13.6%Micronutrients & Foliars 2 ac $26.00 $52.00 $50.00 $2.00 4.0%Liquid Nitrogen 195 lb $0.75 $146.25 $136.50 $9.75 7.1%Liquid P2O5 65 lb $0.91 $59.15 $49.40 $9.75 19.7%

Pesticides & Chemicals: $627.35 $511.53 $115.83 22.6%K-Pam 35 gal $7.50 $262.50 $276.50 -$14.00 -5.1%Potato Seed Treatment 24 cwt $0.45 $10.80 $10.80 $0.00 0.0% Admire Pro 8.0 fl oz $2.65 $21.20 $23.20 -$2.00 -8.6%Quadris Flowable (2x) 14.0 fl oz $2.75 $38.50 $41.30 -$2.80 -6.8%Eptam 7E 4.0 pt $6.25 $25.00 $24.20 $0.80 3.3%Endura (2x) 7.0 oz $6.45 $45.15 $44.10 $1.05 2.4%Metribuzin 75DF 1.0 lb $12.60 $12.60 $16.00 -$3.40 -21.3%

Prowl 3.3EC 2.0 pt $5.05 $10.10 $9.50 $0.60 6.3%Bravo Weather Stik 1.5 pt $4.65 $6.98 $6.98 $0.00 0.0%Dithane F45 Rainshield 1.6 qt $8.50 $13.60 $14.64 -$1.04 -7.1%Gavel 75DF 2.0 lb $8.10 $16.20 $0.00 $16.20Fulfill 5.50 oz $6.85 $37.68 $0.00 $37.68Movento (2x) 10.00 fl oz $7.00 $70.00 $0.00 $70.00 Agri-Mek 0.15EC (3x) 36.0 fl oz $0.95 $34.20 $0.00 $34.20 Asana XL 0.00 fl oz $0.84 $0.00 $8.06 -$8.06Leverage 2.7 0.00 fl oz $1.80 $0.00 $6.75 -$6.75Reglone 1.0 qt $22.85 $22.85 $29.50 -$6.65 -22.5%

Custom & Consultants: $337.00 $296.80 $40.20 13.5%Custom Fumigate: Deep Inject 1 ac $35.00 $35.00 $32.00 $3.00 9.4%Custom Fertilize 2 ac $9.25 $18.50 $19.00 -$0.50 -2.6%Consultant 1 ac $22.00 $22.00 $22.00 $0.00 0.0%Custom Air Spray-5G 4 ac $9.15 $36.60 $36.60Custom Air Spray-10G 2 ac $11.75 $23.50 $33.00 -$9.50 -28.8%Custom Hauling 530 cwt $0.38 $201.40 $190.80 $10.60 5.6%

Irrigation: $117.25 $113.05 $4.20 3.7%Water Assessment 1 ac $45.85 $45.85 $45.85 $0.00 0.0%Irrigation Power-CP * 35 acin $1.56 $54.60 $51.45 $3.15 6.1%Irrigation Repairs-CP * 35 acin $0.48 $16.80 $15.75 $1.05 6.7%

Machinery: $177.78 $171.08 $6.70 3.9%Fuel - Gas 1.69 gal $3.60 $6.08 $5.92 $0.16 2.8%Fuel - Farm Diesel 23.1 gal $3.55 $82.01 $80.85 $1.16 1.4%Fuel - Road Diesel 2.02 gal $4.05 $8.18 $8.08 $0.10 1.2%Lube 1 ac $14.45 $14.45 $14.23 $0.22 1.5%Machinery Repairs 1 ac $67.06 $67.06 $62.00 $5.06 8.2%

Labor: $172.70 $162.39 $10.31 6.4%Equipment Operator Labor 3.23 hr $17.50 $56.53 $52.49 $4.04 7.7%Truck Driver Labor 2.48 hr $13.50 $33.48 $32.24 $1.24 3.8%Irrigation Power-CP 2.44 hr $17.50 $42.70 $39.65 $3.05 7.7%General Farm Labor 3.98 hr $10.05 $40.00 $38.01 $1.99 5.2%

Transload: $82.15 $76.85 $5.30 6.9%

Transloading Costs 530 cwt $0.128 $67.84 $63.60 $4.24 6.7%Transloading Equipment Repair 530 cwt $0.027 $14.31 $13.25 $1.06 8.0%

Other: $150.10 $148.10 $2.00 1.4%Crop Insurance 1 ac $60.00 $60.00 $58.00 $2.00 3.4%Fees & Assessments 530 cwt $0.17 $90.10 $90.10 $0.00 0.0%

Operating Interest @ 6.0% $91.69 $92.15 -$0.46 -0.5%

Total Operating Costs $2,846 $2,606 $239.58 9.2%Operating Costs per Unit $5.37 $4.92 $0.45 9.2%

Net Returns Above Operating Expenses $1,129 $1,297

Table 16. 2012 Southwestern Idaho Irrigated Russet Burbank CommercialPotatoes: With Fumigation and No Storage. Comparison with 2011. Final 11/7/2012

Yield Change

SWI-Po1-12 University of Idaho


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24


Table 16. 2012 Southwestern Idaho Irrigated Russet Burbank CommercialPotatoes: With Fumigation and No Storage. Comparison with 2011. Final 11/7/2012

Ownership Costs:$80.00 $76.00 $4.00 5.3%

$6.29 $5.90 $0.39 6.6%$220.00 $218.00 $2.00 0.9%

$750.00 $700.00 $50.00 7.1%$70.00 $65.00 $5.00 7.7%

$195.00 $185.00 $10.00 5.4%

Total Ownership Costs $1,321 $1,250 $71.39 5.7%Ownership Costs per Unit $2.49 $2.36 $0.13 5.7%

Total Costs per Acre $4,167 $3,856 $310.97 8.1%Total Cost per Unit $7.86 $7.28 $0.59 8.1%

Returns to Risk -$192 -$177 -$15

Notes:

Breakeven Analysis: - Base +

10% 10%Yield

Price 477 530 583

Operating Cost Breakeven $5.97 $5.37 $4.88

Ownership Cost Breakeven $2.77 $2.49 $2.27

Total Cost Breakeven $8.74 $7.86 $7.15

PriceYield $6.75 $7.50 $8.25

Operating Cost Breakeven 421.6 379.4 344.9

Ownership Cost Breakeven 195.7 176.2 160.2

Total Cost Breakeven 617.3 555.6 505.1

Transloading EquipmentTractors & Equipment InsuranceTractors & Equipment Depreciation & InterestIrrigation Equipment Depreciation & 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 .



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25




Seed: $369.60 $387.60 -$18.00 -4.6%G-3 Burbank Potato Seed 24 cwt $13.75 $330.00 $349.20 -$19.20 -5.5%Seed Cutting 24 cwt $1.65 $39.60 $38.40 $1.20 3.1%


Pesticides & Chemicals: $627.35 $511.53 $115.82 22.6%K-Pam 35 gal $7.50 $262.50 $276.50 -$14.00 -5.1%Potato Seed Treatment 24 cwt $0.45 $10.80 $10.80 $0.00 0.0% Admire Pro 8.0 fl oz $2.65 $21.20 $23.20 -$2.00 -8.6%Quadris Flowable (2x) 14.0 fl oz $2.75 $38.50 $41.30 -$2.80 -6.8%Eptam 7E 4.0 pt $6.25 $25.00 $24.20 $0.80 3.3%Endura (2x) 7.0 oz $6.45 $45.15 $44.10 $1.05 2.4%Metribuzin 75DF 1.0 lb $12.60 $12.60 $16.00 -$3.40 -21.3%

Prowl 3.3EC 2.0 pt $5.05 $10.10 $9.50 $0.60 6.3%Bravo Weather Stik 1.5 pt $4.65 $6.98 $6.98 $0.00 -0.1%Dithane F45 Rainshield 1.6 qt $8.50 $13.60 $14.64 -$1.04 -7.1%Gavel 75DF 2.0 lb $8.10 $16.20 $0.00 $16.20Fulfill 5.50 oz $6.85 $37.68 $0.00 $37.68Movento (2x) 10.00 fl oz $7.00 $70.00 $0.00 $70.00 Agri-Mek 0.15EC (3x) 36.0 fl oz $0.95 $34.20 $0.00 $34.20 Asana XL 0 fl oz $0.84 $0.00 $8.06 -$8.06Leverage 2.7 0.00 fl oz $1.80 $0.00 $6.75 -$6.75Reglone 1.0 qt $22.85 $22.85 $29.50 -$6.65 -22.5%

Custom & Consultants: $135.60 $95.00 $40.60 42.7%Custom Fumigate: Deep Inject 1 ac $35.00 $35.00 $32.00 $3.00 9.4%Custom Fertilize 2 ac $9.25 $18.50 $19.00 -$0.50 -2.6%Consultant 1 ac $22.00 $22.00 $22.00 $0.00 0.0%Custom Air Spray-5G 4 ac $9.15 $36.60 $36.60Custom Air Spray-10G 2 ac $11.75 $23.50 $22.00 $1.50 6.8%

Irrigation: $117.25 $113.05 $4.20 3.7%Water Assessment 1 ac $45.85 $45.85 $45.85 $0.00 0.0%Irrigation Power-CP * 35 acin $1.56 $54.60 $51.45 $3.15 6.1%Irrigation Repairs-CP * 35 acin $0.48 $16.80 $15.75 $1.05 6.7%


Labor: $172.70 $162.39 $10.31 6.4%Equipment Operator Labor 3.23 hr $17.50 $56.53 $52.49 $4.04 7.7%Truck Driver Labor 2.48 hr $13.50 $33.48 $32.24 $1.24 3.8%Irrigation Power-CP 2.44 hr $17.50 $42.70 $39.65 $3.05 7.7%General Farm Labor 3.98 hr $10.05 $40.00 $38.01 $1.99 5.2%

Storage: $455.27 $457.92 -$2.65 -0.6%Storage Operating Costs 530 cwt $0.798 $422.94 $426.12 -$3.18 -0.7%

Storage Repairs 530 cwt $0.061 $32.33 $31.80 $0.53 1.7%Other: $145.68 $143.68 $2.00 1.4%Crop Insurance 1 ac $60.00 $60.00 $58.00 $2.00 3.4%Fees & Assessments 504 cwt $0.17 $85.68 $85.68 $0.00 0.0%



Net Returns Above Operating Expenses $1,093 $1,297

Table 17. 2012 Southwestern Idaho Irrigated Russet Burbank CommercialPotatoes: With Fumigation and On-Farm Storage. Comparison with 2011.

Yield Change

Final 11/7/2012



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Table 17. 2012 Southwestern Idaho Irrigated Russet Burbank CommercialPotatoes: With Fumigation and On-Farm Storage. Comparison with 2011. Final 11/7/2012

Ownership Costs:$252.00 $249.00 $3.00 1.2%

$6.29 $5.90 $0.39 6.6%$220.00 $218.00 $2.00 0.9%

$750.00 $700.00 $50.00 7.1%$75.00 $70.00 $5.00 7.1%

$210.00 $200.00 $10.00 5.0%



Returns to Risk -$420 -$177 -$243

Notes:

Breakeven Analysis: - Base +

10% 10%Yield

Price 477 530 583




PriceYield $6.98 $7.75 $8.53




Potato Storage SystemTractors & Equipment InsuranceTractors & Equipment Depreciation & Interest

Land *Overhead

* Center pivot. ** Includes irrigation system ownership costs.

Irrigation Equipment Depreciation & Interest

Procedureal changes can result in different costs than were published the previous year. A green font indicates a change in product or procedure to derive the cost . A red font indicates a decrease.Blue font indicates an increase.

Management Fee



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Gross Returns 2011Potatoes 415 cwt $7.25 $3,008.75 420 -5 -1.2%


Seed: $342.70 $359.95 -$17.25 -4.8%G-3 Russet Burbank Seed 23 cwt $13.25 $304.75 $323.15 -$18.40 -5.7%Seed Cutting 23 cwt $1.65 $37.95 $36.80 $1.15 3.1%

$0.00


Pesticides & Chemicals: $320.68 $247.79 $72.89 29.4%Seed Treatment 23.0 cwt $0.45 $10.35 $10.35 $0.00 0.0%

Admire Pro 8.0 oz $2.65 $21.20 $23.20 -$2.00 -8.6%Quadris Flowable 8.0 fl oz $2.75 $22.00 $23.60 -$1.60 -6.8%Outlook 6EC 20.0 fl oz $1.50 $30.00 $33.00 -$3.00 -9.1%Prowl 3.3 EC 2.0 pt $5.05 $10.10 $9.50 $0.60 6.3%Metribuzin 75DF 0.75 lb $12.85 $9.64 $12.00 -$2.36 -19.7%

Endura (2x) 11.0 oz $6.45 $70.95 $69.30 $1.65 2.4%Dithane F45 Rainshield 1.6 qt $8.50 $13.60 $14.64 -$1.04 -7.1%Headline 6.0 fl oz $3.05 $18.30 $19.20 -$0.90 -4.7%Beleaf 50SG 2.8 oz $9.65 $27.02 $0.00 $27.02Fulfill WDG 5.5 oz $6.85 $37.68 $0.00 $37.68

Agri-Mek .15EC (3X) 30.0 fl oz $0.90 $27.00 $0.00 $27.00Leverage 2.7 0 fl oz $1.80 $0.00 $6.75 -$6.75Reglone 1.0 qt $22.85 $22.85 $26.25 -$3.40 -13.0%

Custom & Consultants: $252.70 $222.70 $30.00 13.5%Custom Fertilize 2 ac $9.00 $18.00 $16.20 $1.80 11.1%Consultant 1 ac $22.00 $22.00 $22.00 $0.00 0.0%Custom Air Spray-10G 3 ac $12.00 $36.00 $37.50 -$1.50 -4.0%Custom Air Spray-5G 2 ac $9.50 $19.00 $0.00 $19.00Custom Hauling 415 cwt $0.38 $157.70 $147.00 $10.70 7.3%

Irrigation: $101.27 $95.05 $6.22 6.5%Water Assessment 1 ac $44.15 $44.15 $41.30 $2.85 6.9%

Irrigation Power-CP 28 acin $1.56 $43.68 $41.15 $2.53 6.1%Irrigation Repairs 28 acin $0.48 $13.44 $12.60 $0.84 6.7%

Machinery: $174.56 $168.40 $6.16 3.7%

Fuel - Gas 2.11 gal $3.55 $7.49 $7.39 $0.10 1.4%

Fuel - Farm Diesel 24.79 gal $3.50 $86.77 $85.56 $1.21 1.4%

Fuel - Road Diesel 1.46 gal $4.00 $5.84 $5.77 $0.07 1.2%

Lube 1 ac $15.02 $15.02 $14.81 $0.21 1.4%

Machinery Repairs 1 ac $59.44 $59.44 $54.87 $4.57 8.3%

Labor: $155.20 $145.79 $9.41 6.5%Equipment Operator Labor 3.20 hrs $17.50 $56.00 $52.00 $4.00 7.7%Truck Driver Labor 1.98 hrs $13.50 $26.73 $25.74 $0.99 3.8%Irrigation Power-CP 2.16 hr $17.50 $37.80 $35.10 $2.70 7.7%General Farm Labor 3.45 hrs $10.05 $34.67 $32.95 $1.72 5.2%

Transload: $64.33 $60.90 $3.43 5.6%Transloading Costs 415 cwt $0.128 $53.12 $50.40 $2.72 5.4%

Repairs 415 cwt $0.027 $11.21 $10.50 $0.71 6.7%Other: $130.55 $129.40 $1.15 0.9%Fees & Assessments 415 cwt $0.17 $70.55 $71.40 -$0.85 -1.2%Crop Insurance 1 ac $60.00 $60.00 $58.00 $2.00 3.4%



Net Returns Above Operating Expenses $835.39 $831

Yield Change

Table 18. 2012 Southcentral Idaho Irrigated Russet Burbank Commercial Potatoes:

No Storage. Comparison With 2011. Final 11/7/2012

SCI-Po1-12 University of Idaho


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No Storage. Comparison With 2011. Final 11/7/2012

Ownership Costs:

$61.50 $59.00 $2.50 4.2%

$5.18 $4.90 $0.28 5.7%

$179.00 $177.00 $2.00 1.1%

$625.00 $600.00 $25.00 4.2%

$53.00 $49.00 $4.00 8.2%$145.00 $140.00 $5.00 3.6%



Returns to Risk -$233 -$207

Notes:

Breakeven Analysis: - Base +10% 10%

YieldPrice 373.5 415 456.5




PriceYield $6.53 $7.25 $7.98




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

OverheadManagement Fee

Transloading Equipment

Tractors & Equipment Insurance

Land *


Tractors & Equipment Depreciation & Interest




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Pesticides & Chemicals: $320.68 $247.79 $72.89 29.4%Seed Treatment 23.0 cwt $0.45 $10.35 $10.35 $0.00 0.0%

Admire Pro 8.0 oz $2.65 $21.20 $23.20 -$2.00 -8.6%Quadris Flowable 8.0 fl oz $2.75 $22.00 $23.60 -$1.60 -6.8%Outlook 6EC 20.0 fl oz $1.50 $30.00 $33.00 -$3.00 -9.1%Prowl 3.3 EC 2.0 pt $5.05 $10.10 $9.50 $0.60 6.3%Metribuzin 75DF 0.75 lb $12.85 $9.64 $12.00 -$2.36 -19.7%Endura (2x) 11.0 oz $6.45 $70.95 $69.30 $1.65 2.4%Dithane F45 Rainshield 1.6 qt $8.50 $13.60 $14.64 -$1.04 -7.1%Headline 6.0 fl oz $3.05 $18.30 $19.20 -$0.90 -4.7%Beleaf 50SG 2.8 oz $9.65 $27.02 $0.00 $27.02Fulfill WDG 5.5 oz $6.85 $37.68 $0.00 $37.68


Custom & Consultants: $95.00 $75.70 $19.30 25.5%Custom Fertilize 2 ac $9.00 $18.00 $16.20 $1.80 11.1%Consultant 1 ac $22.00 $22.00 $22.00 $0.00 0.0%Custom Air Spray-10G 3 ac $12.00 $36.00 $37.50 -$1.50 -4.0%Custom Air Spray-5G 2 ac $9.50 $19.00 $0.00 $19.00

Irrigation: $101.27 $95.05 $6.22 6.5%Water Assessment 1 ac $44.15 $44.15 $41.30 $2.85 6.9%Irrigation Power-CP 28 acin $1.56 $43.68 $41.15 $2.53 6.1%Irrigation Repairs 28 acin $0.48 $13.44 $12.60 $0.84 6.7%


Labor: $155.20 $145.79 $9.41 6.5%Equipment Operator Labor 3.20 hrs $17.50 $56.00 $52.00 $4.00 7.7%Truck Driver Labor 1.98 hrs $13.50 $26.73 $25.74 $0.99 3.8%Irrigation Labor - CP 2.16 hr $17.50 $37.80 $35.10 $2.70 7.7%General Farm Labor 3.45 hrs $10.05 $34.67 $32.95 $1.72 5.2%

Storage: $356.49 $362.88 -$6.39 -1.8%Storage Operating Costs 415 cwt $0.798 $331.17 $337.68 -$6.51 -1.9%Storage Repairs 415 cwt $0.061 $25.32 $25.20 $0.11 0.5%

Other: $126.98 $125.83 $1.15 0.9%Fees & Assessments 394 cwt $0.17 $66.98 $67.83 -$0.85 -1.3%

Crop Insurance 1 ac $60.00 $60.00 $58.00 $2.00 3.4%Operating Interest @ 6.0% $64.54 $66.20 -$1.66 -2.5%


Net Returns Above Operating Expenses $911.33 $1,100

Table 19. 2012 Southcentral Idaho Irrigated Russet Burbank Commercial Potatoes:With On-Farm Storage. Comparison With 2011. Final 11/7/2012

Yield Change



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Table 19. 2012 Southcentral Idaho Irrigated Russet Burbank Commercial Potatoes:With On-Farm Storage. Comparison With 2011. Final 11/7/2012

Ownership Costs:

$198.00 $196.00 $2.00 1.0%

$5.18 $4.90 $0.28 5.7%

Tractors & Equipment Depreciation & Interest $179.00 $177.00 $2.00 1.1%


$625.00 $600.00 $25.00 4.2%

$57.00 $54.00 $3.00 5.6%

$165.00 $160.00 $5.00 3.1%




Notes:


YieldPrice 373.5 415 456.5




PriceYield $6.98 $7.75 $8.53






Land *



Overhead

Management Fee



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Pesticides & Chemicals: $562.68 $483.79 $78.89 16.3%Metam Sodium 40 gal $6.05 $242.00 $236.00 $6.00 2.5%Seed Treatment 23.0 cwt $0.45 $10.35 $10.35 $0.00 0.0%

Admire Pro 8.0 oz $2.65 $21.20 $23.20 -$2.00 -8.6%Quadris Flowable 8.0 fl oz $2.75 $22.00 $23.60 -$1.60 -6.8%Outlook 6EC 20.0 fl oz $1.50 $30.00 $33.00 -$3.00 -9.1%Prowl 3.3 EC 2.0 pt $5.05 $10.10 $9.50 $0.60 6.3%

Metribuzin 75DF 0.75 lb $12.85 $9.64 $12.00 -$2.36 -19.7%Endura (2x) 11.0 oz $6.45 $70.95 $69.30 $1.65 2.4%Dithane F45 Rainshield 1.6 qt $8.50 $13.60 $14.64 -$1.04 -7.1%Headline 6.0 fl oz $3.05 $18.30 $19.20 -$0.90 -4.7%Beleaf 50SG 2.8 oz $9.65 $27.02 $0.00 $27.02Fulfill WDG 5.5 oz $6.85 $37.68 $0.00 $37.68


Custom & Consultants: $135.00 $110.70 $24.30 22.0%Fumigation: Deep Injection 1 ac $40.00 $40.00 $35.00 $5.00 14.3%Custom Fertilize 2 ac $9.00 $18.00 $16.20 $1.80 11.1%Consultant 1 ac $22.00 $22.00 $22.00 $0.00 0.0%Custom Air Spray-10G 3 ac $12.00 $36.00 $37.50 -$1.50 -4.0%Custom Air Spray-5G 2 ac $9.50 $19.00 $0.00 $19.00

Irrigation: $105.35 $98.90 $6.45 6.5%

Water Assessment 1 ac $44.15 $44.15 $41.30 $2.85 6.9%Irrigation Power-CP 30 acin $1.56 $46.80 $44.10 $2.70 6.1%Irrigation Repairs 30 acin $0.48 $14.40 $13.50 $0.90 6.7%


Labor: $161.07 $151.35 $9.72 6.4%Equipment Operator Labor 3.19 hrs $17.50 $55.83 $51.84 $3.98 7.7%Truck Driver Labor 2.22 hrs $13.50 $29.97 $28.86 $1.11 3.8%Irrigation Labor - CP 2.32 hrs $17.50 $40.60 $37.70 $2.90 7.7%General Farm Labor 3.45 hrs $10.05 $34.67 $32.95 $1.72 5.2%

Storage: $403.73 $410.40 -$6.67 -1.6%

Storage Operating Costs 470 cwt $0.798 $375.06 $381.90 -$6.84 -1.8%Storage Repairs 470 cwt $0.061 $28.67 $28.50 $0.17 0.6%

Other: $140.82 $138.67 $2.15 1.6%Fees & Assessments 446 cwt $0.17 $75.82 $76.67 -$0.85 -1.1%Crop Insurance 1 ac $65.00 $65.00 $62.00 $3.00 4.8%



Net Returns Above Operating Expenses $912.99 $1,221


With Fumigation and On-Farm Storage. Comparison With 2011.

Yield Change

Final 11/7/2012



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With Fumigation and On-Farm Storage. Comparison With 2011. Final 11/7/2012

Ownership Costs:$224.00 $222.00 $2.00 0.9%

$5.33 $5.00 $0.33 6.6%

$183.00 $181.00 $2.00 1.1%

$625.00 $600.00 $25.00 4.2%$57.00 $54.00 $3.00 5.6%

$165.00 $160.00 $5.00 3.1%




Notes:


YieldPrice 423 470 517




PriceYield $6.98 $7.75 $8.53






Management Fee

Tractors & Equipment Depreciation & InterestIrrigation Equipment Depreciation & InterestLand *Overhead





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Seed: $301.35 $317.10 -$15.75 -5.0%G-3 Russet Burbank Seed S 21 cwt $12.70 $266.70 $283.50 -$16.80 -5.9%Potato Seed Cutting 21 cwt $1.65 $34.65 $33.60 $1.05 3.1%

Fertilizer: $524.10 $464.50 $59.60 12.8%Dry Nitrogen - Pre-plant 155 lb $0.69 $106.95 $91.50 $15.45 16.9%Dry P2O5 160 lb $0.60 $96.00 $88.35 $7.65 8.7%K2O 190 lb $0.57 $108.30 $94.35 $13.95 14.8%Sulfur 85 lb $0.25 $21.25 $18.70 $2.55 13.6%Liquid Nitrogen 140 lb $0.75 $105.00 $98.00 $7.00 7.1%Liquid P2O5 60 lb $0.91 $54.60 $45.60 $9.00 19.7%Micronutrients/Humic Acid - CP 1 acre $32.00 $32.00 $28.00 $4.00 14.3%

Pesticides & Chemicals: $233.69 $183.75 $49.94 27.2%Potato Seed Treatment 21 cwt $0.45 $9.45 $9.45 $0.00 0.0%

Admire Pro 8 fl oz $2.65 $21.20 $23.20 -$2.00 -8.6%Metribuzin 75DF 0.66 lb $12.60 $8.32 $10.56 -$2.24 -21.3%Eptam 7E 4.0 pint $6.25 $25.00 $24.20 $0.80 3.3%Prowl 3.3EC 2.0 pint $5.05 $10.10 $9.50 $0.60 6.3%Omega 500DF 8.0 fl oz $3.90 $31.20 $32.00 -$0.80 -2.5%Quadris Flowable 8.0 fl oz $2.75 $22.00 $23.60 -$1.60 -6.8%Headline 6.0 fl oz $3.05 $18.30 $19.20 -$0.90 -4.7%Dithane F45 Rainshield 1.6 qt $8.50 $13.60 $14.64 -$1.04 -7.1%Fulfill WDG 5.5 oz $6.85 $37.68 $0.00 $37.68

Agri-Mek 0.15EC (2x) 20 fl oz $0.90 $18.00 $0.00 $18.00Rely 280 29 fl oz $0.65 $18.85 $17.40 $1.45 8.3%

Custom & Consultants: $212.45 $186.75 $25.70 13.8%Custom Fertilize - Row Crops 2 acre $8.00 $16.00 $15.00 $1.00 6.7%Consultants/Soil Testing - CP 1 acre $22.00 $22.00 $22.00 $0.00 0.0%Custom Air Spray - 10 gal. rate 2 acre $11.50 $23.00 $22.00 $1.00 4.5%Custom Air Spray - 5 gal. rate 1 acre $8.95 $8.95 $0.00 $8.95Custom Haul: potatoes 375 cwt $0.38 $142.50 $127.75 $14.75 11.5%

Irrigation: $76.92 $74.15 $2.77 3.7%Irrigation Power - Center Pivot* 23 ac-in $1.56 $35.88 $33.80 $2.08 6.2%Irrigation Water Assessment-S 1 acre $30.00 $30.00 $30.00 $0.00 0.0%Irrigation Repairs - CP* 23 ac-in $0.48 $11.04 $10.35 $0.69 6.7%

Machinery: $161.19 $152.81 $8.38 5.5%Fuel - Gas 2.1 gal $3.50 $7.35 $7.25 $0.10 1.4%Fuel - Farm Diesel 22.58 gal $3.50 $79.03 $75.64 $3.39 4.5%Fuel - Road Diesel 1.41 gal $4.00 $5.64 $5.43 $0.21 3.9%Lube 1 acre $13.81 $13.81 $13.31 $0.50 3.8%Machinery Repair 1 acre $55.36 $55.36 $51.18 $4.18 8.2%

Labor: $142.32 $133.72 $8.60 6.4%Equipment Operator Labor 3.1 hrs $17.50 $54.25 $50.38 $3.87 7.7%Truck Driver Labor 1.8 hrs $13.50 $24.30 $23.40 $0.90 3.8%Irrigation Power-CP 1.72 hrs $17.50 $30.10 $27.95 $2.15 7.7%General Farm Labor 3.35 hrs $10.05 $33.67 $31.99 $1.68 5.2%

Transload: $58.13 $52.93 $5.20 9.8%Transloading Operating Costs 375 cwt $0.128 $48.00 $43.80 $4.20 9.6%Transloading Equipment Repai 375 cwt $0.027 $10.13 $9.13 $0.99 10.9%

Other: $123.75 $120.05 $3.70 3.1%Crop Insurance 1 acre $60.00 $60.00 $58.00 $2.00 3.4%Potato Fees & Assessments 375 cwt $0.17 $63.75 $62.05 $1.70 2.7%



Net Returns Above Operating Expenses $832 $714

Table 21. 2012 Irrigated Russet Burbank Commercial Potatoes With No Storage forEastern Idaho - South: Bannock, Bingham and Power Counties with comparison to2011.

Yield Change

Final 11/7/2012

EI-Po1-12 University of Idaho


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Table 21. 2012 Irrigated Russet Burbank Commercial Potatoes With No Storage forEastern Idaho - South: Bannock, Bingham and Power Counties with comparison to2011. Final 11/7/2012

Ownership Costs:

$54.00 $52.00 $2.00 3.8%

$5.07 $4.79 $0.28 5.8%

Tractors & Equipment Depreciation & Interest $174.00 $173.00 $1.00 0.6%


$475.00 $445.00 $30.00 6.7%$46.00 $43.00 $3.00 7.0%

$135.00 $130.00 $5.00 3.8%

Total Ownership Costs $889 $848 $41.28 4.9%Ownership Costs per Unit $2.37 $2.32 $0.05 2.1%



Notes:


YieldPrice 337.5 375 412.5




PriceYield $6.53 $7.25 $7.98





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.

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

Management Fee

Land Rent*General Overhead

Transloading Equipment Depreciation & Interest


EI-Po1-12 Univ

2012 Cost of Potato Production Report

Documents

Transcript of 2012 Cost of Potato Production Report