Cost Of Pecan Production

The 2013 growing conditions continuing through early 2014 has increased the cost of production resulting from a rise in the number of fungicide sprays required on scab susceptible cultivars. The number of sprays has also risen as spray intervals shorten. And finally, growers are using higher fungicide rates because of insensitivity issues. All of this adds to the cost of production in which UGA Extension Pecan Specialist Dr. Lenny Wells and New Mexico State Pecan Specialist Dr. Richard Heerema have put together information on this topic. Below are notes from Dr. Wells:

“It looks as though this led to a 60% increase in the cost of scab control alone as you go up from 10 sprays to 16 sprays. In addition to the increased cost of managing pecan scab, black aphid and mite pressure were high in 2014. Both of these pests are expensive to control and many growers had to spray multiple times for both pests, which also increased the cost of pecan production. See the graph below for a breakdown of the annual variable cost of production, which totals over $1600/acre with 16 fungicide sprays.

VariableCost-SEPecanProduction-L.Wells

At such a high cost growers are justifiably concerned about the price they need for their crop. See the chart below for break-even prices for pecans at various prices and yield levels given a cost of $1628.15/acre:

NPSA-2014CostPecanProduction-BreakEven-L.Wells

In a ‘normal’ year—neither too wet or too dry—10 fungicide sprays will usually be enough to manage scab. This brings the cost down to nearly $1500/acre as you can see below. Break even prices at a cost of $1485.88/acre follow:

NPSA-2014-Cost-PecanProduction-10Sprays-L.Wells

Keep in mind that these are all variable costs only. Fixed costs like land payments, equipment, overhead, etc. will increase the total cost of production by another $450 or so. The cost of production will vary from one grower to the next but these numbers should give some idea of what the general cost may be for growing pecans.”

 

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