Posts Tagged: Agricultural Issues Center
Eating healthy on a limited budget is possible, but any cuts in SNAP or rise in food costs make it harder
The affordability of healthy food is often cited as a barrier to low-income families eating nutritious meals. A new study published in the Journal of Nutrition Education and Behavior found that with menu planning and access to stores selling items in bulk, the average daily cost for serving healthy meals to a family of four was $25 in 2010 dollars. This cost was consistent with the US Department of Agriculture (USDA) low-income cost of food meal plan, but higher than the cost of the USDA Thrifty Food Plan. The Thrifty Food Plan is the meal plan used by the USDA to determine food assistance benefits.
“This study determined the likelihood that families living in low-income households could create meals that meet the USDA dietary guidelines presented in MyPlate nutrition education materials,” said lead author Karen M. Jetter, Ph.D., of the UC Agricultural Issues Center, which is part of UC Agriculture and Natural Resources. “In addition to food cost, the other factors considered were access to stores, time for meal preparation, and whether the menus included culturally appropriate foods.”
Jetter also cautioned that any reduction in SNAP, the federal Supplemental Nutrition Assistance Program for people with qualifying low incomes, or increase in food costs would make it hard for economically vulnerable families to eat healthy foods.
This project was conducted in collaboration with Northern Valley Indian Health, Inc, and the Mechoopda Indian Tribe of Chico Rancheria where 88 percent of the population surveyed lived in households with an income of less than or equal to $35,000 a year. The menus were created to feed a household with a father, mother, and children ages 7 and 10 with foods the Mechoopda Indian Tribe community liked to eat, met USDA guidelines for healthy eating, and had realistic portions. Menus did not rely on processed foods to reduce the amount of fat and salt in the family diet, were varied so the family would not become bored eating the same foods, did not always require hot meal preparation, and were affordable.
By working closely with the Mechoopda Indian Tribe community researchers, two-weeks of daily menus were developed using meal plans provided by the Mechoopda Indian Tribe community. Although these plans did not meet the nutritional guidelines every day, all categories achieved the recommended levels on average at the end of a two-week period.
“These menus showed that a healthy diet on a budget was achieved by balancing daily targets over two weeks, not every day. This focuses healthy eating on balance rather than being deprived,” said Jetter.
Once the menus were determined, the Mechoopda Indian Tribe community researchers visited 13 grocery stores in Chico to ascertain menu costs. The stores visited were within a 10-minute car ride of 76 percent of the Mechoopda Indian Tribe members and were classified as bulk supermarket, general supermarket, discount market, or specialty market such as a local co-op.
Both bulk and general supermarkets had the highest availability of the items needed for a two-week shopping list, whereas specialty and discount markets lacked as many as 52 of the items needed. Bulk and discount market baskets had the lowest average daily cost of $25, while the specialty market had the highest average cost of $39 per day.
One limitation of the study was the focus on the actual cost of food without considering transactional costs such as the time needed to plan menus, develop shopping lists, research store advertisements, and travel to the bulk supermarket that offered the lowest cost. All of these factors influence a family's ability to sustain a healthy eating plan.
“This research demonstrates that menus that meet USDA guidelines can be purchased by a family of four when shopping at a bulk supermarket, but any reduction in SNAP benefits or increase in food costs would make it difficult for these economically vulnerable families to maintain a healthy lifestyle,” stressed Jetter.
This project was part of a larger project funded by a National Institutes of Health grant.
U.S. honey industry contributes more than $4.7 billion to economy, according to Ag Issues Center report
The U.S. honey industry is thriving, according to a new study from the University of California Agricultural Issues Center (AIC). The research found that the U.S. honey industry in 2017 was responsible for more than 22,000 jobs and its total economic output was $4.74 billion. Total economic output includes direct effect, such as workers hired to move beehives, indirect effect, like packaging supply companies for honey products, and induced effects, the wages honey industry workers spend at local businesses.
The study was directed by Daniel A. Sumner, an economist and director of the AIC, an institute which has studied the economic impacts of many farm commodities. The U.S. honey industry is made up of beekeepers, importers, packers and processors.
"The U.S. honey industry contributed significantly to jobs and economic activity across many states and regions in the United States," Sumner said. "In addition to its direct economic contributions, as an important ingredient, honey contributes flavor to a wide variety of food products and stimulates demand across the food industry."
The honey industry contributed approximately $2.1 billion in value added to the U.S. gross domestic product (GDP) in 2017. For scale, Vermont Maple contributed $34 million to the Vermont economy in 2013.
"While beekeeping is a labor of love and the true essence of a craft industry, the honey industry's size and scope shows that honey production makes a significant impact on our nation's economy," said Margaret Lombard, CEO of the National Honey Board. "From beekeepers in Washington state to packers in Maine, the honey industry's impact is evident across the country—as well as in the overall U.S. GDP."
In 2017, the honey industry employed more than 22,000 individuals across the U.S. in production, importation and packing jobs. The Vermont Maple industry employed 4,021 in 2013.
In addition to a thriving industry, the American appetite for honey is growing. In 2017, Americans consumed 596 million pounds of honey or about 1.82 pounds of honey per person, which represents a 65 percent increase in consumption from 2009 to 2017.
To learn more about the University of California Agricultural Issues Center, visit https://aic.ucdavis.edu. Find the full "Contributions of the U.S. Honey Industry to the U.S. Economy" study here. For more information on the National Honey Board, visit www.honey.com.
About National Honey Board
The National Honey Board (NHB) is an industry-funded agriculture promotion group that works to educate consumers about the benefits and uses for honey and honey products through research, marketing and promotional programs. The board's work, funded by an assessment on domestic and imported honey, is designed to increase the awareness and usage of honey by consumers, the food service industry and food manufacturers. The 10-member board, appointed by the U.S. Secretary of Agriculture, represents producers (beekeepers), packers, importers and a marketing cooperative. For more information, visit www.honey.com.
About University of California Agricultural Issues Center at UC Davis
The University of California Agricultural Issues Center (AIC) was established in 1985 to research and analyze crucial trends and policy issues affecting agriculture and interlinked natural and human resources in California and the West. The Center, which consists of a director, several associate directors, a small professional staff and an advisory board, provides independent and objective research-based information on a range of critical, emerging agricultural issues such as food and agricultural commodity markets, the value of agricultural research and development, farm costs and returns, consequences of food and agricultural policy and rural resources and the environment. The audience for AIC research and outreach includes decision makers in industry, non-governmental organizations and governments as well as scholars, journalists, students and the general public.
When growers are considering a new crop to plant, and penciling out their expenses and income, cost estimates from the University of California may help. A new cost and return study for commercially producing raspberries released by UC ANR Agricultural Issues Center and UC Cooperative Extension includes an expanded section on labor.
Sample costs to establish, produce and harvest raspberries for fresh market in Santa Cruz, Monterey and San Benito counties are presented in “Sample Costs to Produce and Harvest Fresh Market Raspberries in the Central Coast Region – 2017.”
“The study focuses on the many complexities and costs of primocane raspberry production over a three-year period, including crop establishment, fertility practices, overhead tunnel management, harvest and rising labor costs," said Mark Bolda, UC Cooperative Extension farm advisor and co-author of the study.
The analysis is based upon a hypothetical well-managed farming operation using practices common to the region. The costs, materials, and practices shown in this study will not apply to all farms. Growers, UC Cooperative Extension farm advisors and other agricultural associates provided input and reviewed the methods and findings of the study.
“This raspberry cost and return study is the result of significant effort on the part of UC Cooperative Extension, the Agricultural Issues Center and several grower and industry collaborators, who shared their expertise and contributed mightily to the end product,” said Laura Tourte, UC Cooperative Extension farm management advisor and co-author of the study.
This study assumes a farm size of 45 contiguous acres of rented land. Raspberries are planted on 42 acres. The crop is hand-harvested and packed into 4.5-pound trays. There is a fall harvest during production year 1, a spring and fall harvest during production year 2, and a spring harvest during production year 3. Each harvest is three months long.
The authors describe the assumptions used to identify current costs for production material prices and yields. Tables show the phase-in schedules for California's minimum wage and overtime laws through the year 2022. Other tables show the monthly cash costs, the costs and returns per acre, hourly equipment costs, and the whole farm annual equipment, investment and business overhead costs.
Free copies of “Sample Costs to Produce and Harvest Fresh Market Raspberries in the Central Coast Region - 2017” can be downloaded from the UC Davis Department of Agricultural and Resource Economics website https://coststudies.ucdavis.edu. Sample cost of production studies for many other commodities are also available at the website.
The cost and returns studies program is funded by the UC Agricultural Issues Center and UC Cooperative Extension, both of which are part of the UC Division of Agriculture and Natural Resources, and the UC Davis Department of Agricultural and Resource Economics.
For additional information or an explanation of the calculations used in the studies, contact the UC Agricultural Issues Center at (530) 752-4651 or UC Cooperative Extension advisors Mark Bolda at (831) 763-8025 or Laura Tourte at (831) 763-8005 in Santa Cruz County.
The studies focus on four table grape varieties. There are two early maturing varieties, Flame Seedless and Sheegene-21, that begin harvest in July, one mid-season maturing, Scarlet Royal, and one late maturing, Autumn King, which begins harvest in October. The studies estimate the cost of establishing a table grape vineyard and producing fresh market table grapes.
“Labor costs are expected to rise with reduced labor availability, increases in minimum wage rates and new overtime rules that went into effect in 2018,” said Ashraf El-kereamy, UCCE viticulture advisor in Kern County and co-author of the cost studies.
“We included detailed costs for specialized hand labor of certain cultural and harvest operations.”
“The new California minimum wage law will gradually decrease the number of hours employees can work on a daily and weekly basis before overtime wages are required. There are additional stipulations for overtime wages and scheduling of work that are part of the new law,” said Daniel Sumner, director of the Agricultural Issues Center.
Input and reviews were provided by UC ANR Cooperative Extension farm advisors, specialists, grower cooperators, California Table Grape Commission and other agricultural associates. The authors describe the assumptions used to identify current costs for table grape establishment and production, material inputs, cash and non-cash overhead. A ranging analysis table shows profits over a range of prices and yields. Other tables show the monthly cash costs, the costs and returns per acre, hourly equipment costs, and the whole farm annual equipment, investment and business overhead costs.
- “2018 - Sample Costs to Establish and Produce Table Grapes in the Southern San Joaquin Valley – Flame Seedless, Early Maturing”
- “2018 - Sample Costs to Establish and Produce Table Grapes in the Southern San Joaquin Valley – Sheegene-21 (Ivory™), Early Maturing”
- “2018 - Sample Costs to Establish and Produce Table Grapes in the Southern San Joaquin Valley – Scarlet Royal, Mid-season Maturing”
- “2018 - Sample Costs to Establish and Produce Table Grapes in the Southern San Joaquin Valley – Autumn King, Late Maturing”
All four table grape studies can be downloaded from the UC Davis Department of Agricultural and Resource Economics website at http://coststudies.ucdavis.edu. Sample cost of production studies for many other commodities are also available at the website.
For information about local table grape production, contact UC Cooperative Extension viticulture specialist Matthew Fidelibus at firstname.lastname@example.org, UCCE viticulture advisor Ashraf El-kereamy in Kern County at email@example.com, UCCE entomology advisor David Haviland in Kern County at firstname.lastname@example.org, UCCE weed advisor Kurt Hembree in Fresno County at email@example.com, or UCCE viticulture advisor George Zhuang in Fresno County at firstname.lastname@example.org.
Tree fruit growers can receive premiums for delivering certain extra-early varieties of peaches, but peach farmers may net roughly $800 more per acre from late-harvest processing peaches than extra-early harvest varieties, according to new cost studies released by the UC ANR Agricultural Issues Center and UC Cooperative Extension.
To help farmers make decisions on which peach varieties to plant, UC researchers present sample costs to produce extra-early harvested cling and freestone peaches and late harvested cling and freestone peaches for processing in the Sacramento and San Joaquin Valley in these studies.
Although processors pay more for extra-early harvested peach varieties than late-harvest peaches, the researchers found that yields are higher for late-harvest varieties while costs for hand thinning the fruit are lower.
“Peaches harvested early in the season have less time to grow compared to peaches that get to hang on the tree another month or more,” explained Roger Duncan, UC Cooperative Extension advisor in Stanislaus County, who coauthored the studies. “Therefore, more fruit has to be removed so the remaining fruit can size. That means it costs you more to produce less.”
The analyses are based upon hypothetical well-managed farming operations using practices common to the region. The costs, materials and practices shown in these studies will not apply to all farms. Growers, UC ANR Cooperative Extension farm advisors and other agricultural associates provided input and reviewed the methods and findings of the study.
Both studies assume a 100-acre farmer-owned operation with 40 acres of cling peaches. The remaining acreage for both hypothetical farms is planted in other mature tree crops. The estimated economic life of the extra-early harvested cling peach orchard and the late harvested cling peach orchard is 18 years.
Some of the major differences between the two studies are return price, yield and fruit thinning cost. The extra-early harvested varieties have a price of $545 per ton, a yield of 17 tons per acre, and a thinning cost of $1,445 per acre. The late harvested varieties have a price of $490 per ton, a yield of 20 tons per acre, and a thinning cost of $1,177 per acre.
Asked if a small farm could save on fruit thinning expenses by doing it themselves, Duncan replied, “I guess it would be possible for a small family operation to do the thinning themselves, but not likely. It can take 20 to 40 minutes to thin a single tree. If there are 151 trees per acre, you can see that it would take one skilled person over a week to thin one acre.”
The authors describe the assumptions used to identify current costs for production material inputs, cash and non-cash overhead. Ranging analysis tables show net profits over a range of prices and yields. Other tables show the monthly cash costs, the costs and returns per acre, hourly equipment costs, the whole farm annual equipment, investment and business overhead costs and the operations with equipment and materials.
Free copies of “Sample Costs to Produce Processing Peaches, Cling and Freestone Extra-early Harvested Varieties, in the Sacramento and San Joaquin Valley – 2017” and “Sample Costs to Establish and Produce Processing Peaches, Cling and Freestone Late Harvested Varieties, in the Sacramento and San Joaquin Valley – 2017” are available on the UC Davis Department of Agricultural and Resource Economics website at https://coststudies.ucdavis.edu. Sample cost-of-production studies for many other commodities are also available.
The cost study program is funded by the UC Agricultural Issues Center and UC Cooperative Extension, both part of the UC Division of Agriculture and Natural Resources, and the UC Davis Department of Agricultural and Resource Economics.
For additional information or an explanation of the calculations used in the studies, contact Jeremy Murdock at the Agricultural Issues Center, at (530) 752-4651, Janine Hasey, UC Cooperative Extension advisor for Sutter/Yuba counties, at (530) 822-7515, or Duncan at (209) 525-6800.