Guidelines for Estimating
Strawberry U-Pick Production Costs
2012
in Manitoba
Guidelines For Estimating
Strawberry U-Pick
Production Costs
Date: November, 2012
The projected strawberry production costs in this publication have been prepared to
assist you in developing your own production costs.
The capital and cash input costs associated with growing strawberries in Manitoba are
substantial. Detailed planning is necessary when budgeting for capital expenditures
and also for the annual operating costs. The importance of good financial planning is
evident by noting the capital required for 1 acre of strawberries may be in the vicinity of
$12,400. Cash costs of establishing the crop run about $1,500 in the two years prior
to picking with an additional $2,100 in the first year of of production before income
Historic provincial strawberry yields average 5300 lbs per acre depending on field age
and level of management. Prices for strawberries vary for u-pick and pre-pick sales.
2011 Manitoba Agricultural Statisitics indicated that strawberries ranged in price $1.802.00/ lbs ($9.00-$10.00/ 4 L pail) for U-Pick sales, and $2.40-3.20/ lbs ($12.00-16.00/ 4
L pail) pre-picked sales.
Expected revenue before expenses based on a starwberry operation with 50% u-pick
sales and 50% pre-picked sales ($2.10 per lbs) with average yield would be $11,271
per acre minus production costs ($3,947), results in a marginal return of $7,324 per
acres (not including start-up costs).
The budget should be used as a guide only as each situation may have higher or lower
costs than those listed. Costs and yields on each farm differ due to soil type, climatic
conditions and agronomic practices. Therefore, producers are encouraged to substitute
their own figures in the attached budget to develop their own cost of production for
strawberry production.
Disclaimer: This budget is only a guide and is not intended as an in depth study of the
cost of production of this industry. Interpretation and utilization of this information is the
responsibility of the user. If you require assistance with developing your individual
budget, please contact your local Manitoba Agriculture Food and Rural Initiatives office.
Commercial strawberry production in Manitoba has been an important part of
diversification in the province. Currently there are approximately 60 growers of
strawberries in the province; these farms vary in size from 3 acres to 20 acres. The
majority of the strawberry farms are on a U-Pick basis; but custom picking of the crop
has increased over the past few years.
Strawberries are an intensely managed crop that require precise timing. Yield and
quality achieved during the short 3-4 week picking season hinge on timely
management practices of the previous year, as well as care and maintenance before
picking. Growers entering the industry need these basic requirements: (1) suitable
land with adequate drainage and shelterbelts, (2) access to an adequate quantity and
quality of water for irrigation, (3) financial resources that permit a significant level of
investment on infrastructure and input costs, (4) the ability to apply intensive
management skills to the crop in a precisely timed manner, (5) the ability to determine
market potential, and (5) the willingness to accept risk.
It is advised that new growers should proceed on a small but graduated scale. A
complete assessment of the customer base and marketing opportunities needs to be
completed prior to planting the first crop of strawberries.
Guidelines: Strawberry U-Pick Costs
3
Strawberry U-Pick - Cost of Production Summary
November, 2012
Based on 10 acres
Establishment
A. Operating Costs
1.01 Seed & Plants
1.02 Fertilizer
1.03 Herbicides
1.04 Insecticides
1.05 Fungicides
1.06 Field Fuel Costs
1.07 Irrigation Costs
1.08 Custom Costs
1.09 Repair & Maintenance
1.10 Miscellaneous
1.11 Land Taxes
Subtotal Operating
1.12 Interest on Operating
Total Operating Costs
1
Cost $/acre
$1,219.50
$131.45
$26.00
$0.00
$0.00
$54.38
$60.00
$0.00
$240.94
$320.00
$12.00
$2,064.26
$56.77
$2,121.03
B. Fixed Costs
2. Depreciation
2.01 Machinery
2.02 Storage
3. Investment
3.01 Land
3.02 Machinery
3.03 Storage
Total Fixed Costs
Total Operating & Fixed
C. Labour
Total Cost of Production
Picking Years
Cost /acre
$1,842.16
$129.70
$40.00
$36.00
$45.00
$33.29
$240.00
$12.00
$240.94
$345.08
$6.00
$2,970.17
$81.68
$3,051.85
Cost/lb
$0.3432
$0.0242
$0.0075
$0.0067
$0.0084
$0.0062
$0.0447
$0.0022
$0.0449
$0.0643
$0.0011
$0.5500
$0.0152
$0.5652
$1,354.07
$596.63
$669.16
$298.31
$0.1247
$0.0556
$120.00
$226.33
$158.18
$2,455.20
$4,576.23
$60.00
$113.17
$79.09
$1,219.73
$4,271.58
$0.0112
$0.0211
$0.0147
$0.2273
$0.79
$950.25
$1,517.33
$0.2827
$5,526.48
$5,788.91
$1.0752
Per Acre
$11,270.70
10 Acre Total
$112,707
Estimated Farmgate
Gross Revenue
Your Cost
($2.10 market price per lb., 5367 lbs. avg. yield for each of 3 picking years)
Marginal Returns
Over Operating Costs
Over Operating & Fixed Costs
Over Operating, Fixed & Labour Costs
$ per $ Total Cost
Operating Costs
Operating & Fixed Costs
Over Operating, Fixed & Labour Costs
Per Acre
$8,218.85
$6,999.12
$5,481.79
$0.95
10 Acre Total
$82,189
$69,991
$54,818
Breakeven
Breakeven
Price ($/lb.) Yield (lbs./acre)
@ 5367 lbs/acre @ $2.10 /lb
$0.40
1,453
$0.80
2,034
$1.08
2,757
1. The cost of establishing the crop of $5,526.48 per acre, includes the pre plant and planting years, was spread over 3 picking
years at $1,842.16 per year.
Disclaimer: This budget is only a guide and is not intended as an in depth study of the cost of production of the Manitoba
Strawberry U-Pick industry.
MAFRI, GO Team Branch and Crops Knowledge Centre
Guidelines: Strawberry U-Pick Costs
4
Strawberry U-Pick Assumptions
Number of acres in production
Additional land (acres)for parking etc.
Market Value ($/acre)
Land Taxes ($/acre)
Fuel Price (Diesel $/litre)
Interest on Operating
Interest on Investment
Pre Plant
Planting Year
1st Picking
2nd Picking
3rd Picking
10
1
$2,400
$6.00
$0.98
5.5%
2.5%
Crop Rotation and Yields
Year
lbs/acre
1
2
6600
3
4
5500
5
4000
Total Yield (lbs/acre)
16,100
Average Yield (lbs/acre)
5,367
Market Price per Pound
$2.10
Capital Costs
Land Value
Land Cost
Machinery Costs
Tractor
30 hp
100 hp
Tractor
5 ft
Planter
Plow
5 ft
Sprayer
25 ft
5 ft
Rotovator
Cultivator
18 ft
Straw spreader
5 ft
5 ft
Mower
Seeder Discer
15 ft
Total
Other Costs
Storage Shed
Cooler
Booth
Miscellaneous
Irrigation Equipment
Total
Total Investment
Average Investment per acre
Market
Value
$26,400
Allocated %
Strawberry
$10.50
Allocated $
Strawberry
100%
$26,400
$40,000
$55,000
$2,500
$100
$8,000
$4,000
$1,000
$14,000
$2,500
$100
$127,200
100%
33%
100%
100%
100%
90%
90%
25%
75%
100%
$40,000
$18,150
$2,500
$100
$8,000
$3,600
$900
$3,500
$1,875
$100
$78,725
$25,000
$3,000
$1,500
$10,000
$25,000
$64,500
$218,100
Machinery
Other
Total
90%
100%
100%
35%
100%
$22,500
$3,000
$1,500
$3,500
$25,000
$55,500
$160,625
$7,873 $/acre
$5,550 $/acre
$16,063 $/acre
MAFRI, GO Team Branch and Crops Knowledge Centre
Guidelines: Strawberry U-Pick Costs
5
Establishment Year Costs
Seed and Plant Costs
Pre Plant Crop
Seeding Rate Bushels per acre
Seed Cost $ per bushel
Wheat
1.5 bu/ac
$13.00 $/bu
Strawberry Plants
Transplanting rate plants/acre
Plant Cost / 1000 plants
8,000 plants/ac
$150.00 $/1000 plants
Fertilizer
Cost $/lb
lbs/acre
Pre plant
Planting
Applicator rental
Nitrogen Phosphate
$0.64
$0.53
0
70
Potash
$0.49
Sulfur
$0.43
Zinc
$1.50
0
30
0
15
0
6
0
100
$1.75 $/acre
Herbicides
Pre Plant
Planting
Other
Broadleaf
Grassy
-------------------$/acre-------------------$0.00
$10.00
$1.00
$0.00
$15.00
$0.00
Insecticides
Pre Plant
Planting
Insect 2
Insect 3
Insect 1
-------------------$/acre-------------------$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
Fungicides
Pre Plant
Planting
Spray 1
Spray 2
Spray 3
-------------------$/acre-------------------$0.00
$0.00
$0.00
$0.00
$0.00
$0.00
MAFRI, GO Team Branch and Crops Knowledge Centre
Guidelines: Strawberry U-Pick Costs
6
Field Operations: Pre Plant
Times
Operation
Over
Cultivate
1
Seed
1
Plow down
1
Cultivate
1
Fertilizer
1
Field Operations: Planting
Times
Operation
Over
Planting
1
Cultivate
3
Spray
1
Straw Spreading
1
Width
Feet
18
15
5
18
40
Speed
MPH
5
6
5
5
7
Tractor
HP
100
100
100
100
100
Width
Feet
5
5
25
5
Speed
MPH
1
5
4
2
Tractor
HP
30
30
30
100
Pre Plant
0
4
$5.00
Plant
3
4.0
$5.00
Irrigation Fuel Costs
Inches applied
Hours per acre for 1" of water
Hourly pumping costs
Custom & Rental Operations
Custom 1
Custom 2
$0.00
$0.00
Repairs & Maintenance
% rate of investment
1.5%
Miscellaneous
Pre Plant
Plant
Straw Costs
Labour
Labour Rate per hour
Weed Control
De-blossom
Irrigation
Straw Spreading
Field Operations
Total Labour Hours
$200.00
$500.00
10 bales/acre
$25.00 $/bale
$17.50
Hours/acre
30.0
8.0
6.0
5.0
4.3
53.3 hrs
MAFRI, GO Team Branch and Crops Knowledge Centre
Guidelines: Strawberry U-Pick Costs
9
Strawberry U-Pick Cost of Production Worksheet
Establish - Pre Plant & Planting Year Details
Your Cost
1.01 Seed & Plants
Cover Crop
x
Wheat
=
Plants
x
÷
=
Total Cost
1.02 Fertilizer
Nitrogen
Pre Plant
Plant
1.5
$13.00
$19.50
seeding rate (bu/acre)
seed cost ($/bu)
$/acre
8,000
$150.00
1,000
$1,200.00
plants/acre
$/ 1,000 plants
1,000 plants
$ /acre
$1,219.50
$ /acre
+
x
=
0
70
$0.640
$44.80
lbs/acre seeding
lbs/acre seeding
cost/lb
$ /acre
x
=
0
100
$0.530
$53.00
lbs/acre seeding
lbs/acre seeding
cost/lb
$ /acre
x
=
0
30
$0.490
$14.70
lbs/acre seeding
lbs/acre seeding
cost/lb
$ /acre
lbs/acre seeding
x
=
0
15
$0.430
$6.45
x
=
0
6
$1.500
$9.00
P2O5
Pre Plant
Plant
K2O
Pre Plant
Plant
Sulfur
Pre Plant
Plant
Zinc
Pre Plant
Plant
cost/lb seeding
$ /acre
lbs/acre seeding
cost/lb seeding
$ /acre
Applicator rental
MAFRI, GO Team Branch and Crops Knowledge Centre
Guidelines: Strawberry U-Pick Costs
10
Your Cost
Pre Plant
Plant
Total
Total
=
=
=
$1.75
$1.75
$3.50
$/acre
$/acre
$/acre
=
$131.45
$/acre
+
+
=
$0.00
$10.00
$1.00
$11.00
broadleaf control (establish)
grassy (establish)
other
$ /acre
+
+
=
$0.00
$15.00
$0.00
$15.00
broadleaf control
grassy
other
$ /acre
=
$26.00
$ /acre
+
+
=
$0.00
$0.00
$0.00
$0.00
insect 1
insect 2
insect 3
$ /acre
+
+
=
$0.00
$0.00
$0.00
$0.00
insect 1
insect 2
insect 3
$ /acre
=
$0.00
$ /acre
+
+
=
$0.00
$0.00
$0.00
$0.00
spray 1
spray 2
spray 3
$/acre
1.03 Herbicides
Pre Plant
Planting
Total
1.04 Insecticides
Pre Plant
Planting
Total
1.05 Fungicides
Pre Plant
MAFRI, GO Team Branch and Crops Knowledge Centre
Guidelines: Strawberry U-Pick Costs
11
Your Cost
Planting
Total
+
+
=
$0.00
$0.00
$0.00
$0.00
spray 1
spray 2
spray 3
$/acre
=
$0.00
$/acre
1.06 Field Fuel Costs
Field Operations
Pre Plant
Operation
Cultivate
Seed
Plow down
Cultivate
Fertilizer
Total
Times
Over
1
1
1
1
1
Width
feet
18
15
5
18
40
Speed
mph
5
6
5
5
7
Fuel
$/ac.
$2.57
$2.57
$9.26
$2.57
$0.83
$17.81
Times
Over
Width
feet
Speed
mph
Fuel
$/ac.
1
3
1
1
5
5
25
5
1
5
4
2
$11.03
$6.62
$0.55
$18.38
$36.57
Field Operations
Planting
Operation
Planting
Cultivate
Spray
Straw Spreading
Total
Total Field Operation Fuel Costs
1.07 Irrigation Fuel Costs
Pre Plant
x
x
=
0
4
$5.00
$0.00
$54.38
inches of water applied
hours/acre for 1" of water
rate/hour
$/acre
MAFRI, GO Team Branch and Crops Knowledge Centre
Guidelines: Strawberry U-Pick Costs
12
Your Cost
Plant
x
x
=
Total
=
1.08 Custom Costs
Pre Plant
Plant
÷
=
3
4
$5.00
$60.00
inches of water applied
hours/acre for 1" of water
rate/hour
$/acre
$60.00
$/acre
$0.00
$0.00
10
$0.00
1.09 Repairs and Maintanence
1.5%
$16,063
x
$240.94
total cost
total cost
acres
$/acre
percentage rate
investment/acre
$ /acre
1.10 Miscellaneous
+
÷
=
$200.00
$500.00
10
$70.00
pre plant $/acre
plant $/acre
acres
$/acre
x
=
10
$25.00
$250.00
bales/acre
$/bale
$/acre
+
=
$6.00
$6.00
$12.00
Straw Costs
1.11 Land Taxes
1.12 Interest on Operating
$2,064.26
÷
2
x
5.5%
=
$56.77
pre plant $/acre
plant $/acre
$ /acre
subtotal operating
average
interest rate
$ /acre
MAFRI, GO Team Branch and Crops Knowledge Centre
Guidelines: Strawberry U-Pick Costs
13
Your Cost
Original Value - Salvage Value
Useful Life
2. Depreciation
2.01 Machinery
x
÷
=
$7,872.50
$1,102.15
2
10
$1,354.07
cost/acre
salvage value
years
useful life
$ /acre
$5,550.00
$777.00
2
16
$596.63
cost/acre
salvage value
years
useful life
$ /acre
2.02 Other Equipment
x
÷
=
Original Value + Salvage Value x Investment Rate
2
3. Investment
3.01 Land
x
x
=
$2,400.00
2
2.5%
$120.00
cost/acre
years
% investment rate
$ /acre
+
÷
x
x
=
$7,872.50
$1,180.88
2
2
2.5%
$226.33
cost/acre
salvage value
average
years
% investment rate
$ /acre
3.02 Machinery
MAFRI, GO Team Branch and Crops Knowledge Centre
Guidelines: Strawberry U-Pick Costs
14
Your Cost
3.03 Other Equipment
+
÷
x
x
=
$5,550.00
$777.00
2
2
2.5%
$158.18
+
+
+
+
x
=
30.0
8.0
6.0
6.0
4.3
$17.50
$950.25
cost/acre
salvage value
average
years
% investment rate
$ /acre
Labour
hrs/ac weed control
hrs/ac de-blossom
hrs/ac straw spreading
hrs/ac irrigation
hrs/ac field operations
$/hour
$ /acre
MAFRI, GO Team Branch and Crops Knowledge Centre
Guidelines: Strawberry U-Pick Costs
7
Picking Year Costs
A. Operating Costs
1.01 Seed and Plants
1.02 Fertilizer
Cost $/lb
$0.64
$0.53
$0.49
$0.43
$1.50
Nitrogen
Phosphate
Potash
Sulfur
Zinc
Applicator rental
lbs/acre
150
20
30
5
3
$1.75 per acre
1.03 Herbicides
Broadleaf
Grassy
$30.00
$10.00
Tarnish Plant
Mites
Insect 3
$24.00
$12.00
$0.00
Spray 1
Spray 2
Spray 3
$20.00
$25.00
$0.00
1.04 Insecticides
1.05 Fungicide
1.06 Fuel Costs
Estimated fuel cost per litre of picking year
Field Operations
Straw removal
Spray
Mowing
Rototilling
Fertilizer
Straw Spreading
Times
Over
1
5
1
2
2
1
Width
Feet
5
25
5
5
40
5
$0.98
Speed
MPH
5
4
5
3
7
2
Tractor
HP
30
30
30
30
30
100
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Guidelines: Strawberry U-Pick Costs
8
1.07 Irrigation Fuel Costs
Inches applied
Hours per acre for 1' of water
Hourly pumping costs
12
4
$5.00
1.08 Custom & Rental Operations
Total Annual Cost
Washrooms (Total cost)
$0.00
$120.00
1.07 Repairs & Maintenance
% rate of investment
1.5%
1.09 Miscellaneous
Advertising (total $)
Pails/Baskets ($ / each)
Utilities ($ total)
Straw Costs
Bales per acre
$ per Bale
Labour Costs ($/acre)
Rate per hour
Weed control
De-blooming
Straw spreading
Irrigation
Field operations
U-pick operations
Total hours/acre
$500.00
$0.42
$0.00
10
$25.00
$17.50
Hours/acre
30.0
0.0
5.0
6.0
3.7
42.0
86.7
MAFRI, GO Team Branch and Crops Knowledge Centre
Guidelines: Strawberry U-Pick Costs
15
Strawberry U-Pick Cost of Production Worksheet
Picking Years - Details
Your Cost
A. Operating Costs
1.01 Seed and Planting Costs
$5,526.48
÷
5
=
$1,105.30
1.02 Fertilizer
Nitrogen
pre plant & planting
years in crop
$/acre
x
=
150
$0.640
$96.00
lbs/acre cropping
cost/lb cropping
$ /acre
x
=
20
$0.530
$10.60
lbs/acre cropping
cost/lb cropping
$ /acre
+
x
=
30
$0.490
$14.70
lbs/acre cropping
cost/lb cropping
$ /acre
x
=
5
$0.430
$2.15
lbs/acre cropping
cost/lb cropping
$ /acre
x
=
3
$1.500
$4.50
lbs/acre cropping
cost/lb cropping
$ /acre
Applicator rental =
$1.75
$ /acre
Annual Cost =
$129.70
$ /acre
P2O5
K2O
Sulfur
Zinc
1.03 Herbicides
+
=
$30.00
$10.00
$40.00
$ /acre broadleaf
$ /acre grassy
$ /acre
MAFRI, GO Team Branch and Crops Knowledge Centre
Guidelines: Strawberry U-Pick Costs
16
Your Cost
1.04 Insecticides
+
=
$24.00
$12.00
$36.00
$ /acre Tarnish Plant Bug
$ /acre Mites
$ /acre
+
=
$20.00
$25.00
$45.00
$ /acre
$ /acre
$ /acre
1.05 Fungicide
1.06 Field Fuel Costs
Times
Over
1
5
1
2
2
1
Operation
Straw removal
Spray
Mowing
Rototilling
Fertilizer
Straw Spreading
Width
feet
5
25
5
5
40
5
Speed
mph
5
4
5
3
7
2
Fuel
$/ac.
$2.21
$2.76
$2.21
$7.35
$0.39
$18.38
$33.29
1.07 Irrigation Costs
x
x
=
12
4
$5.00
$240.00
inches of water applied
hours/acre for 1" of water
rate/hour
$/acre
$120.00
10
$12.00
$ /acre
acres
$/acre
1.08 Custom Operations
÷
=
1.09 Repair & Maintenance
x
=
1.5%
$16,063
$240.94
percentage rate
investment/acre
$ /acre
MAFRI, GO Team Branch and Crops Knowledge Centre
Guidelines: Strawberry U-Pick Costs
17
Your Cost
1.10 Miscellaneous
÷
=
$500.00
$0.00
$450.83
10
$95.08
advertizing, utilities & pails
utilities
pails (5 lb capacity)
acres
$/acre
x
=
10
$25.00
$250.00
bales/acre
$/bale
$/acre
=
$6.00
Straw Costs
1.11 Land Taxes
1.12 Interest on Operating
$2,970.17
÷
2
x
5.5%
=
$81.68
$ /acre
subtotal operating
average
interest rate
$ /acre
B. Fixed Costs
2. Depreciation
Original Value - Salvage Value
Useful Life
2.01 Machinery
÷
=
$7,872.50
$1,180.88
10
$669.16
cost/acre
salvage value
useful life
$ /acre
$5,550.00
$777.00
16
$298.31
cost/acre
salvage value
useful life
$ /acre
2.02 Other Equipment
÷
=
MAFRI, GO Team Branch and Crops Knowledge Centre
Guidelines: Strawberry U-Pick Costs
18
Your Cost
Original Value + Salvage Value x Investment Rate
2
3. Investment
3.01 Land
x
=
$2,400.00
2.5%
$60.00
cost/acre
% investment rate
$ /acre
+
÷
x
=
$7,872.50
$1,180.88
2
2.5%
$113.17
cost/acre
salvage value
average
% investment rate
$ /acre
+
÷
x
=
$5,550.00
$777.00
2
2.5%
$79.09
cost/acre
salvage value
average
% investment rate
$ /acre
+
+
+
+
+
x
=
30.0
0.0
5.0
6.0
3.7
42.0
$17.50
$1,517.33
hrs/ac weed control
hrs/ac de-blossoming
hrs/ac straw spreading
hrs/ac irrigation
hrs/ac field operations
hrs/ac u-pick operations
$/hour
$ /acre
3.02 Machinery
3.03 Other Equipment
C. Labour
For more information contact your local MAFRI office.
Prepared by:
Anthony Mintenko
Business Development Specialist - Fruit Crops
Wendy Durand
Business Development Specialist
Roy Arnott
Business Development Specialist
MAFRI, GO Team Branch and Crops Knowledge Centre
For more information
• Contact your local Manitoba Agriculture,
Food and Rural Initiatives (MAFRI) Growing Opportunities (GO) Office.
• Visit us at manitoba.ca/agriculture.
ESR-014719
January 2013