RI-VN-07-2

UNIVERSITY OF CALIFORNIA COOPERATIVE EXTENSION

2007
SAMPLE COSTS TO PRODUCE

RICE

DELTA REGION
OF
SAN JOAQUIN & SACRAMENTO COUNTIES
SAN JOAQUIN VALLEY - North
Two year crop rotation

Mick Canevari UCCE Farm Advisor, San Joaquin County

Karen M. Klonsky UCCE Specialist, Department of Agricultural and Resource Economics,
UC Davis
Richard L. De Moura Staff Research Associate, Department of Agricultural and Resource Economics,
UC Davis
 UNIVERSITY OF CALIFORNIA COOPERATIVE EXTENSION

SAMPLE COSTS TO PRODUCE RICE (Multiple Crop Rotation)

Delta Region of San Joaquin & Sacramento Counties
San Joaquin Valley – North 2007

CONTENTS

INTRODUCTION................................................................................................................................ 2
ASSUMPTIONS .................................................................................................................................. 3
Cultural Practices and Material Inputs................................................................................................ 3
Labor, Interest & Equipment Costs .................................................................................................... 5
Cash Overhead................................................................................................................................... 6
Non-Cash Overhead........................................................................................................................... 6
REFERENCES..................................................................................................................................... 8
Table 1. Sample Costs to Establish a Rice Field................................................................................... 9
Table 2. Costs Per Acre To Produce Rice........................................................................................... 10
Table 3. Costs and Returns Per Acre To Produce Rice ....................................................................... 11
Table 4. Monthly Cash Costs Per Acre To Produce Rice.................................................................... 12
Table 5. Ranging Analysis ................................................................................................................. 13
Table 6. Whole Farm Annual Equipment, Investment And Business Overhead Costs ........................ 14
Table 7. Hourly Equipment Costs ...................................................................................................... 15
Table 8. Operations with Equipment and Materials ............................................................................ 16

Sample costs to produce rice in the northern San Joaquin and Sacramento Valley Delta region (San Joaquin and
Sacramento counties) are presented in this study. This study is intended as a guide only, and can be used to
make production decisions, determine potential returns, prepare budgets and evaluate production loans.
Practices described are based on those production practices considered typical for the crop and area, but will not
apply to every farm. Sample costs for labor, materials, equipment and custom services are based on current
figures. A blank column, “Your Costs”, in Tables 2 and 3 is provided to enter your farming costs.

The hypothetical farm operation, production practices, overhead, and calculations are described under the
assumptions. For additional information or an explanation of the calculations used in the study call the
Department of Agricultural and Resource Economics, University of California, Davis, (530) 752-3589 or your
local UC Cooperative Extension office.

Sample Cost of Production Studies are available for many commodities. All current and some archived studies
can be downloaded from the Agricultural and Resource Economics website at UC Davis
http://coststudies.ucdavis.edu. These studies as well as other archived studies not on the website can be
requested through the department by calling (530) 752-1517.

The University of California is an affirmative action/equal opportunity employer

The University of California and the United States Department of Agriculture cooperating.

2007 Rice Costs and Returns Study (2-Yr Rotation) Delta Region UC Cooperative Extension 2
 ASSUMPTIONS

The assumptions refer to Tables 1 to 8 and pertain to sample costs to produce rice in the northern San Joaquin
Valley and Sacramento Valley Delta region (San Joaquin and Sacramento counties). The cultural practices
described represent production operations and materials considered typical for a well managed farm in the
region. Costs, materials, and practices in this study will not apply to all farms. Timing of and types of cultural
practices will vary among growers within the region and from season to season due to variables such as
weather, soil, insect and disease pressure. The study is intended as a guide only. The use of trade names and
cultural practices in this report does not constitute an endorsement or recommendation by the University
of California nor is any criticism implied by omission of other similar products or cultural practices.

Farm. The study is based on a hypothetical non-contiguous 1,500 acre farm of which 300 acres are annually
planted to rice on a two year rotation with potatoes. Other farmed crops are asparagus, tomatoes, corn and
wheat. 100 acres are farmstead, roads, rice levees, and ditches. Typically, a grower with this amount of rice
acreage will have several non-adjacent fields and the cultural practices will vary among fields. The farm is
located on high percent organic peat soils in the Delta region of San Joaquin and Sacramento counties. The
farm is owned and managed by the grower.

Cultural Practices and Material Inputs

Field Establishment (Table 1). The rice paddies are established for two years of rice production. Tillage
operations are done in the fall (October) and consist of disking twice with a heavy duty disc, laser leveled,
ripped in two directions, discing once with a finish disc, levees are made with five passes and
irrigation/drainage boxes installed. The rice boxes are included in the establishment costs, because they will be
removed when the rice growing in the field is finished.

Field Preparation. In the spring of each year, the field is disced three times – twice with a heavy duty disk
and once with a finish disk. The field is then floated or leveled (may not need to be done every year). Levees
are mowed in the fall of the first year and the boxes and levees repaired in the second year. One-half the cost of
these operations is allocated to the field each year. The levees are mowed in the fall during both the first and
second year.

Planting. Certified seed of M104 rice is planted in April or May. M104 is a medium grain Calrose variety
having cold weather tolerance. Each check or paddy is 20 acres. The rice is drilled with a 16 foot wide typical
grain seeder onto the prepared seed bed at 6-inch spacing. The planting operation runs 12 hours per day, but
includes lunch and downtime. The planting crew uses one tractor driver for the planter plus one person on the
drill. Starter fertilizer is applied with the seed. Two tractors plus two tenders that are furnished by the fertilizer
company are used to transport the seed and fertilizer from the trailers to the drill. One operator handles both of
these operations. Two 30 foot belt loaders (furnished by the fertilizer company) are located at the truck to load
the tenders from the bottom dump trailers.

Nutrition. At planting, 150 pounds of 11-52-0 + 1% zinc fertilizer is applied through the grain drill. In June,
nitrogen (N) as 21-0-0 is applied by ground prior to flooding at the rate of 83 pounds (400 pounds of material)
per acre. The field is top dressed with ammonium sulfate by air in July at 21 pounds of N (100 pounds of
material) per acre.

2007 Rice Costs and Returns Study (2-Yr Rotation) Delta Region UC Cooperative Extension 3
 Soil/Tissue Sampling. Soil samples are taken in March (not necessarily on an annual basis) for
phosphorous (P) and potassium (K) analysis at one sample per 25 acres. Tissue samples are collected in late
June for N analysis at one sample per 25 acres. All samples are collected by the PCA and the analysis is
included in the grower service agreement.

Irrigation. The fields are flooded beginning in early June when the rice is six inches tall and drained in late
August or September. Flooding and draining labor costs are included in the irrigator labor. It is assumed that
the irrigator checks the field daily during June, July and August. The irrigator travels the fields in a pickup and
based on grower data takes 0.133 hours per acre. The land is below sea level and after opening a siphon valve
on the river, the water flows into the fields. Growers have riparian rights and pay a reclamation fee for water
costs which are listed under Cash Overhead. In the fall after harvest, the fields are flooded and allowed to set
over the winter. They are then drained in the spring (March) to prepare the field for the new season.

Pest Management. The pesticides and rates mentioned in this cost study are listed in UC Pest Management
Guidelines, Rice. For more information on pest identification, monitoring, and management visit the UC IPM
website at www.ipm.ucdavis.edu. For information and pesticide use permits, contact the local county
Agricultural Commissioner's office. Adjuvants or surfactants may be recommended for use with some
pesticides, but are not included in this study. Pesticide costs vary by location and grower volume. Pesticide
costs in this study are taken from a single dealer and shown with an assumed volume discount.

Pest Control Adviser (PCA). The PCA or crop consultant monitors the field for agronomic problems
including pests and nutrition, collects soil and tissue samples, and writes pesticide recommendations. Growers
may hire private PCAs or receive the service as part of a service agreement with an agricultural chemical and
fertilizer company. PCA service is provided by the chemical/fertilizer company in this study.

Weeds. Broadleaf and grasses are troublesome weeds in rice fields. The first step for weed control
maybe Roundup (glyphosate) ground applied to early germinating weeds before the rice emerges. After rice
emergence and before flooding, Regiment and Prowl H20 are ground applied to the field for control of
broadleaves and grasses. Other herbicides maybe needed for specific weed species. For each application, one
person delivers the material to the applicator, while one person mixes the materials. Both work while the field
applicator is spraying. Another person delivers water to the mixing area and works half the time of the mixer.
The water tank and ball tank for hauling the mixture is furnished by the chemical company. The levees are
mowed once (April) or twice a year (April, October), with dual rotary mowers when there is no water in the
field. The October operation is shown in the tables under post harvest

Insects. Armyworms are a problem in some rice fields. In this study Warrior insecticide is applied in
July by air to 20% of the acres.

Disease. No diseases assumed.

Harvest. The water is drained 7 to 10 days before harvest. The rice crop is custom harvested beginning at 22%
kernel moisture (green rice) using a rice combine with a cutter-bar header. The custom harvester charges are
based on green weight (94.7 cwt). The grain is dumped from the combine into the bankout wagon, furnished by
the custom harvester. The rice is delivered to the grain trailers at the field edge. Once the grain trailers are full,
the grain is transported at no cost to the grower’s designated dryer that also has storage.

2007 Rice Costs and Returns Study (2-Yr Rotation) Delta Region UC Cooperative Extension 4
 Yields. According to the Ag Commissioner’s Annual Crop Report for 2003 to 2006, the average yields
in the county ranged from 60 to 81 hundredweight (cwt). Yields provided by growers in the Delta Region
ranged from 63 to 92 hundredweight. For this study the average field(s) yields 80 hundredweight at 12%
moisture (dry weight).

Returns. The rice is sold for $11 per hundredweight. Returns to the grower according to the Ag
Commissioner’s Annual Crop Report for 2003 to 2006 ranges from $9.00 to $11.75 per hundredweight.
Government payments are not included in the income and due to their complexity are not described in the study.
For more information on the programs, contact the USDA Farm Service Agency.

Assessments. Under a state marketing order a mandatory assessment is collected and administered by
the California Rice research Board. The $0.06 per dry hundredweight pays for rice research in California. In
additions, the California Rice Commission assesses the grower and handler each $0.0425 per dry
hundredweight.

Drying and Storage. Drying charges increase with moisture content and most dryers use a rate schedule that
reflects the loss of moisture plus other invisible losses in the system associated with immature kernels, dockage
and dust. The non-moisture factor varies among dryers, but ranges from about 2% to 6%. Together, these
losses are called ‘shrink’. Rice is assumed to be dried to 12% moisture. The drying charge is based on the
greenweight calculated above. Storage is based on the dry weight.

Post Harvest. In October, the levees are mowed with a sickle mower, the straw is shredded/mulched with a
flail mower, and then the field is flooded for the winter.

Pickup. The one-half ton pickup is used by the irrigator and included in the irrigation cost. Non-irrigation
pickup use for the one-half ton is listed as a separate line item. The three-quarter ton pickup used by the
owner/operator is included as a line item. The mileage and times are estimated and not taken from any specific
data.

Labor, Equipment, and Interest Costs

Labor. Labor rates of $13.90 per hour for machine operators and $11.12 for general labor includes payroll
overhead of 39%. The basic hourly wages are $10.00 for machine operators and $8.00 for general labor. The
overhead includes the employers’ share of federal and California state payroll taxes, workers' compensation
insurance for field crops (code 0171), and a percentage for other possible benefits. Workers’ compensation
costs will vary among growers, but for this study the cost is based upon the average industry final rate as of
January 1, 2007 (personal email from California Department of Insurance, May 18, 2007, unreferenced). Labor
for operations involving machinery are 20% higher than the operation time given in Table 1 and 2 to account
for the extra labor involved in equipment set up, moving, maintenance, work breaks, and field repair.

Equipment Operating Costs. Repair costs are based on purchase price, annual hours of use, total hours of life,
and repair coefficients formulated by American Society of Agricultural Engineers (ASAE). Fuel and
lubrication costs are also determined by ASAE equations based on maximum power takeoff (PTO) horsepower,
and fuel type. Prices for on-farm delivery of diesel and gasoline are $2.30 and $2.80 per gallon, respectively.
Fuel costs are derived from American Automobile Association (AAA) and Energy Information Administration
2006 monthly data. The cost includes a 2% local sales tax on diesel fuel and 8% sales tax on gasoline.
Gasoline also includes federal and state excise tax, which are refundable for on-farm use when filing your

2007 Rice Costs and Returns Study (2-Yr Rotation) Delta Region UC Cooperative Extension 5
income tax. The fuel, lube, and repair cost per acre for each operation in Tables 1 and 2 are determined by
multiplying the total hourly operating cost in Table 7 for each piece of equipment used for the selected
operation by the hours per acre. Tractor time is 10% higher than implement time for a given operation to
account for setup, travel and down time.
Interest on Operating Capital. Interest on operating capital is based on cash operating costs and is calculated
monthly until harvest at a nominal rate of 10.00% per year. A nominal interest rate is the typical market cost of
borrowed funds. The interest cost of post harvest operations is discounted back to the last harvest month using
a negative interest charge. The rate will vary depending upon various factors, but the rate in this study is
considered a typical lending rate by a farm lending agency as of January 2007.
Risk. Risks associated with rice production are not assigned a production cost. While this study makes an effort
to model a production system based on typical real world practices, it cannot fully represent financial,
agronomic and market risks which affect the profitability and economic viability of rice production.
Cash Overhead
Cash overhead consists of various cash expenses paid out during the year that are assigned to the whole farm
and not to a particular operation.
Property Taxes. Counties charge a base property tax rate of 1% on the assessed value of the property. In some
counties special assessment districts exist and charge additional taxes on property including equipment,
buildings, and improvements. For this study, county taxes are calculated as 1% of the average value of the
property. Average value equals new cost plus salvage value divided by two on a per acre basis.
Insurance. Insurance for farm investments vary depending on the assets included and the amount of coverage.
Property insurance provides coverage for property loss and is charged at 0.714% of the average value of the
assets over their useful life. Liability insurance covers accidents on the farm and costs $1,303 for the entire
farm.
Office Expense. Office and business expenses are estimated at $50 per acre. These expenses include office
supplies, telephones, bookkeeping, accounting, and legal fees for whole farm. The cost is a general estimate
and not based on any actual data.
Reclamation Fee. The Reclamation District manages the main drainage canals and charges $48 per acre.
There are several districts in the region and fees vary between districts.
Non-Cash Overhead

Non-cash overhead is calculated as the capital recovery cost for equipment and other farm investments.

Capital Recovery Costs. Capital recovery cost is the annual depreciation and interest costs for a capital
investment. It is the amount of money required each year to recover the difference between the purchase price
and salvage value (unrecovered capital). It is equivalent to the annual payment on a loan for the investment
with the down payment equal to the discounted salvage value. This is a more complex method of calculating
ownership costs than straight-line depreciation and opportunity costs, but more accurately represents the annual
costs of ownership because it takes the time value of money into account (Boehlje and Eidman). The formula
for the calculation of the annual capital recovery costs is ((Purchase Price – Salvage Value) x Capital Recovery
Factor) + (Salvage Value x Interest Rate).

2007 Rice Costs and Returns Study (2-Yr Rotation) Delta Region UC Cooperative Extension 6
Salvage Value. Salvage value is an estimate of the remaining value of an investment at the end of its useful life.
For farm machinery (tractors and implements) the remaining value is a percentage of the new cost of the
investment (Boehlje and Eidman). The percent remaining value is calculated from equations developed by the
American Society of Agricultural Engineers (ASAE) based on equipment type and years of life. The life in
years is estimated by dividing the wearout life, as given by ASAE by the annual hours of use in this operation.
For other investments including irrigation systems, buildings, and miscellaneous equipment, the value at the end
of its useful life is zero. The salvage value for land is the purchase price because land does not depreciate. The
purchase price and salvage value for equipment and investments are shown in Table 6.

Capital Recovery Factor. Capital recovery factor is the amortization factor or annual payment whose present
value at compound interest is 1. The amortization factor is a table value that corresponds to the interest rate
used and the life of the machine.

Interest Rate. An interest rate of 7.25% is used to calculate capital recovery. The rate will vary depending upon
loan amount and other lending agency conditions, but is the basic suggested rate by a farm lending agency as of
January 2007.

Land. Land in the delta is valued at $2,500 to $6,000 per acre (Trends & Leases). For this study, a value of
$4,000 is assumed.

Building. The metal building(s) are on a cement slab and total approximately 5,000 square feet. The buildings
are used for shops and equipment storage.

Fuel Tanks. Two 500 gallon fuel tanks are on metal stands in cement containment meeting federal and state
regulations.

Shop/Field Tools. Includes shop equipment and tools and small tools and/or small hand equipment used in the
field.

Field Establishment. Field costs to establish a permanent rice field are used to determine capital recovery
expenses, depreciation and interest on investment for the production years. Establishment cost is the sum of the
land preparation and related cash costs. The costs are amortized over the two years the field is expected to be in
production.

Equipment. Farm equipment is purchased new or used, but the study shows the current purchase price for new
equipment. The new purchase price is adjusted to 60% to indicate a mix of new and used equipment. Annual
ownership costs for equipment and other investments are shown in Table 6. Equipment costs are composed of
three parts: non-cash overhead, cash overhead, and operating costs. Both of the overhead factors have been
discussed in previous sections. The operating costs consist of repairs, fuel, and lubrication and are discussed
under operating costs.

Table Values. Due to rounding, the totals may be slightly different from the sum of the components.

2007 Rice Costs and Returns Study (2-Yr Rotation) Delta Region UC Cooperative Extension 7
 REFERENCES

Agricultural Commissioner. 2003, 2004, 2005, 2006 Annual Crop Reports, San Joaquin County. Agricultural
Commissioner’s Office, San Joaquin County, Stockton, CA.

American Automobile Association. 2007. Gas Price Survey 2006. AAA Public Affairs, San Francisco,

American Society of Agricultural Engineers. (ASAE). 1992. American Society of Agricultural Engineers
Standards Yearbook. St. Joseph, MO.

Boehlje, Michael D., and Vernon R. Eidman. 1984. Farm Management. John Wiley and Sons. New York, NY.

Doanes Editors. Facts and Figures for Farmers. 1977. Doane Publishing, St. Louis, MO. P 292.

California Chapter of the American Society of Farm Managers and Rural Appraisers. 2007. Trends in
Agricultural Land and Lease Values. California Chapter of the American Society of Farm Managers
and Rural Appraisers, Inc. Woodbridge, CA.

California State Board of equalization. Fuel Tax Division Tax Rates. Internet accessed January 2007.
http://www.boe.ca.gov/sptaxprog/spftdrates.htm

Energy Information Administration. 2006. Weekly Retail on Highway Diesel Prices. Internet accessed January
2007. http://tonto.eix.doe.gov/oog/info/wohdp

Statewide Integrated Pest Management Project. 1990. Integrated Pest Management for Rice. Third Edition.
University of California. Division of Agriculture and Natural Resources. Oakland, CA. Publication
3274.

University of California Statewide Integrated Pest Management Program. UC Pest Management Guidelines,
Rice. 2006. University of California, Davis, CA. http://www.ipm.ucdavis.edu

2007 Rice Costs and Returns Study (2-Yr Rotation) Delta Region UC Cooperative Extension 8
 UC COOPERATIVE EXTENSION
Table 1. SAMPLE COSTS TO ESTABLISH A RICE FIELD
DELTA REGION (San Joaquin & Sacramento Counties) 2007

Operation Cash and Labor Cost per acre

Time Labor Fuel, Lube Material Custom/ Total Your
Operation (Hrs/A) Cost & Repairs Cost Rent Cost Cost
Establishment Costs:
Disk 2X 0.23 4 8 0 0 12
Level Field 0.20 3 21 0 0 25
Rip 2X 0.26 4 26 0 0 30
Disk 1X 0.16 3 6 0 0 8
Make Levees 0.11 2 11 0 0 12
TOTAL ESTABLISHMENT COSTS/ACRE 1.00 17 72 36 0 125
Interest on operating capital @ 10.00% 3
TOTAL OPERATING COSTS/ACRE 17 72 36 0 128
Cash Overhead:
Office Expense 13
Liability Insurance 0
Reclamation Fee 12
Property Taxes 53
Property Insurance 6
Investment Repairs 4
TOTAL CASH OVERHEAD COSTS 88
TOTAL CASH COSTS/ACRE 216

2007 Rice Costs and Returns Study (2-Yr Rotation) Delta Region UC Cooperative Extension 9
 UC COOPERATIVE EXTENSION
Table 2. COSTS PER ACRE TO PRODUCE RICE
DELTA REGION (San Joaquin & Sacramento Counties) 2007

Operation Cash and Labor Cost per acre

Time Labor Fuel, Lube Material Custom/ Total Your
Operation (Hrs/A) Cost & Repairs Cost Rent Cost Cost
Cultural:
Irrigation: Drain Field (winter flooding) 0.01 0.11 0.00 0.00 0.00 0
Weed: Mow Levees 1X/2 Yrs 0.01 0.21 0.13 0.00 0.00 0
Irrigation: Rice Box & Levee Repair 1X/2 Yrs 0.14 1.56 0.00 0.00 0.00 2
Fertilize: Soil Samples taken by PCA 0.00 0.00 0.00 0.00 0.00 0
Field Prep: Disk 2X (Heavy Duty Disk) 0.23 3.80 8.66 0.00 0.00 12
Field Prep: Disk 1X (Finish Disk) 0.16 2.65 6.28 0.00 0.00 9
Field Prep: Float/Triplane 0.16 2.70 6.85 0.00 0.00 10
Plant/Fertilize: (Seed/11-52-0+Zn) 0.59 18.10 19.40 62.55 0.00 100
Weed: (Roundup) 0.17 3.56 2.64 6.56 0.00 13
Weed: (Regiment, Prowl) 0.17 3.56 2.64 51.66 0.00 58
Fertilize: broadcast & topdress (21-0-0) 0.03 0.57 0.53 56.70 8.50 66
Irrigate: Flood Field (Labor for checking daily) 0.27 4.44 1.35 0.00 0.00 6
Fertilize: Leaf Samples taken by PCA 0.00 0.00 0.00 0.00 0.00 0
Insect: Worms (Warrior) 20% of acres 0.00 0.00 0.00 2.63 2.00 5
Irrigate: Flood & Drain Field (August) 0.13 2.22 0.68 0.00 0.00 3
Pickup: 1/2 ton 0.13 2.22 0.68 0.00 0.00 3
Pickup: 3/4 ton 0.10 1.67 0.73 0.00 0.00 2
TOTAL CULTURAL COSTS/ACRE 2.30 47.37 50.57 180.10 10.50 289
Harvest
Combine Rice (Custom) 0.00 0.00 0.00 0.00 94.70 95
Dry & Store Rice 0.00 0.00 0.00 0.00 128.50 129
Assessment 0.00 0.00 0.00 8.24 0.00 8
TOTAL HARVEST COSTS/ACRE 0.00 0.00 0.00 8.24 223.20 231
Post Harvest:
Weed: Mow Levees 0.03 0.42 0.27 0.00 0.00 1
Straw: Chop/Mulch 0.34 5.74 13.50 0.00 0.00 19
Irrigate: Flood for Winter 0.02 0.22 0.00 0.00 0.00 0
TOTAL POSTHARVEST COSTS 0.39 6.38 13.77 0.00 0.00 20
Interest on operating capital @ 10% 13
TOTAL OPERATING COSTS/ACRE 53.75 64.34 188.34 233.70 553
CASH OVERHEAD:
Office Expense 50
Liability Insurance 1
Reclamation District Fees 48
Property Taxes 45
Property Insurance 2
Investment Repairs 3
TOTAL CASH OVERHEAD COSTS 148
TOTAL CASH COSTS/ACRE 701
NON-CASH OVERHEAD: Per producing Annual Cost
Investment Acre Capital Recovery
Land 4,286 311 311
Buildings 114 9 9
Fuel Tanks 7 1 1
Tools-Shop/Field 18 2 2
Field Establishment 216 120 120
Equipment 230 29 29
TOTAL NON-CASH OVERHEAD COSTS 4,871 471 471
TOTAL COSTS/ACRE 1,172

2007 Rice Costs and Returns Study (2-Yr Rotation) Delta Region UC Cooperative Extension 10
 UC COOPERATIVE EXTENSION
Table 3. COSTS AND RETURNS PER ACRE to PRODUCE RICE
DELTA REGION (San Joaquin & Sacramento Counties) 2007

Quantity/ Price or Value or Your

Acre Unit Cost/Unit Cost/Acre Cost
GROSS RETURNS
Rice 80.00 cwt 11.00 880
OPERATING COSTS
Seed:
Certified Rice Seed- M104 1.40 cwt 21.00 29
Fertilizer:
11-52-0 + 1% Zn 150.00 lb 0.22 33
21-0-0-24S 105.00 lb N 0.54 57
Herbicide:
Roundup Ultra Max 16.00 floz 0.41 7
Regiment CA 0.67 oz 63.50 43
Prowl H20 2.00 pint 4.56 9
Irrigation:
Water (No Cost) 4.50 acft 0.00 0
Water (Winter No Cost) 3.00 acft 0.00 0
Insecticide:
Warrior 1.00 floz 2.63 3
Assessment:
California Rice Research Board (CRRB) 80.00 cwt 0.06 5
California Rice Commission (CRC) ($0.043/cwt) 80.00 cwt 0.04 3
Custom/Contract:
Air Application - Fertilizer 1.00 acre 8.50 9
Air Application - Insecticide (helicopter) 0.20 acre 10.00 2
Harvest (Combine +Bankout) 94.70 cwt 1.00 95
Rice Drying Charge 94.70 cwt 0.85 80
Rice Storage Charge 80.00 cwt 0.60 48
Labor (machine) 3.38 hrs 13.90 47
Labor (non-machine) 0.61 hrs 11.12 7
Fuel - Gas 0.53 gal 2.80 1
Fuel – Diesel 18.13 gal 2.30 42
Lube 6
Machinery repair 15
Interest on operating capital @ 10% 13
TOTAL OPERATING COSTS/ACRE 553
NET RETURNS ABOVE OPERATING COSTS 327
CASH OVERHEAD COSTS:
Office Expense 50
Liability Insurance 1
Reclamation District Fees 48
Property Taxes 45
Property Insurance 2
Investment Repairs 3
TOTAL CASH OVERHEAD COSTS/ACRE 148
TOTAL CASH COSTS/ACRE 701
NON-CASH OVERHEAD COSTS (Capital Recovery)
Land 311
Buildings 9
Fuel Tanks 1
Tools-Shop/Field 2
Field Establishment 120
Equipment 29
TOTAL NON-CASH OVERHEAD COSTS/ACRE 471
TOTAL COSTS/ACRE 1,172
NET RETURNS ABOVE TOTAL COSTS -292

2007 Rice Costs and Returns Study (2-Yr Rotation) Delta Region UC Cooperative Extension 11
 UC COOPERATIVE EXTENSION
Table 4. MONTHLY CASH COSTS PER ACRE to PRODUCE RICE
DELTA REGION (San Joaquin & Sacramento Counties) 2007

Beginning JAN 07 JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC TOTAL
Ending DEC 07 07 07 07 07 07 07 07 07 07 07 07 07
Cultural:
Irrigation: Drain Field (winter flooding) 0 0
Weed: Mow Levees 1X/2 Yrs 0 0
Irrigation: Rice Box & Levee Repair 1X/2 Yrs 2 2
Fertilize: Soil Samples (collected by PCA @ no cost) 0 0
Field Prep: Disk 2X (Heavy Duty Disk) 12 12
Field Prep: Disk 1X (Finish Disk) 9 9
Field Prep: Float/Triplane 10 10
Plant/Fertilize: (Seed/11-52-0+Zn) 100 100
Weed: Prior to crop emergence (Roundup) 13 13
Weed: (Regiment, Prowl) 58 58
Fertilize: broadcast & topdress (21-0-0) 46 20 66
Irrigate: Flood Field (Labor for checking daily) 3 3 6
Fertilize: Leaf Samples (taken by PCA @ no cost) 0
Insect: Worms (Warrior) 20% of acres 5 5
Irrigate: Flood & Drain Field (August) 3 3
Pickup: 1/2 ton 0 0 0 0 0 0 0 0 0 0 0 0 3
Pickup: 3/4 ton 0 0 0 0 0 0 0 0 0 0 0 0 2
TOTAL CULTURAL COSTS 0 0 2 31 218 3 28 3 0 0 0 0 289
Harvest: Combine Rice (Custom) 95 95
Harvest: Dry & Store Rice 80 48 129
Harvest: Assessment 8 8
TOTAL HARVEST COSTS 175 56 231
Postharvest:
Weed: Mow Levees 1 1
Straw: Chop/Mulch 19 19
Irrigate: Flood for Winter 0 0
TOTAL POSTHARVEST COSTS 0 0 0 0 0 0 0 0 0 20 0 0 20
Interest on operating capital @ 10% 0 0 0 0 2 2 2 2 4 -1 0 0 13
TOTAL OPERATING COSTS/ACRE 0 0 2 32 220 5 30 6 179 76 0 0 553
Cash Overhead:
Office Expense 5 5 5 5 5 5 5 5 5 5 50
Liability Insurance 1 1
Reclamation District Fees 48 48
Property Taxes 22 22 45
Property Insurance 1 1 2
Investment Repairs 0 0 0 0 0 0 0 0 0 0 0 0 3
TOTAL CASH OVERHEAD COSTS 6 6 5 28 5 53 6 5 5 5 0 23 148
TOTAL CASH COSTS/ACRE 6 7 8 59 225 59 36 11 185 81 1 23 701

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Table 5. RANGING ANALYSIS
DELTA REGION (San Joaquin & Sacramento Counties) 2007

COSTS PER ACRE AT VARYING YIELDS TO PRODUCE RICE

YIELD (cwt/acre)
56 64 72 80 88 96 104
OPERATING COSTS:
Cultural Cost 289 289 289 289 289 289 289
Harvest (combine & bankout) 66 76 85 95 104 114 123
Dry & Store 90 103 116 128 141 154 167
Assessment 6 7 7 8 9 10 11
Post Harvest Costs 20 20 20 20 20 20 20
Interest on operating capital @ 10% 12 12 12 13 13 13 13
TOTAL OPERATING COSTS/ACRE 483 507 529 553 576 600 623
Total Operating Costs/cwt 9 8 7 7 7 6 6
CASH OVERHEAD COSTS/ACRE 148 148 148 148 148 148 148
TOTAL CASH COSTS/ACRE 631 655 677 701 724 748 771
Total Cash Costs/cwt 11 10 9 9 8 8 7
NON-CASH OVERHEAD COSTS/ACRE 471 471 471 471 471 471 471
TOTAL COSTS/ACRE 1,102 1,126 1,148 1,172 1,195 1,219 1,242
Total Costs/cwt 20 18 16 15 14 13 12

NET RETURNS PER ACRE ABOVE OPERATING COSTS

PRICE YIELD (cwt/acre)

$/cwt 56 64 72 80 88 96 104
8 -35 5 47 87 128 168 209
9 21 69 119 167 216 264 313
10 77 133 191 247 304 360 417
11 133 197 263 327 392 456 521
12 189 261 335 407 480 552 625
13 245 325 407 487 568 648 729
14 301 389 479 567 656 744 833

NET RETURNS PER ACRE ABOVE CASH COSTS

PRICE YIELD (cwt/acre)

$/cwt 56 64 72 80 88 96 104
8 -183 -143 -101 -61 -20 20 61
9 -127 -79 -29 19 68 116 165
10 -71 -15 43 99 156 212 269
11 -15 49 115 179 244 308 373
12 41 113 187 259 332 404 477
13 97 177 259 339 420 500 581
14 153 241 331 419 508 596 685

NET RETURNS PER ACRE ABOVE TOTAL COSTS

PRICE YIELD (cwt/acre)

$/cwt 56 64 72 80 88 96 104
8 -654 -614 -572 -532 -491 -451 -410
9 -598 -550 -500 -452 -403 -355 -306
10 -542 -486 -428 -372 -315 -259 -202
11 -486 -422 -356 -292 -227 -163 -98
12 -430 -358 -284 -212 -139 -67 6
13 -374 -294 -212 -132 -51 29 110
14 -318 -230 -140 -52 37 125 214

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Table 6. WHOLE FARM ANNUAL EQUIPMENT, INVESTMENT, & OVERHEAD COSTS
DELTA REGION (San Joaquin & Sacramento Counties) 2007

ANNUAL EQUIPMENT COSTS

Cash Overhead
Yrs Salvage Capital Insur-
Yr Description Price Life Value Recovery ance Taxes Total
07 152HP MFWD Tractor 96,253 10 28,432 11,829 445 623 12,898
07 180HP MFWD Tractor 121,951 10 36,022 14,988 564 790 16,342
07 55HP MFWD Tractor 30,975 10 9,150 3,807 143 201 4,151
07 95HP 2WD Tractor #1 59,563 10 17,594 7,320 275 386 7,981
07 95HP 2WD Tractor #2 59,563 10 17,594 7,320 275 386 7,981
07 Ball Tank (loaner) 0 0 0 0 0 0 0
07 Belt #1 (loaner) 30' 0 0 0 0 0 0 0
07 Belt #2 (loaner) 30' 0 0 0 0 0 0 0
07 Bucket Scraper 15' 55,931 10 9,891 7,348 235 329 7,912
07 Disc - Finish 26' 35,589 10 6,294 4,676 150 209 5,035
07 Disc Folding 17' 26,159 10 4,626 3,437 110 154 3,701
07 Drill 6" spacing 16’ 19,277 10 3,409 2,533 81 113 2,727
07 Fertilizer Spreader 18,150 10 3,210 2,384 76 107 2,568
07 Mower - Flail/Shredder 15' 13,314 10 2,354 1,749 56 78 1,883
07 Mower - Sickle 7'' 4,800 10 849 631 20 28 679
07 Pickup - 1/2 ton 26,000 10 7,680 3,195 120 168 3,484
07 Pickup - 3/4 ton 28,000 10 8,271 3,441 129 181 3,752
07 Sprayer-Pull Type 200 gal 40' boom 8,591 10 1,519 1,129 36 51 1,215
07 Tender (loaner) 0 0 0 0 0 0 0
07 Tender (loaner) 0 0 0 0 0 0 0
07 Water Tank (loaner) 0 0 0 0 0 0 0
TOTAL 604,116 156,895 75,787 2,717 3,805 82,309
60% of New Cost * 362,470 94,137 45,472 1,630 2,283 49,385
* Used to reflect a mix of new and used equipment.

ANNUAL INVESTMENT COSTS

Cash Overhead
Yrs Salvage Capital Insur-
Description Price Life Value Recovery ance Taxes Repairs Total
Buildings 5000 sqft 160,000 30 13,219 571 800 3,200 17,790
Field Establishment 64,683 2 35,900 0 0 0 35,900
Fuel Tanks 2-500 gal 10,000 20 962 36 50 200 1,248
Land 1500 acres 6,000,000 30 6,000,000 435,000 0 60,000 0 495,000
Shop/Field Tools 25,000 20 2,406 89 125 500 3,120
TOTAL INVESTMENT 6,259,683 6,000,000 487,487 696 60,975 3,900 553,058

ANNUAL BUSINESS OVERHEAD COSTS

Units/ Price/ Total

Description Farm Unit Unit Cost
Liability Insurance 1,400 acre 0.93 1,302
Office Expense 1,400 acre 50.00 70,000
Reclamation District 1,400 acre 48.00 67,200

2007 Rice Costs and Returns Study (2-Yr Rotation) Delta Region UC Cooperative Extension 14
 UC COOPERATIVE EXTENSION
Table 7. HOURLY EQUIPMENT COSTS
DELTA REGION (San Joaquin & Sacramento Counties) 2007

COSTS PER HOUR

Actual Cash Overhead Operating
Hours Capital Insur- Fuel & Total Total
Yr Description Used Recovery ance Taxes Repairs Lube Oper. Costs/Hr.
07 152HP MFWD Tractor 1,200 5.91 0.22 0.31 1.84 23.33 25.17 31.61
07 180HP MFWD Tractor 1,600 5.62 0.21 0.30 3.11 27.63 30.74 36.87
07 55HP MFWD Tractor 1,601 1.43 0.05 0.08 0.79 7.14 7.93 9.49
07 95HP 2WD Tractor #1 1,200 3.66 0.14 0.19 2.66 12.34 15.00 18.99
07 95HP 2WD Tractor #2 1,200 3.66 0.14 0.19 2.66 12.34 15.00 18.99
07 Ball Tank (loaner) 40 0.00 0.00 0.00 0.00 0.00 0.00 0.00
07 Belt #1 (loaner) 30' 57 0.00 0.00 0.00 0.00 0.00 0.00 0.00
07 Belt #2 (loaner) 30' 57 0.00 0.00 0.00 0.00 0.00 0.00 0.00
07 Bucket Scraper 15' 300 14.72 0.47 0.66 8.46 0.00 8.46 24.31
07 Disc - Finish 26' 200 14.05 0.45 0.63 5.68 0.00 5.68 20.81
07 Disc Folding 17' 200 10.29 0.33 0.46 4.18 0.00 4.18 15.26
07 Drill 6" spacing 16’ 150 10.16 0.33 0.46 5.08 0.00 5.08 16.03
07 Fertilizer Spreader 120 11.90 0.38 0.53 6.92 0.00 6.92 19.73
07 Mower - Flail/Shredder 15' 200 5.24 0.17 0.23 5.44 0.00 5.44 11.08
07 Mower - Sickle 7'' 200 1.89 0.06 0.08 1.96 0.00 1.96 3.99
07 Pickup - 1/2 ton 200 9.60 0.36 0.51 1.86 3.22 5.08 15.55
07 Pickup - 3/4 ton 200 10.32 0.39 0.54 2.00 5.29 7.29 18.54
07 Sprayer-Pull Type 200 gal 40' boom 150 4.51 0.14 0.20 2.28 0.00 2.28 7.13
07 Tender (loaner) 57 0.00 0.00 0.00 0.00 0.00 0.00 0.00
07 Tender (loaner) 57 0.00 0.00 0.00 0.00 0.00 0.00 0.00
07 Water Tank (loaner) 20 0.00 0.00 0.00 0.00 0.00 0.00 0.00

2007 Rice Costs and Returns Study (2-Yr Rotation) Delta Region UC Cooperative Extension 15
 UC COOPERATIVE EXTENSION
Table 8. OPERATIONS WITH EQUIPMENT & MATERIALS - PRODUCTION YEAR FOR RICE
DELTA REGION (San Joaquin & Sacramento Counties) 2007

LABOR
MONTH OPERATION TRACTOR IMPLEMENT HRS/acre MATERIAL RATE/AC UNIT
March Drain Field 0.01
March Weed: Mow Levees (1X/2 Yr [2d yr only]) 95HP #1 Mower-Rotary

March Box/Levee Repair (1X/2 Yr [2d yr only]) 0.14

March Fertilize: Soil Samples 0.02 Analysis 0.04 each
April Disc 2X (heavy duty disk) 180HP Disc 17'
April Disc 1X (finish disk) 180HP Disc 26'
April Float/Level 180HP Bucket Scraper
May Plant/Fertilize 152HP Drill 16’ Seed 1.40 cwt
95HP #1 Tender 11-52-0-1Zn 150.00 lb
95HP #2 Tender #2
Belt #1
Belt #1
May Weed: Spray 95HP #1 Sprayer 40' Roundup 16.00 floz
95HP #2 Ball Tank 0.70
55HP Water Tank 0.70
May Weed: Spray 95HP #1 Sprayer 40' Regiment 0.67 oz
Prowl 2.00 pt
95HP #2 Ball Tank 0.70
55HP Water Tank 0.70
May Fertilize 55HP Spreader 21-0-0 84.00 lb N
July Custom Air 21-0-0 21.00 lb N
June Flood Pickup 1/2T Water 1.50 acft
July Flood Pickup 1/2T Water 1.50 acft
August Flood & Drain Pickup 1/2T Water 1.50 acft
July Fertilize: Leaf Samples 0.02 Analysis 0.04 each
July Insect: Worms Custom Air Warrior 1.00 floz
Sept Combine Rice Custom
Sept Dry & Store Rice Dry
Oct Dry & Store Rice Store
Oct Post Harvest: Mow Levees 95HP #1 Mower-Sickle
Oct Post Harvest: Chop Mulch Straw 180HP Mower-Flail
Oct Post Harvest: Flood for Winter 0.02 Water 3.00 acft

2007 Rice Costs and Returns Study (2-Yr Rotation) Delta Region UC Cooperative Extension 16