Walnut Cost Study Part I: Establishing An Orchard

A newly released study from the University of California, Davis, gives growers insight into the costs of establishing a walnut orchard, as well as the cost to produce the nuts.

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University of California Cooperative Extension Tehama County Farm Advisor Richard Buchner says studies like this are always interesting, because they show not just how enormous the costs are to start an operation, but how long it could take to get a return on that investment.

Ultimately, they provide good insight for growers.

“Walnut farmers for the future will have to carefully consider their investments and make management decisions that encourage good yields and quality,” Buchner says.

The latest walnut cost study specifically looked at establishing and producing walnuts under micro-sprinkler irrigation in the Sacramento Valley.

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For the study, the orchard was established on ground where another tree crop was previously planted, and the costs include removal of the old trees. The site was then laser leveled to reduce the potential for standing water, and the whole field was fumigated.

The study also includes the cost of smoothing row middles, the installation of an underground irrigation system, and an herbicide strip spray applied in early spring.

Planting
For this study, half-inch, June-budded Chandler trees on clonal Paradox rootstock were planted at 26-foot by 26-foot spacing, for a total of 64 trees per acre. Growers using other varieties may need to consider cost adjustments. The lifespan of the orchard was estimated at 30 years, and the trees were priced at $17.30 each.

Trees were planted in February and March and painted white to prevent sunburn. Wraps were also placed around the trees for herbicide protection. In the second year, approximately two trees per acre were replanted.

Training And Pruning
The April after planting, training began by selecting a main trunk. In the summer, the main trunk was tied, and competing shoots were tipped back. The second and third years include dormant pruning and training to encourage the central leader. Heading cuts were made to remove a quarter of the current year’s growth on scaffold branches, and any leftover brush from pruning was left in row middles to be mowed.

Fertilizing
Granular nitrogen was hand-applied in May and July for the first two years. Liquid nitrogen was injected through the irrigation system in the third year.

Irrigating
When determining irrigation needs, the study assumed six acre-inches of stored soil moisture and no effective growing season rainfall. All watering was done through the micro-sprinkler system, and pressure chambers were used to verify irrigation adequacy.

Managing Pests
The study notes that pest control costs can vary widely from year to year based on location. The rates used in the cost study can be found in the University of California Integrated Pest Management for walnuts.

Total Cost Of Establishment
In the first year alone, total accumulated net cost per acre to establish the orchard totaled $6,488. The numbers, however, are just estimates, Buchner notes.

“The value of the cost study is to organize potential costs in orchard establishment or production so walnut farmers get an overall view of the costs and cultural practices involved,” he says. “The numbers are best estimates, and the templates encourage cost corrections to fit specific situations.”

The full results of the study, including detailed cost tables through year seven, can be found on the UC-Davis website.

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