Fruit and Tree Nuts Outlook: June 2009

by Agnes Perez and Mir Ali

Specialized fruit and tree nut farms represent a substantial segment of the U.S. fruit and tree nut industry. By nature of the commodities produced and the markets targeted, these specialized farms require substantial investments in production inputs. Using data from USDA's Agricultural Resource and Management Survey (ARMS), this report investigates the major expense components of specialized fruit and tree nut farms in the United States from 1998 to 2006. Based on 3-year averages, the analysis compares farm expenses by farm size and across regions. Total cash expenses were highest in the West where the highest concentration of specialized fruit and tree nut farms are located, including a majority of the largest and most highly specialized farm operations. Labor was the largest cash expense for fruit and tree nut farms, followed by fertilizer and other agricultural chemical inputs.

Keywords: Fruit, nuts, tree nuts, farms, costs, production expenses, value of production, cost of production, farm size, region, labor, fertilizer, fuel, interest payments

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