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Examining the Costs of Producing Processing Snap Beans and Green Peas in New York State

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  • Ho, Shuay-Tsyr
  • Rickard, Bradley J.
  • Kikkert, Julie
  • Klotzbach, Kathryn
  • Reiners, Stephen
  • Smith, Marc

Abstract

It has been a long time since we have seen a cost of production study for horticultural crops, notably processing vegetable crops, in New York State; however, research in this arena is completed in many other states and continues to offer useful information to industry stakeholders. This type of information is especially important in the processing vegetable sector in New York State as it has seen substantial acreage decreases in recent years. Here we develop a survey to collect data from processing vegetable growers in New York State and use it to calculate costs and net returns of producing snap beans and green peas. Our results indicate that the average cost of producing snap beans in New York State is $568 per acre and is $563 per acre for green peas; the actual producer costs drop to $402 and $361 for beans and peas if the processor pays for expenses related to seeds, pesticides, and harvesting. Lastly, we discuss some other issues—consumer demand, farm policy, and processing capacity—that may be negatively impacting markets for processing beans and peas in New York State, and suggest that further attention needs to be given to these issues to fully understand the future of the processing vegetable sector in New York State.

Suggested Citation

  • Ho, Shuay-Tsyr & Rickard, Bradley J. & Kikkert, Julie & Klotzbach, Kathryn & Reiners, Stephen & Smith, Marc, 2011. "Examining the Costs of Producing Processing Snap Beans and Green Peas in New York State," EB Series 121631, Cornell University, Department of Applied Economics and Management.
    • Handle: RePEc:ags:cudaeb:121631
    DOI: 10.22004/ag.econ.121631
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    References listed on IDEAS

    as
    1. Williams, D.G., 1961. "Costs and Returns in Producing Spring Spinach for Processing 1960," Research Bulletins 180469, Cornell University, Department of Applied Economics and Management.
    2. Snyder, Darwin P., 1979. "Cost of Production Update for 1978 on Snap Beans for Processing (2nd year) and Beets for Processing," Research Bulletins 181079, Cornell University, Department of Applied Economics and Management.
    3. Young, C. Edwin & Johnson, D. Demcey & Krissoff, Barry & Lucier, Gary, 2007. "Relaxing Fruit and Vegetable Planting Restrictions," Amber Waves:The Economics of Food, Farming, Natural Resources, and Rural America, United States Department of Agriculture, Economic Research Service, pages 1-6, February.
    4. Snyder, Darwin P., 1978. "Cost of Production Update for 1977 on Snap Beans for Processing," Research Bulletins 180992, Cornell University, Department of Applied Economics and Management.
    5. Snyder, Darwin P., 1991. "1991 Budget Guide: Estimated Prices for Crop Operating Inputs and Capital Investment Items," Research Bulletins 123089, Cornell University, Department of Applied Economics and Management.
    6. Barnes, Raymond J. & White, Gerald B., 1991. "The Feasibility of Producing and Marketing Fresh Vegetables in Central and Western New York," Research Bulletins 123088, Cornell University, Department of Applied Economics and Management.
    7. Henehan, Brian M. & Schmit, Todd M., 2009. "Serving Member Interests in Changing Markets: A Case Study of Pro-Fac Cooperative," Journal of Cooperatives, NCERA-210, vol. 23, pages 1-19.
    Full references (including those not matched with items on IDEAS)

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    Crop Production/Industries;

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