Owning harvest equipment versus custom hiring: the case of walnuts
AuthorsSteven C. Blank
Authors AffiliationsS. C. Blank is Extension Economists and Kim Norris is Staff Research Associate, Department of Agricultural Economics, UC Davis; K. Klonsky are Extension Economists and Kim Norris is Staff Research Associate, Department of Agricultural Economics, UC Davis.
Hilgardia 45(6):33-38. DOI:10.3733/ca.v045n06p33. November 1991.
Is a walnut producer better off owning harvesting equipment or custom hiring someone else to perform the job? This paper compares purchase costs with custom harvest rates, leading to an estimated break-even acreage which can be used as a decision criterion. However, two risk factors must be included in the decision process: the date of harvest and the efficiency of the harvest operation. The effect of these factors may significantly alter the “real” costs of owning versus custom hiring harvest equipment and, therefore, may change the decision reached by an individual grower.
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