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Conference Name Decision-Making Tools for Perennial Agricultural Systems

Clark Seavert


This website is a resource for agricultural producers who manage the financial, marketing, production and human resource risks associated with perennial agricultural systems. Producers of tree fruit and nut, berry and vineyard crops often put in large up-front investments in hopes of gaining sufficient returns in the future to cover their establishment costs and make a reasonable return off their investment. Producers who misjudge the costs and potential returns of such an investment may find themselves in serious financial difficulty. Global competition, labor costs, labor availability, and narrowing profit margins increase growers' risks when establishing and producing long-term agricultural crops. Adequate compensation for these risks can come to those who have the information, develop cropping and marketing strategies, and perform sensitivity analyses to each of these strategies before implementing a decision.

The Crop Profitability Analysis (CPA) and Equitable Crop Lease (ECL) computer programs are designed to help agricultural producers in making long-run cropping decisions. CPA uses previously generated enterprise budgets to establish a base from which producers can analyze the potential profitability of perennial crops with establishment periods or the feasibility of long-term crop rotations. The ECL program evaluates the potential financial risks associated with short- and long-term leases.