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Economic Assessment (Starting Point)
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Crop:Iceberg & Romaine Lettuce
Lettuce, Apples, Table grapes
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MinMaxUnits
Notes/Comments
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2021 Approx Value/Acre (Market value):50006000$
This is just the cost to grow the crop
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2021 Approx Value/Acre (Harvest Cost/Value ONLY):40504500$
This is the labor cost to harvest an acre of lettuce, separate from the cost of the crop
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% of Crop cost/value dedicated to Labor:1015%
This is only on the growing of the crop, which is not what I think we need to be focused on
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% of Harvest cost/value dedicated to Labor:8590%
Not all labor can be eliminated, so that is why it is not 100%, you still need to haul the product to the cooler, drive the machine, etc..
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Carton - Harvest Crew Size:2535 # of People
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Process - Harvest Crew Size:3545 # of People
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Crew Member Cost/hour: (just labor NO benefits)1520$/hour
$15 is the base min garuntee, but if the crew is on GPI (Group Production Incentive) they can make the $20+
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Crew Member Cost/hour: (Fully Loaded with Taxes and Benefits)
19.826.4$/hour
This based on 32% cost of taxes and benefits, if you hire a labor contractor it will be higher, maybe 40%-45% depending on the crop
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Cartons - Harvest Velocity: Acres/Day:2.54Acres/7.5hrs
This is really dependent on which packs your doing, if it is just Liner Lettuce, its very fast, if it is wrap lettuce, with lots of label changes, it is very slow. Also with the new Cal labor laws, OT is after 45 hours, which is why I am saying 7.5 hrs, because that is all we can work without OT
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Process - Harvest Velocity: Acres/Day:610Acres/8hrs
a 45 man crew can do 500+ plus bins a day, in 8 hrs, anything less than that, would be because of bad quality, or low orders
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NOTES & GENERAL COMMENTS
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California Labor Notes
Min wage and overtime rules are changing again next year. Ag workers in California will have to be paid overtime after 40 hours a week, and will have to be given a min wage of $15/hr
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Here is an example of the PL for Harvest Labor:
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Direct Labor (GPI - Group Production Incentive)
25$/bin
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NPT (Non-Productive Time)
1$/bin
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ALL OF THIS IS REQUIRED BY CALIFORNIA LAW/NOT SO IN OTHER STATES
R&R (Rest & Rercovery)
1$/bin
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Sick Pay1$/bin
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Taxes & Benefits
10$/bin
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38$/bin
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Direct Labor (Assumed a based rate of $20/hr, given that Min Wage is $15)
32$/bin
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NPT (Non-Productive Time)
1$/bin
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ALL OF THIS IS REQUIRED BY CALIFORNIA LAW/NOT SO IN OTHER STATES
R&R (Rest & Rercovery)
1$/bin
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Sick Pay1$/bin
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Taxes & Benefits
10$/bin
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45$/bin
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Bin of Lettuce weights about 800lbs, and Bin of Romaine weights about 450lbs
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Cost of a Lettuce or Romaine machine250,000500,000
Machines only, trailers and tractors are going to be needed most likely even with automation
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Are there multiple harvest Passes?:NO
Yes/No - Maybe
Unless the market is extreamly high, which is very rare
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Approx Acres of crop planted in Western USA:Iceberg Lettuce Acres
Growing Regions
Romaine Lettuce Acres
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50,00060,000Salinas, Ca50,00060,000
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7,0009,000Huron, Ca3,0004,000
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12,00018,000
Imperial Valley, Ca
13,00015,000
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30,00040,000Yuma, Az20,00025,000
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99,000127,00086,000104,000
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