COM 0604.037 1996-1998 - Laserfiche WebLink

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TIMELINE Ranching operations will be initialed during the first year on most of the acreage. This is be- cause cattle grazing Is the most economical and environmentally friendly method to clear lands in peparation for the diversified agricultural enterprises. A gradual transition to diversified ag operations will be on-going through years 2-10. Hardwood forest species will be integrated in the diversified ag with the assistance of local tree nursery oper- ations. POTENTIAL ECONOMIC IMPACT Many of the cropping considered are of very high value per acre. Small farms (100 acres or less) can be highly profitable, allowing many Individuals or small companies to benefit from diversified crops. The relative high value of these crops can employ more people per unit of land area compared to a monoculture Eucalyptus plantation. brief Economic Analysis of Diversified Crops Evaluation of Gross Margins Job creation is calculated on the basis of one full-time position per year per acre. Assumptions: (1) Coop pools equipment and (2) Coop builds central processing facilities. Table 1. Job Creation and Gross Margin Per Acre Macadamia Nut. Product: Nut-in-husk. Year 1-13 14 Total costs: $20,000 $1,800 Gross return: 22,900 4,860 Gross margin: 2,950 3,060 Job creation: 0.05 individual. Coffee. Product: Fresh ripe cherries' Year 2-6 7 Total costs: 6,300 1,500 Gross return: 7,800 3,000 Gross margin: 1,500 1,500 Job creation: 0.15 individual. 'For roasted coffee, gross return is $8,000-$10,000/acre with approximately 51% of the gross going into production costs (excluding taxes, land use and depreciation).