2004 Estimated Cost of Producing Hops under Drip Irrigation in the Yakima Valley, Washington State
EB1975E - Available for download in pdf format.
Author: Herbert Hinman*
In 2003, Washington
State harvested 39.95 million pounds of hops from 19,492 acres, accounting
for 74% of the U.S. production. Hops, with a value of $87.6 million,
ranks 13th in agricultural commodity value in the state. All hop acreage
in Washington State is in the Yakima Valley. Washington hop
acreage
has declined by 11,588 acres (39%) since 1997. This reduction is a
result of a worldwide oversupply of hops created by the introduction
of higher yielding varieties of hops and technological advances that
have improved the efficiency of downstream processing. These factors
have resulted in extremely poor market conditions. Additional acreage
reductions may be realized in the next few years as the international
hop industry seeks equilibrium between supply and demand.**
The general
objective of this study was to develop enterprise budgets for three
different types of hops grown under drip irrigation at a planting
of 14 feet x 3.5 feet. The three types of hops are 
aroma (Willamette),
alpha (Galena/Nugget), and super alpha. The specific objectives were
to: (1) provide estimates of capital requirements, production costs,
and returns representative of well-managed hop enterprises growing
these various types of hops under drip irrigation; and (2) give producers
a procedure and a tool for analyzing the profitability of their own
enterprise.
*Herb Hinman is an Extension Economist at Washington State University.
**Ann George, Administrator, Washington Hop Commission.
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