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Dry edible beans, especially pintos, have been an important
crop in Colorado agriculture since production statistics were first compiled
in 1909 for dry beans. At that time, 5000 acres averaged 580 lb/A with
a price of $ 3.60/cwt. The industry enjoyed steady growth throughout the
20s and saw a record high in 1943 with 460000 harvested acres, with an
average yield of 525 lb/A and a price of $ 5.70/cwt. Since 1970, acreage
has fluctuated between 120,000 to 225,000 acres, yields have steadily
increased to more than 1800 lb/A, and price has varied from $ 8.60 to
$ 31.20/cwt (please see figures).
Economic
Reality
Average gross income/acre has fluctuated from $ 87 in 1971 to $ 514 in
1988. The past 5-yr average is $ 325/A with declining returns noted each
year from $ 405 in 1996 down to $ 298 in 1999. In 1999, northeastern Colorado
irrigated pinto bean crop production estimates were $ 285 for pre-harvest
operating costs (more than 35% related to irrigation expenses), with an
additional $ 70/A penciled in for property and ownership costs at a total
of $ 358/A. CSU Agr. Economist Dennis Kaan estimated that a pinto grower
needed to yield at least 30 cwt/A @ $ 15/cwt or 25 cwt/A @ $ 18/cwt to
break even. Therefore, using 1999 statistics a Colorado grower with an
average yield of 18.5 cwt/A and a price of $ 15/cwt grew pinto beans at
a net loss of - $ 7/A with NO return for property and other ownership
costs.
Production
Challenges
Our region's bean industry continues to face increasing
production costs (energy, chemicals, equipment, labor) and stiff competition
from other production regions such as MinDak, Canada, and even China for
limited international markets for pintos and other market classes including
great northern and light red kidney. These new areas have exploded in
recent years and have brought literally millions of "new" production acres
(mostly rainfed) into the picture as their growers also struggle to improve
their economic fortunes which were based primarily upon low input crops
such as wheat. The Canadian provinces (e.g., Alberta, Saskatchewan, Ontario)
are committed to an aggressive program and long-term investment in the
development of adapted, productive and high quality pulse crops such as
dry bean, field pea, and lentils for their growers. They are focusing
upon reduced inputs (fertility, pesticides, irrigation) to give their
growers an economic advantage so they can net a few more dollars per acre
from large acreages. This competition from Canada has the MinDak and Michigan
bean industries worried, and Canadian trade and transportation advantages
(e.g., provided by NAFTA) allow their industry to ship quality beans from
Canada through the United States to U.S. domestic and Mexican markets
at the disadvantage of U.S. and certainly the High Plains bean industries.
And the Mexican government and industry have even sent experts to China
to help them improve bean quality and secure future markets for export
to demanding consumers in Mexico.
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What is Our Future?
So, where does this leave us in Colorado and the High Plains? Based on
production trends outside Colorado during the last 10 years, it is unlikely
that bean prices (especially for pintos) will exceed $ 20/cwt very often.
We know that we can count on increasing production costs (especially energy,
equipment, labor) and expanding competition for limited export and even
domestic markets, as cheap Canadian beans continue to stream into the
U.S. for packaging and marketing even at the local scene. So with this
bleak outlook, do we throw in the towel and watch our Colorado bean industry
dwindle down to a non-functional level in the next few years? Or do we
accept the challenges ahead and invest our collective energies and resources
to emerge even stronger after overcoming these challenges?
- Can we improve net economic returns to our bean growers and industry
by reducing inputs and costs, while maintaining acceptable yield and
seed quality?
- Can we improve access to a larger share of existing or new pinto
markets willing to pay for high quality beans?
- Can we pursue new bean classes with domestic and/or international
market opportunities?
Challenge
- Improve Grower Net Return
Identify and prioritize manageable components contributing
to bean production and costs, develop education and/or research projects
that reduce the economic impact of these costs while maintaining acceptable
yield and seed quality within the next 1 - 3 years. For example, the following
issues could be addressed with university, USDA and private sector resources:
(a) Production Input Responses - investigate and quantify agronomic
and pest management issues that respond to varying levels (low to high)
or types of inputs;
(b) Varietal Improvement Responses - increase resources for ongoing breeding
efforts to improve traditional varieties of pinto, great northern, light
red kidney, and black for key production and marketing traits.
Challenge - Improve Access to Pinto Markets
Identify and prioritize means to market Colorado and High Plains pinto
beans in domestic and international markets during the next 1 - 3 years.
For example, the following issues could be addressed with private (growers,
dealers and their organizations) and public (state and federal agencies
involved with promotion and marketing of agricultural commodities) sector
resources:
(a) Reduce Marketing Costs;
(b) Improve Cooperation Between Local Bean Industry Personnel
( c ) Enhance Market Access
Challenge - Diversify Bean Types
Identify and prioritize other bean market types that could
enhance and diversify Colorado and High Plains pinto and great northern
bean production in the next 3 - 10 years. For example, the following issues
could be addressed with university, USDA and private sector resources,
especially bean processors that are willing to diversify and enhance their
receiving and handling operations:
(a) Select within current germplasm and varietal releases,
and/or breed new releases of diverse market types including light red
kidney, black, and other niche-market bean types (cranberry, yellow, Flor
de Mayo) that are adapted to growing conditions in Colorado and the surrounding
region;
(b) Conduct wide-spread testing of promising entries at experiment stations
and in grower fields, emphasize early-generation production of certified
seed in western regions to support commercial production of priority market
types / varieties as quickly as possible;
(c ) Develop a complete production / pest management package for each
new release to provide growers with the most efficient and economical
strategy fine-tuned for that unique market type
Get Involved Now!
The basic problem today is a lack of bean community concern for or articulation
of this problem. Action is needed today, and any further delays will signal
the demise (sooner than later) of the dry bean industry in Colorado and
surrounding region.
Howard F. Schwartz
Professor
Colorado State University
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