“The last time preliminary production estimates were done was in 1999, so we don’t know what farming actually costs in Guam today,” said Kuan-Ju Chen, an agricultural economist with UOG Land Grant.

Chen is conducting the study alongside L. Robert Barber, an extension specialist in agricultural economics and sustainable agriculture, and extension horticulturalist Jesse Bamba with UOG Land Grant.

“A major problem we have in Guam is that many farmers — and particularly new farmers — don’t know what their cost is for growing a crop, so they don’t know how to price it. They don’t know how low they can go to compete with imported goods and still make a profit,” Barber said.

The researchers have already completed the first round of crop studies, focusing on cucumber, eggplant, hot peppers, and tomato crops. They collected data from five farmers per crop on their costs and inputs for materials and labor, then later on their yield and income from the produce sales. The eventual production budgets will detail the average yield per 100-foot row and per acre, the duration of each task needed to grow and harvest, the estimated cost per row and per acre, and a suggested market price to break even.

“Knowing the inputs and outputs of crop production in Guam is crucial to be able to increase farmers’ profits and assess their losses,” Chen said. “With these estimated budgets, local farmers will be able to better plan their farm operations and investments, predict yields, and possibly secure a market ahead of time for their crops.”

Farmers can also reference the budgets to determine what to charge per pound to break even. The study will also be used by NRCS and the Farm Service Agency under USDA to determine payment amounts for Guam farmers registered with the FSA. The agencies compensate farmers for conservation efforts, for crop insurance claims, and with relief aid in the event of natural disasters or emergencies. The agencies will also use the data to issue loans to registered farmers.

As a Land Grant university, UOG works to improve food production in the region through its Extension Service and agInnovation Research Center.

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“This a significant grant toward a long-overdue need in our agricultural community,” said Rachael T. Leon Guerrero, director of UOG Land Grant. “We look forward to collaborating with producers and sharing our findings toward improving the profitability and efficiency of agriculture in Guam.” 

The budgets developed from this study will be published on the UOG Land Grant publications library starting on the last year of the project in 2027.

Farmers needed to participate in compensated study

The research team is seeking more farmers to participate in this study for a weekly stipend. Farmers are needed who are growing at least a 100-foot row of the following crops: lettuce, watermelon, long beans, okra, melons, wing beans, pechay/bok choy, kangkong, squash, bittermelon, and daikon radish.

Participation involves a weekly check-in to share information on their efforts and costs on the crop being studied. Farmers will be compensated $50 per week of reported data, up to 16 weeks. To participate in the study, email Katherine Perez at perezk10766@triton.uog.edu or call (671) 735-2080.