Feb 12, 2026MSU webinar outlines 2025 Michigan chestnut production costs
A recording of the Feb. 3 webinar, “Using the Michigan Chestnut Cost of Production Study,” is now available through Michigan State University Extension, providing growers with updated cost and profitability benchmarks.
The webinar reviews the Michigan Chestnut Cost of Production, 2025 (Bulletin E3538), detailing enterprise budgets, establishment expenses, annual operating costs and profit scenarios for both hand-harvested and machine-harvested systems. Presenters also walk through the yield and price sensitivity tables included in the bulletin.
Michigan’s chestnut acreage continues to expand. Planted acreage doubled from 675 acres in 2017 to more than 1,300 acres in 2022, though only 63% of those acres were bearing. With Michigan chestnut production expected to rise steadily over the next five to 10 years, the industry will need to address growing demand for harvest equipment and processing infrastructure.
Cost breakdown: establishment, harvest drive margins
The study estimates establishment costs at $21,257 per acre. Allocated across a 32-year orchard lifespan, that equals $664 per acre annually. Ongoing operating costs during bearing years total $1,541 per acre.
Harvest method remains the largest variable cost difference.
Hand harvest systems — often paired with on-farm packing — average $3,182 per acre in harvest costs. Total economic costs during production years are estimated at $5,387 per acre, or $2.15 per pound.
Machine harvest systems, typically associated with cooperative packing and marketing, average $859 per acre in harvest costs, including trucking. Total economic costs are estimated at $3,064 per acre, or $1.23 per pound.
At current prices and costs, the study finds chestnut production profitable under both systems. Hand-harvested, direct-marketed chestnuts generate the highest returns but require intensive management and marketing time, making them more common among smaller-acreage growers. Machine-harvest operations deliver strong returns while allowing growers to scale acreage and overall volume.
The recording includes time-stamped sections covering study methods, harvest comparisons, enterprise budget spreadsheets and profit calculations, followed by a question-and-answer session.
For additional information or help applying the study to individual operations, contact corresponding author Chris Bardenhagen at bardenh1@msu.edu or Erin Lizotte at taylo548@msu.edu.
