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1999-2000 Comparative Citrus Budgets
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 Material Information
Title: 1999-2000 Comparative Citrus Budgets
Physical Description: Fact Sheet
Creator: Muraro, Ronald P.
Publisher: University of Florida Cooperative Extension Service, Institute of Food and Agriculture Sciences, EDIS
Place of Publication: Gainesville, Fla.
Publication Date: 2000
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Acquisition: Collected for University of Florida's Institutional Repository by the UFIR Self-Submittal tool. Submitted by Melanie Mercer.
Publication Status: Published
General Note: "Published November 2000."
General Note: "FE 212"
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Source Institution: University of Florida Institutional Repository
Holding Location: University of Florida
Rights Management: All rights reserved by the submitter.
System ID: IR00001871:00001

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1999-2000 Comparative Citrus Budgets1 Ronald P. Muraro2 1. This is EDIS document FE 212, a publication of the Department of Food and Resource Economics, Florida Extension Cooperative Service, Institute of Food and Agricultural Sciences, University of Florida. Published November 2000. Please visit the EDIS website at: http://edis.ifas.ufl.edu. 2. Ronald P. Muraro, professor and farm management economist, Department of Food and Resource Economics, University of Florida, Florida Cooperative Extension, Institute of Food and Agricultural Sciences, Citrus Research and Education Center, Lake Alfred, FL. The Institute of Food and Agricultural Sciences is an equal opportunity/affirmative action employer authorized to provide research, educational information and other services only to individuals and institutions that function without regard to race, color, sex, age, handicap, or national origin. For information on obtaining other extension publications, contact your county Cooperative Extension Service office. Florida Cooperative Extension Service/Institute of Food and Agricultural Sciences/University of Florida/Christine Taylor Waddill, Dean. Annually, comparative citrus budgets are tabulated for the Central Florida, Southwest Florida, and Indian River citrus producing areas. The listed estimated comparative costs are for the example grove situation described in the Economic Information Report Series entitled: "Budgeting Costs and Returns" for the Central Florida, Southwest Florida, and Indian River production areas. Therefore costs shown may not represent your particular grove situation. The budget cost items for the Central Florida and Indian River areas represent custom-managed operations. The Southwest Florida costs are more representative of an owner-managed operation. The 1999-2000 comparative budgets are presented in three scenarios: (1) Low Cost Processed Cultural Program, (2) Reduced Cost Processed/Fresh Cultural Program, and (3) Typical/Historical Fresh Cultural Program. Scenarios 1 and 2 represent typical costs of two cultural programs to reduce expenditures for fruit grown primarily for the processed market. Scenario 3 represents typical costs of grove practices for citrus grown for the fresh fruit market. Modified herbicide and/or spray and fertilizer programs account for the reduced costs. Note: Before modifying a grove management program to reduce costs, an evaluation of the market program (processed or fresh), yield, and specific cultural problems (nutrition, disease, etc.) for the specific grove site should be made. Each budget lists the costs of individual grove care practices normally performed in a citrus grove. These costs are based on "net grove acre," excluding water retention and other non-productive areas. Costs are categorized into cumulative subtotals of irrigated processed programs and irrigated fresh fruit programs. Although the estimated annual per-acre grove costs listed in each budget are representative of a mature citrus grove (10+ years), the grove-care costs for a specific grove site may differ depending on tree age, tree density, and grove practices performed. Extensive tree loss due to blight or tristeza could more than double the tree replacement and care costs. Also, travel and set-up costs may vary due to size of citrus grove and distance from grove equipment barn. Note: The mandatory decontamination requirements to help control the spread of citrus canker will add to the total operational costs (these costs will be provided in a future report). Included with the comparative budget sheets are estimated "delivered-in" costs for Central Florida Valencia oranges, Southwest Florida Hamlin oranges, and Indian River grapefruit. The "delivered-in" costs for oranges represents processed fruit and for

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1999-2000 Comparative Citrus Budgets 2 grapefruit represents fresh market fruit. The estimated "delivered-in" costs include total cultural/production costs, management, regulatory costs, and harvesting costs. The budgeted cost information presented was the most current available. The budget cost items were revised to reflect current grove practices being used by growers (e.g., chemical mowing, different spray materials and rates of fertilization, microsprinkler irrigation, and more reset trees). Average per-acre yields have increased due to higher per-acre tree densities. Additional information on budgeting and cost analysis can be obtained by contacting the author or your county extension citrus specialist.

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1999-2000 Comparative Citrus Budgets 3 Table 1. A listing of estimated comparative central Florida (Ridge) citrus production costs per acre for 1999-2000z. Cost Represent a Mature (10+ Years) Central Florida (Ridge) Orange Groveu Low Cost Processed Cultural Program ($) Reduced Cost Processed/Fresh Cultural Program ($) Typical/Historical Fresh Fruit Cultural Program ($) Subtotals Totals Subtotals Totals Subtotals Totals PRODUCTION/CULTURAL COSTSy Weed Management Control Discing (2/year) 17.64 17.64 17.64 Mechanical mow middles (4/year) 41.16 41.16 41.16 General grove work (2 hours/acre) 22.74 22.74 22.74 Herbicide (1/2 tree acre treated) Application (2) 24.72 24.72 24.72 Material 67.56 84.08 84.08 Spot treatment (material/application) 17.67 17.67 17.67 Total herbicide cost 109.95 126.47 126.47 Spray Post-bloom Application (150GPA) 26.57 26.57 Material 64.71 64.71 Total post-bloom cost 91.28 91.28 Summer oil Application (250 GPA) 29.27 29.27 29.27 Material 83.93x 48.97 48.97 Total summer oil cost 113.20 78.24 78.24 Supplemental fall miticide Application (150 GPA) 26.57 Material 10.50 Total supplemental fall miticide cost 37.07 Fertilizer (bulk) Application (3) 23.43 23.43 23.43 Material (16-0-16-4 MgO @ 180 lbs N per acre and 204 lbs N per acre) 108.00 122.40 122.40 Total fertilizer cost 131.43 145.83 145.83 Dolomite (1 ton/every 4 years) Material/application 8.85 8.85 8.85 Pruning Topping ($37.75/A divided by 2.5 years) 15.10 15.10 15.10 Remove brush from trees after topping ($22.06/A divided by 2.5 years)w 8.82 8.82 8.82 Hedging ($33.50/A divided by 2 years)w 16.75 16.75 16.75 Chop/mow brush after hedging ($9.88/A divided by 2 years)w 4.94 4.94 4.94 Total pruning cost 45.61 45.61 45.61 Tree Replacement @ 1-3 years of age (3 trees/acre) Remove trees: pull, stack, and burn (3 trees, using front-end loader) 14.94 14.94 14.94 Prepare Site and Plant Trees (3 reset trees) 26.45 26.45 26.45

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1999-2000 Comparative Citrus Budgets 4 Table 1. A listing of estimated comparative central Florida (Ridge) citrus production costs per acre for 1999-2000z. Cost Represent a Mature (10+ Years) Central Florida (Ridge) Orange Groveu Low Cost Processed Cultural Program ($) Reduced Cost Processed/Fresh Cultural Program ($) Typical/Historical Fresh Fruit Cultural Program ($) Subtotals Totals Subtotals Totals Subtotals Totals Supplemental fertilizer, tree wraps, sprout, maintenance, etc. (trees 1-3 years old) 29.67 29.67 29.67 Total tree replacement cost 71.06 71.06 71.06 Irrigation Microsprinkler system 134.55 134.55 134.55 IRRIGATED PROCESSED FRUIT PRODUCTION COSTS 696.19 783.43 Fall Miticide Spray Application (150 GPA) 26.57 26.57 Material 34.36 34.36 Total fall miticide cost 60.93 60.93 IRRIGATED FRESH FRUIT PRODUCTION COSTS 844.36 881.43 Source: Ronald P. Muraro, University of Florida, Citrus Research and Education Center, Lake Alfred, FL. June 2000. u Although estimated annual per-acre grove costs listed are representative for mature citrus groves (10+ years), grove-care costs for specific grove sites may differ depending on tree age, tree density, and grove practices performed. v Irrigation Expense includes the following: Microsprinkler Drip Variable Operating Expense (diesel) $ 34.50 $ 32.43 Fixed-Variable Expense (annual maintenance repairs to system) 43.49 37.99 Total Cash Expenses $ 77.99 $ 69.72 Fixed-Depreciation Expense 56.56 45.25 Total Cash and Fixed Expense $134.55 $115.17 w Per-acre costs shown in parenthesis are for 2000. x Spray materials include copper (Cu), oil, and nutritionals and Agri-mek under the low-cost processed program. y Where "equipment use" or "application" is listed (discing, hedging, spray application), "average custom charge" (cost) represents charges for equipment repairs, maintenance, labor, and overhead management costs. Exceptions are mowing, spraying, and herbicide application costs for Southwest Florida which "represent costs for non-custom managed (owner-managed) operations." A "management charge" for equipment supervision and fruit marketing is not included. Mangement charges/costs may be based on monthly charges ($3-$4/acre) or percentage of gross management sales. Harvesting supervision cost ($0.10-$0.20/box) for overseeing and coordinating harvesting may be charged. Other cost items not included in the budget are ad valorem taxes and interest on grove investment. Overhead and adminstrative costs (water drainage/district taxes, crop insurance, and other grower assessments) may be 12% of total grove-care costs. These costs vary from grove to grove depending on age, location, and time of purchase or establishment. Except for Southwest Florida, a supervision (handling) charge of 10% for cost/price of the materials is included in "materials expense." z Estimated comparative costs are for the example grove situation described in the Economic Information Report Series "Budgeting Costs and Returns for Indian River Citrus Production" and may not represent your particular situation in Indian River. Central Florida production area refers to Polk and Highlands Counties, but costs presented in this report are applicable to Hardee, Hillsborough, Lake, Orange, and Pasco Counties.

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1999-2000 Comparative Citrus Budgets 5 Table 2. A listing of estimated comparative southwest Florida citrus production costs per acre for 1999-2000z. Cost Represent a Mature (10+ Years) Central Florida (Ridge) Orange Groveu Low Cost Processed Cultural Program ($) Reduced Cost Processed/Fresh Cultural Program ($) Typical/Historical Fresh Fruit Cultural Program ($) Subtotals Totals Subtotals Totals Subtotals Totals PRODUCTION/CULTURAL COSTSy Weed Management Control Mechanical mow middles (3/year) 24.00 24.00 24.00 Chemical mow middles (2/year) 15.86 15.86 15.86 General grove work (2 hours/acre) 24.42 24.42 24.42 Herbicides (1/2 tree acre treated) Application (3) 25.65 25.65 25.65 Material 76.04 98.42 98.42 Total herbicide cost 101.69 124.07 124.07 Spray Post-bloom Application (PTO 150GPA) 20.72 Material 27.39 Total post-bloom cost 48.11 Summer oil #1 Application (250 GPA) 21.77 21.77 21.77 Material 77.40x 48.00x 48.00 Total summer oil #1 cost 99.17 69.77 69.77 Summer oil #2 Application (PTO 150 GPA) 20.72 20.72 Material (wettable sulfur) 27.90 19.71 Total summer oil #2 cost 48.62 40.43 Fertilizer (bulk) Application (3) 21.66 21.66 21.66 Material (15-2-15-2.4 MgO @ 180 lbs N per acre and 204 lbs N per acre) 99.60 109.20 109.20 Total fertilizer cost 121.26 130.86 130.86 Dolomite (1 ton/every 3 years) Material/Application 10.75 10.75 10.75 Pruning Topping ($31.67/A divided by 2.5 years)w 12.67 12.67 12.67 Remove brush from trees after topping ($23.71/A divided by 2.5 years)w 9.48 9.48 9.48 Hedging ($10.00/A divided by 2 years)w 14.63 14.63 14.63 Chop/mow brush after hedging ($10.00/A divided by 2 years)w 5.00 5.00 5.00 Total pruning cost 41.78 41.78 41.78 Tree Replacement @ 1-3 years Of age (4 trees/acre) Remove trees: pull, stack, and burn (4 trees using front-end loader) 19.92 19.92 19.92 Prepare Site and Plant Trees (4 reset trees) 43.44 43.44 43.44

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1999-2000 Comparative Citrus Budgets 6 Table 2. A listing of estimated comparative southwest Florida citrus production costs per acre for 1999-2000z. Cost Represent a Mature (10+ Years) Central Florida (Ridge) Orange Groveu Low Cost Processed Cultural Program ($) Reduced Cost Processed/Fresh Cultural Program ($) Typical/Historical Fresh Fruit Cultural Program ($) Subtotals Totals Subtotals Totals Subtotals Totals Supplemental fertilizer, tree wraps, sprout, maintenance, etc. (trees 1-3 years old) 35.56 35.56 35.56 Total tree replacement cost 98.92 98.92 98.92 Irrigation Microsprinkler Systemv 134.55 134.55 134.55 Clean Ditches (weed control) 12.10 12.10 12.10 Ditch and Canal Maintenance 13.49 13.49 13.49 Water Control (pump water in/out of ditches and canals 9.66 9.66 9.66 Total Irrigation Cost 169.80 169.80 169.80 IRRIGATED PROCESSED FRUIT PRODUCTION COSTS 707.65 758.85 798.77 Supplemental Post Bloom Spray Application (250 GPA) 21.77 21.77 Material 43.15 43.15 Total supplemental post-bloom spray 64.92 64.92 Fall miticide spray Aerial application (15 GPA) 7.24 7.24 Material 31.24 31.24 Total fall miticide cost 38.48 38.48 IRRIGATED FRESH FRUIT PRODUCTION COSTS 862.25 902.07

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1999-2000 Comparative Citrus Budgets 7 Table 2. A listing of estimated comparative southwest Florida citrus production costs per acre for 1999-2000z. Cost Represent a Mature (10+ Years) Central Florida (Ridge) Orange Groveu Low Cost Processed Cultural Program ($) Reduced Cost Processed/Fresh Cultural Program ($) Typical/Historical Fresh Fruit Cultural Program ($) Subtotals Totals Subtotals Totals Subtotals Totals Source: Ronald P. Muraro, University of Florida, Citrus Research and Education Center, Lake Alfred, FL. June 2000. u Although estimated annual per-acre grove costs listed are representative of mature citrus groves (10+ years), grove-care costs for specific grove sites may differ depending on tree age, tree density, and grove practices performed. v Irrigation Expense includes the following: Microsprinkler Drip Variable Operating Expense (diesel) $ 34.50 $ 32.43 Fixed-Variable Expense (annual maintenance repairs to system) 43.49 37.99 Total Cash Expenses $ 77.99 $ 69.72 Fixed-Depreciation Expense 56.56 45.25 Total Cash and Fixed Expense $134.55 $115.17 w Per-acre costs shown in parenthesis are for 2000. x Spray materials include copper (Cu), oil, and nutritionals and Agri-mek under the low-cost processed program. y Where "equipment use" or "application" is listed (discing, hedging, spray application), "average custom charge" (cost) represents charges for equipment repairs, maintenance, labor, and overhead management charges/costs. Exceptions are mowing, spraying, and herbicide application costs for Southwest Florida which "represents costs for non-custom managed (owner-managed) operations." A "management charge" for equipment supervision and fruit marketing is not included. Mangement charges/costs may be based on a monthly charges ($3-$4/acre) or percentage of gross management sales. A harvesting supervision cost ($0.10-$0.20/box) for overseeing and coordinating harvesting may be charged. Other cost items not included are ad valorem taxes and interest on grove investments. Overhead and adminstrative costs (water drainage/district taxes, crop insurance, and other grower assessments) may be 12% of total grove-care costs. These costs vary from grove to grove depending on age, location, and time of purchase or establishment. Except for Southwest Florida, a supervision (handling) charge of 10% of cost/price of the materials is included in "materials expense." z Estimated comparative costs are for the example grove situation described in the Economic Information Report Series "Budgeting Costs and Returns for Indian River Citrus Production" and may not represent a particular situation in Indian River. Southwest Florida refers to counties in the Florida Agricultural Service "Southern Production Area." However, costs shown are applicable to South Central Florida counties such as DeSoto and Sarasota.

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1999-2000 Comparative Citrus Budgets 8 Table 3. A listing of estimated comparative Indian River citrus production costs per acre for 1999-2000z. Cost Represent a Mature (10+ Years) Central Florida (Ridge) Orange Groveu Low Cost Processed Cultural Program ($) Reduced Cost Processed/Fresh Cultural Program ($) Typical/Historical Fresh Fruit Cultural Program ($) Subtotals Totals Subtotals Totals Subtotals Totals PRODUCTION/CULTURAL COSTSy Weed Management Control Mechanical mow middles (3/year) 26.21 26.21 26.21 Chemical mow middles (2/year) 16.38 16.38 16.38 General grove work (2 hours/acre) 24.42 24.42 24.42 Herbicides (1/2 tree acre treated) Application (3) 36.57 36.57 36.57 Material 79.95 108.33 108.33 Total herbicide cost 116.52 144.90 144.90 Spray Post-bloom Application (PTO 250GPA) 26.90 26.90 Material 28.86 28.86 Total post-bloom cost 55.76 55.76 Summer oil #1 Application (250-500 GPA) 26.90 35.67 35.67 Material 51.60 51.60 76.22 Total summer oil #1 cost 78.50 87.27 111.89 Summer oil #2 Application (PTO 250 GPA) 26.90 26.90 26.90 Material 30.36x 21.72 21.72 Total summer oil #2 cost 57.63 48.62 48.62 Fertilizer (bulk) Application (3) 22.20 22.20 22.20 Material (12-2-12-2.4 MgO @ 125 lbs N per acre and 100 lbs N per acre) 84.24 67.64 84.24 Total fertilizer cost 106.44 89.84 106.44 Dolomite (1 ton/every 3 years) Material/Application 11.57 11.57 11.57 Pruning Topping ($28.15/A divided by 2 years)w 14.08 14.08 14.08 Remove brush from trees after topping ($23.00/A divided by 2 years)w 11.50 11.50 11.50 Hedging ($23.40/A divided by 1.5 years)w 15.60 15.60 15.60 Chop/mow brush after hedging ($10.00/A divided by 1.5 years)w 6.67 6.67 6.67 Raise Tree Skirts ($15.25/A divided by 2 years)w 7.63 7.63 Total pruning cost 47.85 55.48 55.48 Tree Replacement @ 1-3 years of age (3 trees/acre) Remove trees: pull, stack, and burn (3 trees, using front-end loader) 14.94 14.94 14.94 Prepare site and plant trees (3 reset trees) 32.58 32.58 32.58

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1999-2000 Comparative Citrus Budgets 9 Table 3. A listing of estimated comparative Indian River citrus production costs per acre for 1999-2000z. Cost Represent a Mature (10+ Years) Central Florida (Ridge) Orange Groveu Low Cost Processed Cultural Program ($) Reduced Cost Processed/Fresh Cultural Program ($) Typical/Historical Fresh Fruit Cultural Program ($) Subtotals Totals Subtotals Totals Subtotals Totals Supplemental fertilizer, tree wraps, sprout, maintenance, etc. (trees 1-3 years old) 26.67 26.67 26.67 Total Tree Replacement Cost 74.19 74.19 74.19 Irrigation Microsprinkler Systemv 134.55 134.55 134.55 Clean ditches (weed control) 12.10 12.10 12.10 Ditch and canal maintenance 13.49 13.49 13.49 Water control (pump water in/out of ditches and canals 9.66 9.66 9.66 Total irrigation cost 169.80 169.80 169.80 IRRIGATED PROCESSED FRUIT PRODUCTION COSTS 729.51 804.44 Supplemental Post-Bloom Spray Curtec application (25 GPA) 18.75 18.75 Material 45.46 45.46 Total supplemental post-bloom spray 64.21 64.21 Fall Miticide Spray Aerial application (15 GPA) 7.24 7.24 Material 34.36 34.36 Total fall miticide cost 41.60 41.60 IRRIGATED FRESH FRUIT PRODUCTION COSTS 910.25 951.47

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1999-2000 Comparative Citrus Budgets 11 Table 4. Total delivered-in cost for central Florida (Ridge) valencia oranges, southwest Florida hamlin oranges and Indian River fresh packed grapefruit, 1990-2000z. Central (Ridge) Florida (Processed Valencia Oranges) Southwest Florida (Processed Halmin Oranges) Indian River Florida (Fresh Packed Grapefruit) $/Acre $/Box $P.S. $/Acre $/Box $/P.S. $/Acre $/Box $/Carton Total Production/Cultural Costs 783.431.7490.2572758.851.5060.2468051.472.0291.0144 Interest on Operating (Cultural) Costs 39.170.0870.012937.940.0750.012347.570.1010.0507 Management Costs 48.000.1070.015848.000.0950.015648.000.1020.0512 Taxes/Regulatory Costs Property tax/ water management tax 58.920.1320.019361.000.1210.019844.800.0960.0478 Water drainage tax 60.000.1280.0640 Fly protocol costx 44.700.0950.0477 Total taxes/ regulatory costs 58.920.1320.019361.000.1210.0198149.500.3190.1595 Total Direct Grower Costs929.522.0750.3052905.791.7970.29451,196.542.5511.2758 Interest on Average Capital Investment Costs 375.850.8390.1234367.850.7300.1196389.850.8310.4156 Total Grower Costs 1,305.372.9140.42861,273.642.5270.41411,586.393.3821.6914 Harvesting Costsy Pick/spot pick, roadside and haul 851.201.9000.2794907.401.8000.2951867.651.8500.9250 Fruit drenching (fresh) 70.350.1500.0750 DOC assessment 80.640.1800.026590.720.1800.0295152.430.3250.1625 Total Harvesting and Assessment Costs 931.842.0800.3059997.921.9800.32461,090.432.3251.1625 Total Delivered-In Cost 2,237.214.9940.73452,271.564.5070.73872,676.825.7082,8539 P.S. = Pound Solids Two Cartons Per Box 448 boxes/acre @ 6.8 P.S./box Valencia Oranges 504 boxes/acre @ 6.1 P.S./box Hamlin Oranges 469 boxes/acre (average for white and red grapefruit) 100% Packout Average Tree Density 108 Trees Per Acre 145 Trees Per Acre 91 Trees Per Acre

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1999-2000 Comparative Citrus Budgets 12 Table 4. Total delivered-in cost for central Florida (Ridge) valencia oranges, southwest Florida hamlin oranges and Indian River fresh packed grapefruit, 1990-2000z. Central (Ridge) Florida (Processed Valencia Oranges) Southwest Florida (Processed Halmin Oranges) Indian River Florida (Fresh Packed Grapefruit) $/Acre $/Box $P.S. $/Acre $/Box $/P.S. $/Acre $/Box $/Carton Source: Ronald P. Muraro, professor, University of Florida, Citrus Research and Education Center, Lake Alfred, FL. June 2000. x "Fly protocol cost" is a certification program for exporting citrus to Japan. Depending on the number of times the fruit is harvested, bait/spray treatment costs may be as high as $70/acre. y Harvesting costs do not include charges for unloading/rejecting fruit at a processing plant or handling/hauling costs for packinghouse eliminations. z Total production/cultural costs presented for Central (Ridge) Florida and Southwest Florida represent a "reduced-cost processed orange cultural program" that many growers currently employ. Production/cultural costs for Indian River represent "historical cost cultural programs" for fresh packed/export grapefuit. Costs represent a mature productive citrus grove 10+ years of age.