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2000-2001 Comparative Citrus Budgets
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 Material Information
Title: 2000-2001 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: 2001
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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 September 2001."
General Note: "FE 293"
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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: IR00001886:00001

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2000-2001 Comparative Citrus Budgets1 Ronald P. Muraro2 1. This is EDIS document FE 293, a publication of the Department of Food and Resource Economics, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida. Published September 2001. 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, Citrus Research and Education Center, Lake Alfred, FL, Florida Cooperative Extension, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, 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 (Table 1), Southwest Florida (Table 2), and Indian River (Table 3) 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 citrus 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 2000-2001 comparative budgets are presented in three scenarios: (1) Low Cost Processed Fruit Cultural Program, (2) Processed and Reduced Fresh Fruit Cost Cultural Program, and (3) Typical/Historical Fresh Fruit Cultural Program. Scenarios 1 and 2 represent typical costs of cultural programs directed toward reducing expenditures for fruit grown primarily for the processed market. Scenario 3 represents typical costs of grove practices which have been performed 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. The costs are categorized into cumulative sub-totals of irrigated processed fruit program and irrigated fresh fruit program. Although the estimated annual per-acre grove costs listed in each budget are representataive for 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 tree-care costs. Also, travel and set-up costs may vary due to size of citrus grove and distance from grove-equipment barn (Tables 1, 2, and 3). Mandatory decontamination requirements to help control the spread of citrus canker add to the total operational costs (Table 4). Estimated "delivered-in" costs for Central Florida Valencia oranges and Southwest Florida Hamlin oranges are for processed fruit and estimated "delivered-in" costs for Indian River grapefruit are for

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2000-2001 Comparative Citrus Budgets 2 fresh market fruit, including total cultural/production costs, management, regulatory costs, and harvesting costs (Table 4). The budgeted cost information presented is the most current available. The budget cost items have been 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). Although average per-acre yields have increased due to higher per-acre tree densities, the recent dought situation has increased tree stress and has affected yields. Additional information on budgeting and cost analysis can be obtained by contacting the author or your county extension citrus specialist.

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2000-2001 Comparative Citrus Budgets 3 Table 1. A listing of estimated comparative central Florida (Ridge) citrus production costs per acre for 2000-2001z. Cost Represent a Mature (10+ Years) Central Florida (Ridge) Orange Groveu Low Cost Processed Fruit Cultural Program ($) Reduced Cost Processed/Fresh Fruit Cultural Program ($) Typical/Historical Fresh Fruit Cultural Program ($) Subtotals Totals Subtotals Totals Subtotals Totals PRODUCTION/CULTURAL COSTSy Weed Management Control Discing (2/year) 17.94 17.94 17.94 Mechanical mow middles (4/year) 43.00 43.00 43.00 General grove work (2 hours/acre) 22.78 22.78 22.78 Herbicide (1/2 tree acre treated) Application (2) 26.36 26.36 26.36 Material 61.38 78.28 78.28 Spot treatment (material/application) 17.21 17.21 17.21 Total herbicide cost 104.95 121.85 121.85 Spray Post-bloom Application (150GPA) 28.55 28.55 25.77 Material 73.88x 43.33 60.96 Total post-bloom cost 102.43 71.88 86.73 Summer oil Application (250 GPA) 28.55 28.55 Material 29.64 43.33 Total summer oil cost 58.19 71.88 Supplemental fall miticide Application (150 GPA) 25.77 Material 9.90 Total supplemental fall miticide cost 35.67 Fertilizer (bulk) Application (3) 23.88 23.88 23.88 Material (16-0-16-4 MgO @ 180 lbs N per acre and 204 lbs N per acre) 109.13 123.68 123.68 Total fertilizer cost 131.01 147.56 147.56 Dolomite (1 ton/every 4 years) Material/application 8.83 8.83 8.83 Pruning Topping ($37.75/A divided by 2.5 years) 14.80 14.80 14.80 Remove brush from trees after topping ($22.06/A divided by 2.5 years)w 9.17 9.17 9.17 Hedging ($33.50/A divided by 2 years)w 17.17 17.17 17.17 Chop/mow brush after hedging ($9.88/A divided by 2 years)w 4.00 4.00 4.00 Total pruning cost 45.14 45.14 45.14

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2000-2001 Comparative Citrus Budgets 4 Table 1. A listing of estimated comparative central Florida (Ridge) citrus production costs per acre for 2000-2001z. 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 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 150.62 150.62 150.62 IRRIGATED PROCESSED FRUIT PRODUCTION COSTS 699.76 758.85 Fall Miticide Spray Application (150 GPA) 25.77 25.77 Material 33.42 33.42 Total fall miticide cost 59.19 59.19 IRRIGATED FRESH FRUIT PRODUCTION COSTS 818.04 882.25 Source: Ronald P. Muraro, University of Florida, Citrus Research and Education Center, Lake Alfred, FL. June 2001. 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) $ 38.82 $ 36.49 Fixed-Variable Expense (annual maintenance repairs to system) 44.79 39.13 Total Cash Expenses $ 83.61 $ 75.62 Fixed-Depreciation Expense 56.56 45.25 Total Cash and Fixed Expense $140.17 $120.87 w Per-acre costs shown in parenthesis are for 2001. 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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2000-2001 Comparative Citrus Budgets 5 Table 2. A listing of estimated comparative southwest Florida citrus production costs per acre for 2000-2001z. Cost Represent a Mature (10+ Years) Central Florida (Ridge) Orange Groveu Low Cost Processed Fruit Cultural Program ($) Reduced Cost Processed/Fresh Fruit Cultural Program ($) Typical/Historical Fresh Fruit Cultural Program ($) Subtotals Totals Subtotals Totals Subtotals Totals PRODUCTION/CULTURAL COSTSy Weed Management Control Mechanical mow middles (3/year) 25.07 25.07 25.07 Chemical mow middles (2/year) 16.28 16.28 16.28 General grove work (2 hours/acre) 24.20 24.20 24.20 Herbicides (1/2 tree acre treated) Application (3) 25.74 25.74 25.74 Material 70.78 91.08 91.08 Total herbicide cost 96.52 116.82 116.82 Spray Post-bloom Application (PTO 150GPA) 21.90 Material 25.15 Total post-bloom cost 47.05 Summer oil #1 Application (250 GPA) 23.00 23.00 23.00 Material 68.26x 44.33x 44.33 Total summer oil #1 cost 91.26 67.33 67.33 Summer oil #2 Application (PTO 150 GPA) 21.90 21.90 Material (wettable sulfur) 28.96 18.76 Total summer oil #2 cost 50.86 40.66 Fertilizer (bulk) Application (3) 21.90 21.90 21.90 Material (15-2-15-2.4 MgO @ 180 lbs N per acre and 204 lbs N per acre) 98.40 108.00 108.00 Total fertilizer cost 120.30 129.90 129.90 Dolomite (1 ton/every 3 years) Material/Application 10.70 10.70 10.70 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 9.86 9.86 9.86 Hedging ($10.00/A divided by 2 years)w 14.90 14.90 14.90 Chop/mow brush after hedging ($10.00/A divided by 2 years)w 4.00 4.00 4.00 Total pruning cost 41.43 41.43 41.43

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2000-2001 Comparative Citrus Budgets 6 Table 2. A listing of estimated comparative southwest Florida citrus production costs per acre for 2000-2001z. 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 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 150.62 150.62 150.62 Clean Ditches (weed control) 12.52 12.52 12.52 Ditch and Canal Maintenance 13.96 13.96 13.96 Water Control (pump water in/out of ditches and canals 10.43 10.43 10.43 Total Irrigation Cost 187.53 187.53 187.53 IRRIGATED PROCESSED FRUIT PRODUCTION COSTS 712.21 769.04 Supplemental Post Bloom Spray Application (250 GPA) 23.00 23.00 Material 40.45 40.45 Total supplemental post-bloom spray 63.45 63.45 Fall Miticide Spray Aerial application (15 GPA) 7.50 7.50 Material 30.88 30.88 Total fall miticide cost 38.38 38.38 IRRIGATED FRESH FRUIT PRODUCTION COSTS 870.87 907.72

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2000-2001 Comparative Citrus Budgets 7 Table 2. A listing of estimated comparative southwest Florida citrus production costs per acre for 2000-2001z. Source: Ronald P. Muraro, University of Florida, Citrus Research and Education Center, Lake Alfred, FL. June 2001. 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) $ 38.82 $ 36.49 Fixed-Variable Expense (annual maintenance repairs to system) 44.79 39.13 Total Cash Expenses $ 83.61 $ 75.62 Fixed-Depreciation Expense 56.56 45.25 Total Cash and Fixed Expense $140.17 $120.87 w Per-acre costs shown in parenthesis are for 2001. 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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2000-2001 Comparative Citrus Budgets 8 Table 3. A listing of estimated comparative Indian River citrus production costs per acre for 2000-2001z. Cost Represent a Mature (10+ Years) Central Florida (Ridge) Orange Groveu Low Cost Processed Fruit Cultural Program ($) Reduced Cost Processed/Fresh Fruit Cultural Program ($) Typical/Historical Fresh Fruit Cultural Program ($) Subtotals Totals Subtotals Totals Subtotals Totals PRODUCTION/CULTURAL COSTSy Weed Management Control Mechanical mow middles (3/year) 27.48 27.48 27.48 Chemical mow middles (2/year) 16.74 16.74 16.74 General grove work (2 hours/acre) 24.20 24.20 24.20 Herbicides (1/2 tree acre treated) Application (3) 36.69 36.69 36.69 Material 74.82 100.22 100.22 Total herbicide cost 111.51 136.91 136.91 Spray Post-bloom Application (PTO 250GPA) 28.42 28.42 Material 26.35 26.35 Total post-bloom cost 54.77 54.77 Summer oil #1 Application (250-500 GPA) 31.50 36.17 36.17 Material 47.48x 66.03 66.03 Total summer oil #1 cost 78.98 102.20 102.20 Summer oil #2 Application (PTO 250 GPA) 28.42 28.42 28.42 Material 29.64 20.63 20.63 Total summer oil #2 cost 58.06 49.05 49.05 Fertilizer (bulk) Application (3) 21.90 21.90 21.90 Material (12-2-12-2.4 MgO @ 125 lbs N per acre and 100 lbs N per acre) 82.16 65.97 82.16 Total fertilizer cost 104.06 87.87 104.06 Dolomite (1 ton/every 3 years) Material/Application 11.52 11.52 11.52 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 11.96 11.96 11.96 Hedging ($23.40/A divided by 1.5 years)w 15.59 15.89 15.89 Chop/mow brush after hedging ($10.00/A divided by 1.5 years)w 5.33 5.33 5.33

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2000-2001 Comparative Citrus Budgets 9 Table 3. A listing of estimated comparative Indian River citrus production costs per acre for 2000-2001z. Raise Tree Skirts ($15.25/A divided by 2 years)w 7.80 7.80 Total pruning cost 47.26 55.06 55.06 Tree Replacement @ 1-3 years of age (3 trees/acre) Remove trees: pull, stack, and burn (3 trees, using front-end loader) 19.92 19.92 19.92 Prepare site and plant trees (3 reset trees) 46.32 46.32 46.32 Supplemental fertilizer, tree wraps, sprout, maintenance, etc. (trees 1-3 years old) 35.56 35.56 35.56 Total Tree Replacement Cost 101.80 101.80 101.80 Irrigation Microsprinkler Systemv 150.62 150.62 150.62 Clean ditches (weed control) 12.52 12.52 12.52 Ditch and canal maintenance 13.96 13.96 13.96 Water control (pump water in/out of ditches and canals 10.43 10.43 10.43 Total irrigation cost 187.53 187.53 187.53 IRRIGATED PROCESSED FRUIT PRODUCTION COSTS 769.14 855.13 Supplemental Post-Bloom Spray Curtec application (25 GPA) 19.80 19.80 Material 42.42 42.42 Total supplemental post-bloom spray 62.22 62.22 Fall Miticide Spray Aerial application (15 GPA) 7.50 7.50 Material 33.42 33.42 Total fall miticide cost 40.92 40.92 IRRIGATED FRESH FRUIT PRODUCTION COSTS 958.27 974.46

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2000-2001 Comparative Citrus Budgets 10 Table 3. A listing of estimated comparative Indian River citrus production costs per acre for 2000-2001z. Source: Ronald P. Muraro, University of Florida, Citrus Research and Education Center, Lake Alfred, FL. June 2001. 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) $ 38.82 $ 36.49 Fixed-Variable Expense (annual maintenance repairs to system) 44.79 39.13 Total Cash Expenses $ 83.61 $ 75.62 Fixed-Depreciation Expense 56.56 45.25 Total Cash and Fixed Expense $140.17 $120.87 w Per-acre costs shown in parenthesis are for 2001. 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 a cost 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. A 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 such as water drainage/district taxes, crop insurance, and other grower assessments may be 12% of the 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, materials expense is a supervision (handling) charge of 10% of cost/price of the materials is included in "material 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. Indian River production area refers to the citrus producing counties on Florida's east coast.

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2000-2001 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 758.851.7400.2560769.041.5260.2461974.462.2931.1464 Interest on Operating (Cultural) Costs 37.940.0870.012838.450.0760.012348.720.1150.0573 Management Costs 48.000.1100.016248.000.0950.015448.000.1130.0565 Taxes/Regulatory Costs Property tax/water management tax 58.920.1350.019961.000.1210.019544.800.1050.0527 Water drainage tax 60.000.1410.0706 Fly protocol costx 49.300.1160.0580 Canker decontamination costs 27.720.0640.009327.720.0550.008927.720.0650.0326 Total taxes/ regulatory costs 86.640.1990.029288.720.1760.0284181.820.4270.2139 Total Direct Grower Costs 931.432.1360.3142944.211.8730.30221,253.002.9481.4741 Interest on Average Capital Investment Costs 375.850.8620.1267367.850.7300.1177389.850.9170.4585 Total Grower Costs1,307.282.9980.44091,312.062.6030.41991,642.853.8651.9326 Harvesting Costsy Pick/spot pick, roadside and haul 850.201.9500.2868957.601.9000.3065807.501.9000.9500 Fruit drenching (fresh) 72.250.1700.0850 DOC assessment 76.300.1750.025788.200.1750.0282148.750.3500.1750 Total Harvesting and Assessment Costs 926.502.1250.31251,045.802.0750.33471,028.502.4201.2100 Total Delivered-In Cost2,233.785.1230.75342,357.864.6780.75462,671.356.2853.426 P.S. = Pound Solids Two Cartons Per Box 436 boxes/acre @ 6.8 P.S./box Valencia Oranges 504 boxes/acre @ 6.2 P.S./box Hamlin Oranges 425 boxes/acre (white and red grapefruit) 100% Packout Average Tree Density 112 Trees Per Acre 145 Trees Per Acre 95 Trees Per Acre

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2000-2001 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. Source: Ronald P. Muraro, professor, University of Florida, Citrus Research and Education Center, Lake Alfred, FL. June 2001. 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.