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Permanent Link: http://ufdc.ufl.edu/IR00001999/00001
 Material Information
Title: Budgeting Costs and Returns for Indian River Citrus Production, 2002-03
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: 2003
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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: "September 2003"
General Note: "FE 433"
 Record Information
Source Institution: University of Florida Institutional Repository
Holding Location: University of Florida
Rights Management: All rights reserved by the submitter.
System ID: IR00001999:00001


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i ABSTRACT Estimated costs and returns of growing seedless grapefruit in the Indian River area of Flori da are presented for the twentieth year. The format pre sente d may be used by individual growers to budget costs and returns, utilizing individual data on specific groves. Key words: citrus, Indian River, budgeting, costs and returns, seedless grapefruit. NOTE: The Indian River production area refers to the citrus producing counties on Florida's east coast including Brevard, Indian River, Martin, Palm Beach, and St. Lucie counties. The budgeted cost information presented herein is the most c urrent 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 fertilizati on, mi crosprinkler irrigation, more reset trees, etc. Thus the 2002-03 budget c osts reflect reduced fertilizer for fresh market grapefruit and lower fertilizer and pesticide materials costs and increased per acre yield due to higher per acre tree densities. The budget costs in this report represent a custom-managed operation Therefo re, all equipment costs are based on the average custom rate costs and a 10 percent handling and supervision charge is added to the material cost. Although the estimated annual per acre gr ove c osts listed are representative for a mature citrus grove (10+ years old), the grove care costs for a s pecific g rove site may differ depending upon the tree age, tree density and the grove practices performed; e.g., spot herbicide for grass/brush regrowth under trees could add an add itional $ 16.60 per acre; Diaprepes control could add $69.54 per acre for soil biological control application and $73.20 per acre for each foliar application; extensive tree loss due to blight or tristeza could substantially increase the tree replacement and care costs; spray applications to control citrus leafminer and nematicide applications such as Temik ($128.11/acre) could increase the total cultural costs per acre above the average costs shown in the comparative budgets; travel and set-up costs may vary due to size of the citrus grove and distance from grove equipment barn and could add $25.98 per acre; etc. ACKNOWLEDGEMENTS Appreciation is extended to Mrs. Jane Wilson for typing the final draft of this manuscript. Appreciation is also extended to the citrus growers and production managers of the Indian River citrus production area who provided suggestions for the revision of this manuscript.

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ii TABLE OF CONTENTS Page ABSTRACT ................................................................... i ACKNOWLEDGEMENTS ....................................................... i LIST OF TABLES .............................................................. iii INTRODUCTION .............................................................. 1 METHOD OF DATA COLLECTION .............................................. 1 COSTS AND INPUTS .......................................................... 1 THE GROVE SITUATION ....................................................... 2 BUDGET COSTS AND RETURNS ................................................ 4 HISTORICAL COST TRENDS ................................................... 5 REFERENCES ................................................................ 11 ADDENDA ................................................................... 12 NOTE : The ADDENDA include a Listing of Grove Care Opt i ons for Indian River Citrus Production for Both Round Oranges and G rapefruit; 2003 custom rate summary report; cost of establishing a citrus grove; etc. Page 12 is a list of the tables included in the ADDENDA.

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iii LIST OF TABLES Table Page 1Schedule of production practices and budget items for an Indian River Florida grapefruit grove, 2002-03 ............................................... 3 2 Calculation of normal production per acre, 2002-03 .......................... 4 3 Estimated annual per acre costs and returns for a mature, white seedless grapefruit grove producing for the fresh market, Indian River area, 2002-03 ............... 6 4 Estimated total delivered-in cost for Indian River White grapefruit grown for the processed juice market under three cultural cost programs, 2002-03 .............. 7 5 Estimated F.O.B. cost for fresh market Indian River White grapefruit, 2002-03 ..... 8 6 Estimated annual per acre costs and returns and 5-year average costs and returns for a mature, white seedless grapefruit grove producing citrus for fresh fruit market in the Indian River area, 1998-99-03 ................................... 9 7 Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2003 dollars) for a mature, white seedless grapefruit grove producing citrus for fresh fruit market in the Indian River area, 1998-99-03 ........... 10

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RONALD P MURARO is a Professor of Food and Resource Economics and Extension Farm Mana gement Economist stationed at the Citrus Research and Education Center, Lake Alfred. JOH N W. HEBB i s Exte nsion Agent, Citrus in St. Lucie County, Ft. Pierce. ED W. STOVER is Extension Horticulturist at the Indian River Research and Education Center, Ft. Pierce. 1 BUDGETING COSTS AND RETURNS FOR INDIAN RIVER CITRUS PRODUCTION, 2002-03 Ronald P. Muraro, John W. Hebb and Ed W. Stover INTRODUCTION Budget analysis provides the basis for many grower deci sio ns. Budget analysis can be used to calculate potential profits from an operation, to determine cash requirements f or an oper ation, and to determine break-even prices. This report presents a budget constructed from current data and ser ves as a format for growers to analyze costs and returns from their individual records. METHOD OF DATA COLLECTION The data presented here were developed by surveying custom operators, input suppliers, growers, and collea gues at both the Indian River Research and Education Center in Ft. Pierce and the Cit ru s Research and Education Center in Lake Alfred and County Extension Citrus Agents in the Indian River production region. The survey is conducted annually in February and March. COSTS AND INPUTS Costs for various production inputs are those collected from citrus growers as well as the average of the data obtained from annual custom rate, chemical, and f ertil izer surveys. Growers' costs are shown in the ADDENDA, Table 1-A through 7-A. The custom rate costs are shown in Table 8-A and the various chemical and fertilizer costs are show n in Table 9-A and 10-A in the ADDENDA. The budget costs represent a custom-managed operation Therefore, all equipment costs are based upon the average custom-rate costs and a 10 percent handling and supervision charge is added to the material cost. Alth o ugh brand names are used in many of the tables in the ADDENDA, this does not imply endorsement by the University of Florida. It is merely an attempt to depict typical production practices. All tables ha ve a column re served for the individual growers to insert data from a particular grove. This will allow a comparison of the grower's costs with those presented.

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2 THE GROVE SITUATION Production practices for an Indian River grapefruit grove are shown in Table 1 with times during the year whe n they would likely be performed. There are two benefits to developing such a table for an individual grove. First, it shows what wor k is neede d and when, so that operations can be planned well in a dvan ce. Second, it can be helpful if an annual cash flow analysis is developed to plan financing. The individual grower may benefit from developing a plan for a particular grove. Specific production practices var y from grove to grove making it difficult to define a "typical" grove. Many combination s of pract ices and various tree variety combinations produce acceptable yields and returns. Although the example represents a white seedless grapefruit grove, the cost and return data are designed to be applicable to most grove situations A grower, realtor, or land appraiser can substitute individual grove costs and expected returns into the budget format and develop a budget for a particular grove. A "your cost" column is appropriate ly provided for this purpose in subsequent tables. In the following budget, above average management and cultural practices are assumed. Beyond this general assumption, the following specifics are assumed. 1. A mature (10+ years old), low volume-irrigated grove; 2. Variety is white seedless on sour orange rootstock; 3. Tree loss is 5.0 percent annually; 4. Trees are pulled and replaced when production falls below 50 percent of expected yield; 5. Production is for fresh market; 6. Tree density is 95 trees per acre; and 7. Custom-caretaker is providing grove management. As a result of tree losses and repla cement, the tree ages will vary. The budget reflects the following age distribution and yield for Indian River white seedless grapefruit shown in Table 1:

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3Table 1.--Schedule of production practices and budget items for an Indian River Florida grapefruit grove, 2002-03 a Month JanFebMar Apr May JunJulAug SepOct Nov Dec Total revenue : 20% deposit Final payment Less: Pick & haul cost X DOC advertisement tax X Grove expenses : Mow X X Chemical Mow Chemical Mow X Labor, general grove work, pull vines X X Herbicide (sprayed strip estimated as 1/2 grove acre equivalent) X X X Spray: Post bloom/nutritional XX Summer oil/greasy spot X Fall miticide X Supplemental miticide X Fertilizer 42# N/A 42# N/A 42# N/A Dolomite Hedging and topping Hedge Brush removal/chop brush Chop brush Tree removal X Young tree care XX XX X Microjet irrigation (times/week) 1 12333222211 Miscellaneous (clean ditches) X Grove taxes including water management X Interest expense X Annual principal payment on mortgage X a This is a suggested schedule of practices. Actual practices would not necessarily be done on the exact schedule shown here.

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4 % of Yield grove Tree age and condition boxes/tree 5.0% pulled and reset 0.0 5.0% 1 year old 0.0 5.0% 2 years old 0.0 5.0% 3 years old 1.0 5.0% 4 years old 1.7 55.0% 5-15 years old 5.5 5.0% producing 50% of expected yield 3.5 15.0% over 15 years 7.0 Calculation of normal production per acre is shown in Table 2. Note that the proportion-of-treesby-age column only adds to 85 percent since 15 percent of the trees are non-bearing. Table 2.--Calculation of normal production per acre, 2002-03 Age of Tree Trees Boxes /tree Total boxes Total no. all ages Proportion ea. age a No. ea. age ---------No. ---------3 years 95 x 0.05 = 4.75 x 1.0 = 4.8 4 years 95 x 0.05 = 4.75 x 1.7 = 8.1 5-15 years 95 x 0.55 = 52.30 x 5.5 = 287.7 Prod. 50% of exp. yield 95 x 0.05 = 4.75 x 3.5 = 16.6 Over 15 years 95 x 0.15 = 14.30 x 7.0 = 100.1 Total boxes = 417.3 a Proportion adds up to 0.85 ( 85 percent) as 15 percent of the trees were non-bearing (pulled and reset, 1 and 2 year old trees). BUDGET COSTS AND RETURNS The estimated budget costs an d return s for the Indian River grove situation are shown in Table 3. The budgeted costs represent on e pos sible citrus production program and were selected from the costs shown in the ADDENDA tables. The gross revenue esti mates are based on the projected yields in Table 3 and estimated prelimin ary on-tree prices for the 2002-03 season. Grove establishment and reset costs, harvesting and packing charges can be found in Tables 11-A through 15-A in the ADDENDA. Also, historical on-tree prices for s ele cted Florida citrus varieties are shown in Table 16-A of the ADDENDA.

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5 As shown in Table 3, the total revenue for fresh-market white seedless grapefruit is es timated to be $1,276.02 per acre. Total specified costs are $1,072.54 and are comprised of grove c are costs of $1,024.54, plus management cost of $48.00. Return to land, trees, and ownership, which represents net return above variable costs, was estimat ed to be $203.48 per acre. At 325 and 525 boxes per acre, respectively, the break-even price required to cover grove care costs for seedless white grapefruit range from $3.15 to $1.95 per box on-tree and $1.42 to $1.17 per pounds solids delivered-in for eliminations. Ad valorem taxes, and overhe ad and admin istrative costs (such as water drainage district taxes, crop insurance, and other grower as sessments) can add up to 12 percent of the total grove care costs. These costs vary from grove to grove depending on age, location, variety of fru it, etc. and should be considered in arriving at a net return to land, trees, and ownership (tot al retu rn minus total costs). Harvest costs (pick, roadside, and hauling costs) also add to the total fruit cost delive red to e ither a processing plant or fresh fruit packinghouse. Also, average annual debt payment (princi pal and interest) may be as high as $460 per acre ($3,900 average debt per acre @ 10 percent interest amortized over 20 years) which would reduce total available cash for grove expansion or other investment. Estimated delivere d -in costs are shown for fresh packed white grapefruit in Table 4. De livered-in costs include grove care costs (Table 3) plus harvesting, regulatory, and grower assessment costs. The "deliveredin" cost is presented as a cost per acre, per box, per carton, and per pound solids. Three possible budget cost scenarios are presented (Refe r to Table 13-A): 1) Low Cost Pr ocessed Cultural Program; 2) Processed and Reduced Cost Fresh Cultural Program; and 3 ) Typical/Historical Fresh Fruit Cultural Program The first scenario represents costs of a cultural pr ogram directed toward reducing the expenditures for fruit grown primarily for the processed market. Scenario 2 represents a program using reduced inputs but with production directed at the fresh market. And the third scenario 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 progra ms acco unt for the reduced costs. NOTE : Before modifying a grove m anagement program to reduce costs, an evaluation of the market program (processed or fresh), yield, and specific cultu ral pro blems (nutrition, disease, etc.) fo r t he specific grove site should be made. Also, in Table 5, the total estimated F.O.B. cost for fresh packed white grapefruit is shown. The F.O.B. costs are presented for "fresh fruit packout percentage rates" ranging from 50 percent to 100 percent. HISTORICAL COST TRENDS Annual budgets of costs and retu rns for matu re, fresh, white seedless grapefruit in the Indian River area have been developed and published the past four years. Estimated cost and ret urn historie s for 1998-99 through 2001-02 along with 2002-03, and a five-year average are presented in Table 6. The affects of over planting following recent freezes on Florida's annual grapefruit supply has resulted in a fluctuating on-tree price per box. Despite general reduction in operating costs, annual ne t retur n to land and trees has decreased over the five-year period. To allow comparisons in current values, these same costs and returns, adjusted to 2003 dollars, are presented in Table 7.

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6Table 3.--Estimated annual per acre costs and returns for a mature, white seedless grapefruit grove producing for the fresh market, Indian River area, 2002-03 a Item Description Amount Your cost ----------------------Dollars ---------------------I. Revenue 417 boxes @ $3.06 b 1,276.02 ___________ II. Expenses c Weed control Mow middles Chemical mow (Table 2-A, Option #9) General grove work/sprouting, etc. Herbicide (Table 2-A, Options #1, #6 & #7) Spray program (Table 1-A, Options #1, #3, #4 @ 2, #6 & #13) Fertilizer (Table 3-A, Option #2) Dolomite (Table 7-A, Option #1) Pruning (maintenance) Topping Hedging Removing/chop brush Raise skirts of trees Tree replacement and care Remove trees (Table 12-A) Prepare sites, repair mound, and plant resets Supplemental fertilizer, sprout, etc. (Trees 1-3 years) Microsprinkler irrigation (Table 7-A, Option #4) Drainage ditch annual cost (Table 7-A, Option #5) Total grove care expenses 3 times per year 2 times per year (2 labor hours per acre) ($279.50/hr. 10 A/hr.) 2 yrs. ($255.00/hr. 10 A/hr.) 1.5 yrs. ($8.23/A 1.5 yrs.) ($13.00/A 2 yrs.) (1 through 3 years) 5 trees per acre Including 5 trees per acre Including application 29.16 14.06 25.84 141.99 13.95 17.00 5.49 6.50 23.70 57.60 46.75 211.05 338.62 107.13 12.59 42.94 128.05 145.30 38.86 1,024.54 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ III. Management $4.00 per acre per month d 48.00 ___________ IV. Total specified costs e 1,072.54 V. Return (loss) to land, trees, and ownership 203.48 VI. Break-even price for total grove care expenses Boxes per acre ____________________________________________________________ Boxes per acre _____________________________________________________ 325 375 425 475 525 325 375 425 475 525 $ On-tree price per box $ Delivered-in price per pound solids for eliminations f 3.15 2.73 2.41 2.16 1.95 1.42 1.33 1.26 1.21 1.17 a Although the estimated annual per acre grove costs shown in Table 3 are representative for a mature Indian River white seedless grapefruit grove, the grove care costs for a specific grove site may differ depending upon the grove practices performed; e.g., a Temik application would add $128.11 per acre; extensive tree loss due to blight or tristeza may double the tree replacement and care costs; travel and set-up costs may vary due to size of citrus grove and distance from grove equipment barn; etc.; truck watering of resets could add another $7.95 per acre (average 5 waterings). Also, material cost for brown citrus aphid control could add $10.22 per spray application. b On-tree price per box is preliminary; assumes average of all methods of sale (fresh and processed). Also, the severe drought affected yields for the 2001-02 season. c Assumes material custom applied; therefore, a 10 percent handling and supervision charge is added to material cost. d Other methods to estimate a management cost--e.g., 5% of gross sales or 10% of total grove care costs--are used in the industry. Other methods will give a different return to land and trees than reported here. e Other cost items which are not included in the budget are ad valorem taxes and interest on grove investment. In addition to these cost items, overhead and administrative costs, such as water drainage/district taxes, crop insurance, and other grower assessments, can add up to 12 percent to the total grove care costs. These costs vary from grove to grove depending on age, location, and time of purchase or grove establishment. f Assumes 4.7 pounds solids per box, $2.54 pick and haul cost per box (includes spot picking and fruit drenching plus D.O.C. $0.25 advertising tax and canker decontamination costs), $0.55 per box handling through packinghouse, and $0.45 per box delivery to processing plant.

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7Table 4.--Estimated total delivered-in cost for Indian River White grapefruit grown for the fresh/processed market under three cultural cost programs, 2002-03 Represents a mature (10+ years old) Indian River White Grapefruit Grove Processed White Grapefruit Low Cost Cultural Program Fresh Packed White Grapefruit Reduced Cost Cultural Program Fresh Packed White Grapefruit Typical/Historical Cultural Program $/Acre $/Box $/P.S. $/Acre $/Box $/Carton $/Acre $/Box $/Carton Total Production/Cultural Costs $ 796.51 $1.910 $0.4064 $ 997.71 $2.393 $1.1963 $1,024.54 $2.457 $1.2285 Interest on Operating (Cultural) Costs 39.83 0.096 0.0203 49.89 0.120 0.0598 51.23 0.123 0.0614 Management Costs 48.00 0.115 0.0245 48.00 0.115 0.0576 48.00 0.115 0.0576 Taxes/Regulatory Costs: Property Tax/Water Management Tax 44.80 0.107 0.0229 44.80 0.107 0.0537 44.80 0.107 0.0537 Water Drainage District Tax 60.00 0.144 0.0306 60.00 0.144 0.0719 60.00 0.144 0.0719 Fly Protocol Cost 52.13 0.125 0.0625 52.13 0.125 0.0625 Canker Decontamination Costs 4.54 0.011 0.0023 4.54 0.011 0.0054 4.54 0.011 0.0054 Total Taxes/Regulatory Costs 109.34 0.262 0.0558 161.47 0.387 0.1936 161.47 0.387 0.1936 Total Direct Grower Costs $ 993.68 $2.383 $0.5070 $1,257.07 $3.015 $1.5073 $1,285.24 $3.082 $1.5411 Interest on Average Capital Investment Costs 378.50 0.908 0.1931 378.50 0.908 0.4538 378.50 0.908 0.4538 Total Grower Costs $1,372.18 $3.291 $0.7001 $1,635.57 $3.922 $1.9611 $1,663.74 $3.990 $1.9949 Harvesting and Assessment Costs: Pick/Spot Pick, Roadside & Haul and Canker Decontamination 786.05 1.885 0.4011 885.29 2.123 1.0615 885.29 2.123 1.0615 Fruit Drenching (Fresh) 70.89 0.170 0.0850 70.89 0.170 0.0850 DOC Assessment 83.40 0.200 0.0426 104.25 0.250 0.1250 104.25 0.250 0.1250 Total Harvesting and Assessment Costs 869.45 2.085 0.4436 1,060.43 2.543 1.2715 1,060.43 2.543 1.2715 Total Delivered-In Cost $ 2,241.62 $5.376 $1.1437 $2,696.00 $6.465 $3.2326 $2,724.17 $6.533 $3.2664 Two cartons per box P.S. = Pound Solids Yield: 417 boxes/acre @ 4.7 P.S. per box 95 trees per acre Refer to cultural program shown on Table 13-A. Two summer oil sprays with oil, copper, and nutritionals. Refer to cultural program shown on Table 13-A. Assumes 100% packout Refer to cultural program shown in Table 3. Assumes 100% packout

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8 Table 5.--Estimated F.O.B. cost for fresh market Indian River White grapefruit, 2002-03 Percent Packout 50.00% Box Yield Per Acre 417 Percent Packout 60.00% Box Yield Per Acre 417 Percent Packout 70.00% Box Yield Per Acre 417 Per Acre Per Packed Box Per CartonPer Acre Per Packed Box Per CartonPer Acre Per Packed Box Per Carton Total Production/ Cultural Costs $1,024.54 $4.914 $2.4569 $1,024.54 $4.095 $2.0474 $1,024.54 $3.510 $1.7550 Interest on Operating (Cultural) Costs 51.23 0.246 0.1228 51.23 0.205 0.1024 51.23 0.175 0.0877 Management 48.00 0.230 0.1151 48.00 0.192 0.0959 48.00 0.164 0.0822 Taxes/Regulatory 161.47 0.774 0.3872 161.47 0.645 0.3227 161.47 0.553 0.2766 Interest on Average Capital Investment 378.50 1.815 0.9077 378.50 1.513 0.7564 378.50 1.297 0.6483 Harvesting (Pick/Spot Pick, Haul, DOC Tax, Etc.) 1,060.43 5.086 2.5430 1,060.43 4.238 2.1192 1,060.43 3.633 1.8164 Total Delivered-In Cost $2,724.17 $13.066 $6.5328 $2,724.17 $10.888 $5.4440 $2,724.17 $9.333 $4.6663 Packing & Selling (Export) 1,573.34 7.546 3.7730 1,888.01 7.546 3.7730 2,202.68 7.546 3.7730 Net Fresh Eliminations Costs a -310.87 -1.491 -0.7455 -248.70 -0.994 -0.4970 -186.52 -0.639 -0.3195 Total F.O.B. Costs $ 3,986.64 $ 19.121 $ 9.5603 $ 4,363.48 $ 17.440 $ 8.7200 $ 4,740.32 $ 16.240 $ 8.1198 Percent Packout 80.00% Box Yield Per Acre 417 Percent Packout 90.00% Box Yield Per Acre 417 Percent Packout 100.00% Box Yield Per Acre 417 Per Acre Per Packed Box Per CartonPer Acre Per Packed Box Per CartonPer Acre Per Packed Box Per Carton Total Production/ Cultural Costs $1,024.54 $3.071 $1.5356 $1,024.54 $2.730 $1.3650 $1,024.54 $2.457 $1.2285 Interest on Operating (Cultural) Costs 51.23 0.154 0.0768 51.23 0.136 0.0682 51.23 0.123 0.0614 Management 48.00 0.144 0.0719 48.00 0.128 0.0639 48.00 0.115 0.0576 Taxes/Regulatory 161.47 0.484 0.2420 161.47 0.430 0.2151 161.47 0.387 0.1936 Interest on Average Capital Investment 389.85 1.169 0.5843 389.85 1.039 0.5194 389.85 0.935 0.4674 Harvesting (Pick/Spot Pick, Haul, DOC Tax, Etc.) 1,060.43 3.179 1.5894 1,060.43 2.826 1.4128 1,060.43 2.543 1.2715 Total Delivered-In Cost $2,735.52 $8.200 $4.1000 $2,735.52 $7.289 $3.6444 $2,735.52 $6.560 $3.2800 Packing & Selling (Export) 2,517.35 7.546 3.7730 2,832.01 7.546 3.7730 3,146.68 7.546 3.7730 Net Fresh Eliminations Costs a -124.35 -0.373 -0.1864 -62.17 -0.166 -0.0828 0.00 0.000 0.0000 Total F.O.B. Costs $ 5,128.51 $ 15.373 $ 7.6866 $ 5,505.36 $ 14.669 $ 7.3346 $ 5,882.20 $ 14.106 $ 7.0530 a Net Eliminations Cost equals the average yield of 4.70 pound solids per box times $0.53 per pound solids less packinghouse elimination charge and cannery hauling charge of $1.00 per box.

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9Table 6.--Estimated annual per acre costs and returns and 5-year average costs and returns for a mature, white seedless grapefruit grove producing citrus for fresh fruit market in the Indian River area, 1998-99-03 Year On-tree price/box a Yield Gross revenue Total grove care expenses Total specified costs f Net return to land, trees, and ownership -----------------------------------------Dollars ------------------------------------1998-99 $1.95 469 c 914.55 922.55 970.55 (56.00) 1999-00 $4.20 469 c 1,969.80 951.47 999.47 970.33 2000-01 $2.15 425 d 913.75 974.46 1,022.46 (108.71) 2001-02 $1.95 417 e 813.15 1,008.77 1,056.77 (243.62) 2002-03 $3.06 b 417 e 1,276.02 1,024.54 1,072.54 203.18 5-yr. avg. $2.66 439 1,167.74 976.36 1,024.36 143.38 a On-tree prices for all sales methods as reported by the Florida Agricultural Statistics Service. b Preliminary estimate by authors at time of printing and is not a published price. c Higher per acre yield is due to increased average tree density of white grapefruit groves in the Indian River production region. d The severe drought affected yields for the 2001-02 season. e Increased tree loss due to citrus tristeza virus reduced yields. f A management cost of $4.00 per acre per month is included. Fixed costs such as taxes, debt service, and crop insurance are not included.

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10Table 7.--Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2003 dollars) for a mature, white seedless grapefruit grove producing citrus for fresh fruit market in the Indian River area, 1998-99-03 Year Inflation factor index a Adjusted on-tree price/box Yield Gross revenue Total specified costs b Net return to land, trees, and ownership ---------------------------Dollars ------------------------1998-99 109.6 $2.14 469 1,003.66 1,063.72 (60.06) 1999-00 103.7 $4.36 469 2,044.84 1,036.45 1,008.39 2000-01 102.5 $2.20 425 935.00 1,048.02 (113.02) 2001-02 105.0 $2.05 417 854.85 1,109.61 (254.76) 2002-03 100.0 $3.06 417 1,276.02 1,072.54 203.18 5-yr. avg. -$2.76 439 1,211.64 1,066.07 145.57 a Producer price index for each year adjusted to 2003 prices (2003 = 100), with 2003 consumer price index estimated to be 137.6. Producer price index for other years are: 1999 = 125.5; 2000 = 132.7; 2001 =134.2; and 2002 = 131.1. b A management cost of $4.00 per acre per month is included. Fixed costs such as taxes, debt service, and crop insurance are not included. (Refer to Table 6.)

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11 REFERENCES 1.Citrus Summary 2001-02 Florida Agricultural Statistics Service. Florida Agricultural Statistics. January 2003. 2. Muraro, Ronald P. "A Listing of Estimated Comparative Indian River Citrus Production Costs Per Acre for 2002-03." Lake Alf red Citrus Research and Education Center (CREC) Report. Lake Alfred, FL: June 2003. 3. ______. "Cost for Establishing, Planting, and Maintaining a Citrus Grove through Four Year s of Age, South Florida Flatwoods Area." Lake Alfred CREC Repor t. Lake Alfre d, FL: Nov. 1989. 4. ______. "Estimated Cost of Planting and M aintaining a Reset Citrus Tree through Three Years of Age." Lake Alfred CREC Report. Lake Alfred, FL: Dec. 2000. 5. ______. "A L isting of 2003 C ustom Rates Reported by Twenty-two Indian River and South Florida Citrus Caretakers." Lake Alfred CREC Report. Lake Alfred, FL: June 2003. 6.Savage, Zach. Citrus Yields Per Tree Age Univ. of Fla. Agr. Ext. Ser. 60-8. Gainesville: 1960. 7. Timmer, L. W. (Ed.). 2003 Fl orida Citrus Pest M anagement Guide Univ. of Fla. Coop. Ext. Svc. SP 43. Gainesville: Jan. 2003. 150 pp. 8. Tucker, D. P. H., A. K. Alva, L. K. Jackson, and T. A. Wheaton (Eds.). Nutri tion of Florida Citrus Trees Univ. of Fla. Coop. Ext. Svc. SP 169. Gainesville: 1995. 61 pp.

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12 ADDENDA : Listin g of Grove Care Options for Indian River Citrus Production for Both Rou n d Oranges and Grapefruit a Page Table 1-A. Spray options .................................................... 13 Post bloom spray ................................................. 13 Summer spray .................................................... 14 Fall spray ....................................................... 15 Table 2-A. Herbicide options ................................................. 16 Table 3-A. Dry fertilizer options .............................................. 18 Table 4-A. Liquid fertilizer (Double boom application) ............................ 19 Table 5-A. Nematicides options ............................................... 20 Table 6-A. Soil amendment options ............................................ 20 Table 7-A. Irrigation--annual cost per acre ...................................... 21 Drip ........................................................... 21 Microsprinkler .................................................... 21 Drainage ditch annual costs ......................................... 21 Table 8-A. A listing of 2003 custom rates reported by twenty-five Indian River and South Florida citrus caretakers ............................................ 22 Table 9-A. 2003 summary of average chemical price estimates ...................... 24 Table 10-A. 2003 summary of average fertilizer price estimates ....................... 26 Table 11-A. Cost for establishing, planting and maintaining a citrus grove through four years of age, South Florida flatwoods area ............................. 28 Table 12-A. Estimated cost of planting and maintaining a reset citrus tree through three years of age, December 2000 .......................................... 29 Table 13-A. A listing of estimated comparative Indian River citrus production costs per acre, 2002-03 ...................................................... 30 Table 14-A. Estimated average picking, roadsiding and hauling charges for Florida citrus, 2002-03 .......................................................... 31 Table 15-A. Estimated average packing charges for Florida citrus, 2002-03 ............... 32 Table 16-A. Historic prices for selected citrus varieties .............................. 33 Table 17-A. Debt which can be supported per $1,000.00 annual payment capacity ........ 34 Abbreviations for important chemicals are: Cu = Copper Mg = Magnesium N = Nitrogen Fe = Iron Mn = Manganese Zn = Zinc a The costs in the ADDENDA represent a custom managed operation. Therefore, all equipment costs are based upon the average custom rate costs and a 10 percent handling and supervision charge is added to the material cost.

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13 Table 1-A.--Spray options POST BLOOM SPRAY Spray Option #1 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Ethion Cu (50% metallic) Zn Mn 5 pts 7 lbs 5 lbs 10 lbs $ 23.20 9.80 4.35 3.40 _________ _________ _________ _________ Ground Application (PTO driven airblast) 250 gals 28.50 _________ Total per Application $ 69.25 ------------------------------------------------------------------------------------------------Spray Option #2 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Ethion Cu (50% metallic) Oil 97+% 5 pts 10 lbs 3 gals $23.20 14.00 7.44 _________ _________ _________ Ground Application (Curtec sprayer) 25 GPA 20.67 _________ Total per Application $ 65.31 ------------------------------------------------------------------------------------------------Spray Option #3 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) 7 lbs$ 9.80 _________ Oil 97+% 5 gals 12.40_________ Ground Application (PTO driven airblast) 250 gals 28.50 _________ Total per Application $ 50.70 ------------------------------------------------------------------------------------------------Spray Option #4 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) 7 lbs$ 9.80 _________ Ground Application (PTO driven airblast) 150 gals 24.85 _________ Total per Application $ 34.65 -------------------------------------------------------------------------------------------------

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14 Table 1-A.--Spray options (cont'd.) SUMMER SPRAY Spray Option #5 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Oil 97+% Cu (50% metallic) Ethion 4EC 5 gals 7 lbs 6 pts $12.40 9.80 27.84 _________ _________ _________ Ground Application (PTO driven airblast) 250 gals 28.50 _________ Total per Application $ 78.54 ------------------------------------------------------------------------------------------------Spray Option #6 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Oil 97+% Agri-Mek 7 lbs 5 gals 10 ozs $ 9.80 12.40 51.90 _________ _________ _________ Ground Application (PTO driven airblast) 500 gals 34.70 _________ Total per Application $ 108.80 ------------------------------------------------------------------------------------------------Spray Option #7 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Oil 97+% Agri-Mek 7 lbs 10 gals 5 ozs $ 9.80 24.80 25.95 _________ _________ _________ Ground Application (PTO driven airblast) 500 gals 34.70 _________ Total per Application $ 95.25 ------------------------------------------------------------------------------------------------Spray Option #8 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Enable 8 oz $12.40_________ Oil 97+% 5 gals 12.40_________ Micromite 1.25 lbs 42.93_________ Ground Application (PTO driven airblast) 250 gals 28.50 _________ Total per Application $ 96.23 ------------------------------------------------------------------------------------------------Spray Option #9 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) 7 lbs$ 9.80 _________ Oil 97+% 5 gals 12.40_________ Zn 5 lbs 4.35_________ Mn 10 lbs 3.40_________ B 0.25 lbs 1.33_________ Ground Application (PTO driven airblast) 250 gals 28.50 _________ Total per Application $ 59.78

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15 Table 1-A.Spray options (contd.) SUMMER SPRAY (contd.) Spray Option #10 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre (Scale insects)Lorsban 4EC 5 pts $28.40_________ Ground Application (engine driven airblast) 500 gals 34.70 _________ Total per Application $ 63.10 FALL SPRAY Spray Option #11 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Vendex 50WP Thiolux 80 DF (sulfur) 2 lbs 15 lbs $32.72 11.10 _________ _________ Ground Application (PTO driven airblast) 250 gals 28.50 _________ Total per Application $ 72.32 ------------------------------------------------------------------------------------------------Spray Option #12 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Kelthane MF 6 pts $28.08_________ Aerial Application 15 GPA 7.55 _________ Total per Application $ 35.63 ------------------------------------------------------------------------------------------------Spray Option #13 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Vendex WP 2 lbs$32.72 _________ Ground Application (PTO driven airblast) 100 GPA 20.42 _________ Total per Application $ 53.14 ------------------------------------------------------------------------------------------------Spray Option #14 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Thiolux 80 DF (sulfur) 15 lbs $11.10_________ Aerial Application 15 GPA 7.55 _________ Total per Application $ 18.65 -------------------------------------------------------------------------------------------------

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16 Table 2-A.--Herbicide options Herbicide Option #1 Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Solicam 80DF Karmex WP Roundup Ultra Max 3 lbs 4 lbs 2 qts $24.87 8.12 12.10 __________ __________ __________ Ground Application (1 time) 12.25 __________ Total for 1 Application $ 57.31 ------------------------------------------------------------------------------------------------Herbicide Option #2 Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Surflan A80 DF Simazine 4L Roundup Ultra Max 2 qts 4 qts 2 qts $19.44 7.16 12.10 __________ __________ __________ Ground Application (1 time) 12.25 __________ Total for 1 Application $ 50.95 ------------------------------------------------------------------------------------------------Herbicide Option #3 Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Karmex WP Roundup Ultra Max 4 lbs 2 qts $ 8.12 12.10 __________ __________ Ground Application (1 time) 12.25 __________ Total for 1 Application $ 32.47 ------------------------------------------------------------------------------------------------Herbicide Option #4 Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Solicam 80DF Simazine 4L Roundup Ultra Max 4 lbs 4 qts 2 qts $24.87 7.16 12.10 __________ __________ __________ Ground Application (1 time) 12.25 __________ Total for 1 Application $ 56.38 a With respect to herbicide materials, Amount Per Grove Acre does not equal Amount Per Treated Acre shown on the label. Only a strip or band is being treated. In this report, it is assumed that only one-half of a grove surface is being treated.

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17 Table 2-A.--Herbicide options (cont'd.) Herbicide Option #5 Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Roundup Ultra Max 2 qts $12.10__________ Ground Application (1 time) 12.25 __________ Total for 1 Application $ 24.35 ------------------------------------------------------------------------------------------------Herbicide Option #6 Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Krovar I Roundup Ultra Max 5 lbs 2 qts $29.35 12.10 __________ __________ Ground Application (1 time) 12.25 __________ Total for 1 Application $ 53.70 ------------------------------------------------------------------------------------------------Herbicide Option #7 Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Roundup Ultra Max Princep (Caliber 90) 2 qts 4 lbs $12.10 6.60 __________ __________ Ground Application (1 time) 12.25 __________ Total for 1 Application $ 30.95 ------------------------------------------------------------------------------------------------Herbicide Option #8 Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Direx 4L Solicam 3 qts 3 lbs $ 7.14 24.87 __________ __________ Ground Application (1 time) 12.25 __________ Total for 1 Application $ 44.26 ------------------------------------------------------------------------------------------------Herbicide Option #9 Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Chemical mow) Roundup Ultra Max 1 pt$ 3.03 __________ Ground Application (1 time) 4.00 __________ Total for 1 Application $ 7.03

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18 Table 2-A.--Herbicide options (cont'd.) Herbicide Option #10 Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Chemical mow) Roundup Ultra Max 1.5 pts $ 4.55 __________ Ground Application (1 time) 4.00 __________ Total for 1 Application $ 8.55 ------------------------------------------------------------------------------------------------Herbicide Option #11 Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Spot treatment for grass/brush regrowth under trees) Roundup Ultra Max 2 qts $12.10__________ Ground Application (1 time) 4.50 __________ Total for 1 Application $ 16.60 ------------------------------------------------------------------------------------------------Table 3-A.--Dry fertilizer options Option #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (100 lbs N/Acre) 12-2-12-2.4 MgO 835 lbs$ 67.64 _________ Application 3 times 22.89 _________ Total for 3 Applications $ 90.53 ------------------------------------------------------------------------------------------------Option #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (125 lbs N/Acre) 12-2-12-2.4 MgO 1040 lbs$ 84.24 _________ Application 3 times 22.89 _________ Total for 3 Applications $ 107.13 ------------------------------------------------------------------------------------------------Option #3 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (162 lbs N/Acre) 12-2-12-2.4 MgO 1350 lbs $109.35_________ Application 3 times 22.89 _________ Total for 3 Applications $ 132.24 -------------------------------------------------------------------------------------------------

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19 Table 3-A.--Dry fertilizer options (contd.) Option #4 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre) 15-2-15-2.4 MgO 1200 lbs$ 109.20 _________ Application 3 times 22.89 _________ Total for 3 Applications $ 132.09 ------------------------------------------------------------------------------------------------Option #5 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (204 lbs N/Acre) 17-4-17-2.4 MgO 1200 lbs $118.80_________ Application 3 times 22.89 _________ Total for 2 Applications $ 141.69 ------------------------------------------------------------------------------------------------Option #6 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (225 lbs N/Acre) 15-2-15-2.4 MgO 1500 lbs $136.50_________ Application 3 times 22.89 _________ Total for 3 Applications $ 159.39 Table 4-A.--Liquid fertilizer (Double boom application) Option #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre) 10-0-10 1800 lbs$ 111.60 _________ Double Boom Application3 times 43.50 _________ Total for 3 Applications $ 155.60 ------------------------------------------------------------------------------------------------Option #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre) 10-2-10 1800 lbs$ 117.00 _________ Double Boom Application3 times 43.50 _________ Total for 3 Applications $ 160.50 ------------------------------------------------------------------------------------------------Option #3 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre) 10-0-10 Solicam 80DF Karmex WP 1800 lbs 3 lbs* 4 lbs* $ 111.60 24.87 8.12 _________ _________ _________ Double Boom Application3 times 43.50 _________ Total for 3 Applications *Treated acre (one herbicide application) $ 188.09

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20 Table 5-A.--Nematicides options Option #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre Temik 15G 33 lbs $113.85_________ Application 1 time 14.26 _________ Total per Application $ 128.11 ------------------------------------------------------------------------------------------------Table 6-A.--Soil amendment options Option #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (Every 3 years)Dolomite (Delivered) 1 ton $30.14_________ Application 1 time 7.63 _________ Total for 1 Application $ 37.77 (Average 1/3 Ton Applied/Yr) $12.59 ------------------------------------------------------------------------------------------------Option #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (Every year) Dolomite (Delivered)1000 lbs $15.07_________ Application 1 time 7.63 _________ Total per Application $ 22.70 -------------------------------------------------------------------------------------------------

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21 Table 7-A.--Irrigation--annual cost per acre DRIP Option #1 Your Cost/Acre Option #2 Your Cost/Acre Operating (Electric) $ 43.86 ________ (Diesel) $ 39.46 ________ Maintenance of System 41.05 ________ 40.84 ________ Total Cash Expenses Fixed Depreciation Expense Total Cash and Fixed Expenses $ 84.91 42.35 $ 127.26 ________ ________ $ 80.30 45.25 $ 125.55 ________ ________ ------------------------------------------------------------------------------------------------MICROSPRINKLER Option #3 Your Cost/Acre Option #4 Your Cost/Acre Operating (Electric) $ 49.87 ________ (Diesel) $ 41.98 ________ Maintenance of System 45.75 ________ 46.76 ________ Total Cash Expenses Fixed Depreciation Expense Total Cash and Fixed Expenses $ 95.62 52.94 $ 148.56 ________ ________ $ 88.74 56.56 $ 145.30 ________ ________ ------------------------------------------------------------------------------------------------DRAINAGE DITCH ANNUAL COSTS Your Option #5 Cost/Acre Ditches/Canals Maintenance ($41.88/acre 3 years) $14.76________ Weed Control in Ditches/Canals 13.05 ________ Water Control: In/Out of Ditches and Canals 11.05 ________ Total $ 38.86

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22 Table 8-A.--A listing of 2003 custom rates reported by twenty-two Indian River and South Florida citrus caretakers Grove Practice Unit Range of Rate Reported Average Rate y Comments CULTIVATION AND EQUIPMENT : Hand Labor Mechanic Labor Rotovate Disc 7-8' Disc 10' Mow: 7-8' 9-10' 9-10' 15-16' V-Mower Sickle Mower Herbicide z (Strip/BandSingle Boom) Herbicide z (Strip/BandSingle Boom) Herbicide z (Strip/BandDouble Boom) Herbicide z (Chemical Mow) Temik z Plow Backhoe Vine Puller/Deviner Middle Buster Mound Builder Grader Blade Caterpillar Grader Bush Hog Water Truck with Driver Pickup Truck with Driver Flatbed/Transport Truck with Driver Tractor with Driver ATV with Driver Hour Hour Hour Hour Hour Hour Hour Acre Hour Hour Hour Hour Acre Acre Acre Acre Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour $11.0030.0030.0026.0032.2530.0030.009.0035.0030.00- 32.0012.0011.502.5010.0030.0040.0030.0030.0033.0028.00- 35.0030.0024.0035.0027.5018.00$15.00 40.00 40.00 37.50 37.50 33.00 37.50 11.00 40.00 34.00 38.00 13.40 13.00 7.00 13.00 37.50 50.00 31.00 37.50 37.50 37.50 41.00 35.00 35.00 50.00 40.00 25.00 $12.92 34.48 35.94 31.32 34.35 30.66 32.93 9.72 37.79 31.56 34.00 35.00 12.69 12.25 4.00 11.83 33.33 46.28 30.33 34.13 34.50 33.00 55.00 37.83 33.04 38.78 35.70 30.73 21.70 Plus transportation and equipment Labor and service truck Average $8.75/acre Average $8.87/acre Plus materials Plus materials Plus materials Plus materials With tractor and driver; 2.5 per foot With tractor and driver; 25 each mound Tractor/blade and driver Average miles traveled per year: Pick-up truck 24,990 miles SPRAYING : z PTO AIR BLAST SPRAYER Engine Driven 500 Gal Tank Avg 1,000 Gal Tank with Electronic Sensing 1,000 Gal Tank without Electronic Sensing 500 Gal Tank Avg 500 GPA 250 GPA 125 GPA 100 GPA Acre Acre Acre Acre 35.0028.0023.00- 40.00 35.00 27.50 37.75 31.20 25.38 30.0025.0023.5019.7535.00 30.00 25.00 21.00 34.70 28.50 23.93 20.42 34.95 29.47 23.40 37.77 30.38 26.02 Curtec (25 GPA) Acre 20.0022.00 20.67 Aerial Aerial Aerial Aerial Fixed Wing: $ 4.93/acre @ 5 gallons per acre Fixed Wing: $ 6.07/acre @ 10 gallons per acre Huey Helicopter: $15.00/acre @ 10 GPA Fixed Wing: $ 7.55/acre @ 15 gallons per acre Huey Helicopter: $30.00/acre @ 15 GPA Fixed Wing: $11.02/acre @ 20 gallons per acre FERTILIZING : z Liquid Boom Application: Single Boom Double Boom Dry (Bulk) Lime or Dolomite Fertilize Young Trees: z Hand Spread Fert. Spreader Acre Acre Acre Acre Hour Hour $ 6.007.0011.0026.00$ 8.25 8.25 15.00 33.00 $12.50 12.25 7.02 7.63 12.92 29.80 $12.00/acre with electronic sensing technology Average $34.13 (includes material) Plus transportation and materials Plus materials; Average $7.25/acre; $12.00/acre with electronic sensing IRRIGATION : Ditch Mower Water Furrow Disc Water Furrow Cleaner Water Furrow Shaper (Non-Laser) Water Furrow Shaper (Laser Control) Rotary Ditcher or Auger Hour Hour Hour Hour Hour Hour $35.0030.0033.0035.0070.0030.00$45.00 37.50 34.00 42.00 75.00 37.50 $ 41.00 34.10 33.33 38.11 72.67 34.63 Microsprinkler/Drip Irrigation Maintenance Acre/Month 3.504.50 3.85 Check & repair system; parts extra Microsprinkler 28.75/setting; $32.33/hour (truck and driver)Start/stop and supervision (OVER)

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23 Table 8-A.--A listing of 2003 custom rates reported by twenty-two Indian River and South Florida citrus caretakers (cont'd.) Grove Practice Unit Range of Rate Reported Average Rate y Comments REMOVING TREES : Front-end Loader Tree Shearing (Cutting Tree at Ground Level) Hour Hour $50.0050.00$57.20 60.00 $52.53 54.29 Avg. range 3-15 trees per hour Avg. range 5-20 trees per hour PRUNING : Power Saw with Operator Hedging: Double Side (Tractor Pulled) Double Side (Tractor Mounted) Double Side (Self Propelled) Double Side Rotary Boom (Self Propelled) x Double Side Self-Propelled Fixed Boom Hedger x Topping: Tractor Pulled Tractor Pulled (Fixed Boom) Double Sided Topper (Self Propelled) Double Boom (Self Propelled) Hour Hour Hour Hour Hour Hour Hour Hour Hour Hour $17.00100.00- 225.00- 265.00- $ 21.50 145.00 265.00 300.00 $ 19.81 130.00 200.00 255.00 300.00 360.00 115.00 360.00 279.00 550.00 6 to 10 acres/hour 8 to 20 acres/hour depending on wood size; $14.07/acre annual cut 5 to 15 acres/hour bedtops only; add 25% for furrows only 12 to 30 acres/hour bed top only; 8 to 20 acresbed top \ and furrow; depending on wood size 2-5 acres/hour depending on wood size 5 t o 12 acres/hour roof top; 10 to 20 acres flattop cut from bed \ tops annual maintenance cut Avg. 8-15 acres depending on wood size type of cut; $25/acre 15 to 30 acres flattop cut from bed tops annual maint. cut Limb Lifter/Tree Skirt Trimmer Limb Lifter/Tree Skirt Trimmer (Double Sided Rotary) Removing Brush: Haul Brush out of Grove (Front-end Loader) Mow/Chop Brush Mulching Acre Hour Hour Hour Hour 50.0032.00- 55.00 40.00 13.00 130.00 51.14 36.58 250.00 3 to 5 acres/hour 6 to 20 acres/hour Average $8.00/acre OTHER CUSTOM RATES : Install Tree Wraps $0.15 $0.45/tree depending on type of wrap and number of trees; Annual maintenance cost: 25/tree Plant Trees (Solid Set) Plant Trees (Resets) Travel/Setup Charge Grove Management Charge/Month: Supervising Grove Care Operations Tree Tree Hour Acre $ 0.902.00- 3.00$ 1.50 3.25 5.75 $ 1.15 2.31 25.23 4.29 Varies as to density Varies as to the number of resets In addition to caretaking charges Handling Fruit Marketing Supervising/Handling Chemicals/Fertilizer $0.10-$0.25/box For Supervising and Marketing fruit 10% to 20% of materials cost; averaged 13% Charge for personnel to oversee harvesting operations and coordinate harvest in different blocks/groves and keeping of harvesting labor compliance records. Box $ 0.10-$ 0.25$ 0.17 Consulting Hour $ 85.00 $200.00 $136.00 Horticultural Evaluation and/or Financial Analysis/prospectus. Total Reported Acreage Provided Grove Service to: Acre 1,4008,000 3,225 Total acres reporting: 45,150 z Plus materials. Caretakers reporting rates include labor, tractor and sprayer; supply truck included by most caretakers. y Calculated by dividing the total number of caretakers reporting a grove practice rate into the sum reported. Unless otherwise stated, labor included with all charges. x Low acres is for 2 years regrowth hedging; high acres is for annual maintenance hedging. Source : Ronald P. Muraro, Extension Farm Management Economist, Lake Alfred CREC, June 2003.

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24 Table 9-A.--2003 summary of average chemical price estimates Item Unit Average Price Your Price (2003) Fungicides :Abound Aliette 80WP Basic Copper Sulfate (53%) Copper (50%) (Kocide 101) Carbamate 76WP Enable 2F Headline Nu-Cop 50DF Oil 435 or 455 Ridomil Gold Granular Ridomil Gold EC gal. lb. lb. lb. lb. 40 oz. gal. lb. gal. lb. gal. 235.00 9.96 1.27 1.96 3.13 56.40 220.00 1.80 2.25 5.35 604.15 _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Insecticides/Nematicides : Admire 2F Agri-Mek (0.15EC) Bacillus thuringienses Comite 6.55 EC Danitol Ethion Guthion 50WP Kelthane MF Lorsban 4EC Lorsban 15G Malathion 5 EC Micromite 25WP Microthiol 80DF Nexter WP Sevin 80S Sevin XLR Sulphur 6F Temik 15G Thiolux 80 DF Vendex 50W gal. gal. gal. gal. gal. gal. lb. gal. gal. lb. gal. lb. lb. lb. lb. gal. gal. lb. lb. lb. 522.50 604.00 9.92 80.95 141.67 33.75 9.78 34.00 41.25 1.76 20.09 31.22 0.67 100.44 4.57 25.93 2.65 3.14 0.67 14.88 _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________

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25 Table 9-A.--2003 summary of average chemical price estimates (cont'd.) Item Unit Average Price Your Price (2003) Herbicides :Direx 4L Direx 80 DF Fusilade DX Gramoxone (Paraquat) Hyvar X Karmex Krovar I Mandate 2E Poast Plus 1.0 EC Princep (Caliber 90) Princep 4L Rodeo (30 gal drum) Roundup (30 gal drum) Roundup Ultra Max Simazine 90 DF Simazine 4L Solicam 80 DF Surflan AS Touchdown gal. lb. gal. gal. lb. lb. lb. gal. gal. lb. gal. gal. gal. gal. lb. gal. lb. gal. gal. 17.24 3.49 123.57 33.65 18.19 3.69 10.68 180.63 53.97 3.00 13.71 72.69 27.75 44.00 2.72 13.00 15.08 70.73 35.67 _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ _________ Growth Regulators : Citrus Fix Pro-Gibb 3.91% gal. 32 oz. bottle 284.48 37.56 _________ _________ Other Spray Materials : Borates (15%) Manganese (32%) Zinc (78%) Nutritional Spray Mix : Dyna Gold MZF lb. lb. lb. gal. 0.74 0.31 0.79 6.41 _________ _________ _________ _________ SOURCE: Ronald P. Muraro, Extension Farm Management Economist, University of Florida, IFAS, CREC, Lake Alfred, Florida, August 2003.

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26 Table 10-A.--2003 summary of average fertilizer price estimates Item Unit Average Price Your Price (2003) FERTILIZER (FOB Price @ Plant) $ Dry Mix (Bulk) 17-0-17-3 Mg ton 177.44 _________ 17-4-17-2.4 Mg ton 180.46_________ 16-0-16 ton 166.08_________ 16-0-16-4 Mg ton 174.36 _________ 16-2-16-3 Mg ton 175.82_________ 15-2-15-2.4 Mg ton 165.26_________ 12-2-12-2.4 Mg ton 147.78_________ 8-8-8 w/minors* ton 145.30_________ 8-4-8 w/minors* ton 128.44_________ 8-2-8 w/minors* ton 126.26_________ 6-6-6 w/minors* ton 127.03_________ Liquid Mix (Bulk) 8-2-8 ton 112.48_________ 8-4-8 ton 107.08_________ 9-3-9 ton 109.54_________ 9-4-9 ton 124.19_________ 10-0-10 ton 111.81_________ 10-2-10 ton 118.71_________ 12-0-6 ton 110.49_________ 12-3-6 ton 108.41_________ *With organic nitrogen, the price averaged 25% higher.

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27 Table 10-A.--2003 summary of average fertilizer price estimates (cont'd.) Item Unit Average Price Your Price (2003) Other Fertilizer Materials (Bulk) Ammonium Nitrate (21% N Liquid) ton124.75_________ Ammonium Nitrate (33.5% N Dry) ton187.38_________ Ammonium Sulfate (21% N) ton101.67_________ Calcium Nitrate (19% Ca, 15.5% N) ton207.69_________ Dolomite (at mine--49% CaCO 3 36% MgCO 3 )ton16.49 _________ Muriate of Potash (60% K 2 O) ton162.02_________ Potassium Nitrate (14% N; 46% K 2 O) ton373.26_________ Sul-Po-Mag (SPM--21.9% K 2 O) ton162.50_________ Super Phosphate (20% P 2 O 5 ) ton143.31_________ Triple Superphosphate (48% P 2 O 5 ) ton172.94_________ Urea ton373.26_________ Average Delivery Cost ton12.00_________ Foliar Macronutrients N-Sure 28-0-0 (72% SRN)** gal. 6.39_________ Phos Might 0-22-20 gal. 21.87_________ Nutriphite 0-28-26 gal. 26.67_________ MKP (0-52-34) (Mono-Potassium Phosphate)lb.0.65_________ DKP (0-18-20) (Di-Potassium Phosphate) gal. 2.50_________ **SRN, Slow Release Nitrogen SOURCE:Ronald P. Muraro, Extension Farm Management Economist, University of Florida, IFAS, CREC, Lake Alfred, Florida, August 2003.

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28 Table 11-A.--Cost for establishing, planting and maintaining a citrus grove through four years of age, South Florida flatwoods area Cost Per Acre Range Average Land Cost: 1 Improved Pasture Land Raw Land and Semi-improved Pasture Land Preparation: Pasture and Light Palmettos (Clearing) Raw Land (heavy pines, palmettos) Leveling: With Laser Without Laser Bedding: 2-rows (short rows 1,350+ feet) Soil Amendments: Dolomite 1 ton Super Phosphate, 400 lbs. Canals, Ditches and Dikes Reservoirs and Roads Throw-out Pumps for Water Movement Culverts Middle Drop Drainage Pipes Drainage Tile Cover Crop Irrigation System: Microsprinkler with Well 2 without Well Drip with Well 2 without Well Water Permits, Environmental Studies, and Engineering: Cost Time in Months Percent Land Utilization: Planted to Citrus Ditches and Canals Water Retention Roads and Service Areas $ 1,700-2,500 1,150-1,800 125275 350600 200350 100250 100195 150260 130180 4560 65135 4595 140160 916 850-1,500 525-1,200 775-1,050 400825 4090 512 55%85% 5%10% 10%30% 3%15% $ 2,050 1,450 195 465 275 160 130 35 30 195 155 55 85 105 150 12 1,000 700 875 560 70 8 71% 8% 15% 6% South Florida Year 1 2 3 4 Solidset Planted Trees 3 ------------------Cost Per Tree -------------------Microsprinkler Irrigation and Ditch Maintenance Fertilize Tree Supplemental Fertilization thru Irrigation Spray Insulated Tree Wrap (annual maintenance) Sprouting (labor) Cultivation/Mowing Herbicide Ridomil/Aliette Miscellaneous Total Cost Per Year $0.40 0.25 0.15 0.30 0.25 0.20 0.44 0.54 0.35 0.43 $3.31 $0.50 0.40 0.20 0.40 0.25 0.20 0.44 0.54 0.35 0.49 $3.77 $0.65 0.55 0.25 0.47 0.25 0.00 0.44 0.54 0.00 0.42 $3.62 $0.85 0.56 0.29 0.50 0.00 0.00 0.44 0.54 0.00 0.48 $3.66 Reset Trees (annual additional grove care costs) $2.13 $2.47 $1.84 -Cost of Planting Trees 4 Solidset = $5.00 Reset = $6.30 1 Land cost will vary from one county to another as well as from one parcel to another. 2 Irrigation costs include distribution system, power unit and well (where indicated.) The higher cost ranges reported also included a cost for fertigation equipment. 3 The per tree costs shown are applicable for tree densities of 145 to 165 trees per acre. The per tree costs should be decreased for higher density plantings and increased for lower density plantings; e.g., at 200 trees per acre decrease costs by 15%; at 115 trees per acre increase costs by 15%. 4 Tree cost (bare root) = $3.25; stake, plant, and water tree = $1.25 (solidset) and $2.55 (resets); and uninsulated tree wrap = $0.50. Source : Ronald P. Muraro, Farm Management Economist, CREC, Lake Alfred, FL, November 1989.

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29 Table 12-A.--Estimated cost of planting and maintaining a reset citrus tree through three years of age, December 2000 Number of Resets/Replacement Trees Per Acre 1-23-5 6-10 11-25 26+ -----------------Cost Per Tree -----------------Year #1 : $ $ $ $ $ Tree Removal 5.73 4.98 3.98 3.22 2.57 Tree Cost (Container Tree) 4.50 4.50 4.35 4.25 4.25 Site Preparation a 5.40 4.68 3.97 3.67 2.88 Plant Tree and First Watering 3.28 2.40 2.08 1.74 1.31 Total Planting Cost 13.18 11.58 10.40 9.66 8.44 Supplemental Fertilization 4 Times (Application & Materials) 1.28 1.11 1.02 0.93 0.85 Supplemental Spraying (Application & Materials) b 0.48 0.41 0.38 0.35 0.32 Spot Herbicide (Application & Materials) 0.21 0.18 0.16 0.14 0.13 Tree Wrap (Corrugated) 1.00 1.00 1.00 1.00 1.00 Sprouting/Pruning 0.41 0.41 0.38 0.38 0.34 Miscellaneous 0.17 0.16 0.15 0.14 0.13 Supervision & Overhead 0.27 0.25 0.23 0.22 0.21 Total Tree Care Cost Year #1 3.82 3.52 3.32 3.16 2.98 Total Cost Year #1 22.73 20.08 17.70 16.04 13.99 Year #2 : Supplemental Fertilization 3 Times (Application & Materials) 1.72 1.53 1.34 1.13 1.03 Supplemental Spraying (Application & Materials) b 0.55 0.49 0.43 0.36 0.33 Spot Herbicide (Application & Materials) 0.20 0.18 0.16 0.14 0.13 Sprouting/Pruning 0.49 0.49 0.41 0.41 0.37 Miscellaneous 0.15 0.13 0.12 0.10 0.09 Supervision & Overhead 0.23 0.20 0.18 0.16 0.15 Total Cost Year #2 3.34 3.02 2.64 2.30 2.10 Year #3 : Supplemental Fertilization 3 Times (Application & Materials) 2.34 2.09 1.79 1.53 1.30 Miscellaneous 0.12 0.10 0.09 0.08 0.06 Supervision & Overhead 0.18 0.16 0.14 0.12 0.10 Total Cost Year #3 b 2.64 2.35 2.02 1.73 1.46 Total Three-Year Cumulative Costs 28.71 25.45 22.36 20.07 17.55 a Site preparation for bedded citrus grove; cost of root removal, rotovating/leveling tree planting site. Fumigate planting site would cost approximately $2.50 per tree. b Additional spray costs may be incurred if leafminer is a problem. SOURCE: Ronald P. Muraro, Farm Management Economist, CREC, Lake Alfred, FL, December 2000.

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30 Table 13-A.--A listing of estimated comparative Indian River citrus production costs per acre for grapefruit, 2002-2003 z Costs represent a mature (10+ years old) Indian River Grapefruit Grove. Low Cost Processed Cultural Program Processed and Reduced Fresh Cost Cultural Program Typical/Historical Fresh Fruit Cultural Program PRODUCTION/CULTURAL COSTS: y Weed Management/Control: Mechanical Mow Middles (3 times per year) $ 29.16 $ 29.16 $ 29.16 Chemical Mow Middles (2 times per year) 14.06 14.06 14.06 General Grove Work (2 labor hours per acre) 25.84 25.84 25.84 Herbicide (1/2 tree acre treated): Application (3 applications) $36.75 $ 36.75 $ 36.75 Material 84.01 105.24 105.24 Total Herbicide Cost 120.76 141.99 141.99 Spray: Post Bloom:Application (150 GPA) 28.50 28.50 Material 30.52 40.75 Total Post Bloom Cost 59.02 69.25 Summer Oil #1: Application (250 GPA) 28.50 28.50 28.50 Material 50.04 67.73 67.73 Total Summer Oil #1 Cost 78.54 96.23 96.23 Summer Oil #2: Application (PTO -250 GPA) 28.50 28.50 28.50 Material 31.28 x 22.20 22.20 Total Summer Oil #2 Cost 59.78 50.70 50.70 Fertilizer (Bulk):3 Applications 22.89 22.89 22.89 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 107.13 90.53 107.13 Dolomite (one ton applied every 3 years) Material/Application 12.59 12.59 12.59 Pruning: Topping ($27.90/A 2 yrs) w 13.95 13.95 13.95 Hedging ($25.50/A 1.5 yrs) w 17.00 17.00 17.00 Chop/Mow Brush after Hedging ($8.23/A 1.5 yrs) w 5.49 5.49 5.49 Raise Skirts of Trees ($13.00/A 2 yrs) w 6.50 6.50 Total Pruning Cost 36.44 42.94 42.94 Tree Replacement 1 thru 3 years of age: (5 trees/acre) Remove Trees: Pull, Stack & Burn 5 Trees with Front-end Loader 23.70 23.70 23.70 Prepare Site and Plant Tree (Includes 5 reset trees) 57.60 57.60 57.60 Supplemental Fertilizer, Tree Wraps Maintenance, Sprout, etc. (Trees 1-3 years old) 46.75 46.75 46.75 Total Tree Replacement Cost 128.05 128.05 128.05 Irrigation: Microsprinkler System v 145.30 145.30 145.30 Clean Ditches (Weed Control) 13.05 13.05 13.05 Ditch and Canal Maintenance 14.76 14.76 14.76 Water Control (Pump water in/out of Ditches and Canals) 11.05 11.05 11.05 Total Irrigation Cost 184.16 184.16 184.16 IRRIGATED PROCESSED FRUIT PRODUCTION COSTS $ 796.51 $ 875.27 Supplemental Post Bloom Spray: Application (150 GPA) 49.70 49.70 Material (Copper) 19.60 19.60 Total Supplemental Post Bloom Spray Cost 69.30 69.30 Fall Miticide Spray: Aerial Application (15 GPA) 20.42 20.42 Material 32.72 32.72 Total Fall Miticide Spray Cost 53.14 53.14 IRRIGATED FRESH FRUIT PRODUCTION COSTS $ 997.71 $ 1,024.54 z The listed estimated comparative costs are for the example grove situation described in the Economic Information Report Series entitled: "Budgeting Costs and Returns for Indian River Citrus Production" and may not represent your particular grove situation in Indian River. SOURCE: Ronald P. Muraro, University of Florida-IFAS, Citrus Research and Education Center, Lake Alfred, FL, August 2003.

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31 Table 14-A.Estimated average picking, roadsiding and hauling charges for Florida citrus, 2002-03 Fresh Fruit Processed Fruit Range Average Range Average $/Box$/Box $/Box$/Box Picking Charges : Early and Mid-Season Oranges0.72-0.900.8140.75-0.900.806 Valencia Oranges 0.79-0.900.8350.76-0.900.810 Pink/Red Grapefruit 0.60-0.800.6920.55-0.750.625 White/Marsh Grapefruit 0.60-0.770.6680.50-0.750.600 Temples/Tangelos 0.85-0.900.8830.85-0.900.860 Tangerines 1.35-1.911.600 Fresh Fruit Processed Fruit Range Average Range Average $/Box$/Box $/Box$/Box Roadsiding Charges : Early and Mid-Season Oranges0.75-1.030.8820.70-0.960.838 Valencia Oranges 0.75-1.080.9100.70-0.960.851 Pink/Red Grapefruit 0.75-0.850.7920.75-0.770.758 White/Marsh Grapefruit 0.75-0.810.7780.75-0.770.758 Temples/Tangelos 0.90-0.950.9270.76-0.900.850 Tangerines 1.12-1.211.177 Fresh Fruit Processed Fruit All Varieties All Varieties $/Box $/Box Hauling Charges : 0 30 miles 0.408 0.384 31 50 miles 0.445 0.433 51 80 miles 0.517 0.498 81 100 miles 0.575 0.551 100 + miles 0.663 0.625

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32 Table 15-A.Estimated average packing charges for Florida citrus, 2002-03 Domestic Grapefruit Export Grapefruit Oranges Temples/ TangelosTangerines --------------------------$/Carton --------------------------Total Packing Charge a 3.544 3.9923.7314.2144.733 ----------------------------$/Box ----------------------------Drenching Charge 0.170 0.1680.1780.1780.178 Packinghouse Elimination Charges0.5660.5880.6000.6000.633 Hauling Charge for Eliminations0.3880.3680.4040.4340.434 a Total Packing Charge includes the following items: 1.Materials including mesh/plastic bags, labels/PLUs, etc. 2.Includes supervisor/foreman labor, grading, palletizing, shipping and general labor. Includes payroll taxes (FICA), workers compensation, ground insurance, etc. 3.Other direct packing costs include: fruit treating; power, lights and water; repair maintenance; miscellaneous supplies; etc. 4. Indirect packing costs include such items as: insurance-fire and casualty; taxes and licenses, depreciation and rent. 5.G&A costs include: office personnel (FICA, w/comp); packinghouse and general manager; office supplies; telephone; etc. 6.Special assessments include such items as: advertising taxes, inspection fees, Florida Citrus Packers; CAC. NOTE :Packing charges represent a total of nine citrus packinghouses from both the Indian River and Interior production regions.

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33 Table 16-A.--Historic prices a for selected citrus varieties Variety Crop year Early b and mid c -season oranges Late season oranges d Temple oranges All Tangerines Tangelos Seedless grapefruit e (white) (colored) 1961-62 1962-63 1963-64 1964-65 1965-66 $1.93 2.17 4.43 2.57 1.44 $1.81 3.50 4.45 2.28 1.79 $2.17 3.09 4.45 2.77 1.80 $2.04 3.02 3.18 2.68 2.14 $3.36 4.66 4.83 4.00 2.85 $0.68 1.29 2.24 1.51 1.39 $0.86 1.81 2.54 1.82 1.64 1966-67 1967-68 1968-69 1969-70 1970-71 0.81 1.86 1.56 1.15 1.10 1.08 2.28 1.83 1.13 1.91 0.88 2.79 2.22 1.47 1.91 1.06 4.29 2.55 2.23 1.88 1.64 3.22 2.47 1.13 1.04 0.73 2.05 0.98 1.72 1.89 0.94 2.48 1.15 1.92 2.15 1971-72 1972-73 1973-74 1974-75 1975-76 1.98 1.43 1.38 1.46 1.69 2.11 1.71 1.59 1.82 1.88 1.95 1.95 1.64 1.68 1.79 2.97 2.37 2.82 3.05 3.02 1.69 1.39 1.25 1.45 1.42 2.27 2.06 1.58 1.55 1.29 2.69 2.53 2.12 2.59 2.23 1976-77 1977-78 1978-79 1979-80 1980-81 1.89 3.90 4.44 3.59 3.67 2.63 4.40 4.95 3.89 4.63 2.16 3.92 4.89 2.89 4.21 3.29 4.79 4.99 4.25 5.45 1.42 3.29 3.90 2.87 3.92 1.49 1.47 2.21 3.12 3.46 2.04 2.09 3.13 3.80 4.22 1981-82 1982-83 1983-84 1984-85 1985-86 4.27 4.88 5.09 7.30 3.92 4.29 5.41 6.72 6.88 3.97 4.01 3.99 5.34 5.59 3.01 6.23 7.57 5.93 15.91 12.69 3.58 4.37 4.28 7.08 4.06 1.92 1.51 2.08 3.02 3.56 2.80 3.20 4.05 4.84 4.98 1986-87 1987-88 1988-89 1989-90 1990-91 4.56 6.72 6.63 6.01 5.38 6.02 8.73 8.41 6.53 6.58 3.60 5.69 5.46 5.64 6.31 10.92 12.99 12.64 15.28 17.10 3.72 5.58 6.31 5.10 6.11 4.45 5.35 4.33 5.21 4.59 5.80 5.93 4.71 6.30 6.85 1991-92 1992-93 1993-94 1994-95 1995-96 5.44 3.23 3.76 3.25 3.62 6.65 3.88 4.61 4.41 5.57 6.51 2.99 2.73 3.47 4.44 18.00 13.75 9.83 11.98 12.59 7.16 3.31 2.38 2.64 3.63 6.46 2.22 3.23 2.58 2.14 6.87 3.11 3.38 1.66 1.77 1996-97 1997-98 1998-99 1999-00 2000-01 2001-02 f 3.18 2.81 4.35 3.19 2.60 2.46 4.07 4.88 5.58 4.33 4.02 3.99 3.22 3.07 5.12 2.55 2.05 2.28 7.99 8.49 12.07 6.67 6.40 7.69 2.19 1.66 4.53 2.52 1.27 2.37 1.12 0.93 1.95 3.87 2.07 1.95 1.91 1.50 2.65 3.36 2.28 2.17 a On-tree average price per box (1-3/5 bushel box equivalent) for all methods of sale minus pick and haul charges. b Navel and Hamlin c Parson Brown and Pineapple d Valencia e Marsh (white) or pink f Preliminary Source: Florida Agricultural Statistics Service.

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34Table 17-A.--Debt which can be supported per $1,000.00 annual payment capacity Loan term (years) Interest rate paid on the loan 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 12.5% 13.0% 13.5% 14.0% 14.5% 15.0% 1 2 3 4 5 6 926 1,783 2,577 3,312 3,993 4,623 922 1,771 2,554 3,276 3,941 4,554 917 1,759 2,531 3,240 3,890 4,486 913 1,747 2,509 3,204 3,840 4,420 909 1,754 2,487 3,170 3,791 4,355 905 1,724 2,465 3,136 3,743 4,292 901 1,713 2,444 3,102 3,696 4,230 897 1,701 2,423 3,070 3,650 4,170 893 1,690 2,402 3,037 3,605 4,111 889 1,679 2,381 3,006 3,561 4,054 885 1,668 2,361 2,974 3,517 3,998 881 1,657 2,341 2,944 3,475 3,942 877 1,647 2,322 2,914 3,433 3,889 873 1,636 2,302 2,884 3,392 3,836 870 1,626 2,283 2,855 3,352 3,784 7 8 9 10 11 12 5,206 5,747 6,247 6,710 7,139 7,536 5,119 5,639 6,119 6,561 6,969 7,345 5,033 5,535 5,995 6,418 6,805 7,161 4,950 5,433 5,875 6,279 6,647 6,984 4,868 5,335 5,759 6,145 6,495 6,814 4,789 5,239 5,646 6,015 6,348 6,650 4,712 5,146 5,537 5,889 6,207 6,492 4,640 5,056 5,431 5,768 6,070 6,341 4,564 4,968 5,328 5,650 5,938 6,194 4,492 4,882 5,228 5,536 5,810 6,054 4,423 4,799 5,132 5,426 5,687 5,918 4,355 4,718 5,038 5,319 5,568 5,787 4,288 4,639 4,946 5,216 5,453 5,660 4,224 4,562 4,858 5,116 5,341 5,538 4,160 4,487 4,772 5,019 5,234 5,421 13 14 15 16 17 18 7,904 8,244 8,559 8,851 9,122 9,372 7,691 8,010 8,304 8,576 8,825 9,056 7,487 7,786 8,061 8,313 8,543 8,756 7,291 7,572 7,828 8,062 8,276 8,471 7,103 7,367 7,606 7,824 8,022 8,201 6,923 7,170 7,394 7,596 7,779 7,945 6,750 6,982 7,191 7,379 7,549 7,702 6,583 6,801 6,997 a 7,172 7,329 7,470 6,424 6,628 6,811 6,974 7,119 7,250 6,270 6,462 6,633 6,785 6,920 7,040 6,122 6,302 6,462 6,604 6,729 6,840 5,979 6,149 6,299 6,431 6,547 6,649 5,842 6,002 6,142 6,265 6,373 6,467 5,710 5,861 5,992 6,106 6,207 6,294 5,583 5,724 5,847 5,954 6,048 6,128 19 20 25 30 35 40 9,603 9,818 10,675 11,258 11,655 11,925 9,268 9,463 10,234 10,747 11,088 11,315 8,950 9,129 9,823 10,274 10,567 10,757 8,650 8,812 9,438 9,835 10,087 10,247 8,365 8,514 9,077 9,427 9,644 9,779 8,095 8,231 8,739 9,047 9,234 9,348 7,839 7,963 8,422 8,868 8,855 8,951 7,596 7,710 a 8,123 8,364 8,503 8,587 7,366 7,469 7,843 8,055 8,175 8,244 7,146 7,241 7,579 7,766 7,870 7,928 6,938 7,025 7,330 7,496 7,586 7,634 6,739 6,819 7,095 7,242 7,320 7,361 6,551 6,623 6,873 7,003 7,070 7,105 6,370 6,437 6,663 6,778 6,836 6,866 6,198 6,259 6,464 6,566 6,617 6,642 a Example. Assumes a $10,000 after tax income at 11.5% interest rate and a 15-year term mortgage, the total debt which can be supported is $69,970 ($6,997 x 10). At 11.5% interest rate and a 20-year term mortgage, the total debt which can be supported is $77,100 ($7,710 x 10).