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Permanent Link: http://ufdc.ufl.edu/IR00002006/00001
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Title: Budgeting Costs and Returns for Central Florida Citrus Production, 2003-04
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: 2004
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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 2004"
General Note: "FE526"
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Source Institution: University of Florida Institutional Repository
Holding Location: University of Florida
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System ID: IR00002006:00001


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Ronald P. Muraro EDIS FE526 W. Greg Hartt http://edis.ifas.ufl.edu/FE526 W. C. OswaltBudgeting Costs and Returns for Central Florida Citrus Production, 2003-04Institute of Food and Agricultural SciencesFood and Resource Economics Department Florida Agricultural Experiment Station Florida Cooperative Extension Service Gainesville, FL 32611September 2004

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iABSTRACT Estimated costs and returns of growing round oranges in the Central Florida citrus area are presented for the twentieth consecutive year. Due to the freezes of the 1980s, the Central Florida citrus area refers primarily to Polk and Highlands Counties. The format presented may be used by individual growers to budget costs and returns, utilizing individual data on specific groves. Key words: citrus, Central Florida, budgeting, costs and returns NOTE:The Central Florida production area refers to Polk and Highlands Counties. However, the costs presented in this report are applicable to other counties such as Hardee, Hillsborough, Lake, and Orange. The budgeted cost information presented herein 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, more reset trees, etc.). Thus, the 2003-04 budget costs reflect 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 Therefore, all equipment costs are based on average custom rate costs along with a 10 percent handling and supervision charge added to the material cost. Although the estimated annual per acre grove co sts listed are representative of a mature citrus grove (10+ years old), the grove care costs for a specific grove site may differ depending on tree age, tree density, and grove pr actices performed (e.g., spot herbicide for grass/brush regrowth under tr ees could add an additional $19.23 per acre; Diaprepes control could add $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 at $122.22 per acre, could increase the total cultural costs per acre above the average costs shown in the comparative budgets; or travel and set-up costs ma y vary due to size of the citrus grove and distance from grove equipment barn and could add $25.98 per acre). ACKNOWLEDGMENTS 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 Central Florida citrus production area who provided suggestions for the revision of this manuscript.

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iiTABLE OF CONTENTS Page ABSTRACT...................................................................i ACKNOWLEDGMENTS ........................................................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.................................................................10 ADDENDA ...................................................................11 NOTE :The ADDENDA includes items such as Listing of Grove Care Programs for Central Florida Citrus Production for Both Round Oranges and Grapefruit; 2004 custom rate summary report; cost of establishing a citrus grove; etc. Page 11 lists the tables included in the ADDENDA.

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iiiLIST OF TABLES Table Page 1Schedule of production practices and budge t items for a Central Florida citrus grove, 2003-04 ...............................................................3 2Calculation of normal production per acre, 2003-04 ..............................4 3Estimated annual per acre costs and returns for a mature, Valencia orange grove producing for the processed market, Central Florida area, 2003-04 ..................6 4Estimated total delivered-in cost for Central Florida (Ridge) Valencia oranges grown for the processed juice market under three cultural cost programs, 2003-04 ............7 5Estimated annual per acre costs and return s and 5-year average costs and returns for a mature, Valencia orange grove producing citr us for processing in the Central Florida area, 1999-00-04 .....................................................8 6Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2004 dollars) for a mature, Valencia orange grove producing citrus for processing in the Central Florida area, 1999-00-04 ..........................9

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Ronald P. Muraro, Professor and Extension farm management economist, Department of Food and Resource Economics, Citrus Research and Education Ce nter, Lake Alfred; W. Greg Hartt, Extension citrus agent, Highlands County, Sebring; .and W.C. Oswalt, multi-county Extension citrus agent, Polk and Hillsborough Counties, Bartow; Florida Cooperativ e Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL.1BUDGETING COSTS AND RETURNS FOR CENTRAL FLORIDA CITRUS PRODUCTION, 2003-04 Ronald P. Muraro, W. Greg Hartt and W. C. Oswalt INTRODUCTION Budget analysis provides the basis for many grow er decisions. Budget analysis can be used to calculate potential profits from an operation, to determine cash requirements for an operation, or to determine break-even prices. This report presents a budget constructed from current data and serves as a format for growers to analyze costs and returns fro m their individual records. During the 1980s, several freezes occurred which changed the character of th e Central Florida citrus production area. The December 1983 and January 1985 freezes caused extens ive tree and acreage losses in north central counties such as Lake and Orange. The December 1989 freeze resulted in severe tree damage and tree loss in north and central Polk County. Thus, Central Florida in this report refers primarily to Polk and Highlands Counties. METHOD OF DATA COLLECTION The data presented here were developed by surveying custom operators, input suppliers, growers, colleagues at the Citrus Research and Education Ce nter in Lake Alfred, and County Extension citrus agents in the Central Florida 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, ch emical, and fertilizer surveys. The ADDENDA shows growers costs (Tables 1-A through 7-A), custom ra te costs (Table 8-A), and various chemical and

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2fertilizer costs (Tables 9-A and 10-A). The budge t costs represent a custom-managed operation. Therefore, all equipment costs are based on the average custom-rate costs along with a 10 percent handling and supervision charge added to the material cost. Although brand names are used in many of th e tables in the ADDENDA, this does not imply endorsement by the University of Florida. It is me rely an attempt to depict typical production practices. All tables have a column reserved for individual growers to insert data from a particular grove. This will allow a comparison of the gr ower's costs with those presented. THE GROVE SITUATION Production practices for a Central Florida round orange grove are shown in Table 1 along with times during the year when they ar e normally performed. There are two benefits to developing such a table for an individual grove. First, it shows what work is needed and when so that operations can be planned well in advance. Second, an annual cash flow analysis can be helpful in financial planning. The individual grower may benefit from deve loping a plan for a particular grove. Specific production practices vary from grove to grove, making it difficult to define a "typical" grove. Many combinations of practices and vari ous tree variety combinations produce acceptable yields and returns. Although the example represents a Valencia orange 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 to develop a budget for a particular grove. A "your cost" column is appropriately 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 10+ year-old, low volume-irrigated grove. 2.Variety is Valencia round orange. 3.Tree loss is three percent annually. 4.Trees are pulled and replaced when production falls below 50 percent of expected yield. 5.Production is for processed use. 6.Tree density is 112 trees per acre. 7.Custom-caretaker is providing grove management.

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3Table 1.--Schedule of production practices and budget items for a Central Florida citrus grove, 2003-04aMonth JanFebMarAprMayJunJulAugSepOctNovDec Total revenue : 20% deposit 50% Partial payment Final payment Less:Pick & haul cost X DOC advertisement tax X Grove expenses : DiscXX Chop Mow XXX Labor, general grove work, pull vinesXX Herbicide (1/2 grove acre equivalent)XX Spray:Post bloom/nutritionalX Summer oil/greasy spot X Fall miticide X Supplemental miticide Dust Fertilizer68# N/A68# N/A 68# N/ADolomite Hedging and toppingHedge Brush removal/chop brushChop brush Tree removalXX Young tree careXXXXX Microjet irrigation (times/week)112333222211 Miscellaneous Grove taxes includi ng water management X Interest expense X Annual principal payment on mortgageX aThis is a suggested schedule of practices Actual practices would not necessarily be done on the exact schedule shown here.

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4 Tree ages will vary due to tree losses and replacement. The budget reflects the following age distribution and yield for Central Florida Valencia oranges: Situation Yield Boxes/Tree 3%pulled and reset trees 0.0 3%1-year1old trees 0.0 3%2-year-old trees 0.0 3%3-year-old trees 0.7 3%4-year-old trees 0.9 45%5to 19-year-old trees 4.2 3%trees producing 50% of expected yield 3.1 37%mature producing trees 6.0 Calculation of normal production per acre is shown in Table 2. Note that the proportion-of-treesby-age column only adds up to 91 percent si nce 9 percent of the trees are non-bearing. Table 2.--Calculation of normal production per acre, 2003-04 Age of Tree Trees Boxes /Tree Total Boxes Total no. all ages Proportion each age a No. each age --------Number ---------3 years 112x0.03=3.4x0.7=2.4 4 years 112x0.03=3.4x0.9=3.1 5-19 years 112x0.45=50.4x4.2=211.7 Prod. 50% of expected yield112x0.03=3.4x3.1=10.5 20 years 112x0.37=41.4x6.0=248.4 Total boxes=476.1 aProportion adds up to 0.91 (91 per cent) as 9 percent of the trees were non-bearing (pulled and reset, 1and 2-year-old trees). BUDGET COSTS AND RETURNS Estimated budget costs and returns for a Central Florida grove situation are shown in Table 3. Gross revenue estimates are based on projected yields (Table 3) and estimated prelimin ary on-tree prices for the 2003-04 season. The budgeted costs represent one possi ble citrus production program and were selected from the costs shown in the ADDENDA tables (grove establishment and reset costs and harvesting and packing charges are shown in Tables 11-A through 14-A and historical ontree prices for selected Florida citrus varieties are shown in Table 15-A).

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5As shown in Table 3, the total revenue for processed-market Valencia oranges is estimated to be $1,190.00 per acre. Total specified costs are $822. 18, comprised of grove care costs of $774.18 plus management costs of $48.00. A return to land, trees, and ownership of $367.82 per acre loss represents net return above variable costs. At 300 and 500 boxes per acre, respectively, the break-even prices required to cover grove care costs for Valencia oranges range from $2.58 to $1.55 per box on-tree and $0.74 to $0.58 per pounds solids delivered-in. Ad valorem taxes, and overhead and administrative costs (e.g., water drainage district taxes, crop insurance, and other grower assessments) can add up to 12 percent of total grove care costs. These costs vary from grove to grove, depending on age, location, or variety of fruit, and should be considered in arriving at net return to land, trees, and ownership (total return minus total costs). Harvest costs (pick, roadside, and hauling costs) also add to the total fru it cost delivered to either a processing plant or fresh fruit packinghouse. Average annual debt payment (principal and interest) may be as high as $440 per acre ($3,750 average debt per acre at 10 percent interest amortized over 20 years), which would reduce total available cash for grove expansion or other investment. Estimated "delivered-in" costs for processed oranges are shown in Table 4. "Delivered-in" costs include grove care costs (Table 3) plus harvesting, regulatory, and grower assessment costs. The delivered-in cost is presented as a cost per acre, per box and per pound solids. Three possible budget cost scenarios are presented (Table 11-A): Low Co st Processed Cultural Program; Reduced Cost Cultural Program; and Typical/Historical Cultural Program. S cenarios 1 and 2 represent costs of two possible cultural programs directed toward reducing expend itures for fruit grown primarily for the processed market. Scenario 3 represents typical costs of grove practices that have been performed for citrus grown for the fresh/processed fruit market. Modified he rbicide 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 fr esh), yield, and specific cultural problems (nutrition, disease, etc.) for the specific grove site should be made HISTORICAL COST TRENDS Annual budgets of costs and returns for mature, pro cessed Valencia oranges in the Central Florida area have been developed and published the past four years. Estimated cost and return histories for 1999-00 through 2002-03 along with 2003-04 and a five-year av erage are presented in Table 5. To allow comparisons in current va lues, these same costs and returns (a djusted to 2004 dollars) are presented in Table 6.

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6Table 3.--Estimated annual per acre costs a nd returns for a mature, Valencia orange grove producing for the processed market, C entral Florida area, 2003-04aItem DescriptionAmountYour Cost ---------------------Dollars ---------------------I.Revenue 476 boxes @ $2.50b1,190.00 ___________ II.Expensesc Weed control Discing Mow middles General grove work/sprouting, etc. Herbicide (Table 2-A, Program #1, #2 & #7) Spray program (Table 1-A, Programs #8 & #10) Fertilizer (Table 3-A, Program #3) Dolomite (Table 6-A, Program #2) Pruning (maintenance) Topping Hedging Mow/chop brush Tree replacement and care (Table 12-A) Remove trees/stack/burn Prepare sites and plant resets Supplemental fertilizer, tree wraps, maintenance, sprout, etc. Microsprinkler irrigation (Table 7-A, Program #4) Total grove care expenses 2 times per year 4 times per year (2 labor hours per acre) ($361.69/hr. 10 A/hr.) 2.5 yrs. ($338.75/hr. 10 A/hr.) 2 yrs. ($8.92/A 2 yrs.) (1 through 3 years) 3 trees per acre Including 3 trees per acre Including application 20.00 40.76 26.56 117.73 14.47 16.94 4.46 14.22 26.82 28.38 205.05 135.74 166.29 9.74 35.87 69.42 152.07 774.18 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ III.Management$4.00 per acre per monthd 48.00 ___________ IV.Total specified costse822.18 V.Return to land, trees, and ownership 367.82 VI.Break-even price for total grove care expenses Boxes per acre Boxes per acre 300 350 400 450 500 300 350 400 450 500 $ On-tree price per box $ Delivered-in price per pound solidsf2.582.211.941.721.55 0.740.690.64 0.610.58 aWhile estimated annual per acre grove costs in Table 3 are repres entative for a mature Central Florida Valencia orange grove, g rove care costs for specific gr ove site may differ depending on grove practices performed (e.g., Temik application would add $122.22 per acr e; extensive tree loss due to blight or tristeza wo uld double tree replacement/care costs). bOn-tree price per box is preliminary; assumes price for processed oranges only. cAssumes material custom applied; theref ore, a 10 percent handling and supervisi on charge is added to material cost. dOther methods to estimate a management cost (e.g., 5% of gross revenue or 10% of total grove care costs are used in the industr y). eOther cost items not included in budget are ad valorem taxes a nd interest on grove investment. In addition to these cost items overhead and administrative costs (e.g., water drainage district taxes, crop insurance, and other grower assessments, can add up to 12% of total grove care costs). These costs vary from grove to grove. fAssumes 6.6 pounds solids per box and $2.19 pick and haul cost per box (inc luding canker decontaminati on costs) and Department of Citrus advertising assessment of $0.15 per box.

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7Table 4.--Estimated total delivered-in cost for Central Florida (Ridge) Valencia ora nges grown for the processed market under t hree cultural cost programs, 2003-04 Represents a mature (10+ years old) Central Florida (Ridge) Orange Grove Processed Valencia Orange Low Cost Cultural Program One-Year Alternative Processed Valencia Orange Cultural Program Fresh/Processed Valencia Orange Cultural Program $/Acre$/Box$/P.S. $/Acre$/Box $/P.S. $/Acre $/Box $/P.S. Total Production/Cultural Costs$ 692.43 $1.455$0.2204$ 774.18$1.626 $0.2464$828.49$1.741$0.2637 Interest on Operating (Cultural) Cost s19.040.0400.006121.290. 0450.006822.780.0480.0073 Management Costs48.000.1010. 015348.000.1010.015348.000.1010.0153 Taxes/Regulatory Costs: Property Tax and Water Management Tax61.870.1300.019761.87 0.1300.019761.870.1300.0197 Canker Decontamination Costs 5.52 0.012 0.0018 5.52 0.012 0.0018 5.52 0.012 0.0018 Total Direct Grower Costs $ 826.86$1. 737$0.2632$ 910.86$1.914$0.2899$ 966.66$2.031$0.3077 Interest on Average Capital Investment Costs 321.22 0.675 $0.1022 321.22 0.675 0.1022 321.22 0.675 0.1022 Total Grower Costs $1,148.07$2.412$0. 3654$1,232.07$2.588$0.3922 $1,287.87$2.706$0.4099 Harvesting and Assessment Costs: Pick/Spot Pick, Roadside & Haul and Canker Decontamination Costs 1,042.442. 1900.33181,042.442.1900.33181,042.442.1900.3318 DOC Assessment 71.40 0.150 0.0227 71.40 0.150 0.0227 71.40 0.150 0.0227 Total Harvesting and Assessment Co sts1,113.842.3400.35451,113.842.3400.35451,113.842.3400.3545 Total Delivered-In Cost$2,261.91 $4.752 $0.7200 $2,345.91 $4.928 $0.7467 $2,401.71 $5.046 $0.7645 P.S. = Pound Solids Yield: 476 boxes/acre @ 6.6 P.S. per box 112 trees per acre Cultural program (Table 11-A) Two summer oil sprays with oil, copper, miticide and nutritionals Cultural program (Table 3) Cultural program (Table 11-A). A Fall Miticide Spray added to cultural program (Table 3)

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8Table 5.--Estimated annual per acre costs and returns and 5-year average costs and returns for a mature, Valencia orange grove producing citrus for processing in the Central Florida area, 1999-00-04 Year On-tree Price/Boxa Yield Gross Revenue Total Grove Care Expenses Total Ppecified Costsf Net Return to Land, Trees, and Ownership -----------------------------------------Dollars ------------------------------------1999-00$4.314481,930.88783.43831.431,099.45 2000-01$3.70436d1,613.20 758.85e806.85 806.35 2001-02 $4.17 446 1,859.82 767.77 815.77 1,044.05 2002-03 $3.91 446 1,743.86 777.69 825.59 918.27 2003-04 $2.50b 476c1,190.00 774.18 822.18 367.82 5-yr. avg. $3.72 450 1,674.00 772.38 820.38 853.62 aOn-tree prices for processed oranges only as repor ted by the Florida Agricultural Statistics Service. bPreliminary estimate by authors at time of printing and is not a published price. cHigher per acre yield is due to increased statew ide production of Valencia oranges in 2003-04 season. dThe severe drought affected yields for the 2000-01 season. eBegan using two summer oil sprays (one with nutritionals) in budget estimates. fA management cost of $4.00 per acre per mont h is included. Fixed costs such as taxe s, debt service, and crop insurance are not included.

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9Table 6.-Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2004 dollars) for a ma ture, Valencia orange grove producing citrus for processing in the Central Florida area, 1999-00-04 Year Inflation Factor Indexa Adjusted On-tree Price/BoxYield Gross Revenue Total Specified Costsb Net Return to Land, Trees, and Ownership -----------------------------Dollars ------------------------1999-00111.1$4.79448 2,145.92923.721,222.20 2000-01109.8$4.06436 1,770.16885.92884.24 2001-02112.4$4.69446 2,091.74916.931,174.81 2002-03106.7$4.17446 1,859.82880.90978.92 2003-04100.0$2.50476 1,190.00822.18367.82 5-yr. avg. $4.04450 1,818.00885.93932.07 aProducer price index for each year adjusted to 2004 prices (2004 = 100), with 2004 producer price index estimated to be 147.4. Producer price index for other years are: 2000 = 132.7; 2001 = 134.2; 2002 = 131.1; and 2003 = 138.1. bManagement cost of $4.00 per acre per month is included. Fixed costs such as taxes, debt service, and crop insurance are not included (Table 5).

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10REFERENCES 1. Citrus Summary 2002-03. 2003. Florida Agricultural Statistics Service, Orlando, FL. http://www.nass.usda.gov/fl. 2.Muraro, Ronald P. 2004. A Listing of Estimated Comparative Central Florida (Ridge) Citrus Production Costs Per Acre for 2003-04 CREC Report, Citrus Research and Education Center, Lake Alfred, FL (July). 3.______. 2004. Estimated Cost of Planting and Maintaining a Reset Citrus Tree through Three Years of Age CREC Report, Citrus Research and Edu cation Center, Lake Alfred, FL (July). 4.______. 2004. A Listing of 2004 Custom Rates Reported by Twenty-Eight Ridge Citrus Caretakers CREC Report, Citrus Research and Edu cation Center, Lake Alfred, FL (July). 5.Savage, Zach. 1960. Citrus Yields Per Tree Age UF Agricultural Extension Service Staff Paper SP60-8, University of Florida, Gainesville, FL. 6.Timmer, L.W., editor. 2004. 2004 Florida Citrus Pest Management Guide Florida Cooperative Extension Service Staff Paper SP43, University of Florida, Gainesville, FL, 150pp (January). 7.Tucker, D. P.H., A.K. Alva, L.K. Jackson, and T.A. Wheaton (editors). 1995. Nutrition of Florida Citrus Trees. Florida Cooperative Extens ion Service Staff Paper SP169, University of Florida, Gainesville, FL, 61pp.

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11ADDENDA :Listing of Grove Care Programs for Ce ntral Florida Citrus Production for Both Round Oranges and GrapefruitaPage Table 1-A.Spray programs....................................................12 Post bloom spray...................................................12 Summer spray......................................................13 Fall spray.........................................................14 Table 2-A.Herbicide.........................................................15 Table 3-A.Dry fertilizer .......................................................16 Table 4-A.Liquid fertilizer (double boom application) ...............................17 Table 5-A.Nematicides.......................................................17 Table 6-A.Soil amendment....................................................18 Table 7-A.Irrigation--annual cost per acre ........................................18 Permanent overhead.................................................18 Microsprinkler.....................................................18 Table 8-A.A listing of 2004 custom rates reported by thirty-three Ridge citrus caretakers...19 Table 9-A.2004 summary of average chemical price estimates ........................21 Table 10-A.2004 summary of average fertilizer price estimates .........................23 Table 11-A.A listing of estimated comparativ e Central Florida (Ridge) citrus production costs per acre for 2003-04 ............................................25 Table 12-A.Estimated cost of planting and main taining a reset citrus tree through three years of age, July 2004 ...................................................26 Table 13-A.Estimated average picking, roadsidi ng, and hauling charges for Florida citrus, 2003-04 ..........................................................27 Table 14-A.Estimated average packi ng charges for Florida citrus, 2003-04 ...............28 Table 15-A.Historic prices for selected citrus varieties...............................29 Table 16-A.Debt which can be supported per $1,000.00 annual payment capacity ..........30 Abbreviations for important chemicals are: B = BoronFe = IronMn = ManganeseZn = Zinc Cu = CopperMg = MagnesiumN = Nitrogen aCosts in ADDENDA represent a custom managed operation. All equipment costs are based on average custom rate costs along with a 10 percent handling and supervision charge added to material cost.

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12Table 1-A.--Spray programs POST BLOOM SPRAY Spray Program #1Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Oil 97+% Cu (50% metallic) Zn Mn 5 gallons 10 pounds 5 pounds 10 pounds $11.50 13.20 4.35 3.40 __________ __________ __________ __________ Ground Application (PTO driven airblast) 125 gallons22.95 __________ Total per Application$55.40 ------------------------------------------------------------------------------------------------Spray Program #2Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre (Scab/melanose) Cu (50% metallic) Zn Mn Micromite 25WP 10 pounds 5 pounds 10 pounds 1.25 pounds $13.20 4.35 3.40 39.88 __________ __________ __________ __________ Ground Application (PTO driven airblast) 125 gallons22.95 __________ Total per Application$83.78 ------------------------------------------------------------------------------------------------Spray Program #3Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Agri-Mek 15 pounds 10 ounces $19.80 45.38 __________ __________ Ground Application (engine driven airblast) 250 gallons29.67 __________ Total per Application$75.05 ------------------------------------------------------------------------------------------------Spray Program #4Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Vendex 50WP Zn Mn 2 pounds 5 pounds 10 pounds $31.36 4.35 3.40 __________ __________ __________ Ground Application (PTO driven airblast) 125 gallons22.95 __________ Total per Application$62.06 -------------------------------------------------------------------------------------------------

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13Table 1-A.--Spray programs (continued) POST BLOOM SPRAY (continued) Spray Program #5Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre (Scale insects) Lorsban 4EC 5 pints$21.20__________ Ground Application (engine driven airblast) 500 gallons31.00 __________ Total per Application$52.20 ------------------------------------------------------------------------------------------------SUMMER SPRAY Spray Program #6Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Oil 97+% Cu (50% material) Micro-Mite 5 gallons 7 pounds 1.25 pounds $11.30 9.24 39.88 __________ __________ __________ Ground Application (PTO driven airblast) 250 gallons29.67 __________ Total per Application$90.09 ------------------------------------------------------------------------------------------------Spray Program #7Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Oil 97+% Agri-Mek Cu (50% material) 5 gallons 10 ounces 7 pounds $11.30 45.38 9.24 __________ __________ __________ Ground Application (engine driven airblast) 250 gallons 29.67 __________ Total per Application$95.59 ------------------------------------------------------------------------------------------------Spray Program #8Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Oil 97+% Micromite Cu (50% material) 5 gallons 1.25 pounds 7 pounds $11.30 39.88 9.24 __________ __________ __________ Ground Application (PTO driven airblast) 125 gallons22.95 __________ Total per Application$83.37 -------------------------------------------------------------------------------------------------

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14Table 1-A.--Spray programs (continued) SUMMER SPRAY (continued) Spray Program #9Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Oil 97+% 7 gallons$15.82__________ Ground Application (engine driven airblast) 250 gallons29.67 __________ Total per Application$45.49 ------------------------------------------------------------------------------------------------Spray Program #10Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) 7 pounds$ 9.24__________ Oil 97+% 5 gallons11.30__________ Zn 5 pounds4.35__________ Mn 10 pounds3.40__________ B 0.25 pounds1.13__________ Ground Application (PTO driven airblast) 125 gallons22.95 __________ Total per Application$52.37 FALL SPRAY Spray Program #11Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Vendex 50WP 2 pounds$31.36__________ Ground Application (PTO driven airblast) 125 gallons22.95 __________ Total per Application$54.31 ------------------------------------------------------------------------------------------------Spray Program #12Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Microthiol 15 pounds$ 9.60__________ Ground Application (PTO driven airblast) 125 gallons22.95 __________ Total per Application$32.55 -------------------------------------------------------------------------------------------------

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15Table 2-A.--Herbicide Herbicide Program #1Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Solicam 80 DF Karmex WP Roundup Ultra Max 3 pounds 4 pounds 2 quarts $22.73 7.42 8.08 __________ __________ __________ Ground Application (1 time) 14.01 __________ Total for 1 Application$52.24 ------------------------------------------------------------------------------------------------Herbicide Program #2Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Mandate Direx 4L Roundup Ultra Max 2 pints 3 quarts 2 quarts $22.21 5.88 8.08 __________ __________ __________ Ground Application (1 time) 14.01 __________ Total for 1 Application$50.18 ------------------------------------------------------------------------------------------------Herbicide Program #3Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Karmex WP Roundup Ultra Max 4 pounds 2 quarts $ 7.42 8.08 __________ __________ Ground Application (1 time) 14.01 __________ Total for 1 Application$29.51 ------------------------------------------------------------------------------------------------Herbicide Program #4Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Roundup Ultra Max 2 quarts$ 8.08__________ Ammonium Sulfate 17 pounds1.39__________ Ground Application (1 time) 14.01 __________ Total for 1 Application$23.48 ------------------------------------------------------------------------------------------------Herbicide Program #5Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Roundup Ultra Max Princep (Caliber 90) 2 quarts 4 pounds $ 8.08 6.72 __________ __________ Ground Application (1 time) 14.01 __________ Total for 1 Application$28.81 -------------------------------------------------------------------------------------------------

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16Table 2-A.--Herbicide (continued) Herbicide Program #6Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Direx 4L Solicam Roundup Ultra Max 3 quarts 3 pounds 2 quarts $ 5.88 22.73 8.08 __________ __________ __________ Ground Application (1 time) 14.01 __________ Total for 1 Application $50.70 ------------------------------------------------------------------------------------------------Herbicide Program #7Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Spot herbicide for grass/brush regrowth under trees.) Roundup Ultra Max2 quarts$ 8.08__________ Ground Application (1 time) 15 gallons 7.23 __________ Total for 1 Application $15.31 a For herbicide materials, amount per grove acre does not equal amount per treated acre shown on label, only a strip or band is being treated. This report assume s that only half a grove surface is being treated. Table 3-A. Dry Fertilizer Program #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (162 lbs N/Acre)12-2-12-2.4 MgO1350 pounds$ 130.82__________ Application3 times 26.04 __________ Total for 3 Applications$156.86 ------------------------------------------------------------------------------------------------Program #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)16-0-16-4 MgO1125 pounds$ 123.75__________ Application3 times 26.04 __________ Total for 3 Applications$149.79 ------------------------------------------------------------------------------------------------Program #3 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (204 lbs N/Acre)16-0-16-4 MgO1275 pounds$140.25__________ Application3 times 26.04 __________ Total for 3 Applications$166.29 ------------------------------------------------------------------------------------------------Program #4 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (225 lbs N/Acre)15-2-15-2.4 MgO1500 pounds$151.50__________ Application3 times 26.04 __________ Total for 3 Applications$177.54

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17Table 4-A.--Liquid Fertilizer (double boom application) Program #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)10-0-10 1800 pounds$ 138.42__________ Double Boom Application3 times 45.99 __________ Total for 3 Applications $184.41 ------------------------------------------------------------------------------------------------Program #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)10-2-10 1800 pounds$ 140.22__________ Double Boom Application3 times 45.99 __________ Total for 3 Applications $186.21 ------------------------------------------------------------------------------------------------Program #3 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)10-0-10 Solicam 80 DF Karmex WP 1800 pounds 3 pounds* 4 pounds* $ 138.42 22.73 7.42 __________ __________ __________ Double Boom Application3 times 45.99 __________ Total for 3 Applications *Treated acre (one herbicide application) $214.56 Table 5-A.--Nematicides Program #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre Temik 15G 33 pounds$107.58__________ Application 14.64 __________ Total per Application $122.22 ------------------------------------------------------------------------------------------------Program #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre Temik 15G 17 pounds$ 55.42__________ Application 14.64 __________ Total per Application $ 70.06 -------------------------------------------------------------------------------------------------

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18Table 6-A.--Soil Amendment Program #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (Every 3 years) Dolomite (Delivered) 1 ton$30.27__________ Application 1 time 8.68 __________ Total for 1 Application $38.95 (Average 1/3 Ton Applied/Yr) $12.98 ------------------------------------------------------------------------------------------------Program #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (Every 4 years) Dolomite (Delivered) 1 ton$30.27__________ Application 1 time 8.68 __________ Total for 1 Application $38.95 (Average 1/4 Ton Applied/Yr) $ 9.74 Table 7-A.--Irrigation (annual cost per acre) PERMANENT OVERHEAD Program #1 Your Cost/Acre Program #2 Your Cost/Acre Operating (Electric) $119.15_________ (Diesel) $ 96.78__________ Maintenance of System 42.34 _________ 44.41 __________ Total Cash Expenses Fixed Depreciation Expense Total Cash and Fixed Expenses $161.49 55.73 $217.22 _________ _________ $141.19 59.54 $200.73 __________ __________ ------------------------------------------------------------------------------------------------MICROSPRINKLER Program #3 Your Cost/Acre Program #4 Your Cost/Acre Operating (Electric) $ 57.35_________ (Diesel) $ 48.28*__________ Maintenance of System 46.21 _________ 47.23 __________ Total Cash Expenses Fixed Depreciation Expense Total Cash and Fixed Expenses $103.56 52.94 $156.50 _________ _________ $ 95.51 56.56 $152.07 __________ __________ *Reflects the higher cost of fuel; diesel and electricity.

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19 Table 8-A.--A listing of 2004 custom rates reporte d by twenty-eight Ridge citrus caretakers Grove PracticeUnit Range of Rate Reported Average RateyComments CULTIVATION AND EQUIPMENT : Hand Hoe/Hand LaborHour$11.00$15.35$13.28Plus transportation Mechanic LaborHour25.00-47.5034.28Includes truck RotovateHour 27.50-45.0032.53 Disc 7'Hour 26.70-35.0031.40 Disc 7'Acre 7.00-12.00 9.56One-way discing Disc 9'-10'Hour 27.50-40.00 32.13 Disc 9'-10'Acre 9.0012.0010.00One-way discing ChopHour 28.00-40.00 33.95 ChopAcre 7.00-10.009.00 Mow 5'-7'Hour 27.90-40.00 31.19 Mow 9'-12'Hour34.50-40.00 35.61 Mow 5'-7'Acre8.50-11.25 9.69 Mow 9'-12'Acre 9.00-12.5010.19 Mow 15'-16'Acre10.00-12.7510.80 Herbicidez (Strip/Band--Single Boom)Hour 26.40-35.00 30.19Plus materials Herbicidez (Strip/Band--Single Boom)Acre 12.50-17.00 13.16Plus materials Herbicidez (Strip/Band--Double Boom)Acre12.50-15. 7014.01Plus materials; Avg. $31.17/hour Herbicidez (Chemical Mow) Acre 6.009.25 7.44Plus materials TemikzAcre12.00-16.00 14.64Plus materials PlowHour25.00-35.00 30.85 DevinerHour 40.00 Bush HogHour28.50-44.0035.11One reporting $13.00/acre BackhoeHour40.00-65.0050.00 Pickup Truck with DriverHour23.00-35. 0030.21Average miles/year/pickup: 21,089 Pickup Truck w/out DriverHour15.00-22.0019.38 Flatbed Transport Truck with Driver Hour30.00-40.0035.00Average miles/year: 24,213 Low-Boy TransportHour50.00-65.0055.00Average miles/year: 30,000 Tractor with DriverHour25.00-35.00 29.83 Water/Supply TruckHour28.00-40.0032.25 ATVHour19.00-29.8022.98 SPRAYING :zAIR BLAST SPRAYER Average with Electronic Sensing Technology Engine Driven 1,000 gallon tank PTO Powered 1,000 gallon tank 500 GPAAcre30.0035.7533.6128.00 35.0031.00$33.60/acre 250 GPAAcre25.0033.5029.7924.00 -35.0029.67$29.75/acre 125 GPAAcre25.0031.5028.5020.00 -25.0022.95$26.45/acre 100 GPAAcre 19.00 -25.0022.06$23.60/acre 50 GPAAcre 15.00 -18.0016.00$20.35/acre Aerial (Bell-47 Helicopter)$10.00 @ 5 GPA; $15.00 @ 10 GPA; $17.50 @ 15 GPA; $22.00 @ 20 GPA FERTILIZE AND SOIL AMENDMENTS :z Inject Liquid Fertilizer into Irrigati on SystemHour$25.00-$40.00$31.28Truck plus labor Inject Liquid Fertilizer into Irrigation SystemAc re1.50-3.502.69Average $66.25/irrigation injection hookup Liquid Boom Application: Double BoomAcre13.50-16.5015.33 Dry (Bulk)Acre 7.50-10.75 8.95 Lime or DolomiteAcre 7.50-10.758.68 Lime or DolomiteTon 7.50-9.008.17 Fertilize Young Trees:z Hand SpreadHour11.00-15.35 13.28 Plus transportation and materials Fert. SpreaderHour25.50-35.00 30.91Plus materials; Average $8.33/acre IRRIGATION : MicrosprinklerAvg. $3.98/acre; Avg. $37.50/month Start/stop and supervision MicrosprinklerHour25.00-35.0028.86 Start/s top and supervision; truck and driver ATV with DriverHour19.00-29.8022.98Check/repair microsprinkler irrigati on system-plus materials Ring Young Trees: Hand LaborHour11.00-15.3513.28Plus transportation Mechanical Hour23.10-27.0025.34Labor and equipment

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20 Table 8-A.--A listing of 2004 custom rates reported by twenty-eight Ridge citrus caretakers (continued) Grove PracticeUnit Range of Rate Reported Average RateyComments REMOVING TREES : Tree Shearing (Cutting Tree at Ground Level)Hour$50. 00-$65.00$59.13Average trees sheared: 5 to 20 trees/hour Front-end LoaderHour50.00-60.0054.02Aver age trees removed: 5 to 15 trees/hour BulldozerHour 50.00 Front-end Loader with Tree SpadeHour 65.00 PRUNING : Power Saw with OperatorHour$17. 00-$25.00$ 19.94Plus transportation Limb Lifter/Tree Skirt Trimmer (Double Side d)Hour 205.00Cover 9-18 acres one pass Hedging: Single Side (Tractor Mounted )Hour75.00-80.0076.67Cover 2-5 acres/hour Double Side (Tractor Pulled)Hour80.00-100.0088.96Cover 3-5 acres/hour Double Side (Tractor Mounted)Hour 250.00 Double Side (Self Propelled)xHour325.00-360.00338.75Cover 10-25 acres/hour depending on wood size Double Side (Self Propelled)xHour250.00-300.00277.50Cover 4-12 acr es/hour depending on wood size Topping: Tractor MountedHour195.00-200.00196.67 Tractor PulledHour 100.00Cover 1-3 acres/hour Self PropelledHour345.00-375.00361.69Cover 5-10 acres/hr (Roof Top); 5-20 acres/hr (Flat Top) Double Boom (Self Propelled)Hour 550.00Cover 2-12 acres/hr (Roof Top);15-30 acres/hr (Flat Top) Removing Brush: Haul Brush out of GroveHour29.00-40.0035.17Tracto r-trailer/truck, driver plus 1 person; plus 2 people Front-end Loader (Push Brush)Hour50.00-60.0053.562-10 acres/hour Chop/Mow BrushHour30.00-37.5033.953-6 acres/hour; Average $11.67/acre COLD PROTECTION : Mechanical (Bank and Unbank)Hour$ $ $ 23.43 Install WrapsEach0.15-0.500.36 Cost WrapsEach0.30-0.500.41 OTHER CUSTOM RATES : Plant ResetsPer Tree$ 2.00-$ 4.00$ 2.50Stake, plant and first watering Solid Set PlantingPer Tree1.00-1.501.33Stake, plant and first watering Travel/Setup ChargeHour 30.00Average for those reporting; One reporting $75.00 Grove Management Charge/Month: Supervising Grove Care OperationsAcre2.00-5.503. 15In addition to caretaking charges; One reporting 6% of Handling Fruit MarketingBox0.10-0.250.15 \equipment labor charge Supervising/Handling Chemicals/Fertilizer10% to 25% of materials cost Charge for personnel to oversee harvesting operations and coordinate harvest in different blocks/groves and keeping of harvesting labor compliance record. 10/box to 18/box; average 16/box Note :One reporting adding a 5% fuel surcharge if gasoline price is above $1.50/gallon and diesel fuel above $1.00/gallon. ConsultingCultural Management/H orticultural Evaluation $50/hr to $200/hr Financial Analysis Prospectus $350/hr Total Reported Acreage Provided Grove Service to: Acre500-13,8723,342 Total acres reporting: 63,498z Plus materials. Caretakers reporting ra tes 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.xLow acres is for 2-year regrowth hedging; high acres is for annual maintenance hedging. Source: Ronald P. Muraro, Extension Farm Ma nagement Economist, Lake Alfred CREC, July 2004.

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21 Table 9-A.--2004 summary of average chemical price estimates ItemUnit Average Price Your Price (2004) Fungicides :Abound EC gallon196.38 Aliette 80WP pound10.16 Basic Copper Sulfate pound 1.20 Copper Hydroxide pound Copper (Kocide 101) pound 1.58 Copper (Kocide 2000) pound 2.07 Copper (Champ II Flowable) gallon21.80 Cuprofix Disperss pound 1.79 Nu-Cop 50 DF pound 1.78 Enable gallon51.60 Gem 25 40 ozs.103.33 Headline EC gallon182.52 Oil 435 or 455 gallon 2.05 Oil 470 (Bio-lever) gallon 2.35 Ridomil Gold EC gallon591.67 Topsin pound13.40 Insecticides/Nematicides : Admire 2Fgallon454.00 Agri-Mek (0.15EC)gallon526.67 Carbaryl 4Lgallon26.55 Carbaryl 80Spound4.46 Chlorpyrifos 4Egallon50.18 Clinch Fire Ant Baitpound8.63 Danitolgallon129.38 Guthion 2Lgallon29.96 Guthion 50WPpound8.19 Imidan 70W (Diaprepes)pound7.50 Lorsban 4ECgallon30.82 Lorsban 15Gpound1.74 Malathion 5 ECgallon21.66 Micromite 25 WSpound29.00 Micromite 80 WGgallon82.25 Microthiol pound0.58 Nexter 75WPpound85.16 Sevin 80Spound4.59 Sevin XLRgallon26.62 Sulphur 6Fgallon3.10 Temik 15Gpound2.96 Vendex 50Wpound14.25

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22 Table 9-A.--2004 summary of average chemical price estimates (continued) ItemUnit Average Price Your Price (2004) Herbicides :Aqua Master gallon 42.53 Diuron 4L gallon 16.13 Direx 4L gallon 14.23 Direx 80 DF pound 3.06 Fusilade DX 2E gallon 117.67 Glyphosate: Glyphomax Plus gallon 15.25 Roundup (Original) gallon 22.25 Roundup Ultra Max gallon 29.37 Touchdown gallon 33.17 Gramoxone E (Paraquat) gallon 34.92 Hyvar X 80 WP pound 16.98 Karmex 80 DF pound 3.37 Krovar I pound 10.10 Landmaster II gallon 17.39 Mandate 2E gallon 161.53 Pendimax gallon 22.73 Poast Plus 1.0 EC gallon 52.39 Princep (Caliber 90) pound 3.05 Princep 4L gallon 13.22 Prowl gallon 21.48 Simazine 90 DF pound 2.66 Simazine 4L gallon 12.87 Solicam 80 DF pound 13.77 Simtrol 18.00 Surflan gallon 76.53 Growth Regulators : Citrus Fixgallon457.00 Pro-Gibb 3.91%20-ounce bottle30.79 Tree-Holdgallon79.17 Other Spray Materials : Borates (15%)pound0.68 Manganese (32%)pound0.31 Zinc (78%)pound0.79 Adjuvant (Surfactant)gallon22.50 Source: Ronald P. Muraro, Extension Farm Management Economist, University of Florida, Citrus Research and Education Center ( CREC), Lake Alfred, Florida, August 2004.

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23 Table 10-A.--2004 summary of average fertilizer price estimates ItemUnit Average Price Your Price (2004) FERTILIZER (FOB Price @ Plant) $ Dry Mix (Bulk) 17-0-17-3Mgton 196.99_________ 17-4-17-2.4Mg ton 200.79_________ 16-0-16 ton 181.72_________ 16-0-16-4Mgton 200.13_________ 16-2-16-3Mg ton 198.99_________ 15-2-15-2.4Mg ton 183.26_________ 12-2-12-2.4Mg ton 176.29_________ 8-8-8 w/minors* ton 169.82_________ 8-4-8 w/minors* ton 155.77_________ 8-2-8 w/minors* ton 141.94_________ 6-6-6 w/minors* ton 150.77_________ Liquid Mix (Bulk) 8-2-8 ton 126.89_________ 8-4-8 ton 126.55_________ 9-3-9 ton 130.31_________ 9-4-9 ton 138.77_________ 10-0-10 ton 139.81_________ 10-2-10 ton 141.62_________ 12-0-6 ton 143.28_________ 12-3-6 ton 150.88_________ *With organic nitrogen, the price averaged 25% higher.

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24 Table 10-A.--2004 summary of average fertilizer price estimates (continued) ItemUnit Average Price Your Price (2004) Other Fertilizer Materials (Bulk) Ammonium Nitrate (21% N Liquid) ton168.83_________ Ammonium Nitrate (33.5% N Dry) ton235.60_________ Ammonium Sulfate (21% N) ton147.92_________ Calcium Nitrate (19% Ca, 15.5% N) ton223.85_________ Dolomite (at mine--49% CaCO3, 36% MgCO3) ton 15.90_________ Muriate of Potash (60% K2O) ton183.78_________ Potassium Nitrate (14% N; 46% K2O) ton370.75_________ Sul-Po-Mag (SPM--21.9% K2O) ton183.33_________ Super Phosphate (20% P2O5) ton204.17_________ Triple Superphosphate (48% P2O5) ton225.36_________ Average Delivery Cost ton12.78_________ Foliar Macronutrients Phos Might 0-22-20 gallon24.87_________ Nutriphite Magnum 2-40-16 gallon30.00_________ MKP (0-52-34) (Mono-Potassium Phosphate) pound0.65_________ **SRN, Slow Release Nitrogen Source: Ronald P. Muraro, Extension Farm Management Economist, University of Florida, Citrus Research and Education Center ( CREC), Lake Alfred, Florida, August 2004.

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25 Table 11-A.--A listing of estimated comparative Central Florida (Ridge) citrus production costs per acre for 2003-2004zCosts represent a mature (10+ years old) Central Florida (Ridge) Orange Grove Low Cost Processed Cultural Program One-Year Alternative Processed and Reduced Fresh Cost Cultural Program Typical/Historical Fresh Fruit Cultural Program PRODUCTION/CULTURAL COSTS:y Weed Management/Control: Discing (2 times per year)$ 20.00$ 20.00$ 20.00 Mechanical Mow Middles (4 times per year)40.7640.7640.76 General Grove Work (2 labor hours per acre)26.5626.5626.56 Herbicide (1/2 tree acre treated): Application (6 glyphosate or 2 residual applications)$84.06$28.02$28.02 Material48.4874.4074.40 Spot Treatment (Material/application) 15.31 15.31 Total Herbicide Cost 132.54 117.73 117.73 Spray: Summer Oil #1 (Processed @ 125 GPA) or Post Bloom (Fresh @ 150 GPA): Application 22.95 22.95 Material 60.42 60.83 Total Summer Oil #1 or Post Bloom Cost 83.37 83.78 Summer Oil #2:Application (PTO 125 GPA) 22.95 22.95 29.67 Material 69.30 x 29.42 w 65.92 Total Summer Oil #2 Cost 92.25 52.37 95.59 Supplemental Fall Miticide: Application (PTO 150 GPA) 22.95 Material 9.60 Total Supplemental Fall Miticide Cost 32.55 Fertilizer (Bulk):3 Applications 26.04 26.04 26.04 Material (16-0-16-4 MgO @ 180 lbs N and 204 lbs N per acre) 123.75 140.25 140.25 Total Fertilizer Cost 149.79 166.29 166.29 Dolomite (one ton applied every 4 years) Material/Application 9.74 9.74 9.74 Pruning:Topping ($36.17/A 2.5 yrs)v14.47 14.47 14.47 Hedging ($33.88/A 2 yrs)v16.94 16.94 16.94 Chop/Mow Brush after Hedging ($8.92/A yrs)v 4.46 4.46 4.46 Total Pruning Cost 35.87 35.87 35.87 Tree Replacement--1 thru 3 years of age: (3 trees/acre) Remove Trees: Pull, Stack & Burn 3 Trees with Front-end Loader 14.22 14.22 14.22 Prepare Site & Plant Tree (Includes 3 reset trees) 26.82 26.82 Supplemental Fertilizer, Tree Wraps Maintenance, Sprout, Etc. (Trees 1-3 years old) 18.63 28.38 28.38 Total Tree Replacement Cost 32.85 69.42 69.42 Irrigation: Microsprinkler Systemu152.07 152.07 152.07 IRRIGATED PROCESSED FRUI T PRODUCTION COSTS$692.43 $774.18 Fall Miticide:Application (125 GPA) 22.95 26.83 Material 31.36 32.72 Total Fall Miticide Cost 54.31 59.55 IRRIGATED FRESH FRUIT PRODUCTION COSTS $828.49 $909.91 zEstimated comparative costs are for example grove situation de scribed in Economic Information Report Series, Budgeting Costs an d Returns for Central Florida Citrus Production, and may not repr esent your particular grove situation in Central Florida. Source: Ronald P. Muraro, University of Florida-, Citrus Research and Education Center, Lake Alfred, FL, August 2004.

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26 Table 12-A--Estimated cost of planting and maintaining a reset citrus tree through th ree years of age, July 2004 Number of Resets/Replacement Trees Per Acre 1-23-56-1011-2526+ -----------------Cost Per Tree -----------------Year #1 : $$$$$ Tree Removal 5.454.743.793.072.45 Tree Cost (Container Tree) 4.504.504.354.254.25 Site Preparationa5.714.954.193.883.04 Plant Tree and First Watering 2.84 2.46 2.08 1.93 1.51 Total Planting Cost 13.0511.9110.6210.068.80 Supplemental Fertilization 4 Times (Application & Materials) 1.371.201.101.000.92 Supplemental Spraying (Application & Materials)b0.480.410.380.350.32 Spot Herbicide (Application & Materials)0.210.180.160.140.13 Tree Wrap (Corrugated)1.001.001.001.001.00 Sprouting/Pruning0.420.420.390.390.35 Miscellaneous0.170.160.150.140.14 Supervision & Overhead0.27 0.25 0.24 0.23 0.21 Total Tree Care Cost Year #1 3.923.623.423.253.07 Total Cost Year #1 22.4220.2717.8316.3814.32 Year #2 : Supplemental Fertilization 3 Times (Application & Materials) 1.811.611.411.191.09 Supplemental Spraying (Application & Materials)b0.550.490.430.360.33 Spot Herbicide (Application & Materials)0.200.180.160.140.13 Sprouting/Pruning0.500.500.420.420.38 Miscellaneous0.150.140.120.110.10 Supervision & Overhead0.24 0.20 0.19 0.17 0.15 Total Cost Year #2 3.453.122.732.392.18 Year #3 : Supplemental Fertilization 3 Times (Application & Materials) 2.482.211.901.621.37 Miscellaneous 0.120.110.090.080.07 Supervision & Overhead 0.20 0.17 0.15 0.13 0.11 Total Cost Year #3b2.802.492.141.831.55 Total Three-Year Cumulative Costs 28.67 25.88 22.70 20.60 18.05 aSite preparation for bedded citrus grove; cost of root removal, rotovating/leveling tree planting site. Fumigate planting site would cost approximately $2.50 per tree.bAdditional spray costs may be incurred if leafminer is a problem. Source: Ronald P. Muraro, Farm Management Economist, CREC, Lake Alfred, FL, July 2004.

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27 Table 13-A.--Estimated average picking, roadsiding and hauling charges for Florida citrus, 2003-04 Fresh FruitProcessed Fruit RangeAverageRangeAverage $/Box$/Box$/Box$/Box Picking Charges : Early and Mid-Season Oranges0.80-1.000.8400.65-0.950.772 Valencia Oranges0.80-1.000.8400.65-0.950.791 Pink/Red Grapefruit0.60-0.850.6580.55-0.700.590 White/Marsh Grapefruit0.60-0.700.6330.55-0.700.590 Temples/Tangelos0.85-1.250.9500.70-1.250.851 Tangerines1.35-1.751.563 Fresh FruitProcessed Fruit RangeAverageRangeAverage $/Box$/Box$/Box$/Box Roadsiding Charges : Early and Mid-Season Oranges0.70-1.060.8600.65-1.070.801 Valencia Oranges0.75-1.060.8680.65-1.070.817 Pink/Red Grapefruit0.65-0.870.7660.55-0.660.620 White/Marsh Grapefruit0.65-0.850.7430.55-0.660.620 Temples/Tangelos0.75-1.110.9380.75-1.070.833 Tangerines1.12-1.211.155 Fresh FruitProcessed Fruit All VarietiesAll Varieties $/Box$/Box Hauling Charges : 0 30 miles0.4100.392 31 50 miles0.4600.457 51 80 miles0.5530.530 81 100 miles0.6250.570 100 + miles0.6870.625

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28 Table 14-A.--Estimated average packi ng charges for Florida citrus, 2003-04 Domestic Grapefruit Export GrapefruitOranges Temples/ TangelosTangerines ------------------------$/Carton ------------------------Total Packing Chargea3.6363.7413.9934.0264.795 --------------------------$/Box --------------------------Drenching Charge0.1580.1580.1730.1730.173 Packinghouse Elimination Charges 0.5230.5230.5440.5440.544 Hauling Charges for Eliminations 0.4230.4230.4960.4960.496aTotal Packing Charge includes the following items: 1.Materials, including mesh/plastic bags, labels/PLUs, etc. 2.Includes supervisor/foreman labor, gradi ng, 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; repairs maintenance; miscellaneous supplies; etc. 4.Indirect packing costs include items such 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.Selling Expenses include sales salaries, trav el, telephone and telegraph and brokerage fees. 7.Special assessments include items such 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. Source:Ronald P. Muraro, University of Florid a, Citrus Research and Education Center, Lake Alfred, FL, August 2004.

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29 Table 15-A.--Historic pricesa for selected citrus varieties Variety Crop year Earlyb and Midc-season Oranges Late Season OrangesdTemple Oranges All TangerinesTangelos Seedless Grapefruite (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 3.18 2.81 4.35 3.19 2.60 4.07 4.88 5.58 4.33 4.02 3.22 3.07 5.12 2.55 2.05 7.99 8.49 12.07 6.67 6.40 2.19 1.66 4.53 2.52 1.27 1.12 0.93 1.95 3.87 2.07 1.91 1.50 2.65 3.36 2.28 2001-02 2002-03f2.88 2.81 4.20 3.95 2.19 2.35 7.81 8.53 2.47 3.23 1.96 1.62 2.54 2.49aOn-tree average price per box (1-3/5 bushel box equivalent) for all methods of sale minus pick and haul charges.bNavel and Hamlin cParson Brown and Pineapple dValencia eMarsh (white) or pink fPreliminary Source: Florida Agricultural Statistics Service.

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30Table 16-A.--Debt which can be suppor ted 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 a7,172 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 a8,123 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 aExample. Assumes a $10,000 after tax income at 11.5% interest ra te and a 15-year term mortgage, the total debt which can be su pported is $69,970 ($6,997 x 10). At 11.5% interest rate and a 20-year term mo rtgage, the total debt which can be supported is $77,100 ($7,710 x 10).