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 Material Information
Title: Budgeting Costs and Returns for Indian River 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: In Press
General Note: "September 2004"
General Note: "FE527"
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Source Institution: University of Florida Institutional Repository
Holding Location: University of Florida
Rights Management: All rights reserved by the submitter.
System ID: IR00002007:00001


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Ronald P. Muraro EDIS FE527 John W. Hebb http://edis.ifas.ufl.edu/FE527Budgeting Costs and Returns for Indian River Citrus Production, 2003-04 Institute 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 seedless grapefruit in the Indian River area of Florida are presented for the twentieth year. The format presented 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. 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 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 Therefore, all equipment costs are based on the average cu stom rate costs along with a 10 percent handling and supervision charge added to the material cost. Although the estimated annual per acre grove costs 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 the grove practices performed (e.g., spot herbicide for grass/brush regrowth under trees could add an additional $16.60 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 $119.33/acre, could increase the total cultural costs per acre above the average costs shown in the comparative budgets; or 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. ACKNOWLEDGMENTS Appreciation is extended to Mrs. Jane Wilson for typing the final draft of this manuscript. Appreciation is also extended to the citrus grower s and production managers of the Indian River 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.................................................................11 ADDENDA ...................................................................12 NOTE :The ADDENDA includes items such as Listing of Grove Care Options for Indian River Citrus Production for Both Round Oranges and Grapefruit; 2004 custom rate summary report; cost of establishing a citrus grove; etc. Page 12 lists the tables included in the ADDENDA.

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iiiLIST OF TABLES Table Page 1Schedule of production practices and budget items for an Indian River Florida grapefruit grove, 2003-04 ...............................................3 2Calculation of normal production per acre, 2003-04 ..........................4 3Estimated annual per acre costs and re turns for a mature, white seedless grapefruit grove producing for the fresh market, Indian River area, 2003-04 ...............6 4Estimated total delivered-in cost for Indian River White grapefruit grown for the processed juice market under three cultural cost programs, 2003-04 .............7 5Estimated F.O.B. cost for fresh ma rket Indian River White grapefruit, 2003-04 ....8 6Estimated annual per acre costs and retu rns 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, 1999-00-04 ...................................9 7Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2004 dollars) for a mature, white seedless grapefruit grove producing citrus for fresh fruit market in the Indian River area, 1999-00-04 ...........10

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Ronald P. Muraro, Professor and Extension farm management economist, Department of Food and Resource Economics, Citrus Research and Edu cation Center, Lake Alfred, and John W. Hebb, Extension citrus agent, St. Lucie County, Fort Pi erce, Florida Cooperative Extension Service, Institute of Food and Resource Economics, Univer sity of Florida, Gainesville, FL.1BUDGETING COSTS AND RETURNS FOR INDIAN RIVER CITRUS PRODUCTION, 2003-04 Ronald P. Muraro and John W. Hebb 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 cost s and returns from their individual records. METHOD OF DATA COLLECTION The data presented here were developed by surveying custom operators, input suppliers, growers, and colleagues at both the Indian River Research a nd Education Center in Fort Pierce and the Citrus Research and Education Center in Lake Alfred and C ounty 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, ch emical, and fertilizer surveys. The ADDENDA shows growers costs (Tables 1-A through 7-A0, custom rate costs (Table 8-A), and various chemical and fertilizer costs (Tables 9-A and 10-A). The budge t costs represent a custom-managed operation. Therefore, all equipment costs are based upon 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 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 have a column reserved 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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2THE GROVE SITUATION Production practices for an Indian River grape fruit grove are shown in Table 1along with times during the year when they are 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, it an annual cash fl ow analysis can be helpful in financial planning. The individual grower may benefit from developing 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 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 s ituations. A grower, realto r, 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 appr opriately 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. 7.Custom-caretaker is providing grove management. Tree ages will vary due to tree losses and replacement. The budget reflects the following age distribution and yield for Indian River white seedless grapefruit:

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3Table 1.--Schedule of production practices and budget items for an Indian River Florida grapefruit grove, 2003-04aMonth JanFebMarAprMayJunJulAugSepOctNovDec Total revenue : 20% deposit Final payment Less:Pick & haul cost X DOC advertisement tax X Grove expenses : MowXX Chemical Mow Chemical MowX Labor, general grove work, pull vinesXX Herbicide (sprayed strip estimated as 1/2 grove acre equivalent)XXX Spray:Post bloom/nutritionalXX Summer oil/greasy spot X Fall miticide X Supplemental miticide X Fertilizer42# N/A42# N/A 42# N/ADolomite Hedging and toppingHedge Brush removal/chop brushChop brush Tree removalX Young tree careXXXXX Microjet irrigation (times/week)112333222211 Miscellaneous (clean ditches)X Grove taxes includi ng water management X Interest expense X Annual principal payment on mortgage X 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 % of Grove Tree Age and Condition Yield 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 5.9 5.0%producing 50% of expected yield 3.5 15.0%over 15 years 7.5 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, 2003-04 Age of Tree Trees Boxes /Tree Total Boxes Total no. all ages Proportion each age a No. each age -------Number -------3 years 95x0.05=4.75x1.0=4.8 4 years 95x0.05=4.75x1.7=8.1 5-15 years 95x0.55=52.30x5.9=308.6 Prod. 50% of expected yield95x0.05=4.75x3.5=16.6 Over 15 years95x0.15=14.30x7.5=107.3 Total boxes=445.4 aProportion adds up to 0.85 (85 per cent) as 15 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 an Indian River grove situation are shown in Table 3. Gross revenue estimates are based on the projected yields (Table 3) and estimated preliminary on-tree prices for the 2003-04 season. The budgeted costs represent one possible citrus production program and were selected from the costs shown in the ADDENDA tables (grove establishment and reset costs are shown in Tables 11-A through 14-A and historical on-tree prices for se lected Florida citrus varieties are shown in Table 15-A).

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5As shown in Table 3, the total revenue for fresh-market white seedless grapefruit is estimated to be $2,069.25 per acre. Total specified costs are $1,089.13, comprised of grove care costs of $1,041.13 plus management costs of $48.00. Return to land, trees and ownership of $980.12 per acre loss represents net return above variable costs. At 325 and 525 boxes per acre, respectively, the breakeven prices required to cover grove care costs for seedless white grapefruit range from $3.20 to $1.98 per box on-tree and $1.43 to $1.17 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 a net return to land, tr ees, and ownership (total return minus total costs). Harvest costs (pick, roadside, and hauling costs) also add to the total fruit cost delivered to either a processing plant or fresh fruit packinghouse. Average annual debt payment (principal and interest) may be as high as $460 per acre ($3,900 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 fresh p acked white grapefruit are shown in Table 4. Delivered-in costs include grove care costs (Tab le 3) plus harvesting, regulatory, and grower assessment costs. The "delivered-in" cost is presen ted as a cost per acre, per box, per carton, and per pound solids. Three possible budget cost scenarios ar e presented (Table 11-A): Low Cost Processed Cultural Program; Processed and Reduced Cost Fres h Cultural Program; and Typical/Historical Fresh Fruit Cultural Program. Scenario 1 represents cost s of a cultural program directed toward reducing expenditures for fruit grown primarily for the processed market. Scenario 2 re presents a program using reduced inputs but with production directed at the fresh market. Scenario 3 represents typical costs of grove practices that have been performed for c itrus grown for the fresh fruit market. Modified herbicide and/or spray and fertilizer programs account for the reduced costs. NOTE: Before modifying a grove management program to reduce costs, an evalua tion of the market program (processed or fresh), yield, and specific cultural problems (nutrition, disease, etc.) for the specific grove site should be made. Also, in Table 5, the total estimated F.O.B. cost fo r 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 returns for mature, fresh, white seedless grapefruit in the Indian River 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 fi ve-year average are presented in Table 6. The effect 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 net return to land and trees has decreased over the five-year pe riod. To allow comparisons in current values, these same costs and returns, adjusted to 2043 dollars, are presented in Table 7.

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6Table 3.--Estimated annual per acre costs and returns for a matu re, white seedless grapefruit grove producing for the fresh mar ket, Indian River area, 2003-04aItem DescriptionAmountYour Cost ----------------------Dollars --------------------I.Revenue445 boxes @ $4.65b2,069.25 ___________ II.Expensesc 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, #8 & #12) 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) ($275.00/hr. 10 A/hr.) 2 yrs. ($245.00/hr. 10 A/hr.) 1.5 yrs. ($8.52/A 1.5 yrs.) ($13.00/A 2 yrs.) (1 through 3 years) 5 trees per acre Including 5 trees per acre Including application 29.73 11.24 25.34 125.52 13.75 16.33 5.68 6.50 23.70 59.55 46.20 191.83 349.81 122.65 12.54 42.26 129.45 152.07 40.52 1,041.13 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ III.Management$4.00 per acre per monthd 48.00 ___________ IV.Total specified costse1,089.13 V.Return (loss) to land, trees, and ownership 980.12 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 eliminationsf3.202.782.452.191.98 1.431.341.271.221.17 a While estimated annual per acre grove costs Table 3 are repres entative of a mature Indian River white seedless grapefruit gro ve, grove care costs for specific grove site may differ depending on grove practices performed (e.g., Temik application would add $119.33 per acr e; extensive tree loss due to blight or tristeza may double tree replacement and care costs). bOn-tree price per box is preliminary; assumes average of all methods of sale (fresh and processed). 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 sales or 10% of total grove care costs) are used in the industry and vary from situation to situation. eOther cost items which are not included in budget are ad valorem taxes and interest on grove inve stment. 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 percent to the total grove care costs. These costs vary from grove to grove. fAssumes 4.7 pounds solids per box, $2.27 pick and haul cost per box (spot picking and fruit drenching plus DOC $0.25 advertisin g tax and canker decontaminati on 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 Wh ite grapefruit grown for the fresh/processed market under three cu ltural cost programs, 2003-04 Represents a mature (10+ years old) Indian River White Grapefruit Grove Processed White Grapefruit Low Cost Cultural Program One-Year Alternative Fresh Packed White Grapefruit Reduced Cost Cultural Program Fresh Packed White Grapefruit Cultural Program $/Acre $/Box$/P.S. $/Acre $/Box$/Carton $/Acre $/Box$/Carton Total Production/Cultural Costs$ 753.52$1.693$0.3603$1,019.85$2.292$1.1459$1,041.13$2.340$1.1698 Interest on Operating (Cultural) Costs20.720.0470.009950.990.1150.057352.060.1170.0585 Management Costs48.000.1080.023048.000.1080.053948.000.1080.0539 Taxes/Regulatory Costs: Property Tax/Water Management Tax47.040.1060.022544.800.1010.050344.800.1010.0503 Water Drainage District Tax63.000.1420.030160.000.1350.067460.000.1350.0674 Fly Protocol Cost 54.730.1230.061552.130.1170.0586 Canker Decontamination Costs 6.18 0.014 0.0030 6.18 0.014 0.0069 4.54 0.010 0.0051 Total Taxes/Regulatory Costs 116.22 0.261 0.0556 165.71 0.372 0.1862 161.47 0.363 0.1814 Total Direct Grower Costs $ 938.46$2.109$0.4487$1,284.55$2.887$1.4433$1,302.66$2.927$1.4637 Interest on Average Capital Investment Costs 321.22 0.722 0.3609 321.22 0.722 0.3609 321.22 0.722 0.3609 Total Grower Costs $1,259.68$2.831$0.8096$1,605.77$3.608$1.8042$1,623.87$3.649$1.8246 Harvesting and Assessment Costs: Pick/Spot Pick, Roadside & Haul and Canker Decontamination 838.831.8850.4011928.272.0861.0430928.272.0861.0430 Fruit Drenching (Fresh) 75.650.1700.085075.650.1700.0850 DOC Assessment 106.80 0.240 0.0511 111.25 0.250 0.1250 111.25 0.250 0.1250 Total Harvesting and Assessment Costs945.632.1250.45211,115.172.5061.25301,115.172.5061.2530 Total Delivered-In Cost$2,205.30 $4.956 $1.2617 $2,720.94 $6.114 $3.0572 $2,739.04 $6.155 $3.0776 Two cartons per box P.S. = Pound Solids Yield: 445 boxes/acre @ 4.7 P.S. per box 95 trees per acre Cultural program (Table 11-A) Two summer oil sprays with oil, copper, and miticide Cultural program (Table 3). Assumes 100% packout Cultural program (Table 11-A) Assumes 100% packout

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8 Table 5.--Estimated F.O.B. cost for fresh market Indian River White grapefruit, 2003-04 Percent Packout 50.00% Box Yield Per Acre 445 Percent Packout 60.00% Box Yield Per Acre 445 Percent Packout 70.00% Box Yield Per Acre 445 Per Acre Per Packed BoxPer CartonPer Acre Per Packed BoxPer CartonPer Acre Per Packed BoxPer Carton Total Production/ Cultural Costs $1,041.13$4.679 $2.3396$1,041.13$3.899$1.9497$1,041.13$3.342$1.6712 Interest on Operating (Cultural) Costs52.060. 2340.117052.060.1950.097552.060.1670.0836 Management48.000.2160.107948. 000.1800.089948.000.1540.0770 Taxes/Regulatory161.470.7260. 3629161.470.6050.3024161.470.5180.2592 Interest on Average Capital Investment321.221. 4440.7218321.221.2030.6015321.221.0310.5156 Harvesting (Pick/Spot Pick, Haul, DOC Tax, Etc.) 1,115.17 5.012 2.5060 1,115.17 4.177 2.0883 1,115.17 3.580 1.7900 Total Delivered-In Cost$2,739.04$12.310 $6.1551$2,739.04$10.259$5.1293$2,739.04$8.793$4.3965 Packing & Selling (Export)1,642.057.380 3.69001,970.467.3803.69002,298.877.3803.6900 Net Fresh Eliminations Costsa -289.92 -1.303 -0.6515 -231.93 -0.869 -0.4343 -173.95 -0.558 -0.2792 Total F.O.B. Costs $4,091.17 $18.387 $9.1936 $4,477.57 $16.770 $8.3850 $4,863.96 $15.615 $7.8073 Percent Packout 80.00% Box Yield Per Acre 445 Percent Packout 90.00% Box Yield Per Acre 445 Percent Packout 100.00% Box Yield Per Acre 445 Per Acre Per Packed BoxPer CartonPer Acre Per Packed BoxPer CartonPer Acre Per Packed BoxPer Carton Total Production/ Cultural Costs$1,041.13$2.925 $1.4623$1,041.13$2.600$1.2998$1,041.13$2.340$1.1698 Interest on Operating (Cultural) Costs 52.060. 1460.073152.060.1300.065052.060.1170.0585 Management 48.000.1350.067448. 000.1200.059948.000.1080.0539 Taxes/Regulatory 161.470.4540. 2268161.470.4030.2016161.470.3630.1814 Interest on Average Capital Investment 321.220. 9020.4511321.220.8020.4010321.220.7220.3609 Harvesting (Pick/Spot Pick, Haul, DOC Tax, Etc.)1,115.17 3.133 1.5663 1,115.17 2.784 1.3922 1,115.17 2.506 1.2530 Total Delivered-In Cost$2,739.04$7.694 $3.8470$2,739.04$6.839$3.4195$2,739.04$6.155$3.0776 Packing & Selling (Export)2,627.287.380 3.69002,955.697.3803.69003,284.107.3803.6900 Net Fresh Eliminations Costsa -115.97 -0.326 -0.1629 -57.98 -0.145 -0.0724 0.00 0.000 0.0000 Total F.O.B. Costs $5,250.35 $14.748 $7.3741 $5,636.75 $14.074 $7.0371 $6,023.14 $13.535 $6.7676 a Net Eliminations Cost equals th e average yield of 4.70 pound solids per box times $0.49 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 grapefr uit grove producing citrus for fre sh fruit market in the Indian River area, 1999-00-04 Year On-tree Price/Boxa Yield Gross Revenue Total Grove Care Eexpenses Total Specified Costse Net Return to Land, Trees, and Ownership -----------------------------------------Dollars ------------------------------------1999-00$4.204691,969.80951.47999.47970.33 2000-01$2.15425c913.75 974.461,022.46 (108.71) 2001-02 $1.95417d813.151,008.771,056.77 (243.62) 2002-03 $2.08b417d867.361,024.541,072.54 (205.18) 2003-04 $4.65b445 2,069.251,041.131,089.13 980.12 5-yr. avg. $3.01435 1,309.351,000.071,048.07 261.28 aOn-tree prices for all sales methods as reporte d by the Florida Agricultural Statistics Service. bPreliminary estimate by authors at time of printing and is not a published price. cThe severe drought affected yields for the 2001-02 season. dIncreased tree loss due to citrus tristeza virus reduced yields. eA 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 2004 dollars) for a mat ure, white seedless grapefruit grove producing citrus for fresh fruit market in the Indian River area, 1999-00-04 Year Inflation Factor IndexaAdjusted On-tree Price/BoxYield Gross Revenue Total Specified CostsbNet Return to Land, Trees, and Ownership ---------------------------Dollars ------------------------1999-00111.1$4.67469 2,190.231,110.411,079.82 2000-01109.8$2.36425 1,003.001,122.66(119.66) 2001-02112.4$2.19417 913.231,187.81(274.58) 2002-03106.7 $2.22417 925.741,144.40(218.66) 2003-04100.0$4.65445 2,069.251,089.13980.12 5-yr. avg.--$3.22435 1,400.701,130.88269.82 aProducer price index for each year adjusted to 2004 prices (2004 = 100), w ith 2004 consumer 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. b Management cost of $4.00 per acre, per month is included. Fixed costs (e.g., taxes, debt service, and crop insurance) are not i ncluded (Table 6.)

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11REFERENCES 1. Citrus Summary 2002-03. 2004. Florida Agricultural Statis tics Service, Florida Agricultural Statistics, Tallahasee, FL (January). 2.Muraro, Ronald P. 2004. A Listing of Estimated Comparative Indian River Citrus Production Costs Per Acre for 2003-04 CREC Report, Citrus Research a nd 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 Education Center Lake Alfred, FL (July). 4.______. 2004. A Listing of 2004 Custom Rates Reported by Fifteen Indian River and South Florida Citrus Caretakers. CREC Report, Citrus Research and Educa tion 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 SP 43, University of Florida, Gainesville, FL, 150pp (January). 7.Tucker, D. P. H., A. K. Alva, L. K. Jack son, and T. A. Wheaton (editors). 1995. Nutrition of Florida Citrus Trees. Florida Cooperative Exte nsion Service Staff Paper SP169, University of Florida, Gainesville, FL, 61pp.

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12ADDENDA :Listing of Grove Care Options for Indi an River Citrus Production for Both Round Oranges and GrapefruitaPage Table 1-A.Spray options.................................................... 13 Post bloom spray................................................. 13 Summer spray.................................................... 14 Fall spray....................................................... 15 Table 2-A.Herbicide options................................................. 15 Table 3-A.Dry fertilizer options .............................................. 18 Table 4-A.Liquid fertilizer (Double boom application) ............................ 19 Table 5-A.Nematicides options............................................... 19 Table 6-A.Soil amendment options............................................ 19 Table 7-A.Irrigation--annual cost per acre ...................................... 20 Drip........................................................... 20 Microsprinkler.................................................... 20 Drainage ditch annual costs ......................................... 20 Table 8-A.A listing of 2004 custom rates reported by fifteen Indian River and South Florida citrus caretakers............................................ 21 Table 9-A.2004 summary of average chemical price estimates ...................... 23 Table 10-A.2004 summary of average fertilizer price estimates ....................... 25 Table 11-A.A listing of estimated comparativ e Indian River citrus production costs per acre, 2003-04 ......................................................27 Table 12-A.Estimated cost of planting and ma intaining a reset citrus tree through three years of age, July 2004 ...............................................28 Table 13-A.Estimated average picking, roadsi ding and hauling charges for Florida citrus, 2003-04 ..........................................................29 Table 14-A.Estimated average packi ng charges for Florida citrus, 2003-04 ...............30 Table 15-A.Historic prices for selected citrus varieties............................. 31 Table 16-A.Debt which can be supported per $1,000.00 annual payment capacity ........ 32 Abbreviations for important chemicals are: Cu = CopperMg = MagnesiumN = Nitrogen Fe = IronMn = ManganeseZn = Zinc 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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13 Table 1-A.--Spray options POST BLOOM SPRAY Spray Option #1Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Micromite Oil 97+% Cu (50% metallic) Zn Mn 1.25 pounds 5 gallons 7 pounds 5 pounds 10 pounds $ 39.88 11.30 9.24 4.35 3.40 _________ _________ _________ _________ Ground Application (PTO driven airblast) 250 gallons28.67 _________ Total per Application$85.54 ------------------------------------------------------------------------------------------------Spray Option #2Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Agri-Mek Cu (50% metallic) Oil 97+% 10 ounces 10 pounds 3 gallons $45.38 13.20 6.78 _________ _________ _________ Ground Application (Curtec sprayer) 25 GPA20.00 _________ Total per Application$85.36 ------------------------------------------------------------------------------------------------Spray Option #3Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) 7 pounds$ 9.24_________ Oil 97+% 5 gallons11.30_________ Ground Application (PTO driven airblast) 250 gallons28.67 _________ Total per Application$49.21 ------------------------------------------------------------------------------------------------Spray Option #4Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) 7 pounds$ 9.24_________ Ground Application (PTO driven airblast) 125 gallons 24.67 _________ Total per Application$33.91 -------------------------------------------------------------------------------------------------

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14 Table 1-A.--Spray options (continued) SUMMER SPRAY Spray Option #5Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Oil 97+% Cu (50% metallic) Micromite 5 gallons 7 pounds 1.25 pounds $11.30 9.24 39.88 _________ _________ _________ Ground Application (PTO driven airblast) 250 gallons28.67 _________ Total per Application$89.09 ------------------------------------------------------------------------------------------------Spray Option #6Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Oil 97+% Agri-Mek 7 pounds 5 gallons 10 ounces $ 9.24 11.30 45.38 _________ _________ _________ Ground Application (PTO driven airblast) 250 gallons 28.67 _________ Total per Application$94.59 ------------------------------------------------------------------------------------------------Spray Option #7Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Oil 97+% Agri-Mek 7 pounds 10 gallons 5 ounces $ 9.24 22.60 22.69 _________ _________ _________ Ground Application (PTO driven airblast) 500 gallons36.00 _________ Total per Application$90.53 ------------------------------------------------------------------------------------------------Spray Option #8Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Enable 8 ounces$11.36_________ Oil 97+% 5 gallons11.30_________ Micromite 1.25 pounds39.88_________ Ground Application (PTO driven airblast) 250 gallons28.67 _________ Total per Application$91.21 ------------------------------------------------------------------------------------------------Spray Option #9Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) 7 pounds$ 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) 250 gallons28.67 _________ Total per Application$58.09

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15 Table 1-A.Spray options (continued) SUMMER SPRAY (continued) Spray Option #10Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre (Scale insects)Lorsban 4EC 5 pints$21.20_________ Ground Application (engine driven airblast) 500 gallons36.00 _________ Total per Application$57.20 FALL SPRAY Spray Option #11Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Vendex 50WP Microthiol (sulfur) 2 pounds 15 pounds $31.36 9.60 _________ _________ Ground Application (PTO driven airblast) 250 gallons28.67 _________ Total per Application$69.63 ------------------------------------------------------------------------------------------------Spray Option #12Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Vendex WP 2 pounds$31.36 _________ Ground Application (PTO driven airblast) 125 GPA 24.67 _________ Total per Application$56.03 ------------------------------------------------------------------------------------------------Spray Option #13Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Microthiol (sulfur) 15 pounds$ 9.60_________ Aerial Application 15 GPA 8.02 _________ Total per Application$17.62 Table 2-A.--Herbicide options Herbicide Option #1Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Solicam 80DF Karmex WP Roundup Ultra Max 3 pounds 4 pounds 2 quarts $22.73 7.42 8.08 __________ __________ __________ Ground Application (1 time) 12.21 __________ Total for 1 Application$50.44

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16 Table 2-A.Herbicide options (continued) Herbicide Option #2Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Surflan A80 DF Simazine 4L Roundup Ultra Max 2 quarts 4 quarts 2 quarts $21.06 7.08 8.08 __________ __________ __________ Ground Application (1 time) 12.21 __________ Total for 1 Application$48.43 ------------------------------------------------------------------------------------------------Herbicide Option #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) 12.21 __________ Total for 1 Application$27.71 ------------------------------------------------------------------------------------------------Herbicide Option #4Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Solicam 80DF Simazine 4L Roundup Ultra Max 4 pounds 4 quarts 2 quarts $30.30 7.08 8.08 __________ __________ __________ Ground Application (1 time) 12.21 __________ Total for 1 Application$57.67 ------------------------------------------------------------------------------------------------Herbicide Option #5Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Roundup Ultra Max 2 quarts$ 8.08__________ Ground Application (1 time) 12.21 __________ Total for 1 Application$20.29 ------------------------------------------------------------------------------------------------Herbicide Option #6Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Krovar I Roundup Ultra Max 5 pounds 2 quarts $27.78 8.08 __________ __________ Ground Application (1 time) 12.21 __________ Total for 1 Application $48.07 aFor 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 assu mes that only half a grove surface is being treated.

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17 Table 2-A.Herbicide options (continued) Herbicide Option #7Materials 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) 12.21 __________ Total for 1 Application$27.01 ------------------------------------------------------------------------------------------------Herbicide Option #8Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Direx 4L Solicam 3 quarts 3 pounds $ 5.88 22.73 __________ __________ Ground Application (1 time) 12.21 __________ Total for 1 Application$40.82 ------------------------------------------------------------------------------------------------Herbicide Option #9Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Chemical mow)Roundup Ultra Max 1 pt$ 2.02__________ Ground Application (1 time) 3.60 __________ Total for 1 Application$ 5.62 ------------------------------------------------------------------------------------------------Herbicide Option #10Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Chemical mow)Roundup Ultra Max1.5 pints$ 3.03__________ Ground Application (1 time) 3.60 __________ Total for 1 Application$ 6.63 ------------------------------------------------------------------------------------------------Herbicide Option #11Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Spot treatment for grass/brush regrowth under trees) Roundup Ultra Max2 quarts$ 8.08__________ Ground Application (1 time) 4.50 __________ Total for 1 Application$12.58

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18 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 pounds$ 80.91_________ Application 3 times 21.87 _________ Total for 3 Applications$102.78 ------------------------------------------------------------------------------------------------Option #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (125 lbs N/Acre)12-2-12-2.4 MgO 1040 pounds$100.78_________ Application 3 times 21.87 _________ Total for 3 Applications$122.65 ------------------------------------------------------------------------------------------------Option #3 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (162 lbs N/Acre)12-2-12-2.4 MgO 1350 pounds$129.60_________ Application 3 times 21.87 _________ Total for 3 Applications$151.47 ------------------------------------------------------------------------------------------------Option #4 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)15-2-15-2.4 MgO 1200 pounds$ 121.20_________ Application 3 times 21.87 _________ Total for 3 Applications$143.07 ------------------------------------------------------------------------------------------------Option #5 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (204 lbs N/Acre)17-4-17-2.4 MgO 1200 pounds$132.00_________ Application 3 times 21.87 _________ Total for 2 Applications$153.87 ------------------------------------------------------------------------------------------------Option #6 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (225 lbs N/Acre)15-2-15-2.4 MgO 1500 pounds$144.00_________ Application 3 times 21.87 _________ Total for 3 Applications$165.87

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19 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 pounds$138.42_________ Double Boom Application3 times 36.75 _________ Total for 3 Applications$175.17 ------------------------------------------------------------------------------------------------Option #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)10-2-10 1800 pounds$ 140.22_________ Double Boom Application3 times 36.75 _________ Total for 3 Applications$176.97 ------------------------------------------------------------------------------------------------Option #3 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)10-0-10 Solicam 80DF Karmex WP 1800 pounds 3 pounds* 4 pounds* $ 138.42 22.73 7.42 _________ _________ _________ Double Boom Application3 times 36.75 _________ Total for 3 Applications *Treated acre (one herbicide application) $205.32 Table 5-A.--Nematicides options Option #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre Temik 15G 33 pounds$107.58_________ Application 1 time 11.75 _________ Total per Application$119.33 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$30.27_________ Application 1 time 7.35 _________ Total for 1 Application$37.62 (Average 1/3 Ton Applied/Yr) $12.54 ------------------------------------------------------------------------------------------------Option #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (Every year) Dolomite (Delivered)1000 pounds$15.14_________ Application 1 time 7.35 _________ Total per Application$22.49

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20 Table 7-A.--Irrigation (annual cost per acre) DRIP Option #1 Your Cost/Acre Option #2 Your Cost/Acre Operating (Electric) $ 50.44________ (Diesel) $ 45.38________ Maintenance of System 41.46 ________ 41.25 ________ Total Cash Expenses Fixed Depreciation Expense Total Cash and Fixed Expenses $ 91.90 42.35 $134.35 ________ ________ $ 86.63 45.25 $131.88 ________ ________ ------------------------------------------------------------------------------------------------MICROSPRINKLER Option #3 Your Cost/Acre Option #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 ________ ________ ------------------------------------------------------------------------------------------------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 12.71 ________ Total$40.52 *Indicates higher cost for fuel; diesel or electric.

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21 Table 8-A.--A listing of 2004 custom rates reported by fift een Indian River and South Florida citrus caretakers Grove PracticeUnit Range of Rate Reported Average RateyComments CULTIVATION AND EQUIPMENT : Hand LaborHour$ 9.50-$15.0 0 $12.67Plus transportation and equipment Mechanic Labor Hour32.00-40.0036.00Labor and service truck Rotovate Hour30.00-45.00 36.70 Disc 7-8' Hour 25.00-31.00 27.83 Disc 10-12' Hour 27.50-35.50 32.00 Mow: 7-8' Hour 27.50-32.00 30.05 9-10' Hour 30.00-35.00 31.69 9-10' Acre9.00-11.00 9.91 15-16' Hour 34.00-41.00 37.42Average $8.88/acre V-Mower Hour 27.50 Sickle Mower Hour 34.00 Herbicidez (Strip/BandSingle Boom)Hour 30.00-32.00 31.33Plus materials Herbicidez (Strip/BandSingle Boom)Acre 12.00-13.40 12.63Plus materials Herbicidez (Strip/BandDouble Boom)Acre 11. 50-13.00 12.21Plus materials Herbicidez (Chemical Mow) Acre 2.505.00 3.60Plus materials TemikzAcre 10.00-13.00 11.75Plus materials PlowHour 32.50 BackhoeHour 40.00-50.00 46.21 Vine Puller/DevinerHour 32.00 Middle BusterHour 31.00-34.00 32.71With tractor and driver Mound BuilderHour 33.00-35.0034.17With tractor and driver Grader BladeHour 28.00-33.00 30.88Tractor/blade and driver Caterpillar GraderHour 65.00 Water Truck with DriverHour30.00-34.00 32.33 Pickup Truck with DriverHour28.00-35.00 30.33Aver age miles traveled per year: Pick-up truck 22,663 miles Flatbed/Transport Truck with DriverHour40.00-45.0042.50 Tractor with DriverHour27.00-33.0030.00 ATV with DriverHour20.00-23.5021.60 SPRAYING :zPTO AIR BLAST SPRAYER 1,000 Gallon Tank with Electronic Sensing 1,000 Gallon Tank without Electronic Sensing 500 Gallon Tank Average 500 GPAAcre37.75-38.0037.8335.00-38.0036.0036.50 250 GPAAcre28.00-33.0030.8525.00-32.0028.6729.75 125 GPAAcre23.00-26.5024.9424.00-26.0024.6725.50 100 GPAAcre 21.5020.25-21.0020.75 Curtec (25 GPA)Acre 20.00 AerialFixed Wing: $ 4.81/acre @ 5 gallons per acre AerialFixed Wing: $ 6.52/acre @ 10 gallons per acre Bell Helicopter: $15.00/acre @ 10 GPA AerialFixed Wing: $ 8.02/acre @ 15 gallons per acre AerialFixed Wing: $10.14/acre @ 20 gallons per acre Hand Sprayer (500 gallon tank) with tractor and 2 workers $45.00/hour FERTILIZING :z Liquid Boom Application: Double BoomAcre11.00-13.5012.25 Dry (Bulk)Acre 7.007.75 7.29 Lime or DolomiteAcre 7.007.75 7.35Average $34.00/ton Fertilize Young Trees:z Hand SpreadHour9.50-15.0012.67Pl us transportation and materials Fert. SpreaderHour30.00-32.0030.67Plus materials; Average $7.25/acre

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22 Table 8-A.--A listing of 2004 custom rates reported by fifteen Indian River and South Florida citrus caretakers (continued) Grove Practice Unit Range of Rate Reported Average RateyComments IRRIGATION : Ditch MowerHour$33.00-$48.00$ 39.60 Water Furrow DiscHour30.00-37.5033.63 Water Furrow CleanerHour 34.50 Water Furrow Shaper (Laser Control)Hour 75.00 Rotary Ditcher or AugerHour33.00-35.0034.17 Microsprinkler/Drip Irrigation MaintenanceAcre/Mont h3.50-6.004.38 Check & repair system; parts extra Microsprinkler30.00/setting-application Start/stop and supervision REMOVING TREES : Front-end LoaderHour$45.00-$57.20$52.74Avg. range 3-15 trees per hour Tree Shearing (Cutting Tree at Ground Level)H our45.00-55.0051.33Avg. range 5-20 trees per hour PRUNING : Power Saw with OperatorHour$17.00-$ 22.50$ 19.88 Hedging: Double Side (Tractor Pulled)Hour100.00-145.00130.006 to 10 acres/hour Double Side (Tractor Mounted)Hour145.00-200.00172.50 Double Side (Self Propelled)Hour225.00-265.00 245.008 to 20 A/H depending on wood size; $14/A annual cut Double Side Rotary Boom (Self Propelled)xHour 320.005 to 15 A/H bed tops only; add 25% for furrows only Double Side Self-Propelled Fixed Boom HedgerxHour 360.0012 to 30 A/H be d tops only; 8 to 20 acres bed top Topping: \ and furrow; depending on wood size Tractor PulledHour115.00-175.00145.002-5 acres/hour depending on wood size Double Sided Topper (Self Propelled)Hour265.00285.00275.00Avg. 8-15 A depending on wood size type of cut;$25/A Double Boom (Self Propelled)Hour 550.00 15 to 30 A flattop cut from bed tops annual maint. cut Limb Lifter/Tree Skirt TrimmerAcre 13.003 to 5 acres/hour Limb Lifter/Tree Skirt Trimmer (Double Sided Rotary)Hour 120.006 to 20 acres/hour Removing Brush: Haul Brush out of Grove (Front-end Loader)Hour 45.00-55.0052.00 Mow/Chop Brush Hour 32.00-45.0037.85 OTHER CUSTOM RATES : Install Tree Wraps15-45/tree depending on type of wrap and number of trees; Annual maintenance cost: 25/tree Plant Trees (Solid Set)Tree$ 0.90$ 1.50$ 1.10Varies as to density Plant Trees (Resets)Tree2.00-3.252. 42Varies as to the number of resets Travel/Setup ChargeHour 25.23 Grove Management Charge/Month: Supervising Grove Care OperationsAcre 3.25-8.004.78In addition to caretaking charges Handling Fruit Marketing$0.10-$0.25/ box For Supervising and Marketing fruit Supervising/Handling Chemicals/Fertilizer 10% to 20% of materials cost Charge for personnel to oversee harvesting operations and coordinate harvest in different blocks/groves and keeping of harvesting labor compliance records. Box$ 0.10-$ 0.25$ 0.17 ConsultingHour$ 85.00$200.00$136.00Horticultural Evaluation and/or Financial Analysis/prospectus.Total Reported Acreage Provided Grove Service to:Acre600-8,0002,922Total acres reporting: 26,298zPlus materials. Caretakers reporting ra tes include labor, tractor and sprayer; supply truck included by most caretakers.yCalculated by dividing total number of caretakers reporting rate into sum reported. Unless otherw ise stated, labor included wit h all charges.xLow acres is for 2 years 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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23 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 ounces103.33 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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24 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, IFAS, CREC, Lake Alfred, Florida, August 2004.

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25 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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26 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, IFAS, CREC, Lake Alfred, Florida, August 2004.

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27 Table 11-A.--A listing of estimated comparative Indian Ri ver citrus production costs per acre for grapefruit, 2003-2004zCosts represent a mature (10+ years old) Indian River Grapefruit 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: Mechanical Mow Middles (3 times per year)$ 29.73$ 29.73$ 29.73 Chemical Mow Middles (2 times per year)11.2411.24 11.24 General Grove Work (2 labor hours per acre)25.3425.3425.34 Herbicide (1/2 tree acre treated): Application (6 glyphosate or 3 residual applications)$73.26 $36.63$36.63 Material 48.48 88.89 88.89 Total Herbicide Cost 121.74 125.52 125.52 Spray: Post Bloom:Application (150 GPA) 28.67 28.67 Material 56.87 56.87 Total Post Bloom Cost 85.54 85.54 Summer Oil #1:Application (250 GPA) 28.67 28.67 28.67 Material 60.42 62.54 62.54 Total Summer Oil #1 Cost 89.09 91.21 91.21 Summer Oil #2:Application (PTO -250 GPA) 28.67 28.67 28.67 Material 29.42 x 20.54 20.54 Total Summer Oil #2 Cost 58.09 49.21 49.21 Fertilizer (Bulk):3 Applications 21.87 21.87 21.87 Material (12-2-12-2.4 MgO @ 125 lbs N and 100 lbs N per acre) 100.78 80.91 100.78 Total Fertilizer Cost 122.65 102.78 122.65 Dolomite (one ton applied every 3 years) Material/Application 12.54 12.54 12.54 Pruning: Topping ($27.50/A 2 yrs)w13.75 13.75 13.75 Hedging ($24.50/A 1.5 yrs)w16.33 16.33 16.33 Chop/Mow Brush after Hedging ($8.52/A 1.5 yrs)w5.68 5.68 5.68 Raise Skirts of Trees ($13.00/A 2 yrs)w 6.50 6.50 Total Pruning Cost 35.76 42.26 42.26 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) 59.55 59.55 Supplemental Fertilizer, Tree Wraps Maintenance, Sprout, etc. (Trees 1-3 years old) 31.05 46.20 46.20 Total Tree Replacement Cost54.75129.45129.45Irrigation:Microsprinkler Systemv152.07 152.07 152.07 Clean Ditches (Weed Control) 13.05 13.05 13.05 Ditch and Canal Main tenance 14.76 14.76 14.76 Water Control (Pump water in/out of Ditches and Canals) 12.71 12.71 12.71 Total Irrigation Cost192.59 192.59 192.59 IRRIGATED PROCESSED FRUIT PRODUCTION COSTS $753.52 $897.41 Supplemental Post Bloom Spray: (2 Applications) Application (125 GPA)49.7049.34 Material (Copper) 19.60 18.48 Total Supplemental Post Bloom Spray Cost 69.30 67.82 Fall Miticide Spray:Application (125 GPA) 20.42 24.67 Material 32.72 31.36 Total Fall Miticide Spray Cost 53.14 56.03 IRRIGATED FRESH FRUIT PRODUCTION COSTS $1,019.85 $1,041.13 zEstimated comparative costs are for example grove situation described in Economic Information Series, Budgeting Costs and Retu rns for Indian River Citrus Production, and may not represent your particular grove situation in Indian River. SOURCE: Ronald P. Muraro, University of Florida-IFAS, Citr us Research and Education Cent er, Lake Alfred, FL, August 2004.

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28 Table 12-A.--Estimated cost of planting and main taining a reset citrus tree through three 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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29 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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30 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 advertis ing 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-IFAS, Citrus Research and Education Center, Lake Alfred, FL, August 2004.

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31 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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32Table 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).