<%BANNER%>
UFIR IFAS
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/IR00002008/00001
 Material Information
Title: Budgeting Costs and Returns for Southwest 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
 Notes
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: "FE528"
 Record Information
Source Institution: University of Florida Institutional Repository
Holding Location: University of Florida
Rights Management: All rights reserved by the submitter.
System ID: IR00002008:00001


This item is only available as the following downloads:

FE52800 ( PDF )


Full Text

PAGE 1

Ronald P. Muraro EDIS FE528 Fritz M. Roka http://edis.ifas.ufl.edu/FE528 Robert E. RouseBudgeting Costs and Returns for Southwest Florida 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

PAGE 2

iABSTRACT Estimated costs and returns of growing processed-market round oranges and fresh-market seedless grapefruit in the Southwest area of Florida are presented for the eighth consecutive year. The format presented may be used by individual growers to budget costs and returns, utilizing individual data on specific groves. Key words: citrus, budgeting, costs, round or anges, seedless grapefruit, Southwest Florida. NOTE:Southwest Florida refers primarily to Ch arlotte, Collier, Glades, Hendry and Lee Counties. However, the costs shown are applicable to other South Central Florida counties such as DeSoto, Okeechobee, and Sarasota. 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 an owner-managed operation for production of oranges for processing and grapefruit for the fre sh market. Therefore, the 10 percent handling and supervision charge added to the material cost for a custom-managed operation is not included in the costs. 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 grove pr actices performed (e.g., spot herbicide for grass/brush regrowth under trees could add an additional $9.50 per acre; Diaprepes control could add $73.20 per acre for each foliar appli cation; extensive tree loss due to blight or tristeza could substantially in crease the tree replacement and care costs; spray applications to control citrus leafminer and nematicide applications, such as Temik at $109.43 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 grower s and production managers of Southwest Florida who provided suggestions for the revision of this manuscript.

PAGE 3

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 ................................................6 HISTORICAL COST TRENDS...................................................7 REFERENCES.................................................................17 ADDENDA ...................................................................18 NOTE :The ADDENDA includes items such as Listing of Grove Care Programs for Southwest Florida Citrus Production for Both Round Oranges and Grapefruit; 2004 custom rate summary report; cost of establishing a citrus grove; etc. Page 18 lists the tables included in the ADDENDA.

PAGE 4

iiiLIST OF TABLES Table Page 1Schedule of production practices and budget items for a Southwest Florida mature, round orange grove, 2003-04 ............................................3 2Schedule of production practices and budget items for a Southwest Florida mature, red seedless grapefruit grove, 2003-04 .....................................4 3Calculation of normal production per tr ee and per acre for Hamlin oranges, 2003-045 4Calculation of normal production per tree and per acre for red seedless grapefruit, 2003-04 .............................................................6 5Estimated annual per acre costs and returns for a mature, Hamlin orange grove producing for the processed market, Southwest Florida area, 2003-04 ............8 6Estimated total delivered-in cost for Southwest Florida Hamlin oranges grown for the processed juice market under three cultural cost programs, 2003-04 .............9 7Estimated annual per acre costs and re turns for a mature, red seedless grapefruit grove producing for the fresh mark et, Southwest Florida area, 2003-04 ...........10 8Estimated total delivered-in cost for Southwest Florida Red grapefruit under three cultural cost programs, 2003-04 ..........................................11 9Estimated F.O.B. cost for fresh market Southwest Florida Red grapefruit, 2003-04..12 10Estimated annual per acre costs and returns and 5-year average costs and returns for a mature, Hamlin orange grove producing citrus for processed market in the Southwest Florid a area, 1999-00-04 .................................13 11Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2004 dollars) for a mature, Hamlin orange grove producing citrus for processed market in the Southwest Florid a area, 1999-00-04 ...........14 12Estimated annual per acre costs and return s and 5-year average costs and returns for a mature, red seedless grapefruit grove producing citrus for fresh fruit packing in the Southwest Florid a area, 1999-00-04 .................................15 13Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2004 dollars) for a mature, red seedless grapefruit grove producing citrus for fresh fruit packing in the Southwest Flor ida area, 1999-00-04 .....16

PAGE 5

Ronald P. Muraro, Professor and Extension fa rm management economist, Department of Food and Resource Economics, Citrus Research and Educati on Center, Lake Alfred; Fritz M. Roka, Associate Professor, Department of Food and Resource Econom ics, Southwest Florida Research and Education Center, Immokalee; and Robert E. Rouse, Associate Professor, Department of Horticultural Sciences, Southwest Florida Research and Education Center, Immokalee, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL.1BUDGETING COSTS AND RETURNS FOR SOUTHWEST FLORIDA CITRUS PRODUCTION, 2003-04 Ronald P. Muraro, Fritz M. Roka, and Robert E. Rouse INTRODUCTION Southwest Florida has become a major citrus produc tion area. In 2004, citrus acreage in Southwest Florida represented over 22.6 percent of total stat e citrus acreage. Acreag e in Southwest Florida increased from 72,480 acres in 1986 to 179,948 acres in 1998 and then decreased to 169,386 acres in 2004. The 5.9 percent decline in acreage was primarily due to trees on sour orange rootstock that died from tristeza virus and acreage destroyed in the citr us canker eradication program. Southwest Florida refers primarily to Charlotte, Collier, Glades, Hendr y and Lee Counties. However, the costs shown are applicable to other South Central Florida counties such as DeSoto, Okeechobee, and Sarasota. 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 two budgets constructed from current data and provides a format for growers to analyze costs and returns from their individual records. METHOD OF DATA COLLECTION The data presented here were developed by surveying custom operators, input suppliers, growers, and colleagues at both the Southwest Florida Research and Education Center and the Citrus Research and Education Center in Lake Alfred. 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 rate charges (Table 8-A), various chemical and fertilizer costs (Tables 9-A and 10-A), costs of planting and maintaining reset trees through three years of age (Table 13-A), and historic on-tree prices for selected citrus varieties (Table 16-A).

PAGE 6

2Although brand names are used in many of the 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 the 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 Southwest Florida orange and grapefruit groves are shown in Tables 1 and 2, respectively, along 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, an annual cash flow analysis can be helpful in financial planning. The individual grower may be nefit 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 vari ous tree variety combinations produce acceptable yields and returns. Although the examples represent Hamlin orange and red seedless grapefruit groves, 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 mature (10+ years old), low volume irrigated grove. 2.Varieties are processed-market Hamlin oranges and fresh-market red seedless grapefruit. 3.Annual tree loss is 4.4 trees per acre for or anges and 3.6 trees per acre for grapefruit. 4.Trees are pulled and replaced when production falls below 50 percent of expected yield. 5.Tree density is 145 trees per acre for oranges and 119 trees per acre for grapefruit. Tree ages will vary due to tree losses and replacement. The budgets reflect age distribution and yield for oranges and grapefruits.

PAGE 7

3Table 1.--Schedule of production practices and budget items for a Southwest Florida mature, round orange grove, 2003-04aMonth JanFebMarAprMayJunJulAugSepOctNovDec Total revenue : 20% deposit 50% Partial payment Final payment Less:Pick & haul cost X DOC advertisement tax X Grove expenses : Mow X XXX X Labor, general grove work, pull vines X X Herbicide (1/2 grove acre equivalent) X X X Spray :Dormant Post bloom/nutritional X Supplemental miticide Summer oil/greasy spot X Fall miticide X Fertilizer 68# N/A 68# N/A 68# N/A Dolomite Hedging and topping Hedge Brush removal/mow brush Mow brush Tree removal X Young tree care XX XX X Microsprinkler irrigation (times/week) 112333222211 Miscellaneous (clean ditches) X Grove taxes including 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.

PAGE 8

4Table 2.--Schedule of production practices and budget items for a Southwest Florida mature, red seedless grapefruit grove, 2003 -04aMonth JanFebMarAprMayJunJulAugSepOctNovDec Total revenue : 20% deposit Final payment Less:Pick & haul cost X DOC advertisement tax X Grove expenses : Disc Chop MowXXXXX Labor, general grove work, pull vinesXX Herbicide (1/2 grove acre equivalent)XXX Spray :Dormant Post bloom/nutritional X Supplemental miticide X Summer oil/greasy spot X X Fall miticide X Fertilizer 50# N/A 50# N/A 50# N/A Dolomite Hedging and topping Hedge Brush removal/mow brush Mow brush Tree removal X Young tree care XX XX X Microsprinkler irrigation (times/week) 112333222211 Miscellaneous (clean ditches) X Grove taxes including 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.

PAGE 9

5 Hamlin Oranges Situation Yield Boxes/Tree 3%pulled and reset 0.0 3%1 year old 0.0 3%2 years old 0.0 3%3 years old 0.7 3%4 years old 1.5 33%5-15 years old 4.0 3%producing 50% of expected yield 2.2 49%over 15 years old 4.3 and Red Seedless Grapefruit Situation Yield Boxes/Tree 3%pulled and reset 0.0 3%1 year old 0.0 3%2 years old 0.0 3%3 years old 0.9 3%4 years old 1.6 33%5-15 years old 4.0 3%producing 50% of expected yield 2.9 49%over 15 years old 6.5 Calculation of normal production per acre for Ha mlin oranges and red seedless grapefruit are shown in Tables 3 and 4, respectively. Table 3.--Calculation of normal production per tree and per acre for Hamlin oranges, 2003-04 Age of Tree Trees Boxes /Tree Total Boxes Total no. All Ages Proportion Each Age a No. Each Age -------Number--------3 years 145x0.03=4.4x0.7=3.1 4 years 145x0.03=4.4x1.5=6.6 5-15 years 145x0.33=47.9x4.0=191.6 Prod. 50% of expected yield145x0.03=4.4x2.2=9.7 Over 16 years145x0.49=71.0x4.3=305.3 Total boxes=516.3 aProportion adds up to 91 percent as 9 percent of the trees were non-bearing (pulled and reset, 1 and 2 year old trees).

PAGE 10

6 Table 4.--Calculation of normal production per tree and per acre for red seedless grapefruit, 2003-04 Age of TreeTrees Boxes /Tree Total Boxes Total No. All Ages Proportion Each Age a No. Each Age --------Number---------3 years119x0.03=3.6x0.9=3.2 4 years119x0.03=3.6x1.6=5.8 5-15 years119x0.33=39.3x4.0=157.2 Prod. 50% of exp. yield119x0.03=3.6x2.9=10.4 Over 16 years119x0.49=58.3x6.5=379.0 Total boxes=555.6 aProportion adds up to 91 percent as 9 percent of the trees were non-bearing (pulled and reset, 1and 2-year-old trees, see page 5). BUDGET COSTS AND RETURNS The estimated budget costs and returns for the two Southwest Florida grove situations are shown in Tables 5 and 7, and are representative of an ow ner-managed citrus operation. Gross revenue estimates are based on projected yields (Tables 3 and 4) a nd estimated preliminary ontree prices for the 2003-04 season. The budgeted costs represent one possible c itrus production program and were selected from the costs shown in the ADDENDA tables (grove reset costs, harvesting and packing charges are shown in Tables 11-A through 15-A and historical on-tree prices for selected Flor ida citrus varieties are shown in Table 16-A). As shown in Table 5, the total revenue for processed-market Hamlin oranges is estimated to be $789.48 per acre. Total specified costs are $816.21, comprised of grove care costs of $768.21 plus management costs of $48.00. Return to land, trees and ownership of $26.73 per acre loss represents net return above variable costs. At 350 and 550 boxes per acre, respectively, the break-even price required to cover grove care costs for Hamlin oranges range from $2.19 to $1.40 per box on-tree and $0.76 to $0.62 per pounds solids delivered-in. In Table 7, total revenue for fresh market red seedless grapefruit is estimated to be $1,737.15 per acre. Total specified costs are $922.29, comprised of grove care costs of $874.29 plus management costs of $48.00. Return to land, trees, and ownership or net return above variable costs is $814.86. At 350 and 550 boxes per acre, respectively, the break-even pri ce required to cover grove care costs for seedless grapefruit range from $2.50 to $1.59 per box on-tree and $1.28 to $1.09 per pound solids delivered-in.

PAGE 11

7Ad 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 the 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, trees, and ownershi p (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 $435 per acre ($3,700 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 are shown for pro cessed oranges in Table 6 and fresh packed red grapefruit in Table 8. Delivered-in costs include grove care costs (Tables 5 and 7) plus harvesting, regulatory, and grower assessment costs. The "deliver ed-in" costs are presented as a cost per acre, per box and per pound solids or per carton. Three possible budget cost scenarios are presented (Tables 11-A and 12-A): Low Cost Processed Cultural Pr ogram; Reduced Cost Cultural Program; and Typical/Historical Cultural Program. Scenarios 1 and 2 represent costs of two cultural programs directed toward reducing the expenditures for fruit grown primar ily for the fresh or processed market. Scenario 3 represents typical costs of gr ove practices that have been perfo rmed for citrus grown for the fresh grapefruit market or the processed orange market. Modified herbicide and/or spray and fertilizer programs account for the reduced costs. NOTE: Before modifying a grove management program to reduce costs, an evaluation of the market program (processed or fresh), yield, and specific cultural problems (nutrition, disease, etc.) for th e specific grove site should be made. In Table 9, the total estimated F.O.B. cost for fresh packed Red 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, processed Hamlin oranges and mature fresh-market seedless grapefruit in the Southwest Florida area have been developed and published in each of the past five years. Estimated cost and return hi stories for 1999-00 through 2002-03 along with 2003-04 and a five-year average are presented in Tables 10 and 12. To allow comparisons in current values, these same costs and returns, adjusted to 2004 dollars, are presented in Tables 11 and 13.

PAGE 12

8Table 5.--Estimated annual per acre costs a nd returns for a mature, Hamlin orange grove producing for the processed market, Sou thwest Florida area, 2003-04aItem DescriptionAmountYour Cost ---------------------Dollars ---------------------I.Revenue516 boxes @ $1.53b789.48 ___________ II.Expenses Weed control Mow middles Chemical mow (Table 2-A, Program #10) General grove work/sprouting, etc. Herbicide (Table 2-A, Program #1, #6, & #8) Spray program (Table 1-A, Programs #11 & #13) Fertilizer (Table 3-A, Program #4) Dolomite (Table 6-A, Program #1) Pruning (maintenance) Topping Hedging Mow brush Tree replacement and care (Table 12-A) Remove trees Prepare sites and plant resets Supplemental fertilizer, sprout, etc. (Trees 1-3 years) Microsprinkler irrigation (Table 7-A, Program #4) Drainage ditch annual costs (Table 7-A, Program #5) Total grove care expenses 3 times per year 2 times per year (2 labor hours per acre) ($275.00/hr. 10 A/hr.) 2.5 yrs. ($245.00/hr. 10 A/hr.) 2 yrs. ($8.52/A 2 yrs.) (1 through 3 years) 4 trees per acre Including 4 trees per acre Including application 22.76 10.88 25.34 106.54 11.00 12.25 4.26 18.96 47.64 36.96 165.52 131.69 135.33 12.01 27.51 103.56 152.07 40.52 768.21 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ III.Management$4.00 per acre per monthc 48.00 ___________ IV.Total specified costsd816.21 V.Return (loss) to land, trees, and ownership (26.73) VI.Break-even price for total grove care expenses Boxes per acre Boxes per acre 350 400 450 500 550 350 400 450 500 550 $ On-tree price per box $ Delivered-in price per pound solidse2.191.921.711.541.40 0.760.710.670.650.62 a While estimated annual per acre grove costs in Tables 5 and 6 ar e representative of a mature Southwest Florida Hamlin orange a nd red seedless grapefruit grove, respectively, grove care costs for specific grove site may differ depending on grove practices performed (e.g., a Temik application would add $109.43 per acre; ex tensive tree loss due to blight or tristeza may double tree replacement and care costs; truck watering of rese ts could add another $8.31 per acre). bOn-tree price per box is preliminary; assumes price for processed oranges only. cOther 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. dOther cost items not included in budget are ad valorem taxes and interest on grove investment. In addition to these cost item s, overhead and administrative costs (e .g., water drainage/district taxes, crop insurance, and other grower assessments) can add up to 12 per cent to the total grove care cost s. These costs vary from grove to grove. eAssumes 6.0 pounds solids per box and $2.217 pick and haul cost per box (i ncluding canker decontamina tion costs) and Department of Citrus advertising assessment of $0.15 per box.

PAGE 13

9Table 6.--Estimated total delivered-in cost for Southwest Florida Hamlin oranges grown for the processed market under three cultural cost programs, 2003-04 Represents a mature (10+ years old) Southwest Florida Orange Grove Processed Hamlin Oranges Low Cost Cultural Program One-Year Alternative Processed Hamlin Oranges Reduced Cost Cultural Program Fresh/Processed Hamlin Oranges Historical Cost Cultural Program $/Acre $/Box$/P.S. $/Acre $/Box $/P.S. $/Acre $/Box $/P.S. Total Production/Cultural Costs$ 642.82$1.246$0.2076$ 768.21$1.489$0.2481$ 879.86$1.705$0.2842 Interest on Operating (Cultural) Costs17.680.0340.005738.410.0740.012443.990.0850.0142 Management Costs48.000.0930.015548.000.0930.015548.000.0930.0155 Taxes/Regulatory Costs: Property Tax and Water Management District Tax64.050.1240.020761.000.1180.019761.000.1180.0197 Canker Decontamination Costs 6.18 0.012 0.0020 4.54 0.009 0.0015 4.54 0.009 0.0015 Total Direct Grower Costs $ 778.73$1.509$0.2515$ 920.16$1.783$0.2972$1,037.39$2.010$0.3351 Interest on Avg Capital Investment Costs 321.22 0.623 $0.1038 321.22 0.623 0.1038 321.22 0.623 0.1038 Total Grower Costs $1,099.94$2.132$0.3553$1,241.38$2.406$0.4010$1,358.61$2.633$0.4388 Harvesting and Assessment Costs: Pick/Spot Pick, Roadside & Haul and Canker Decontamination Costs1,143.972.2170.36951,143.972.2170.36951,143.972.2170.3695 DOC Assessment 77.40 0.150 0.0250 77.40 0.150 0.0250 77.40 0.150 0.0250 Total Harvesting & Assessment Costs1,221.372.3670.39451,221.372.3670.39451,221.372.3670.3945 Total Delivered-In Cost$2,321.31 $4.499 $0.7498 $2,462.75 $4.773 $0.7955 $2,579.98 $5.000 $0.8333 P.S. = Pound Solids Yield: 516 boxes/acre @ 6.0 P.S. per box 145 trees per acre Cultural program (Table 11-A) Only summer oil sprays with oil, copper, miticide and nutritionals Cultural program (Table 5) Cultural program (Table 11-A) A Fall Miticide Spray added to the cultural program (Table 5)

PAGE 14

10Table 7.--Estimated annual per acre costs and returns for a matu re, red seedless grapefruit grove producing for the fresh marke t, Southwest Florida area, 2003-04aItem DescriptionAmountYour Cost --------------------Dollars ----------------------I.Revenue555 boxes @ $3.13b1,737.15___________ II.Expenses Weed control Mow middles Chemical mow (Table 2-A, Program #10) General grove work/sprouting, etc. Herbicide (Table 2-A, Program #1, #6, & #8) Spray program (Table 1-A, Programs #1, #6, #13, #14, & #16) Fertilizer (Table 3-A, Program #2) Dolomite (Table 7-A, Program #1) Pruning (maintenance) Topping Hedging Raise skirts of trees Removing/chop brush Tree replacement and care (Table 12-A) Remove trees Prepare sites and plant resets Supplemental fertilizer, etc. (Trees 1-3 years) Microsprinkler irrigation (Table 7-A, Program #4) Drainage ditch annual costs (Table 7-A, Program #5) Total grove care expenses 3 times per year 2 times per year (2 labor hours per acre) ($275.00/hr. 10 A/hr.) 2.5 yrs. ($245.00/hr. 8 A/hr.) 2 yrs. ($13.00/A 2 yrs.) ($8.52/A 2 yrs.) (1 through 3 years) 3 trees per acre Including 3 trees per acre Including application 22.76 10.88 25.34 106.54 11.00 12.25 6.50 4.46 14.22 35.73 27.72 165.52 285.36 106.93 12.01 34.21 77.67 152.07 40.52 874.29 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ III.Management 48.00 ___________ IV.Total specified costsd922.29 V.Return to land, trees, and ownership 814.86 VI.Break-even price for total grove care expenses Boxes per acre Boxes per acre 350 400 450 500 550 350 400 450 500 550 $ On-tree price per box $ Delivered-in price per pound solids for eliminationse2.502.191.941.751.59 1.281.221.161.121.09 a While estimated annual per acre grove costsin Tables 5 and 6 are representative for a mature Southwest Florida Hamlin orange a nd red seedless grapefruit grove, re spectively, grove care costs for specific grove site may differ depending on grove practices performed (e.g., a Temik application would add $109.43 per acre; ex tensive tree loss due to blight or tristeza may double tree replacement and care costs; truck watering of rese ts could add another $8.31 per acre). bOn-tree price per box is preliminary; assumes average of all methods of sale (fresh and processed). cOther 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. dOther cost items not included in the budget are ad valorem taxes and interest on grove investment. In addition to these cost i tems, overhead and administrative costs (e.g., water drainage district taxes, crop insurance, and other grower assessments, can add up to 12 per cent to the total grove care cost s. These costs vary from grove to grove. eAssumes 4.7 pounds solids per box and $2.27 pick and haul cost per box (includes spot picking and fr uit drenching and canker de contamination costs), D.O.C. $0. 25 advertising tax, $0.55 per box handling through packinghouse, and $0.45 per box delivery to processing plant.

PAGE 15

11Table 8.--Estimated total delivered-in cost for Southwest Flor ida Red Grapefruit grown for the fresh/processed market under three cultural cost programs, 2003-04 Represents a mature (10+ years old) Southwest Florida Red Grapefruit Grove Processed Red Grapefruit Low Cost Cultural Program One-Year Alternative Fresh Packed Red Grapefruit Reduced Cost Cultural Program Fresh Packed Red Grapefruit Typical/Historical Cultural Program $/Acre $/Box$/P.S. $/Acre $/Box$/Carton $/Acre $/Box$/Carton Total Production/Cultural Costs$ 649.91$1.171$0.2492$ 832.27$1.500$1.0144$874.29$1.575$1.0144 Interest on Operating (Cultural) Costs17.870.0320.006922.890.0410.020624.040.0430.0217 Management Costs48.000.0860.018448.000.0860.043248.000.0860.0432 Taxes/Regulatory Costs: Property Tax and Water Management District Tax51.240.0920.019651.240.0920.047851.240.0920.0478 Fly Protocol Cost 54.730.0990.047754.730.0990.0477 Canker Decontamination Costs 6.18 0.011 0.0024 6.18 0.011 0.0016 6.18 0.011 0.0016 Total Taxes/Regulatory Costs 57.42 0.103 0.0220 112.15 0.202 0.0971 112.15 0.202 0.0971 Total Direct Grower Costs $ 773.20$1.393$0.2964$1,015.31$1.829$1.1754$1,058.48$1.907$1.1764 Interest on Average Capital Investment Costs 321.22 0.579 0.1231 321.22 0.579 0.2894 321.22 0.579 0.2894 Total Grower Costs $1,094.42$1.972$0.4196$1,336.52$2.408$1.4648$1,379.70$2.486$1.4658 Harvesting and Assessment Costs: Pick/Spot Pick, Roadside & Haul and Canker Decontamination 1,046.181.8850.40111,157.732.0861.04301,157.732.0861.0430 Fruit Drenching (Fresh) 94.350.1700.085094.350.1700.0850 DOC Assessment 133.20 0.240 0.0511 138.75 0.250 0.1250 138.75 0.250 0.1250 Total Harvesting and Assessment Costs1,179.382.1250.45211,390.832.5061.25301,390.832.5061.2530 Total Delivered-In Cost$2,273.79 $4.097 $0.8717 $2,727.35 $4.914 $2.7178 $2,770.53 $4.992 $2.7188 Two cartons per box P.S. = Pound Solids Yield: 555 boxes/acre @ 4.7 P.S. per box 119 trees per acre Cultural program (Table 12-A) Two summer oil sprays with oil, copper, and miticide Cultural program (Table 7) Assumes 100% packout Cultural program (Table 12-A) Assumes 100% packout

PAGE 16

12 Table 9.--Estimated F.O.B. cost for fresh ma rket Southwest Florida Red grapefruit, 2003-04 Percent Packout 50.00% Box Yield Per Acre 555 Percent Packout 60.00% Box Yield Per Acre 555 Percent Packout 70.00% Box Yield Per Acre 555 Per AcrePer BoxPer CartonPer AcrePer Bo xPer CartonPer AcrePer BoxPer Carton Total Production/ Cultural Costs$874.29$4.193 $2.0966$874.29$3.494$1.7472$874.29$2.995$1.4976 Interest on Operating (Cultural Costs)24.040. 1150.057724.040.0960.048024.040.0820.0412 Management48.000.2300.115148. 000.1920.095948.000.1640.0822 Taxes/Regulatory112.150.5380. 2689112.150.4480.2241112.150.3840.1921 Interest on Average Capital Investment321.221. 5410.7703321.221.2840.6419321.221.1000.5502 Harvesting (Pick, Haul, Etc.) and DOC Assessment1,390.83 6.671 3.3353 1,390.83 5.559 2.7794 1,390.83 4.765 2.3824 Total Delivered-In Cost$2,770.53$13.288 $6.6440$2,770.53$11.073$5.5366$2,770.53$9.491$4.7457 Packing & Selling2,047.957.3803.6900 2,457.547.3803.69002,867.137.3803.6900 Fresh Eliminations Costs (Credit)a -361.58 -1.734 -0.8671 -289.27 -1.156 -0.5781 -216.95 -0.743 -0.3716 Total F.O.B. Costs $4,456.90 $18.934 $9.4668 $4,938.80 $17.297 $8.6486 $5,420.71 $16.128 $8.0641 Percent Packout 80.00% Box Yield Per Acre 555 Percent Packout 90.00% Box Yield Per Acre 555 Percent Packout 100.00% Box Yield Per Acre 555 Per AcrePer BoxPer CartonPer AcrePer Bo xPer CartonPer AcrePer BoxPer Carton Total Production/ Cultural Costs$874.29$2.621 $1.3104$874.29$2.330$1.1648$874.29$2.097$1.0483 Interest on Operating (Cultural) Costs24.040. 0720.036024.040.0640.032024.040.0580.0288 Management48.000.1440.071948. 000.1280.063948.000.1150.0576 Taxes/Regulatory112.150.3360. 1681112.150.2990.1494112.150.2690.1345 Interest on Average Capital Investment321.220. 9630.4814321.220.8560.4279321.220.7700.3851 Harvesting (Pick, Haul, Etc.) and DOC Assessment1,390.83 4.169 2.0846 1,390.83 3.706 1.8530 1,390.83 3.335 1.6677 Total Delivered-In Cost$2,770.53$8.305 $4.1525$2,770.53$7.382$3.6911$2,770.53$6.644$3.3220 Packing & Selling3,276.727.3803.6900 3,686.317.3803.69004,095.907.3803.6900 Fresh Eliminations Costs (Credit)a -144.63 -0.434 -0.2168 -72.32 0.193 0.0963 0.00 0.000 0.0000 Total F.O.B. Costs $5,902.61 $15.251 $7.6257 $6,384.52 $14.569 $7.2847 $6,866.43 $14.024 $7.0120 a"Net Eliminations Cost" equals the average yield of 4.70 pound solids per box times $0.49 per pound solids less packinghouse el imination charge and cannery hauling charge of $1.00 per box.

PAGE 17

13Table 10.--Estimated annual per acre costs and returns and 5-year average costs and returns for a mature, Hamlin orange grove p roducing citrus for processe d market in the Southw est Florida area, 1999-00-04 Year On-tree Price/Boxa Yield Gross Revenue Total Grove Care Expenses Total Specified Costsc Net Return to Land, Trees, and Ownership -----------------------------------------Dollars ------------------------------------1999-00$3.07 5041,547.28758.85806.85740.43 2000-01$2.575041,295.28769.04817.04478.14 2001-02$2.795041,406.16767.23815.23590.93 2002-03$2.655041,335.60771.03819.03516.57 2003-04$1.53b516 789.48 768.21 816.21 (26.73) 5-yr. avg. $2.52506 1,275.12 766.87 814.87 460.25 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. cManagement cost of $4.00 per acre per month is included. Fixed costs (e.g., taxes, debt service, and crop insurance) are not included.

PAGE 18

14Table 11.--Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2004 dollars) for a mature, Hamlin orange grove producing citrus for processed market in the Southwest Florid a 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$3.415041,718.64929.57789.07 2000-01109.8$2.825041,421.28919.88501.40 2001-02112.4$3.145041,582.56962.13620.43 2002-03106.7$2.83504 1,426.32873.91552.41 2003-04100.0$1.53516789.48816.21(26.73) 5-yr. avg. $2.755061,391.50900.34491.16 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. b Management cost of $4.00 per acre per month is included. Fixed costs (e.g., taxes, debt service, and crop insurance) are not included (Table 10).

PAGE 19

15Table 12.--Estimated annual per acre costs and returns and 5-year average costs and returns for a mature, red seedless grapefru it grove producing citrus for fre sh market packing in the Southwest Florida area, 1999-00-04 Year On-tree Price/Boxa Yield Gross Revenue Total Grove Care Expenses Total Specified Costsc Net Return to Land, Trees, and Ownership -----------------------------------------Dollars ------------------------------------1999-00$3.855552,136.75867.06 915.661,221.69 2000-01$2.285551,265.40864.79912.79352.61 2001-02$2.545551,409.70874.54922.54487.16 2002-03 $2.495551,381.95871.47919.47462.48 2003-04$3.13 5551,737.15874.29922.29814.86 5-yr. avg.$2.865551,587.30870.43918.55668.87 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. cManagement cost of $4.00 per acre per month is included. Fixed costs (e.g., taxes, debt service, and crop insurance) are not i ncluded.

PAGE 20

16Table 13.--Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2004 dollars) for a ma ture, red seedless grapefruit grove producing citr us for fresh fruit packing in the Southwest Flor ida 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$4.285552,375.401,017.301,358.10 2000-01109.8$2.505551,387.501,002.24385.26 2001-02112.4$2.855551,581.751,036.93544.82 2002-03106.7 $2.665551,476.30981.07495.23 2003-04100.0$3.135551,737.15922.29814.86 5-yr. avg. $3.085551,709.40991.97717.43 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. b Management cost of $4.00 per acre per month is included. Fixed costs (e.g., taxes, debt service, and crop insurance) are not included (Table 12).

PAGE 21

17REFERENCES 1. Citrus Summary 2002-03. 2004. Florida Agricultural Statistics Service, Florida Agricultural Statistics, Washington, D.C. (January). 2.Muraro, Ronald P. 2004. A Listing of Estimated Comparative Southwest Florida 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 Repor ted by Fifteen Indian River and South Florida Citrus Caretakers CREC Report, Citrus Research and Education 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.

PAGE 22

18ADDENDA :Listing of Grove Care Programs for Sout hwest Florida Citrus Production for Both Round Oranges and Grapefruit Page Table 1-A.Spray programs...................................................19 Post bloom spray..................................................19 Summer spray....................................................21 Fall spray........................................................22 Table 2-A.Herbicide........................................................22 Table 3-A.Dry fertilizer .....................................................25 Table 4-A.Liquid fertilizer (Double boom application) .............................26 Table 5-A.Nematicides......................................................26 Table 6-A.Soil amendment...................................................27 Table 7-A.Irrigation--annual cost per acre .......................................27 Drip............................................................27 Microsprinkler....................................................27 Drainage ditch annual costs ..........................................27 Table 8-A.A listing of 2004 custom rates reported by fifteen Indian River and South Florida citrus caretakers.............................................28 Table 9-A.2004 summary of average chemical price estimates .......................30 Table 10-A.2004 summary of average fertilizer price estimates .......................32 Table 11-A.A listing of estimated comparative Southwest Florida citrus production costs per acre for oranges, 2003-04 ...........................................34 Table 12-A.A listing of estimated comparative Southwest Florida citrus production costs per acre for grapefruit, 2003-04 ..........................................35 Table 13-A.Estimated cost of planting and main taining a reset citrus tree through three years of age, July 2004 ..................................................36 Table 14-A.Estimated average picking, roadsi ding and hauling charges for Florida citrus, 2003-04 .........................................................37 Table 15-A.Estimated average packi ng charges for Florida citrus, 2003-04 ..............38 Table 16-A.Historic prices for selected citrus varieties..............................39 Table 17-A.Debt which can be supported per $1,000.00 annual payment capacity .........40 Abbreviations for important chemicals are: B = BoronFe = IronMn = ManganeseZn = Zinc Cu = CopperMg = MagnesiumN = Nitrogen

PAGE 23

19Table 1-A.--Spray programs POST BLOOM SPRAY Spray Program #1Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Zn Mn B 15 pounds 5 pounds 10 pounds 0.25 pound $18.00 3.95 3.10 1.13 _________ _________ _________ _________ Ground Application (PTO driven airblast) 150 gallons24.02 _________ Total per Application$50.20 ------------------------------------------------------------------------------------------------Spray Program #2Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Zn Mn Micromite 25WP 10 pounds 5 pounds 10 pounds 1.25 pounds $12.00 3.95 3.10 36.25 _________ _________ _________ _________ Ground Application (PTO driven airblast) 100 gallons21.10 _________ Total per Application$76.40 ------------------------------------------------------------------------------------------------Spray Program #3Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Agri-Mek Oil 97+% 7 pounds 10 ounces 3 gallons $ 8.40 41.10 6.15 _________ _________ _________ Ground Application (PTO driven airblast) 100 gallons21.10 _________ Total per Application$76.75 ------------------------------------------------------------------------------------------------Spray Program #4Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Potassium Nitrate Lorsban 4EC Hystop (pH Reducer) 7 pounds 10 pounds 4 pints 1 pint $ 8.40 1.85 15.40 2.13 _________ _________ _________ _________ Ground Application (PTO driven airblast) 100 gallons21.10 _________ Total per Application$48.88

PAGE 24

20Table 1-A.--Spray programs (continued) POST BLOOM SPRAY (continued) Spray Program #5Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Vendex 4L Cu (50% metallic) 2 pounds 10 pounds $28.50 12.00 _________ _________ Ground Application (PTO driven airblast) 250 gallons24.33 _________ Total per Application $64.83 ------------------------------------------------------------------------------------------------Spray Program #6Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Micromite Cu (50% metallic) Oil 97+% 1.25 pounds 7 pounds 3 gallons $36.25 8.40 6.15 _________ _________ _________ Ground Application (PTO driven airblast) 250 gallons24.33 _________ Total per Application $75.13 ------------------------------------------------------------------------------------------------Spray Program #7Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Zn Mn B Micromite 7 pounds 5 pounds 10 pounds 0.25 pound 1.25 pounds $ 8.40 3.95 3.10 1.13 36.25 _________ _________ _________ _________ _________ Ground Application (PTO driven airblast) 250 gallons24.33 _________ Total per Application $77.16 ------------------------------------------------------------------------------------------------Spray Program #8Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Vendex 4L 2 pounds$28.50_________ Ground Application (PTO driven airblast) 150 gallons24.02 _________ Total per Application $52.52 ------------------------------------------------------------------------------------------------Spray Program #9Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre (Scale insects) Lorsban 4EC 5 pints$19.25_________ Ground Application (engine driven airblast) 500 gallons31.85 _________ Total per Application $51.10

PAGE 25

21Table 1-A.--Spray programs (continued) SUMMER SPRAY Spray Program #10Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Oil 97+% Cu (50% copper) 10 gallons 7 pounds $20.50 8.40 _________ _________ Ground Application (PTO driven airblast) 250 gallons24.33 _________ Total per Application$53.23 ------------------------------------------------------------------------------------------------Spray Program #11Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Oil 97+% Zn Mn B 7 pounds 5 gallons 5 pounds 10 pounds 0.25 pound $ 8.40 10.25 3.95 3.10 1.13 _________ _________ _________ _________ _________ Ground Application (PTO driven airblast) 150 gallons24.02 _________ Total per Application$50.85 ------------------------------------------------------------------------------------------------Spray Program #12Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Oil 97+% Agri-Mek 7 pounds 5 gallons 10 ounces $ 8.40 10.25 41.10 _________ _________ _________ Ground Application (PTO driven airblast) 250 gallons24.33 _________ Total per Application$84.08 ------------------------------------------------------------------------------------------------Spray Program #13Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Enable Oil 97+% Micromite 8 ounces 5 gallons 1.25 pounds $10.32 10.25 36.25 _________ _________ _________ Ground Application (PTO driven airblast) 150 gallons24.02 _________ Total per Application$80.84 -------------------------------------------------------------------------------------------------

PAGE 26

22Table 1-A.--Spray programs (continued) SUMMER SPRAY (continued) Spray Program #14Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Oil 97+% 7 pounds 5 gallons $ 8.40 10.25 _________ _________ Ground Application (PTO driven airblast) 150 gallons24.02 _________ Total per Application $42.67 FALL SPRAY Spray Program #15Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Agri-Mek 5 ounces$20.55_________ Ground Application (PTO driven airblast) 150 gallons24.02 _________ Total per Application $44.57 ------------------------------------------------------------------------------------------------Spray Program #16Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Vendex 4L 2 pounds$28.50_________ Aerial Application 15 GPA 8.02 _________ Total per Application$36.52 Table 2-A.--Herbicide Herbicide Program #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 $20.66 6.74 7.34 __________ __________ __________ Ground Application (1 time) 8.59 __________ Total for 1 Application $43.33 ------------------------------------------------------------------------------------------------Herbicide Program #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 $19.14 6.44 7.34 __________ __________ __________ Ground Application (1 time) 8.59 __________ Total for 1 Application$41.51 aWith herbicide materials, amount per grove acre does not equal amount per treated acre shown on label, only a strip or band is being treated. In this report, it is assumed that only half a surface acre is being treated.

PAGE 27

23Table 2-A.--Herbicide (continued) Herbicide Program #3Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Karmex WP Roundup Ultra Max 4 pounds 2 quarts $ 6.74 7.34 __________ __________ Ground Application (1 time) 8.59 __________ Total for 1 Application$22.67 ------------------------------------------------------------------------------------------------Herbicide Program #4Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Solicam 80DF Simazine 4L Roundup Ultra Max 8 pounds 4 quarts 2 pints $55.08 6.44 3.67 __________ __________ __________ Ground Application (1 time) 8.59 __________ Total for 1 Application$73.78 ------------------------------------------------------------------------------------------------Herbicide Program #5Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Roundup Ultra Max 4 quarts$ 7.34__________ Ground Application (1 time) 8.59 __________ Total for 1 Application$15.93 -----------------------------------------------------------------------------------------------Herbicide Program #6Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Krovar I Roundup Ultra Max 5 pounds 2 quarts $25.25 7.34 __________ __________ Ground Application (1 time) 8.59 __________ Total for 1 Application$41.18 ------------------------------------------------------------------------------------------------Herbicide Program #7Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Princep (Caliber 90) Hyvar X Adjuvant (Surfactant) 4 pounds 6 pounds 2 pints $ 6.10 50.94 2.81 __________ __________ __________ Ground Application (1 time) 8.59 __________ Total for 1 Application$68.44

PAGE 28

24Table 2-A.--Herbicide (continued) Herbicide Program #8Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Roundup Ultra Max Princep (Caliber 90) 2 quarts 4 pounds $ 7.34 6.10 __________ __________ Ground Application (1 time) 8.59 __________ Total for 1 Application$22.03 ------------------------------------------------------------------------------------------------Herbicide Program #9Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Strip/band) Direx 4L Solicam Adjuvant (Surfactant) 3 quarts 3 pounds 1 quart $ 5.34 20.66 2.81 __________ __________ __________ Ground Application (1 time) 8.59 __________ Total for 1 Application$37.40 ------------------------------------------------------------------------------------------------Herbicide Program #10Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Chemical mow) Roundup Ultra 1 pint$ 1.84__________ Ground Application (1 time) 3.60 __________ Total for 1 Application$ 5.44 ------------------------------------------------------------------------------------------------Herbicide Program #11Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Chemical mow)Roundup Ultra 1.5 pints$ 2.76__________ Ground Application (1 time) 3.60 __________ Total for 1 Application$ 6.36 ------------------------------------------------------------------------------------------------Herbicide Program #12Materials Amount/ Treated Acre Cost/ Grove Acre aYour Cost/ Grove Acre (Spot treatment)Roundup Ultra 2 quarts$ 7.34__________ Ground Application (1 time) 4.00 __________ Total for 1 Application$11.34 -------------------------------------------------------------------------------------------------

PAGE 29

25Table 3-A.--Dry fertilizer Program #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (125 lbs N/Acre)12-2-12-2.4 MgO 1042 pounds$ 91.70_________ Application 3 times 15.33 _________ Total for 3 Applications $107.03 ------------------------------------------------------------------------------------------------Program #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (150 lbs N/Acre)15-2-15-2.4 MgO 1000 pounds$ 91.60_________ Application 3 times 15.33 _________ Total for 3 Applications $106.93 ------------------------------------------------------------------------------------------------Program #3 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)15-2-15-2.4 MgO 1200 pounds$109.92_________ Application 3 times 15.33 _________ Total for 3 Applications $125.25 ------------------------------------------------------------------------------------------------Program #4 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (204 lbs N/Acre)17-4-17-2.4 MgO 1200 pounds$ 120.00_________ Application 3 times 15.33 _________ Total for 3 Applications $135.33 ------------------------------------------------------------------------------------------------Program #5 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (225 lbs N/Acre)15-2-15-2.4 MgO 1500 pounds$137.40 _________ Application 3 times 15.33 _________ Total for 3 Applications $152.73 -------------------------------------------------------------------------------------------------

PAGE 30

26Table 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$125.82_________ Double Boom Custom Application3 times 36.75 _________ Total for 3 Applications $162.57 ------------------------------------------------------------------------------------------------Program #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)10-2-10 1800 pounds$ 127.44 _________ Double Boom Custom Application3 times 36.75 _________ Total for 3 Applications $164.19 ------------------------------------------------------------------------------------------------Program #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 $125.82 20.66 7.34 _________ _________ _________ Double Boom Custom Application3 times 36.75 _________ Total for 3 Applications *Treated acre--one application $190.57 Table 5-A.--Nematicides Program #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre Temik 15G 33 pounds$ 97.68_________ Application 11.75 _________ Total per Application $109.43 -------------------------------------------------------------------------------------------------

PAGE 31

27Table 6-A.--Soil amendment Program #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (Every 3 years) Dolomite (Delivered) 1 ton$28.68 _________ Application 1 time 7.35 _________ Total for 1 Application$36.03 (Average 1/3 Ton Applied/Yr) $12.01 ------------------------------------------------------------------------------------------------Program #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (Every year) Dolomite (Delivered)1000 pounds$14.34_________ Application 7.35 _________ Total per Application$21.69 Table 7-A.--Irrigation (annual cost per acre) DRIP Program #1 Your Cost/Acre Program #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 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 DRAINAGE DITCH ANNUAL COSTS Your Program #5 Cost/Acre Ditches/Canals Maintenance ($43.47/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

PAGE 32

28 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-$15.00$12.67Pl us transportation and equipment Mechanic LaborHour32.00-40.0036.00Labor and service truck RotovateHour30.00-45.00 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-MowerHour 27.50 Sickle MowerHour 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 30.33Average 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

PAGE 33

29 Table 8-A.--A listing of 2004 custom rates reported by fifteen Indian River and South Florida citrus caretakers (cont'd.) Grove PracticeUnit 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)Hour225.00-265.00245. 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)Hour265.00-285.00275.00Avg. 8-15 A depending on wood size type of cut;$25/A Double Boom (Self Propelled)Hour 550.00 15 to 30 A flattop cut from bed tops annual maint. cut Limb Lifter/Tree Skirt TrimmerAcre 13.003 to 5 acres/hour Limb Lifter/Tree Skirt Trimmer (Double Sided Rotary)Hour 120.006 to 20 acres/hour Removing Brush: Haul Brush out of Grove (Front-end Loader)Hour 45.00-55.0052.00 Mow/Chop BrushHour 32.00-45.0037.85 OTHER CUSTOM RATES : Install Tree Wraps15-45/tree depending on type of wrap and number of trees; Annua l maintenance cost: 25/tree Plant Trees (Solid Set)Tree$ 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 a grove practice rate into the sum reported. Unless otherwise stat ed, labor included with 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.

PAGE 34

30 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

PAGE 35

31 Table 9-A.--2004 summary of average chemical price estimates (cont'd.) 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.

PAGE 36

32 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.

PAGE 37

33 Table 10-A.--2004 summary of average fertilizer price estimates (cont'd.) 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.

PAGE 38

34 Table 11-A.--A listing of estimated comparative Southwest Florida citrus production costs per acre for oranges, 2003-2004zCosts represent a mature (10+ years old) Southwest Florida 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: Mechanical Mow Middles (3 times per year)$ 22.76$ 22.76$22.76 Chemical Mow Middles (2 times per year)10.8810.8810.88 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)$51.54$ 25.77$25.77 Material 44.04 80.77 80.77 Total Herbicide Cost 95.58 106.54 106.54 Spray Post Bloom:Application (150 GPA) 24.02 Material 26.18 Total Post Bloom Cost 50.20 Summer Oil #1:Application (150 GPA) 24.02 24.02 Material 56.82 56.82 Total Summer Oil #1 Cost 80.84 80.84 Summer Oil #2:Application (PTO -150 GPA) 24.02 24.02 24.02 Material 63.08 x 26.83 w 18.65 Total Summer Oil #2 Cost 87.10 50.85 42.67 Fertilizer (Bulk):3 Applications 15.33 15.33 15.33 Material (15-2-15-2.4 MgO @ 180 lbs N and 204 lbs N per acre) 109.92 120.00 120.00 Total Fertilizer Cost 125.25 135.33 135.33 Dolomite (one ton applied every 3 years) Material/Application 12.01 12.01 12.01 Pruning:Topping ($27.50/A 2.5 yrs)v11.00 11.00 11.00 Hedging ($24.50/A 2 yrs)v12.25 12.25 12.25 Chop/Mow Brush after Hedging ($8.52/A 2 yrs)v 4.26 4.26 4.26 Total Pruning Cost 27.51 27.51 27.51 Tree Replacement 1 thru 3 years of age: (4 trees/acre) Remove Trees: Pull, Stack & Burn 4 Trees with Front-end Loader 18.96 18.96 18.96 Prepare Site & Plant Tree (Includes 4 reset trees) 47.64 47.64 Supplemental Fertilizer, Tree Wraps Maintenance, Sprout, Etc. (Trees 1-3 years old) 24.84 36.96 36.96 Total Tree Replacement Cost 43.80 103.56 103.56 Irrigation:Microsprinkler Systemu152.07 152.07 152.07 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 Cost 192.59 192.59 192.59 IRRIGATED PROCESSED FRUIT PRODUCTION COSTS $642.82 $768.21 Supplemental Post Bloom: Application (250 GPA)24.3324.33 Material 50.80 50.80 Total Supplemental Post Bloom Cost 75.13 75.13 Fall Miticide Spray:Aerial Application (15 GPA) 8.02 8.02 Material 28.50 28.50 Total Fall Miticide Cost 36.52 36.52 IRRIGATED FRESH FRUIT PRODUCTION COSTS $879.86 $921.88 zListed estimated comparative costs are fo r example grove situation described in Ec onomic Information Report Series, Budgeting C osts and Returns for Southwest Florida Citrus Production, and may not repres ent your particular grove situ ation in Southwest Florida. Source: Ronald P. Muraro, University of Florida-IFAS, Citrus Research and E ducation Center, Lake Alfred, FL, August 2004.

PAGE 39

35 Table12-A.--A listing of estimated comparative Southwest Fl orida citrus production costs per acre for grapefruit, 2003-04zCosts represent a mature (10+ years old) Southwest Florida Red 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)$ 22.76$ 22.76$22.76 Chemical Mow Middles (2 times per year)10.8810.8810.88 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)$51.54$25.77$25.77 Material44.04 80.77 80.77 Total Herbicide Cost 95.58 106.54 106.54 Spray Post Bloom:Application (150 GPA) 24.02 Material 26.18 Total Post Bloom Cost 50.20 Summer Oil #1:Application (250 GPA) 24.02 24.02 24.02 Material 56.82 x 56.82 56.82 Total Summer Oil #1 Cost 80.84 80.84 80.84 Summer Oil #2:Application (PTO -150 GPA) 24.02 24.02 24.02 Material 26.83 x26.83 18.65 Total Summer Oil #2 Cost 50.85 50.85 42.67 Fertilizer (Bulk):3 Applications 15.33 15.33 15.33 Material (12-2-12-2.4 MgO @ 180 lbs N and 15-2-15-2.4 MgO @ 150 lbs N) 91.60 91.60 91.60 Total Fertilizer Cost 106.93 106.93 106.93 Dolomite (one ton applied every 3 years) Material/Application 12.01 12.01 12.01 Pruning:Topping ($27.50/A 2.5 yrs)v11.00 11.00 11.00 Hedging ($24.50/A 2 yrs)v12.25 12.25 12.25 Chop/Mow Brush after Hedging ($8.52/A 2 yrs)v4.46 4.46 4.46 Raise Skirts of Trees ($13.00 2 yrs)v 6.50 6.50 Total Pruning Cost 27.71 34.21 34.21 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) 35.73 35.73 Supplemental Fertilizer, Tree Wraps Maintenance, Sprout, Etc. (Trees 1-3 years old) 18.63 27.72 27.72 Total Tree Replacement Cost 32.85 77.67 77.67 Irrigation:Microsprinkler Systemu145.30 152.07 152.07 Clean Ditches (Weed Control) 13.05 13.05 13.05 Ditch and Canal Maintenance 14.76 14.76 14.76 Water Control (Pump water in/out of Ditches and Canals) 11.05 12.71 12.71 Total Irrigation Cost 184.16 192.59 192.59 IRRIGATED PROCESSED FRUIT PRODUCTION COSTS$649.91 $720.62 Supplemental Post Bloom Spray: Application (250 GPA)24.3324.33 Material 50.80 50.80 Total Supplemental Post Bloom Cost 75.13 75.13 Fall Miticide Spray:Aerial Application (15 GPA) 8.02 8.02 Material 28.50 28.50 Total Fall Miticide Cost 36.52 36.52 IRRIGATED FRESH FRUIT PRODUCTION COSTS $832.27 $874.29 zListed estimated comparative costs are for example grove situation described in Ec onomic Information Report Series, Budgeting C osts and Returns for Southwest Florida Citrus Production, and may not represent your particular grove situation in Southwest Florida. Source: Ronald P. Muraro, University of Florida-IFAS, Citr us Research and Education Cent er, Lake Alfred, FL, August 2004.

PAGE 40

36 Table 13-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.

PAGE 41

37 Table 14-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

PAGE 42

38 Table 15-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, travel, 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 Florida -IFAS, Citrus Research and Education Center, Lake Alfred, FL, August 2004.

PAGE 43

39 Table 16-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.

PAGE 44

40Table 17-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).