<%BANNER%>
UFIR IFAS
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/IR00002040/00001
 Material Information
Title: Budgeting Costs and Returns for Indian River Citrus Production, 2004-05
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: 2005
 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 2005"
General Note: "Fe630"
 Record Information
Source Institution: University of Florida Institutional Repository
Holding Location: University of Florida
Rights Management: All rights reserved by the submitter.
System ID: IR00002040:00001


This item is only available as the following downloads:

FE63000 ( PDF )


Full Text

PAGE 1

Ronald P. Muraro EDIS FE630 John W. Hebb http://edis.ifas.ufl.edu/FE630 Budgeting Costs and Returns for Indian River Citrus Production, 2004-05 Institute of Food and Agricultural Sciences Food and Resource Economics Department Florida Agricultural Experiment Station Florida Cooperative Extension Service Gainesville, FL 32611 September 2005

PAGE 2

i ABSTRACT Estimated costs and returns of growing seedless grapefruit in the Indian River area of Florida are presented for the twenty-second 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 counties. 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. The 2004-2005 budgets reflect major cost increases in all production inputs: fuel averaged a 22% increase; fertilizer products increased 15%; chemicals averaged an 8% increase; and equipment operation costs increased 7%. Along with the increased costs, three major hurricanes (storms) during August and September 2004 resulted in wide tree damage and fruit loss. The Indian River region experienced fruit loss of 70% to 80% on red and white grapefruit, respectively. Hamlin orange losses in the Central Florida (ridge) region were 30% to 40% with Valencia orange losses between 20% and 30%. The only citrus growing region that was not significantly affected by the three storms was the Southwest Florida citrus region. As a result of the excessive fruit loss, the per box, per pound solid and per carton costs for the Indian River and Central (ridge) growing regions were substantially higher than in recent years. The budget costs in this report represent a custom-managed operation Therefore, all equipment costs are based on the average custom rate costs and a 10 percent handling and supervision charge is added to the material cost. Although the estimated annual per acre grove costs listed are representative for a mature citrus grove (10+ years old), the grove care costs for a specific grove site may differ depending upon the tree age, tree density and the grove practices performed; e.g., spot herbicide for grass/brush regrowth under trees could add an additional $16.60 per acre; Diaprepes control could add $84.18 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 ($127.50/acre) could increase the total cultural costs per acre above the average costs shown in the comparative budgets; travel and set-up costs may vary due to size of the citrus grove and distance from the grove equipment barn and could add $28.86 per acre; etc. ACKNOWLEDGEMENTS Appreciation is extended to Mrs. Jane Wilson for typing the final draft of this manuscript. Appreciation is also extended to the citrus growers and production managers of the Indian River citrus production area who provided suggestions for the revision of this manuscript.

PAGE 3

ii TABLE OF CONTENTS Page ABSTRACT................................................................... i ACKNOWLEDGEMENTS....................................................... i LIST OF TABLES.............................................................. iii INTRODUCTION.............................................................. 1 METHOD OF DATA COLLECTION.............................................. 1 COSTS AND INPUTS........................................................... 1 THE GROVE SITUATION....................................................... 2 BUDGET COSTS AND RETURNS................................................ 4 HISTORICAL COST TRENDS................................................... 5 REFERENCES................................................................. 11 ADDENDA................................................................... 12 NOTE:The ADDENDA include a Listing of Grove Care Options for Indian River Citrus Production for Both Round Oranges and Grapefruit; 2005 custom rate summary report; cost of establishing a citrus grove; etc. Page 12 is a list of the tables included in the ADDENDA.

PAGE 4

iii LIST OF TABLES Table Page 1Schedule of production practices and budget items for an Indian River Florida grapefruit grove, 2004-05............................................... 3 2Calculation of normal production per acre, 2004-05.......................... 4 3Estimated annual per acre costs and returns for a mature, white seedless grapefruit grove producing for the fresh market, Indian River area, 2004-05............... 6 4Estimated total delivered-in cost for Indian River White grapefruit grown for the processed juice market under three cultural cost programs, 2004-05............. 7 5Estimated F.O.B. cost for fresh market Indian River White grapefruit, 2004-05.... 8 6Estimated annual per acre costs and returns and 5-year average costs and returns for a mature, white seedless grapefruit grove producing citrus for fresh fruit market in the Indian River area, 2000-012004-05................................... 9 7Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2005 dollars) for a mature, white seedless grapefruit grove producing citrus for fresh fruit market in the Indian River area, 2000-01-05........... 10

PAGE 5

RONALD P. MURARO is a Professor of Food and Resource Economics and Extension Farm Management Economist stationed at the Citrus Research and Education Center, Lake Alfred. JOHN W. HEBB is Extension Agent, Citrus in St. Lucie County, Ft. Pierce. 1 BUDGETING COSTS AND RETURNS FOR INDIAN RIVER CITRUS PRODUCTION, 2004-05 Ronald P. Muraro and John W. Hebb INTRODUCTION Budget analysis provides the basis for many grower decisions. Budget analysis can be used to calculate potential profits from an operation, to determine cash requirements for an operation, and to determine break-even prices. This report presents a budget constructed from current data and serves as a format for growers to analyze costs and returns from their individual records. The 2004-2005 budgets reflect major cost increases in all production inputs: fuel averaged a 22% increase; fertilizer products increased 15%; chemicals averaged an 8% increase; and equipment operation costs increased 7%. Along with the increased costs, three major hurricanes (storms) during August and September 2004 resulted in wide tree damage and fruit loss. The Indian River region experienced fruit loss of 70% to 80% on red and white grapefruit, respectively. Hamlin orange losses in the Central Florida (ridge) region were 30% to 40% with Valencia orange losses between 20% and 30%. The only citrus growing region that was not significantly affected by the three storms was the Southwest Florida citrus region. As a result of the excessive fruit loss, the per box, per pound solid and per carton costs for the Indian River and Central (ridge) growing regions were substantially higher than in recent years. 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 and Education Center in Ft. Pierce and the Citrus Research and Education Center in Lake Alfred and County Extension Citrus Agents in the Indian River production region. The survey is conducted annually in February and March. COSTS AND INPUTS Costs for various production inputs are those collected from citrus growers as well as the average of the data obtained from annual custom rate, chemical, and fertilizer surveys. Growers' costs are shown in the ADDENDA, Tables 1-A through 7-A. The custom rate costs are shown in Table 8-A and the various chemical and fertilizer costs are shown in Table 9-A and 10-A in the ADDENDA. The

PAGE 6

2 budget costs represent a custom-managed operation. Therefore, all equipment costs are based upon the average custom-rate costs and a 10 percent handling and supervision charge is added to the material cost. 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 allowing a comparison of the grower's costs with those presented. THE GROVE SITUATION Production practices for an Indian River grapefruit grove are shown in Table 1 with times during the year when they would likely be 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 can be helpful if an annual cash flow analysis is developed to plan financing. The individual grower may benefit from developing a plan for a particular grove. Specific production practices 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 situations. A grower, realtor, or land appraiser can substitute individual grove costs and expected returns into the budget format and develop a budget for a particular grove. A "your cost" column is 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.Variety is white seedless on sour orange rootstock; 3.Tree loss is 5.0 percent annually; 4.Trees are pulled and replaced when production falls below 50 percent of expected yield; 5.Production is for fresh market; 6.Tree density is 95 trees per acre; and 7.Custom-caretaker is providing grove management. As a result of tree losses and replacement, the tree ages will vary. The budget reflects the following age distribution and yield for Indian River white seedless grapefruit:

PAGE 7

3 Table 1.--Schedule of production practices and budget items for an Indian River Florida grapefruit grove, 2004-05 a Month JanFebMarAprMayJunJulAugSepOctNovDec Total revenue: 20% deposit Final payment Less:Pick & haul cost X DOC advertisement tax X Grove expenses: Mow X X Chemical Mow Chemical Mow X Labor, general grove work, pull vines X X Herbicide (sprayed strip estimated as 1/2 grove acre equivalent) X X X Spray:Post bloom/nutritional XX Summer oil/greasy spot X Fall miticide X Supplemental miticide X Fertilizer 42# N/A 42# N/A 42# N/ADolomite Hedging and topping Hedge Brush removal/chop brush Chop brush Tree removal X Young tree care XX XX X Microjet irrigation (times/week) 112333222211 Miscellaneous (clean ditches) X Grove taxes including water management X Interest expense X Annual principal payment on mortgage X This is a suggested schedule of practices. Actual practices would not necessarily be done on the exact schedule shown here. a

PAGE 8

4 % of groveTree 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 5.7 5.0%producing 50% of expected yield 3.5 15.0%over 15 years 7.0 Calculation of normal production per acre is shown in Table 2. Note that the proportion-of-treesby-age column only adds to 85 percent since 15 percent of the trees are non-bearing. The impact of the three hurricanes in 2004 is reflected in a 78.5% reduction in normal yields. Table 2.--Calculation of normal production per acre, 2004-05 Age of Tree Trees Boxes /tree Total boxes Total no. all ages Proportion ea. age a No. ea. age ---------No. ---------3 years 95x0.05=4.75x1.0=4.8 4 years 95x0.05=4.75x1.7=8.1 5-15 years 95x0.55=52.30x5.7=298.1 Prod. 50% of exp. yield95x0.05=4.75x3.5=16.6 Over 15 years95x0.15=14.30x7.0=100.1 Total boxes=427.7 Yields adjusted to 21.5% of normal yields due to three hurricanes in 2004. 92.0 Proportion adds up to 0.85 (85 percent) as 15 percent of the trees were non-bearing (pulled and a reset, 1 and 2 year old trees). BUDGET COSTS AND RETURNS The estimated budget costs and returns for the Indian River grove situation are shown in Table 3. The budgeted costs represent one possible citrus production program and were selected from the costs shown in the ADDENDA tables. The gross revenue estimates are based on the projected yields in Table 3 and estimated preliminary on-tree prices for the 2004-05 season. Grove establishment and reset costs, alternative cost scenarios, harvesting and packing charges can be found in Tables 11-A through 15-A in the ADDENDA. Also, historical on-tree prices for selected Florida citrus varieties are shown in Table 16-A of the ADDENDA.

PAGE 9

5 As shown in Table 3, the total revenue for fresh-market white seedless grapefruit is estimated to be $1,099.40 per acre. Total specified costs are $1,195.78 and are comprised of grove care costs of $1,147.78, plus management cost of $48.00. Return to land, trees, and ownership, which represents net return above variable costs, was estimated to be a $96.38 per acre loss. At 325 and 525 boxes per acre, respectively, the break-even price required to cover grove care costs for seedless white grapefruit range from $3.54 to $2.19 per box on-tree and $1.54 to $1.25 per pounds solids delivered-in for eliminations. Ad valorem taxes, and overhead and administrative costs (such as 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, variety of fruit, etc. and should be considered in arriving at a net return to land, trees, 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. Also, average annual debt payment (principal and interest) may be as high as $460 per acre ($3,900 average debt per acre @ 10 percent interest amortized over 20 years) which would reduce total available cash for grove expansion or other investment. Estimated delivered-in costs are shown for fresh packed white grapefruit in Table 4. Delivered-in costs include grove care costs (Table 3) plus harvesting, regulatory, and grower assessment costs. The "delivered-in" cost is presented as a cost per acre, per box, per carton, and per pound solids. Three possible budget cost scenarios are presented (Refer to Table 13-A): 1) Low Cost Processed Cultural Program; 2) Processed and Reduced Cost Fresh Cultural Program; and 3) Typical/Historical Fresh Fruit Cultural Program. The first scenario represents costs of a cultural program directed toward reducing the expenditures for fruit grown primarily for the processed market. Scenario 2 represents a program using reduced inputs but with production directed at the fresh market. And the third scenario represents typical costs for grove practices which have been performed for citrus grown for the fresh fruit market. Modified herbicide and/or spray and fertilizer programs account for the reduced costs. NOTE: Before modifying a grove management program to reduce costs, an evaluation of the market program (processed or fresh), yield, and specific cultural problems (nutrition, disease, etc.) for the specific grove site should be made. Also, in Table 5, the total estimated F.O.B. cost for fresh packed white grapefruit is shown. The F.O.B. costs are presented for "fresh fruit packout percentage rates" ranging from 50 percent to 100 percent. HISTORICAL COST TRENDS Annual budgets of costs and 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 2000-01 through 2003-04 along with 2004-05, and a five-year average are presented in Table 6. The affects of over planting following the 1980s 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 period. To allow comparisons in current values, these same costs and returns, adjusted to 2005 dollars, are presented in Table 7.

PAGE 10

6 Table 3.--Estimated annual per acre costs and returns for a mature, white seedless grapefruit grove producing for the fresh market, Indian River area, 2004-05 a Item Description Amount Your cost ----------------------Dollars --------------------I.Revenue 92 boxes @ $11.95 1,099.40 ___________ b II.Expenses c Weed control Mow middles Chemical mow (Table 2-A, Option #9) General grove work/sprouting, etc. Herbicide (Table 2-A, Options #1, #6 & #7) Spray program (Table 1-A, Options #1, #3, #4 @ 2, #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. ($257.50/hr. 10 A/hr.) 1.5 yrs. ($8.99/A 1.5 yrs.) ($14.00/A 2 yrs.) (1 through 3 years) 5 trees per acre Including 5 trees per acre Including application 29.91 10.16 27.12 132.88 13.75 17.17 6.00 7.00 25.40 59.85 49.65 200.07 405.43 140.18 14.65 43.92 134.90 166.17 42.46 1,147.78 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ III.Management $4.00 per acre per month 48.00 ___________ d IV.Total specified costs 1,195.78 e V.Return (loss) to land, trees, and ownership (96.38) VI.Break-even price for total grove care expenses Boxes per acre Boxes per acre 325375425475525 325375425475525 $ On-tree price per box $ Delivered-in price per pound solids for eliminations f 3.543.062.702.422.19 1.541.441.361.301.25 Although the estimated annual per acre grove costs shown in Table 3 are representative for a mature Indian River white seedless grapefruit grove, the grove care costs for a specific grove site may a differ depending upon the grove practices performed; e.g., a Temik application would add $127.50 per acre; extensive tree loss due to blight or tristeza may double the tree replacement and care costs; travel and set-up costs may vary due to size of citrus grove and distance from grove equipment barn; etc.; truck watering of resets could add another $7.95 per acre (average 5 waterings). On-tree price per box is preliminary; assumes average of all methods of sale (fresh and processed). b Assumes material custom applied; therefore, a 10 percent handling and supervision charge is added to material cost. c Other methods to estimate a management cost--e.g., 5% of gross sales or 10% of total grove care costs--are used in the industry. Other methods will give a different return to land and trees than reported d here. Other cost items which are not included in the budget are ad valorem taxes and interest on grove investment. In addition to these cost items, overhead and administrative costs, such as water e drainage/district taxes, crop insurance, and other grower assessments, can add up to 12 percent to the total grove care costs. These costs vary from grove to grove depending on age, location, and time of purchase or grove establishment. Assumes 4.7 pounds solids per box, $2.63 pick and haul cost per box (includes spot picking and fruit drenching plus D.O.C. $0.25 advertising tax and canker decontamination costs), $0.55 per box f handling through packinghouse, and $0.45 per box delivery to processing plant.

PAGE 11

7 Table 4. Estimated total delivered-in cost for Indian River White grapefruit grown for the fresh/processed market under three cultural cost programs, 2004-05 Represents a mature (10+ years old) Indian River White Grapefruit Grove Processed White Grapefruit Low Cost Cultural Program Fresh Packed White Grapefruit Reduced Cost Cultural Program Fresh Packed White Grapefruit Typical/Historical Cultural Program $/Acre $/Box$/P.S. $/Acre $/Box$/Carton $/Acre $/Box$/Carton Total Production/Cultural Costs $ 850.02$9.239$1.9658$1,124.82$2.528$1.2638$1,147.78$12.476$6.2379 Interest on Operating (Cultural) Costs 23.380.2540.054156.240.1260.063257.390.6240.3119 Management Costs 48.000.5220.111048.000.5220.260948.000.5220.2609 Taxes/Regulatory Costs: Property Tax/Water Management Tax 47.040.5110.108844.800.4870.243544.800.4870.2435 Water Drainage District Tax 63.000.6850.145760.000.6520.326160.000.6520.3261 Fly Protocol Cost 54.730.5950.297452.130.5670.2833 Canker Decontamination Costs 6.18 0.0670.0143 6.180.0670.0336 6.180.0670.0336 Total Taxes/Regulatory Costs 116.221.2630.2688 165.711.8010.9006 163.111.7730.8865 Total Direct Grower Costs $1,037.62$11.278$2.3997$1,394.77$4.977$2.4885$1,416.28$15.394$7.6972 Interest on Average Capital Investment Costs 321.223.4911.7457 321.223.4911.7457 321.223.4911.7457 Total Grower Costs $1,358.83$14.770$4.1454$1,715.99$8.468$4.2342$1,737.49$18.886$9.4429 Harvesting and Assessment Costs: Pick/Spot Pick, Roadside & Haul and Canker Decontamination 191.542.0820.4430218.412.3741.1870218.412.3741.1870 Fruit Drenching (Fresh) 17.020.1850.092517.020.1850.0925 DOC Assessment 22.080.2400.0511 23.000.2500.1250 23.000.2500.1250 Total Harvesting and Assessment Costs213.622.3220.4940258.432.8091.4045258.432.8091.4045 Total Delivered-In Cost $1,572.45$17.092$4.6394$1,974.41$11.277$5.6387$1,995.92$21.695$10.8474 Two cartons per box P.S. = Pound Solids Yield: 92 boxes/acre @ 4.7 P.S. per box 95 trees per acre Refer to cultural program shown on Table 13-A. Two summer oil sprays with oil, copper, and Agri-mek Refer to cultural program shown in Table 13-A. Assumes 100% packout Refer to cultural program shown in Table 3. Assumes 100% packout

PAGE 12

8 Table 5.--Estimated F.O.B. cost for fresh market Indian River White grapefruit, 2004-05 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 $1,147.78$5.159$2.5793$1,147.78$4.299$2.1494$1,147.78$3.685$1.8423 Interest on Operating (Cultural) Costs 57.390.2580.129057.390.2150.107557.390.1840.0921 Management 48.000.2160.107948.000.1800.089948.000.1540.0770 Taxes/Regulatory 163.110.7330.3665163.110.6110.3054163.110.5240.2618 Interest on Average Capital Investment 321.221.4440.7218321.221.2030.6015321.221.0310.5156 Harvesting (Pick/Spot Pick, Haul, DOC Tax, Etc.) 1,250.015.6182.80901,250.014.6822.34081,250.014.0132.0064 Total Delivered-In Cost$2,987.50$13.427$6.7135$2,987.50$11.189$5.5946$2,987.50$9.591$4.7953 Packing & Selling (Export)1,642.057.3803.69001,970.467.3803.69002,298.877.3803.6900 Net Fresh Eliminations Costs -1,743.51-7.836-3.9180-1,394.81-5.224-2.6120-1,046.11-3.358-1.6791 a Total F.O.B. Costs $2,886.04$12.971$6.4855$3,563.15$13.345$6.6726$4,240.26$13.612$6.8062 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 $1,147.78$3.224$1.6121$1,147.78$2.866$1.4329$1,147.78$2.579$1.2896 Interest on Operating (Cultural) Costs 57.390.1610.080657.390.1430.071657.390.1290.0645 Management 48.000.1350.067448.000.1200.059948.000.1080.0539 Taxes/Regulatory 163.110.4580.2291163.110.4070.2036163.110.3670.1833 Interest on Average Capital Investment 321.220.9020.4511321.220.8020.4010321.220.7220.3609 Harvesting (Pick/Spot Pick, Haul, DOC Tax, Etc.)1,250.013.5111.75561,250.013.1211.56061,250.012.8091.4045 Total Delivered-In Cost$2,987.50$8.392$4.1959$2,987.50$7.459$3.7297$2,987.50$6.713$3.3567 Packing & Selling (Export)2,627.287.3803.69002,955.697.3803.69003,284.107.3803.6900 Net Fresh Eliminations Costs -697.40-1.959-0.9795 -348.70-0.871-0.4353 0.00 0.0000.0000 a Total F.O.B. Costs $4,917.38$13.813$6.9064$5,594.49$13.969$6.9844$6,271.60$14.093$7.0467 Net Eliminations Cost equals the average yield of 4.70 pound solids per box times $1.88 per pound solids less packinghouse a elimination charge and cannery hauling charge of $1.00 per box.

PAGE 13

9 Table 6.--Estimated annual per acre costs and returns for a mature, white seedless grapefruit grove producing citrus for fresh fruit market in the Indian River area, 2000-01-05 Year On-tree price/box Yield a Gross revenue Total grove care expenses Total specified costs e Net return to land, trees, and ownership -----------------------------------------Dollars ------------------------------------2000-01 $2.15 425 913.75 974.46 1,022.46 (108.71) c 2001-02 $1.95 417 813.15 1,008.77 1,056.77 (243.62) d 2002-03 $2.08 417 867.36 1,024.54 1,072.54 (205.18) d 2003-04 $1.88 445 836.60 1,041.13 1,089.13 (252.53) 2004-05 $11.95 92 1,099.40 1,147.78 1,195.78 (96.38) bc On-tree prices for all sales methods as reported by the Florida Agricultural Statistics Service. a Preliminary estimate by FASS for 2004-05 season. b The severe drought affected yields for the 2001-02 season and three hurricanes in 2004 reduced yields by 78.5%. c Increased tree loss due to citrus tristeza virus reduced yields. d A management cost of $4.00 per acre per month is included. Fixed costs such as taxes, debt service, and crop insurance are not included. e

PAGE 14

10 Table 7.--Estimated annual per acre costs and returns (adjusted to 2005 dollars) for a mature, white seedless grapefruit grove producing citrus for fresh fruit market in the Indian River area, 2000-01-05 Year Inflation factor index a Adjusted on-tree price/boxYield Gross revenue Total specified costs b Net return to land, trees, and ownership ---------------------------Dollars ------------------------2000-01 117.9 $2.54 425 1,079.50 1,205.48 (125.98) 2001-02 120.7 $2.36 417 984.12 1,275.53 (291.41) 2002-03 114.6 $2.39 417 996.63 1,229.13 (232.50) 2003-04 107.9 $2.03 445 903.35 1,175.18 (271.83) 2004-05 100.0$11.95 92 1,099.40 1,195.78 (96.38) Producer price index for each year adjusted to 2005 prices (2005 = 100), with 2005 consumer price index estimated to be 158.2. Producer a price index for other years are: 2001 =134.2; 2002 = 131.1; 2003 = 138.1; and 2004 = 146.7. A management cost of $4.00 per acre per month is included. Fixed costs such as taxes, debt service, and crop insurance are not included. b (Refer to Table 6.)

PAGE 15

11 REFERENCES 1.Preliminary Summary 2004-05. Florida Agricultural Statistics Service. Florida Agricultural Statistics. September 2005. 2.Muraro, Ronald P. "A Listing of Estimated Comparative Indian River Citrus Production Costs Per Acre for 2004-05." Lake Alfred Citrus Research and Education Center (CREC) Report. Lake Alfred, FL: August 2005. 3.______. "Estimated Cost of Planting and Maintaining a Reset Citrus Tree through Three Years of Age." Lake Alfred CREC Report. Lake Alfred, FL: July 2004. 4.______. "A Listing of 2005 Custom Rates Reported by Twenty-five Indian River and South Florida Citrus Caretakers." Lake Alfred CREC Report. Lake Alfred, FL: July 2005. 5.Savage, Zach. Citrus Yields Per Tree Age. Univ. of Fla. Agr. Ext. Ser. 60-8. Gainesville: 1960. 6.Timmer, L. W. (Ed.). 2005 Florida Citrus Pest Management Guide. Univ. of Fla. Coop. Ext. Svc. SP 43. Gainesville: Jan. 2005. 150 pp. 7.Tucker, D. P. H., A. K. Alva, L. K. Jackson, and T. A. Wheaton (Eds.). Nutrition of Florida Citrus Trees. Univ. of Fla. Coop. Ext. Svc. SP 169. Gainesville: 1995. 61 pp.

PAGE 16

12 ADDENDA:Listing of Grove Care Options for Indian River Citrus Production for Both Round Oranges and Grapefruit a Page Table 1-A.Spray options.................................................... 13 Post bloom spray................................................. 13 Summer spray.................................................... 14 Fall spray....................................................... 15 Table 2-A.Herbicide options................................................. 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 2005 custom rates reported by fifteen Indian River and South Florida citrus caretakers............................................ 21 Table 9-A.2005 summary of average chemical price estimates...................... 23 Table 10-A.2005 summary of average fertilizer price estimates....................... 25 Table 11-A.A listing of estimated comparative Indian River citrus production costs per acre, 2004-05...................................................... 27 Table 12-A.Estimated cost of planting and maintaining a reset citrus tree through three years of age, July 2004............................................... 28 Table 13-A.Estimated average picking, roadsiding and hauling charges for Florida citrus, 2004-05.......................................................... 29 Table 14-A.Estimated average packing charges for Florida citrus, 2004-05............... 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 = Copper Mg = Magnesium N = Nitrogen Fe = Iron Mn = Manganese Zn = Zinc The costs in the ADDENDA represent a custom managed operation. Therefore, all equipment a costs are based upon the average custom rate costs and a 10 percent handling and supervision charge is added to the material cost.

PAGE 17

13 Table 1-A.--Spray options POST BLOOM SPRAY Spray Option #1 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Micromite Oil 97+% Cu (50% metallic) Zn Mn 1.25 lbs 5 gals 7 lbs 5 lbs 10 lbs $ 42.65 12.30 10.92 4.60 3.60 _________ _________ _________ _________ Ground Application (PTO driven airblast) 250 gals32.92_________ Total per Application $106.99 ------------------------------------------------------------------------------------------------Spray Option #2 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Agri-Mek Cu (50% metallic) Oil 97+% 10 ozs 10 lbs 3 gals $48.60 15.60 7.38 _________ _________ _________ Ground Application (Curtec sprayer) 25 GPA22.00_________ Total per Application $93.58 ------------------------------------------------------------------------------------------------Spray Option #3 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) 7 lbs$10.92_________ Oil 97+% 5 gals12.30_________ Ground Application (PTO driven airblast) 250 gals32.92_________ Total per Application $56.14 ------------------------------------------------------------------------------------------------Spray Option #4 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) 7 lbs$10.92_________ Ground Application (PTO driven airblast) 125 gals 28.03_________ Total per Application $38.95 -------------------------------------------------------------------------------------------------

PAGE 18

14 Table 1-A.--Spray options (cont'd.) SUMMER SPRAY Spray Option #5 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Oil 97+% Cu (50% metallic) Micromite 5 gals 7 lbs 1.25 lbs $12.30 10.92 42.65 _________ _________ _________ Ground Application (PTO driven airblast) 250 gals39.92_________ Total per Application $98.59 ------------------------------------------------------------------------------------------------Spray Option #6 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Oil 97+% Agri-Mek 7 lbs 5 gals 10 ozs $ 10.92 12.30 48.60 _________ _________ _________ Ground Application (PTO driven airblast) 250 gals 32.92_________ Total per Application $104.74 ------------------------------------------------------------------------------------------------Spray Option #7 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Oil 97+% Agri-Mek 7 lbs 10 gals 5 ozs $10.92 24.60 24.30 _________ _________ _________ Ground Application (PTO driven airblast) 500 gals38.00_________ Total per Application $97.82 ------------------------------------------------------------------------------------------------Spray Option #8 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Enable 8 oz$ 15.80_________ Oil 97+% 5 gals12.30_________ Micromite 1.25 lbs42.65_________ Ground Application (PTO driven airblast) 250 gals32.92_________ Total per Application $103.67 ------------------------------------------------------------------------------------------------Spray Option #9 Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) 7 lbs$10.92_________ Oil 97+% 5 gals12.30_________ Zn 5 lbs4.60_________ Mn 10 lbs3.60_________ B 0.25 lbs1.34_________ Ground Application (PTO driven airblast) 250 gals32.92_________ Total per Application $65.68

PAGE 19

15 Table 1-A.Spray options (contd.) SUMMER SPRAY (contd.) Spray Option #10Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre (Scale insects)Lorsban 4EC 5 pts$23.50_________ Ground Application (engine driven airblast) 500 gals38.00_________ Total per Application $61.50 FALL SPRAY Spray Option #11Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Vendex 50WP Microthiol (sulfur) 2 lbs 15 lbs $32.70 11.55 _________ _________ Ground Application (PTO driven airblast) 250 gals32.92_________ Total per Application $77.17 ------------------------------------------------------------------------------------------------Spray Option #12Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Vendex WP 2 lbs$32.70 _________ Ground Application (PTO driven airblast) 125 GPA 28.03 _________ Total per Application $60.73 ------------------------------------------------------------------------------------------------Spray Option #13Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Microthiol (sulfur) 15 lbs$11.55_________ Aerial Application 15 GPA 8.82_________ Total per Application $20.37 Table 2-A.--Herbicide options Herbicide Option #1Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Solicam 80DF Karmex WP Roundup Ultra Max 3 lbs 4 lbs 2 qts $23.51 8.52 8.02 __________ __________ __________ Ground Application (1 time) 12.75__________ Total for 1 Application $52.80

PAGE 20

16 Table 2-A.Herbicide options (contd.) Herbicide Option #2Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Surflan A80 DF Simazine 4L Roundup Ultra Max 2 qts 4 qts 2 qts $22.48 7.56 8.02 __________ __________ __________ Ground Application (1 time) 12.75 __________ Total for 1 Application $50.81 ------------------------------------------------------------------------------------------------Herbicide Option #3Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Karmex WP Roundup Ultra Max 4 lbs 2 qts $ 8.52 8.02 __________ __________ Ground Application (1 time) 12.75__________ Total for 1 Application $29.29 ------------------------------------------------------------------------------------------------Herbicide Option #4Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Solicam 80DF Simazine 4L Roundup Ultra Max 4 lbs 4 qts 2 qts $23.51 7.56 8.02 __________ __________ __________ Ground Application (1 time) 12.75__________ Total for 1 Application $51.84 ------------------------------------------------------------------------------------------------Herbicide Option #5Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Roundup Ultra Max 2 qts$ 8.02__________ Ground Application (1 time) 12.75__________ Total for 1 Application $20.77 ------------------------------------------------------------------------------------------------Herbicide Option #6Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Krovar I Roundup Ultra Max 5 lbs 2 qts $31.30 8.02 __________ __________ Ground Application (1 time) 12.75__________ Total for 1 Application $52.07 With respect to herbicide materials, Amount Per Grove Acre does not equal Amount Per Treated Acre a shown on the label. Only a strip or band is being treated. In this report, it is assumed that only one-half of a grove surface is being treated.

PAGE 21

17 Table 2-A.Herbicide options (contd.) Herbicide Option #7Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Roundup Ultra Max Princep (Caliber 90) 2 qts 4 lbs $ 8.02 7.24 __________ __________ Ground Application (1 time) 12.75__________ Total for 1 Application $28.01 ------------------------------------------------------------------------------------------------Herbicide Option #8Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Direx 4L Solicam 3 qts 3 lbs $ 6.84 23.51 __________ __________ Ground Application (1 time) 12.75__________ Total for 1 Application $43.10 ------------------------------------------------------------------------------------------------Herbicide Option #9Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Chemical mow)Roundup Ultra Max 1 pt $ 2.01__________ Ground Application (1 time) 3.07__________ Total for 1 Application $ 5.08 ------------------------------------------------------------------------------------------------Herbicide Option #10Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Chemical mow)Roundup Ultra Max 1.5 pts$ 3.02__________ Ground Application (1 time) 3.07__________ Total for 1 Application $ 6.09 ------------------------------------------------------------------------------------------------Herbicide Option #11Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Spot treatment for grass/brush regrowth under trees) Roundup Ultra Max 2 qts$ 8.02__________ Ground Application (1 time) 4.56__________ Total for 1 Application $12.58

PAGE 22

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 lbs$ 93.52_________ Application 3 times 23.70_________ Total for 3 Applications $117.22 ------------------------------------------------------------------------------------------------Option #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (125 lbs N/Acre)12-2-12-2.4 MgO 1040 lbs$116.48_________ Application 3 times 23.70_________ Total for 3 Applications $140.18 ------------------------------------------------------------------------------------------------Option #3 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (162 lbs N/Acre)12-2-12-2.4 MgO 1350 lbs$151.20_________ Application 3 times 23.70_________ Total for 3 Applications $174.90 ------------------------------------------------------------------------------------------------Option #4 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)15-2-15-2.4 MgO 1200 lbs$150.00_________ Application 3 times 23.70_________ Total for 3 Applications $173.70 ------------------------------------------------------------------------------------------------Option #5 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (204 lbs N/Acre)17-4-17-2.4 MgO 1200 lbs$157.20_________ Application 3 times 23.70_________ Total for 2 Applications $180.90 ------------------------------------------------------------------------------------------------Option #6 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (225 lbs N/Acre)15-2-15-2.4 MgO 1500 lbs$187.50_________ Application 3 times 23.70_________ Total for 3 Applications $211.20

PAGE 23

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 lbs$167.40_________ Double Boom Application3 times 37.65_________ Total for 3 Applications $205.05 ------------------------------------------------------------------------------------------------Option #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)10-2-10 1800 lbs$176.40_________ Double Boom Application3 times 37.65_________ Total for 3 Applications $214.05 ------------------------------------------------------------------------------------------------Option #3 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)10-0-10 Solicam 80DF Karmex WP 1800 lbs 3 lbs* 4 lbs* $167.40 23.51 8.52 _________ _________ _________ Double Boom Application3 times 37.65_________ Total for 3 Applications *Treated acre (one herbicide application) $237.08 Table 5-A.--Nematicides options Option #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre Temik 15G 33 lbs$116.16_________ Application 1 time 11.34_________ Total per Application $127.50 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$36.05_________ Application 1 time 7.90_________ Total for 1 Application $43.95 (Average 1/3 Ton Applied/Yr) $14.65 ------------------------------------------------------------------------------------------------Option #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (Every year) Dolomite (Delivered) 1000 lbs$18.03_________ Application 1 time 7.90_________ Total per Application $25.93

PAGE 24

20 Table 7-A.--Irrigation--annual cost per acre DRIP Option #1 Your Cost/AcreOption #2 Your Cost/Acre Operating (Electric) $ 62.10________ (Diesel) $ 55.87________ Maintenance of System 44.04________ 43.82________ Total Cash Expenses Fixed Depreciation Expense Total Cash and Fixed Expenses $106.14 42.35 $148.49 ________ ________ $ 99.69 42.25 $144.91 ________ ________ ------------------------------------------------------------------------------------------------MICROSPRINKLER Option #3 Your Cost/AcreOption #4 Your Cost/Acre Operating (Electric) $ 70.60________ (Diesel) $ 59.44*________ Maintenance of System 49.08________ 50.17________ Total Cash Expenses Fixed Depreciation Expense Total Cash and Fixed Expenses $119.68 52.94 $172.62 ________ ________ $109.61 56.56 $166.17 ________ ________ ------------------------------------------------------------------------------------------------DRAINAGE DITCH ANNUAL COSTS Your Option #5Cost/Acre Ditches/Canals Maintenance ($45.17/acre 3 years) $15.06________ Weed Control in Ditches/Canals 14.19________ Water Control: In/Out of Ditches and Canals 13.21________ Total $42.36 *Indicates higher cost for fuel; diesel or electric.

PAGE 25

21 Table 8-A.--A listing of 2005 custom rates reported by sixteen Indian River and South Florida citrus caretakers Grove Practice Unit Range of Rate Reported Average Rate Comments y CULTIVATION AND EQUIPMENT: Labor Hour$ 9.50-$17.50$13.56Plus transportation and equipment Mechanic Labor Hour30.00-50.0039.56Labor and service truck Rotovate Hour33.00-40.00 37.75 Disc 7-8' Hour27.50-38.5033.00 Disc 10-12' Hour32.00-40.00 35.84 Mow: 7-8' Hour27.50-35.0031.14 9-10' Hour31.00-38.5033.97 9-10' Acre9.00-11.009.97 15-16' Hour35.00-41.2539.85$9.00/acre V-Mower Hour33.00-35.0034.34 Herbicide (Strip/BandSingle Boom)Hour 30.00-32.00 31.33Plus materials z Herbicide (Strip/BandSingle Boom)Acre13.00-13.7513.39Plus materials; $35.00/hour z Herbicide (Strip/BandDouble Boom)Acre12.00-14.0012.75Plus materials z Herbicide (Chemical Mow) Acre2.50-3.503.07Plus materials z Temik Acre 10.50-12.5011.34Plus materials z Plow Hour32.50-38.5034.67 Backhoe Hour45.00-47.5045.70 Middle Buster Hour 38.50With tractor and driver Mound Builder Hour 31.00-38.5034.84With tractor and driver Grader Blade Hour 28.00-38.5033.60Tractor/blade and driver Water Truck with Driver Hour30.00-35.0032.75 Pickup Truck with Driver Hour28.00-35.0031.67Average miles traveled per year: Pick-up truck 21,298 miles Flatbed/Transport Truck with DriverHour35.00-50.0045.00 Tractor with Driver Hour28.00-35.0031.69 ATV with Driver Hour20.00-25.0023.25 SPRAYING: PTO AIR BLAST SPRAYER z 1,000 Gallon Tank with Electronic Sensing 500 Gallon Tank Low HighAverage Average 500 GPA Acre 38.00 39.00 250 GPA Acre29.00-36.0032.92 29.00 125 GPA Acre25.00-29.0028.03 27.00 Curtec (25 GPA) Acre 22.00 Aerial Fixed Wing: $ 5.13/acre @ 5 gallons per acre Aerial Fixed Wing: $ 7.17/acre @ 10 gallons per acre Bell Helicopter: $20.00/acre @ 10 GPA Aerial Fixed Wing: $ 8.82/acre @ 15 gallons per acre Aerial Fixed Wing: $11.25/acre @ 20 gallons per acre Hand Sprayer (500 gallon tank) with tractor and 2 workers $45.00/hour FERTILIZING: z Liquid Boom Application: Double BoomAcre12.00-13.4012.55 Dry (Bulk) Acre7.00-8.757.90Average with VRT: $10.38/acre Lime or Dolomite Acre 7.50-8.757.90 Fertilize Young Trees: Hand SpreadHour9.50-17.5013.56Plus transportation and materials; 15/tree z Fert. SpreaderAverage: $7.25/acre; $26.00/hourPlus materials (OVER)

PAGE 26

22 Table 8-A.--A listing of 2005 custom rates reported by sixteen Indian River and South Florida citrus caretakers (cont'd.) Grove Practice Unit Range of Rate Reported Average Rate Comments y IRRIGATION: Ditch Mower Hour$32.00-$44.50$ 36.20 Water Furrow Disc Hour30.00-38.5034.67 Water Furrow Cleaner Hour35.00-38.5036.34 Water Furrow Shaper (Non-Laser Control)Hour 65.00 Water Furrow Shaper (Laser Control) Hour 80.00 Rotary Ditcher or Auger Hour33.00-38.5035.50 Microsprinkler/Drip Irrigation MaintenanceAcre/Month3.50-4.754.25 Check & repair system; parts extra REMOVING TREES: Front-end Loader Hour$50.00-$65.00$56.79Avg. range 3-15 trees per hour Tree Shearing (Cutting Tree at Ground Level)Hour50.00-65.0056.25Avg. range 5-20 trees per hour Prepare Site for Replanting Tree $0.25 $1.00 PRUNING: Hedging: Single Side (Tractor Mounted) Hour$ $ $ 55.00 Double Side (Tractor Pulled) Hour 65.00 Double Side (Self Propelled) Hour250.00-265.00257.508 to 20 A/H depending on wood size; $14/A annual cut Double Side Rotary (Self Propelled) Hour 185.005 to 15 A/H bed tops only; add 25% for furrows only x Topping: Double Sided Topper (Self Propelled) Hour265.00-285.00275.00 Avg. 8-15 ac depending on wood size type of cut;$30/acre Topping Self Propelled Hour 150.00 Limb Lifter/Tree Skirt Trimmer Acre 14.003 to 5 acres/hour Limb Lifter/Tree Skirt Trimmer (Double Sided Rotary) Hour 120.006 to 20 acres/hour Removing Brush: Haul Brush out of Grove (Front-End Loader)Hour55.00-65.0059.25 Mow/Chop Brush Hour32.00-40.0034.60 OTHER CUSTOM RATES: Install Tree Wraps 15-50/tree depending on type of wrap and number of trees; Annual maintenance cost: 35/tree Plant Trees (Solid Set) Tree$ 0.90-$ 1.75$ 1.32Varies as to density Plant Trees (Resets) Tree2.00-2.502.17Varies as to the number of resets Travel/Setup Charge Hour 22.62 Grove Management Charge/Month: Supervising Grove Care Operations Acre3.00-7.505.15In addition to caretaking charges Handling Fruit Marketing $0.10-$0.25/box For Supervising and Marketing fruit Supervising/Handling Chemicals/Fertilizer 5% to 15% of materials cost Charge for personnel to oversee harvesting operations and coordinate harvest in different blocks/groves and keeping of harvesting labor compliance records. Box$ 0.05-$ 0.25$ 0.15 Consulting Hour$125.00-$200.00$150.00 Horticultural Evaluation and/or Financial Analysis/prospectus. Total Reported Acreage Provided Grove Service to:Acre1,000-14,0004,870Total acres reporting: 48,700 Plus materials. Caretakers reporting rates include labor, tractor and sprayer; supply truck included by most caretakers. z Calculated by dividing the total number of caretakers reporting a grove practice rate into the sum reported. Unless otherwise stated, labor y included with all charges. Low acres is for 2 years regrowth hedging; high acres is for annual maintenance hedging. x Source: Ronald P. Muraro, Extension Farm Management Economist, Lake Alfred CREC, July 2005.

PAGE 27

23 Table 9-A.--2005 summary of average chemical price estimates Item Unit Average Price Your Price (2005) Fungicides:Abound EC gal.218.12 Aliette 80WP lb.11.59 Basic Copper Sulfate lb. 1.40 Copper (Kocide 101) lb. 1.80 Copper (Kocide 2000) lb. 2.33 Copper (Champ II Flowable) gal.22.55 Cuprofix Disperss lb. 1.75 Nu-Cop 50 DF lb. 1.88 Enable gal.57.55 Gem 25 40 ozs.120.59 Headline EC gal.206.13 Oil 435 or 455 gal.2.21 Oil 470 (Bio-lever) gal.2.46 Ridomil Gold EC gal.649.15 Safe-T-Oil gal.3.15 Topsin lb.14.08 Insecticides/Nematicides: Admire 2F gal.520.28 Agri-Mek (0.15EC) gal.563.52 Award Fire Ant Bait lb. 9.01 Bio-Vector gal.412.50 Carbaryl 4L gal.27.25 Carbaryl 80S lb. 4.47 Chlorpyrifos 4E gal.57.26 Danitol gal.147.58 Guthion 2L gal.32.48 Guthion 50WP lb.10.07 Imidan 70W (Diaprepes) lb. 8.25 Lorsban 4EC gal.34.15 Lorsban 15G lb. 1.72 Malathion 5 EC gal.25.18 Micromite 80 WG gal.87.95 Microthiol lb. 0.70 Nexter 75WP lb.89.56 Provado 1.6 F (nursery) gal.417.75 Sevin 80S lb. 5.17 Sevin XLR gal.30.96 Spintor 2 S C gal.492.50 Sulphur 6F gal.4.00 Temik 15G lb. 3.20 Vendex 50W lb.14.86 Vydate gal.56.28

PAGE 28

24 Table 9-A.--2005 summary of average chemical price estimates (cont'd.) Item Unit Average Price Your Price (2005) Herbicides:Aqua Master gal. 48.39 Diuron 4L gal. 16.04 Direx 4L gal. 16.50 Direx 80 DF lb. 3.87 Fusilade DX 2E gal.131.14 Glyphosate: Glyphomax Plus gal. 18.22 Roundup (Original) gal. 23.60 Roundup Ultra Max gal. 29.12 Roundup Weather Maxgal. 50.16 Roundup Original Maxgal. 43.50 Touchdown gal. 37.05 Gramoxone E (Paraquat) gal. 37.53 Hyvar X 80 WP lb. 18.93 Karmex 80 DF lb. 3.87 Krovar I lb. 11.38 Landmaster II gal. 18.66 Mandate 2E gal.166.09 Pendimax gal. 24.37 Poast Plus 1.0 EC gal. 52.50 Princep (Caliber 90) lb. 3.29 Princep 4L gal. 14.51 Prowl gal. 22.12 Simazine 90 DF lb. 2.80 Simazine 4L gal. 13.66 Solicam 80 DF lb. 14.24 Simtrol 19.00 Surflan gal. 81.64 Growth Regulators: Citrus Fix gal.494.00 Pro-Gibb 3.91% 20 oz. bottle33.16 Tree-Hold gal. 79.17 Other Spray Materials: Borates (15%) lb. 0.70 Manganese (32%) lb. 0.32 Zinc (78%) lb. 0.83 Adjuvant (Surfactant) gal. 23.59 SOURCE: Ronald P. Muraro, Extension Farm Management Economist, University of Florida, IFAS, CREC, Lake Alfred, Florida, August 2005.

PAGE 29

25 Table 10-A.--2005 summary of average fertilizer price estimates Item Unit Average Price Your Price (2005) FERTILIZER (FOB Price @ Plant) $ Dry Mix (Bulk) Mg 17-0-17-3 ton 238.82_________ Mg 17-4-17-2.4 ton 243.35_________ 16-0-16 ton 218.35_________ Mg 16-0-16-4 ton 239.49_________ Mg 16-2-16-3 ton 240.45_________ Mg 15-2-15-2.4 ton 224.47_________ Mg 12-2-12-2.4 ton 201.02_________ 8-8-8 w/minors* ton 182.90_________ 8-4-8 w/minors* ton 170.29_________ 8-2-8 w/minors* ton 162.12_________ 6-6-6 w/minors* ton 159.99_________ Liquid Mix (Bulk) 8-2-8 ton 151.53_________ 8-4-8 ton 159.73_________ 9-3-9 ton 166.33_________ 9-4-9 ton 172.47_________ 10-0-10 ton 166.62_________ 10-2-10 ton 176.25_________ 12-0-6 ton 166.89_________ 12-3-6 ton 180.25_________ 7-0-0-6 (Magnesium Nitrate) ton 218.00_________ *With organic nitrogen, the price averaged 25% higher.

PAGE 30

26 Table 10-A.--2005 summary of average fertilizer price estimates (cont'd.) Item Unit Average Price Your Price (2005) Other Fertilizer Materials (Bulk) Ammonium Nitrate (21% N Liquid) ton179.88_________ Ammonium Nitrate (33.5% N Dry) ton259.38_________ Ammonium Sulfate (21% N) ton152.94_________ Calcium Nitrate (19% Ca, 15.5% N) ton288.13_________ 33 Dolomite (at mine--49% CaCO, 36% MgCO)ton 19.75_________ 2 Muriate of Potash (60% KO) ton242.29_________ 2 Potassium Nitrate (14% N; 46% KO) ton453.57_________ 2 Sul-Po-Mag (SPM--21.9% KO) ton202.43_________ 25 Super Phosphate (20% PO) ton214.25_________ 25 Triple Superphosphate (48% PO) ton242.92_________ Average Delivery Cost ton14.32_________ Foliar Macronutrients Phos Might 0-22-20 gal.24.29_________ Nutriphite Magnum 2-40-16 gal.35.00_________ MKP (0-52-34) (Mono-Potassium Phosphate)lb.0.80_________ RSA ActaPhos 0-28-25 gal.18.00_________ Peters 20-20-20 Foliar lb.0.54_________ MZF gal.6.53_________ Slow Release Nitrogen (SRN) CitriBlen 15-3-19 ton245.15_________ 17-5-12 ton237.50_________ 18-6-11 ton243.80_________ Sulfur Coated Urea (SCU) ton586.80_________ Agriform 20-10-5 (500 tablets/box) box40.00_________ SOURCE:Ronald P. Muraro, Extension Farm Management Economist, University of Florida, IFAS, CREC, Lake Alfred, Florida, August 2005.

PAGE 31

27 Table 11-A.--Cost for establishing, planting and maintaining a citrus grove through four years of age, South Florida flatwoods area Cost Per Acre RangeAverage -----------$ -----------Land Cost:Improved Pasture Land 1,700 2,5002,050 1 Raw Land and Semi-improved Pasture 1,150 1,8001,450 Land Preparation:Pasture and Light Palmettos 125 275 195 (Clearing) Raw Land (heavy pines, palmettos) 350 600 465 Leveling:With Laser 200 350 275 Without Laser 100 250 160 Bedding: 2-rows (short rows 1,350+ feet) 100 195 130 Soil Amendments:Dolomite 1 ton 35 Super Phosphate, 400 lbs. 30 Canals, Ditches and Dikes 150 260 195 Reservoirs and Roads 130 180 155 Throw-out Pumps for Water Movement 45 60 55 Culverts 65 135 85 Middle Drop Drainage Pipes 45 95 105 Drainage Tile 140 160 150 Cover Crop 9 16 12 Irrigation System:Microsprinkler with Well 850 1,5001,000 2 without Well 525 1,200 700 Drip with Well 775 1,050 875 2 without Well 400 825 560 Water Permits, Environmental Studies, and Engineering:Cost 40 90 70 Time in Months 5 12 8 Percent Land Utilization:Planted to Citrus 55% 85% 71% Ditches and Canals 5% 10% 8% Water Retention 10% 30% 15% Roads and Service Areas 3% 15% 6% South Florida Year 1234 Solidset Planted Trees --------------Cost Per Tree ---------------3 Microsprinkler Irrigation and Ditch Maintenance $0.40$0.50$0.65$0.85 Fertilize Tree 0.250.400.550.56 Supplemental Fertilization thru Irrigation 0.150.200.250.29 Spray 0.300.400.470.50 Insulated Tree Wrap (annual maintenance) 0.250.250.250.00 Sprouting (labor) 0.200.200.000.00 Cultivation/Mowing 0.440.440.440.44 Herbicide 0.540.540.540.54 Ridomil/Aliette 0.350.350.000.00 Miscellaneous 0.43 0.49 0.42 0.48 Total Cost Per Year $3.31$3.77$3.62$3.66 Reset Trees (annual additional grove care costs) $2.13$2.47$1.84-Cost of Planting Trees Solidset = $5.00Reset = $6.30 4 Land cost will vary from one county to another as well as from one parcel to another. 1 Irrigation costs include distribution system, power unit and well (where indicated.) The higher cost ranges reported also 2 included a cost for fertigation equipment. The per tree costs shown are applicable for tree densities of 145 to 165 trees per acre. The per tree costs should be 3 decreased for higher density plantings and increased for lower density plantings; e.g., at 200 trees per acre decrease costs by 15%; at 115 trees per acre increase costs by 15%. Tree cost (bare root) = $3.25; stake, plant, and water tree = $1.25 (solidset) and $2.55 (resets); and uninsulated tree wrap 4 = $0.50. Source: Ronald P. Muraro, Farm Management Economist, CREC, Lake Alfred, FL, November 1989.

PAGE 32

28 Table 12-A.--Estimated cost of planting and maintaining a reset citrus tree through three years of age, Southwest Florida area, August 2005 Resets/Replacement Trees Per Acre 1-23-56-1011-2526+ ----------------$ Cost Per Tree --------------Tree Removal 6.675.344.453.562.67 Plant ResetTree Tree Cost (Container Tree) 4.504.504.354.354.35 Plant Tree and First Watering (Custom Charge) 2.93 2.55 2.17 1.84 1.57 Total Planting Costs 7.437.056.526.195.92 Site Preparation a Rotovate 2.652.311.961.671.42 Re-Build Beds 3.002.612.221.891.60 Total Site Preparation 5.654.924.183.563.02 Total Planting and Site Preparation Costs13.0811.9710.709.758.94 ===================================================================== Supplemental MaintenanceYear #14.133.823.593.393.19 (Trees 1-3 years old) Year #2 3.793.392.962.592.27 (Fertilizer, Tree Wraps, Sprout, etc.)Year #3 3.072.732.342.011.73 Total Supplemental Maintenance Costs10.999.948.897.997.19 ===================================================================== Summary of Tree Replacement Costs 13666 Tree Removal Costs 6.675.344.453.562.67 Planting and Tree Removal Costs 13.0811.9710.709.758.94 Supplemental Maintenance Costs (Years 1 thru 3)10.999.938.907.997.19 Total Three-Year Cumulative Costs 30.7427.2424.0521.3018.80 Site preparation for bedded citrus grove. Fumigate planting site would cost approximately a $2.50 per tree. Source: Ronald P. Muraro, Farm Management Economist, CREC, Lake Alfred, FL, August 2005.

PAGE 33

29 Table 13-A.--A listing of estimated comparative Indian River citrus production costs per acre for grapefruit, 2004-2005 z Costs 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) $ 29.91 $ 29.91 $ 29.91 Chemical Mow Middles (2 times per year) 10.16 10.16 10.16 General Grove Work (2 labor hours per acre) 27.12 27.12 27.12 Herbicide (1/2 tree acre treated): Application (4 glyphosate or 3 residual applications) $51.00 $38.25 $38.25 Material 32.08 94.63 94.63 Total Herbicide Cost 83.08 132.88 132.88 Spray: Post Bloom:Application (150 GPA) 32.92 32.92 Material 74.07 74.07 Total Post Bloom Cost 106.99 106.99 Summer Oil #1:Application (250 GPA) 32.92 32.92 32.92 Material 65.87 70.75 70.75 Total Summer Oil #1 Cost 98.79 103.67 103.67 Summer Oil #2:Application (PTO -250 GPA) 32.92 32.92 32.92 Material 32.76 23.22 23.22 x Total Summer Oil #2 Cost 65.68 56.14 56.14 Fertilizer (Bulk):3 Applications 23.70 23.70 23.70 Material (12-2-12-2.4 MgO @ 125 lbs N and 100 lbs N per acre) 116.48 93.52 116.48 Total Fertilizer Cost 140.18 117.22 140.18 Dolomite (one ton applied every 3 years) Material/Application 14.65 14.65 14.65 Pruning: Topping ($27.50/A 2 yrs) w 13.75 13.75 13.75 Hedging ($25.75/A 1.5 yrs) 17.17 17.17 17.17 w Chop/Mow Brush after Hedging ($8.99/A 1.5 yrs) 6.00 6.00 6.00 w Raise Skirts of Trees ($14.00/A 2 yrs) 7.00 7.00 w Total Pruning Cost 36.92 43.92 43.92 Tree Replacement 1 thru 3 years of age: (5 trees/acre) Remove Trees: Pull, Stack & Burn 5 Trees with Front-end Loader 25.40 25.40 25.40 Prepare Site and Plant Tree (Includes 5 reset trees) 59.85 59.85 59.85 Supplemental Fertilizer, Tree Wraps Maintenance, Sprout, etc. (Trees 1-3 years old) 49.65 49.65 49.65 Total Tree Replacement Cost 134.90 134.90 134.90 Irrigation:Microsprinkler System v 166.17 166.17 166.17 Clean Ditches (Weed Control) 14.19 14.19 14.19 Ditch and Canal Maintenance 15.06 15.06 15.06 Water Control (Pump water in/out of Ditches and Canals) 13.21 13.21 13.21 Total Irrigation Cost 208.63 208.63 208.63 IRRIGATED PROCESSED FRUIT PRODUCTION COSTS $850.02 $ 986.19 Supplemental Post Bloom Spray: (2 Applications) Application (125 GPA) 56.06 56.06 Material (Copper) 21.84 21.84 Total Supplemental Post Bloom Spray Cost 77.90 77.90 Fall Miticide Spray:Application (125 GPA) 28.03 28.03 Material 32.70 32.70 Total Fall Miticide Spray Cost 60.73 60.73 IRRIGATED FRESH FRUIT PRODUCTION COSTS $1,124.82 $1,147.78 The listed estimated comparative costs are for the example grove situation described in the Economic Information Report Series entitled: z "Budgeting Costs and Returns for Indian River Citrus Production" and may not represent your particular grove situation in Indian River. SOURCE: Ronald P. Muraro, University of Florida-IFAS, Citrus Research and Education Center, Lake Alfred, FL, August 2005.

PAGE 34

30 Table 14-A.-Estimated average picking, roadsiding and hauling charges for Florida citrus, 2004-05 Fresh Fruit Processed Fruit RangeAverage RangeAverage $/Box$/Box $/Box$/Box Picking Charges: Early and Mid-Season Oranges0.70-1.750.9540.65-1.050.829 Valencia Oranges 0.70-1.250.9380.65-1.250.870 Pink/Red Grapefruit 0.60-1.250.7390.55-1.250.669 White/Marsh Grapefruit 0.60-1.250.7440.55-1.250.667 Temples/Tangelos 0.85-1.651.1630.80-1.501.043 Tangerines 1.25-2.001.5291.00-1.701.204 Add for Spot Picking 0.10-0.500.314 Fresh Fruit Processed Fruit RangeAverage RangeAverage $/Box$/Box $/Box$/Box Roadsiding Charges: Early and Mid-Season Oranges0.60-1.150.8950.65-1.170.817 Valencia Oranges 0.67-1.120.8990.65-1.170.836 Pink/Red Grapefruit 0.65-1.030.8400.65-1.200.796 White/Marsh Grapefruit 0.65-1.030.8540.65-1.200.789 Temples/Tangelos 0.70-1.351.0030.75-1.230.890 Tangerines 0.75-1.351.0950.85-1.701.054 Fresh Fruit Processed Fruit All Varieties All Varieties $/Box $/Box Hauling Charges: 0 30 miles 0.417 0.393 31 50 miles 0.512 0.464 51 80 miles 0.573 0.515 81 100 miles 0.640 0.632 100 + miles 0.746 0.728

PAGE 35

31 Table 15-A.--Estimated Average Packing Charges for Florida Citrus, 2004-05 a Domestic Grapefruit Export Grapefruit Oranges Temples/ Tangelos Tangerines ------------------------$/Carton ------------------------Total Packing Charge 3.8354.2454.1924.4955.056 b --------------------------$/Box --------------------------Drenching Charge 0.1780.1780.1860.1860.186 Packinghouse Elimination Charges 0.5940.5940.5710.5710.571 Hauling Charges for Eliminations 0.4250.4250.4100.4100.410 Packing charges represents a total of nine citrus packinghouses from both the Indian River a and Interior production regions. Total Packing Charge includes the following items: b 1.Materials including mesh/plastic bags, labels/Price Lookup Codes (PLUs), etc. 2.Includes supervisor/foreman labor, grading, palletizing, shipping and general labor. Includes payroll taxes, 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 such items as: insurance-fire and casualty; taxes and licenses; depreciation and rent. 5.General and Administrative (G&A) costs include: office personnel (payroll taxes, w/comp); packinghouse and general manager; office supplies; telephone; etc. 6.Selling Expenses which include sales salaries, travel, telephone and telegraph and brokerage fees. 7.Special assessments include such items as: advertising taxes; inspection fees; a Florida Citrus Packers tax; and a Citrus Administrative Committee (CAC) tax. SOURCE:Ronald P. Muraro, University of Florida-IFAS, Citrus Research and Education Center, Lake Alfred, FL, September 2005.

PAGE 36

32 Table 16-A.--Historic prices for selected citrus varieties a Variety Crop year Early and b mid-season c oranges Late season oranges d Temple oranges All TangerinesTangelos Seedless grapefruit e (white) (colored) 1961-62 1962-63 1963-64 1964-65 1965-66 $1.93 2.17 4.43 2.57 1.44 $1.81 3.50 4.45 2.28 1.79 $2.17 3.09 4.45 2.77 1.80 $2.04 3.02 3.18 2.68 2.14 $3.36 4.66 4.83 4.00 2.85 $0.68 1.29 2.24 1.51 1.39 $0.86 1.81 2.54 1.82 1.64 1966-67 1967-68 1968-69 1969-70 1970-71 0.81 1.86 1.56 1.15 1.10 1.08 2.28 1.83 1.13 1.91 0.88 2.79 2.22 1.47 1.91 1.06 4.29 2.55 2.23 1.88 1.64 3.22 2.47 1.13 1.04 0.73 2.05 0.98 1.72 1.89 0.94 2.48 1.15 1.92 2.15 1971-72 1972-73 1973-74 1974-75 1975-76 1.98 1.43 1.38 1.46 1.69 2.11 1.71 1.59 1.82 1.88 1.95 1.95 1.64 1.68 1.79 2.97 2.37 2.82 3.05 3.02 1.69 1.39 1.25 1.45 1.42 2.27 2.06 1.58 1.55 1.29 2.69 2.53 2.12 2.59 2.23 1976-77 1977-78 1978-79 1979-80 1980-81 1.89 3.90 4.44 3.59 3.67 2.63 4.40 4.95 3.89 4.63 2.16 3.92 4.89 2.89 4.21 3.29 4.79 4.99 4.25 5.45 1.42 3.29 3.90 2.87 3.92 1.49 1.47 2.21 3.12 3.46 2.04 2.09 3.13 3.80 4.22 1981-82 1982-83 1983-84 1984-85 1985-86 4.27 4.88 5.09 7.30 3.92 4.29 5.41 6.72 6.88 3.97 4.01 3.99 5.34 5.59 3.01 6.23 7.57 5.93 15.91 12.69 3.58 4.37 4.28 7.08 4.06 1.92 1.51 2.08 3.02 3.56 2.80 3.20 4.05 4.84 4.98 1986-87 1987-88 1988-89 1989-90 1990-91 4.56 6.72 6.63 6.01 5.38 6.02 8.73 8.41 6.53 6.58 3.60 5.69 5.46 5.64 6.31 10.92 12.99 12.64 15.28 17.10 3.72 5.58 6.31 5.10 6.11 4.45 5.35 4.33 5.21 4.59 5.80 5.93 4.71 6.30 6.85 1991-92 1992-93 1993-94 1994-95 1995-96 5.44 3.23 3.76 3.25 3.62 6.65 3.88 4.61 4.41 5.57 6.51 2.99 2.73 3.47 4.44 18.00 13.75 9.83 11.98 12.59 7.16 3.31 2.38 2.64 3.63 6.46 2.22 3.23 2.58 2.14 6.87 3.11 3.38 1.66 1.77 1996-97 1997-98 1998-99 1999-00 2000-01 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 2002-03 2003-04 2004-05 f 2.88 2.62 2.20 2.56 4.20 3.85 3.64 4.34 2.19 2.01 1.07 2.48 7.81 8.40 7.46 12.02 2.47 2.60 7.48 2.45 1.96 1.59 1.88 11.95 2.54 2.79 3.28 13.65 On-tree average price per box (1-3/5 bushel box equivalent) for all methods of sale minus pick and haul charges. a Navel and Hamlin Parson Brown and Pineapple Valencia Marsh (white) or pink Preliminary bc d ef Source: Florida Agricultural Statistics Service.

PAGE 37

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