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Permanent Link: http://ufdc.ufl.edu/IR00002041/00001
 Material Information
Title: Budgeting Costs and Returns for Southwest Florida 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
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Acquisition: Collected for University of Florida's Institutional Repository by the UFIR Self-Submittal tool. Submitted by Melanie Mercer.
Publication Status: Published
General Note: "September 2005"
General Note: "FE631"
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Source Institution: University of Florida Institutional Repository
Holding Location: University of Florida
Rights Management: All rights reserved by the submitter.
System ID: IR00002041:00001


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Ronald P. Muraro EDIS FE631 Fritz M. Roka http://edis.ifas.ufl.edu/FE631 Robert E. Rouse Budgeting Costs and Returns for Southwest Florida 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

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i ABSTRACT 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 tenth 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 oranges, seedless grapefruit and Southwest Florida. NOTE:Southwest Florida refers primarily to Charlotte, Collier, Glades, Hendry and Lee counties. However, the costs shown are applicable to other South Central Florida counties such as DeSoto, Okeechobee, and Sarasota 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 an owner-managed operation for the production of oranges for processing and grapefruit for the fresh 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 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 $11.88 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 ($116.94/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 Southwest Florida who provided suggestions for the revision of this manuscript.

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ii TABLE OF CONTENTS Page ABSTRACT................................................................... i ACKNOWLEDGEMENTS....................................................... i LIST OF TABLES.............................................................. iii INTRODUCTION.............................................................. 1 METHOD OF DATA COLLECTION.............................................. 1 COSTS AND INPUTS........................................................... 2 THE GROVE SITUATION....................................................... 2 BUDGET COSTS AND RETURNS................................................ 6 HISTORICAL COST TRENDS................................................... 7 REFERENCES................................................................. 17 ADDENDA................................................................... 18 NOTE:The ADDENDA include a Listing of Grove Care Programs for Southwest Florida Citrus Production for Both Round Oranges and Grapefruit; 2005 custom rate summary report; cost of establishing a citrus grove; etc. Page 18 is a list of the tables included in the ADDENDA.

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iii LIST OF TABLES Table Page 1Schedule of production practices and budget items for a Southwest Florida mature, round orange grove, 2004-05............................................ 3 2Schedule of production practices and budget items for a Southwest Florida mature, red seedless grapefruit grove, 2004-05..................................... 4 3Calculation of normal production per tree and per acre for Hamlin oranges, 2004-055 4Calculation of normal production per tree and per acre for red seedless grapefruit, 2004-05............................................................. 6 5Estimated annual per acre costs and returns for a mature, Hamlin orange grove producing for the processed market, Southwest Florida area, 2004-05............ 8 6Estimated total delivered-in cost for Southwest Florida Hamlin oranges grown for the processed juice market under three cultural cost programs, 2004-05............. 9 7Estimated annual per acre costs and returns for a mature, red seedless grapefruit grove producing for the fresh market, Southwest Florida area, 2004-05........... 10 8Estimated total delivered-in cost for Southwest Florida Red grapefruit under three cultural cost programs, 2004-05.......................................... 11 9Estimated F.O.B. cost for fresh market Southwest Florida Red grapefruit, 2004-05.. 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 Florida area, 2000-01-05................................. 13 11Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2005 dollars) for a mature, Hamlin orange grove producing citrus for processed market in the Southwest Florida area, 2000-01-05........... 14 12Estimated annual per acre costs and returns and 5-year average costs and returns for a mature, red seedless grapefruit grove producing citrus for fresh fruit packing in the Southwest Florida area, 2000-01-05................................. 15 13Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2005 dollars) for a mature, red seedless grapefruit grove producing citrus for fresh fruit packing in the Southwest Florida area, 2000-01-05..... 16

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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. FRITZ M. ROKA is an Associate Professor in Economics and ROBERT E. ROUSE is an Associate Professor of Horticulture; both are stationed at the Southwest Florida Research and Education Center, Immokalee. 1 BUDGETING COSTS AND RETURNS FOR SOUTHWEST FLORIDA CITRUS PRODUCTION, 2004-05 Ronald P. Muraro, Fritz M. Roka, and Robert E. Rouse INTRODUCTION Southwest Florida has become a major citrus production area. In 2004 citrus acreage in Southwest Florida represented over 22.6% of total state citrus acreage. Acreage in Southwest Florida increased from 72,480 in 1986 to 179,948 in 1998 then decreased to 169,386 in 2004. The 5.9% decline in acreage was primarily due to trees on sour orange rootstock that died from tristeza virus and acreage destroyed in the citrus canker eradication program. Southwest Florida refers primarily to Charlotte, Collier, Glades, Hendry and Lee counties. However, the costs shown are applicable to other South Central Florida counties such as DeSoto, Okeechobee, and Sarasota counties. 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 two budgets constructed from current data and provides 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 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.

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2 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. Grower costs are shown in the ADDENDA, Tables 1-A through 7-A. The custom rate charges are shown in Table 8-A and the various chemical and fertilizer costs are shown in Tables 9-A and 10-A in the ADDENDA. Costs of planting and maintaining reset trees through three years of age are shown in Table 13-A. Historic on-tree prices for selected citrus varieties are shown in 16-A. 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 Southwest Florida orange and grapefruit groves are shown in Tables 1 and 2, respectively, with the times during the year when they are normally performed. There are two benefits to developing such a table for an individual grove. First, it shows what work is needed and when, so that operations can be planned well in advance. Second, it 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 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 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.Varieties are processed-market Hamlin oranges and fresh-market red seedless grapefruit; 3.Annual tree loss is 4.4 trees per acre for oranges 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. As a result of tree losses and replacement, the tree ages will vary. The orange and grapefruit budgets reflect the following age distributions:

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3 Table 1.--Schedule of production practices and budget items for a Southwest Florida mature, round orange grove, 2004-05 a Month 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 This is a suggested schedule of practices. Actual practices would not necessarily be done on the exact schedule shown here. a

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4 Table 2.--Schedule of production practices and budget items for a Southwest Florida mature, red seedless grapefruit grove, 2004-05 a Month JanFebMarAprMayJunJulAugSepOctNovDec Total revenue: 20% deposit Final payment Less:Pick & haul cost X DOC advertisement tax X Grove expenses: Disc Chop 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 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 This is a suggested schedule of practices. Actual practices would not necessarily be done on the exact schedule shown here. a

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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 Hamlin 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, 2004-05 Age of Tree Trees Boxes /tree Total boxes Total no. all ages Proportion ea. age a No. ea. age ---------No. ---------3 years 145x0.03=4.4x0.7=3.1 4 years 145x0.03=4.4x1.5=6.6 5-15 years 145x0.33=47.9x3.9=186.8 Prod. 50% of exp. yield145x0.03=4.4x2.2=9.7 Over 16 years145x0.49=71.0x4.2=298.2 Total boxes=504.4 Proportion adds up to 91 percent as 9 percent of the trees were non-bearing (pulled and reset, a 1 and 2 year old trees).

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6 Table 4.--Calculation of normal production per tree and per acre for red seedless grapefruit, 2004-05 Age of Tree Trees Boxes /tree Total boxes Total no. all ages Proportion ea. age a No. ea. age ---------No. ---------3 years 119x0.03=3.6x0.9=3.2 4 years 119x0.03=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 Proportion adds up to 91 percent as 9 percent of the trees were non-bearing (pulled and reset, 1 a and 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. The budgeted costs represent one possible citrus production program and were selected from the costs shown in the ADDENDA tables. The costs presented in the budgets represent an owner-managed citrus operation. The gross revenue estimates are based on the projected yields in Tables 3 and 4 and estimated preliminary on-tree prices for the 2004-05 season. Alternative cost scenarios, grove reset costs, harvesting and packing charges can be found in Tables 11-A through 15-A in the ADDENDA. Also, historical on-tree prices for selected Florida citrus varieties are shown in Table 16-A of the ADDENDA. As shown in Table 5, the total revenue for processed-market Hamlin oranges is estimated to be $1,149.12 per acre. Total specified costs are $881.03 and are comprised of grove care costs of $833.03, plus management cost of $48.00. Return to land and trees which represents net return above variable costs was $268.09 per acre. At 350 and 550 boxes per acre, respectively, the break-even price required to cover grove care costs for Hamlin oranges range from $2.38 to $1.52 per box on-tree and $0.82 to $0.68 per pounds solids delivered-in. In Table 7, total revenue for fresh market red seedless grapefruit is estimated to be $7,919.85 per acre. Total specified costs are $997.74, being comprised of grove care costs of $949.74, plus management cost of $48.00. Return to land, trees, and ownership or net return above variable costs is $6,922.11. At 350 and 550 boxes per acre, respectively, the break-even price required to cover grove care costs for seedless grapefruit range from $2.72 to $1.73 per box on-tree and $1.39 to $1.18 per pound solids delivered-in for eliminations.

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7 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 $435 per acre ($3,700 average debt per acre @ 10 percent interest amortized over 20 years) which would reduce total available cash for grove expansion or other investment. An estimated delivered-in costs are shown for processed 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 "delivered-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 (Refer to Tables 11-A and 12-A): 1) Low Cost Processed Cultural Program; 2) Reduced Cost Cultural Program; and 3) Typical/Historical Cultural Program. Scenarios 1 and 2 represent costs of two possible cultural programs directed toward reducing the expenditures for fruit grown primarily for the fresh/processed market. The third scenario represents typical costs of grove practices which have been performed for citrus grown for the fresh fruit market in the case of grapefruit and the processed market in the case or oranges. 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 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 histories for 2000-01 through 2003-04 along with 2004-05, 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 2005 dollars, are presented in Tables 11 and 13.

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8 Table 5.--Estimated annual per acre costs and returns for a mature, Hamlin orange grove producing for the processed market, Southwest Florida area, 2004-05 a Item Description Amount Your cost ---------------------Dollars ---------------------I.Revenue 504 boxes @ $2.28 1,149.12 ___________ b 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. ($257.50/hr. 10 A/hr.) 2 yrs. ($8.99/A 2 yrs.) (1 through 3 years) 4 trees per acre Including 4 trees per acre Including application 22.91 9.78 27.12 113.15 11.00 12.88 4.50 20.32 47.88 39.72 172.96 141.19 159.39 14.56 28.38 107.92 166.17 42.46 833.03 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ III.Management $4.00 per acre per month 48.00 ___________ c IV.Total specified costs 881.03 d V.Return (loss) to land, trees, and ownership 268.09 VI.Break-even price for total grove care expenses Boxes per acre Boxes per acre 350400450500550 350400450500550 $ On-tree price per box $ Delivered-in price per pound solids e 2.382.091.861.671.52 0.820.770.730.700.68 Although the estimated annual per acre grove costs shown in Tables 5 and 6 are representative for a mature Southwest Florida Hamlin orange and red seedless grapefruit grove, respectively, the grove a care costs for a specific grove site may differ depending upon the grove practices performed; e.g., a Temik application would add $116.94 per acre; extensive tree loss due to blight or tristeza could at least double, if not increase more, the tree replacement and care costs; etc. Also, truck watering of resets could add another $8.90 per acre (average 5 waterings). On-tree price per box is preliminary; assumes price for processed oranges only. b 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 selected methods will give a different return to land and trees c than reported 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 d 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 6.0 pounds solids per box and $2.357 pick and haul cost per box (including canker decontamination costs) and Department of Citrus advertising assessment of $0.165 per box. e

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9 Table 6.--Estimated total delivered-in cost for Southwest Florida Hamlin oranges grown for the processed market under three cultural cost programs, 2004-05 Represents a mature (10+ years old) Southwest Florida Orange Grove Processed Hamlin Oranges Low Cost Cultural Program One-Year Alternative Processed Hamlin Oranges Low 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 $ 735.99$1.460$0.2434$ 833.03$1.653$0.2755$ 954.72$1.894$0.3157 Interest on Operating (Cultural) Costs 20.240.0400.006741.650.0830.013847.740.0950.0158 Management Costs 48.000.0950.015948.000.0950.015948.000.0950.0159 Taxes/Regulatory Costs: Property Tax and Water Management District Tax 64.050.1270.021261.000.1210.020261.000.1210.0202 Canker Decontamination Costs 6.180.0120.0020 4.540.0090.0015 4.540.0090.0015 Total Direct Grower Costs $ 874.46$1.735$0.2892$ 988.22$1.961$0.3268$1,116.00$2.214$0.3690 Interest on Avg Capital Investment Costs 321.220.637$0.1062 321.220.6370.1062 321.220.6370.1062 Total Grower Costs $1,195.67$2.372$0.3954$1,309.44$2.598$0.4330$1,437.21$2.852$0.4753 Harvesting and Assessment Costs: Pick/Spot Pick, Roadside & Haul and Canker Decontamination Costs 1,187.932.3570.39281,187.932.3570.39281,187.932.3570.3928 DOC Assessment 83.160.1650.0275 83.160.1650.0275 83.160.1650.0275 Total Harvesting & Assessment Costs1,271.092.5220.42031,271.092.5220.42031,271.092.5220.4203 Total Delivered-In Cost $2,466.76$4.894$0.8157$2,580.52$5.120$0.8533$2,708.30$5.374$0.8956 P.S. = Pound Solids Yield: 504 boxes/acre @ 6.0 P.S. per box 145 trees per acre Refer to cultural program shown in Table 11-A. Only summer oil sprays with oil, copper, and Agri-mek & nutritionals. Refer to cultural program shown in Table 5. Refer to cultural program shown in Table 11-A. A Fall Miticide Spray added to the cultural program shown in Table 5.

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10 Table 7.--Estimated annual per acre costs and returns for a mature, red seedless grapefruit grove producing for the fresh market, Southwest Florida area, 2004-05 a Item Description Amount Your cost --------------------Dollars ----------------------I.Revenue 555 boxes @ $14.27 7,919.85___________ b 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. ($257.50/hr. 10 A/hr.) 2 yrs. ($14.00/A 2 yrs.) ($8.99/A 2 yrs.) (1 through 3 years) 3 trees per acre Including 3 trees per acre Including application 22.91 9.78 27.12 113.15 11.00 12.88 7.00 4.50 15.24 35.91 29.79 172.96 307.68 129.59 14.56 35.38 80.94 166.17 42.46 949.74 ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ ___________ III.Management 48.00___________ IV.Total specified costs 997.74 d V.Return to land, trees, and ownership 6,922.11 VI.Break-even price for total grove care expenses Boxes per acre Boxes per acre 350400450500550 350400450500550 $ On-tree price per box $ Delivered-in price per pound solids for eliminations e 2.722.382.111.901.73 1.381.321.261.221.18 Although the estimated annual per acre grove costs shown in Tables 5 and 6 are representative for a mature Southwest Florida Hamlin orange and red seedless grapefruit grove, respectively, the grove a care costs for a specific grove site may differ depending upon the grove practices performed; e.g., a Temik application would add $116.94 per acre; extensive tree loss due to blight or tristeza could at least double, if not increase more, the tree replacement and care costs; etc. Also, truck watering of resets could add another $8.90 per acre (average 5 waterings). On-tree price per box is preliminary; assumes average of all methods of sale (fresh and processed). b 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 selected methods will give a different return to land and trees c than reported 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 d 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; $2.809 pick and haul cost per box (includes spot picking, fruit drenching and canker decontamination costs and D.O.C. $0.25 advertising tax), $0.55 per box handling e through packinghouse, and $0.45 per box delivery to processing plant.

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11 Table 8.--Estimated total delivered-in cost for Southwest Florida Red Grapefruit grown for the fresh/processed market under three cultural cost programs, 2004-05 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 $ 701.81$1.265$0.2690$ 904.94$1.631$1.0144$949.74$1.711$1.0144 Interest on Operating (Cultural) Costs 19.300.0350.007424.890.0450.022426.120.0470.0235 Management Costs 48.000.0860.018448.000.0860.043248.000.0860.0432 Taxes/Regulatory Costs: Property Tax and Water Management District Tax 51.240.0920.019651.240.0920.047851.240.0920.0478 Fly Protocol Cost 54.730.0990.047754.730.0990.0477 Canker Decontamination Costs 6.180.0110.0024 6.180.0110.0016 6.180.0110.0016 Total Taxes/Regulatory Costs 57.420.1030.0220 112.150.2020.0971 112.150.2020.0971 Total Direct Grower Costs $ 826.53$1.489$0.3169$1,089.98$1.964$1.1772$1,136.01$2.047$1.1783 Interest on Average Capital Investment Costs 321.220.5790.1231 321.220.5790.2894 321.220.5790.2894 Total Grower Costs $1,147.74$2.068$0.4400$1,411.19$2.543$1.4666$1,457.22$2.626$1.4677 Harvesting and Assessment Costs: Pick/Spot Pick, Roadside & Haul and Canker Decontamination 1,207.132.1750.46281,317.572.3741.18701,317.572.3741.1870 Fruit Drenching (Fresh) 102.680.1850.0925102.680.1850.0925 DOC Assessment 133.200.2400.0511 138.750.2500.1250 138.750.2500.1250 Total Harvesting and Assessment Costs1,340.332.4150.51381,559.002.8091.40451,559.002.8091.4045 Total Delivered-In Cost $2,488.07$4.483$0.9538$2,970.19$5.352$2.8711$3,016.22$5.435$2.8722 Two cartons per box P.S. = Pound Solids Yield: 555 boxes/acre @ 4.7 P.S. per box 119 trees per acre Refer to cultural program shown in Table 12-A. Two summer oil sprays with oil, copper, and Agri-mek. Refer to cultural program shown in Table 7. Assumes 100% packout Refer to cultural program shown in Table 12-A. Assumes 100% packout

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12 Table 9.--Estimated F.O.B. cost for fresh market Southwest Florida Red grapefruit, 2004-05 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 BoxPer CartonPer AcrePer BoxPer Carton Total Production/ Cultural Costs $949.74$4.268$2.1342$949.74$3.557$1.7785$949.74$3.049$1.5245 Interest on Operating (Cultural Costs) 26.120.1170.058726.120.0980.048926.120.0840.0419 Management 48.000.2160.107948.000.1800.089948.000.1540.0770 Taxes/Regulatory 112.150.5040.2520112.150.4200.2100112.150.3600.1800 Interest on Average Capital Investment 321.221.4440.7218321.221.2030.6015321.221.0310.5156 Harvesting (Pick, Haul, Etc.) and DOC Assessment1,559.007.0073.50341,559.005.8392.91951,559.005.0052.5024 Total Delivered-In Cost$3,016.22$13.556$6.7780$3,016.22$11.297$5.6483$3,016.22$9.683$4.8414 Packing & Selling 2,047.957.3803.69002,457.547.3803.69002,867.137.3803.6900 Net Costs of Fresh Eliminations -2,096.24-9.421 -4.7106-1,676.99-6.281-3.1404-1,257.74-4.038-2.0188 a Total F.O.B. Costs $2,967.93$11.515$5.7574$3,796.77$12.396$6.1979$4,625.61$13.025$6.5126 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 BoxPer CartonPer AcrePer BoxPer Carton Total Production/ Cultural Costs $949.74$2.668$1.3339$949.74$2.371$1.1857$949.74$2.134$1.0671 Interest on Operating (Cultural) Costs 26.120.0730.036726.120.0650.032626.120.0590.0293 Management 48.000.1350.067448.000.1200.059948.000.1080.0539 Taxes/Regulatory 112.150.3150.1575112.150.2800.1400112.150.2520.1260 Interest on Average Capital Investment 321.220.9020.4511321.220.8020.4010321.220.7220.3609 Harvesting (Pick, Haul, Etc.) and DOC Assessment1,559.004.3792.18961,559.003.8931.94631,559.003.5031.7517 Total Delivered-In Cost$3,016.22$8.473$4.2363$3,016.22$7.531$3.7656$3,016.22$6.778$3.3890 Packing & Selling 3,276.727.3803.69003,686.317.3803.69004,095.907.3803.6900 Net Costs of Fresh Eliminations -838.49-2.355-1.1777 -419.25-1.047-0.5234 0.00 0.0000.0000 a Total F.O.B. Costs $5,454.44$13.497$6.7486$6,283.28$13.864$6.9322$7,112.12$14.158$7.0790 "Net Eliminations Cost" equals the average yield of 4.70 pound solids per box times $1.82 per pound solids less packinghouse elimination a charge and cannery hauling charge of $1.00 per box.

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13 Table 10.--Estimated 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 Florida area, 2000-01-05 Year On-tree price/box a Yield Gross revenue Total grove care expenses Total specified costs c Net return to land, trees, and ownership -----------------------------------------Dollars ------------------------------------2000-01 $2.57 504 1,295.28 769.04 817.04 478.14 2001-02 $2.79 504 1,406.16 767.23 815.23 590.93 2002-03 $2.65 504 1,335.60 771.03 819.03 516.57 2003-04 $2.11 516 1,088.76 768.21 816.21 272.55 2004-05 $2.28 504 1,149.12 833.03 881.03 268.09 b 5-yr. avg. $2.48 506 1,254.88 781.71 830.71 424.17 On-tree prices for processed oranges only as reported by the Florida Agricultural Statistics Service. a Preliminary estimate by FASS for 2004-05 season. b A management cost of $4.00 per acre per month is included. Fixed costs such as taxes, debt service, and crop insurance are not c included.

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14 Table 11.--Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2005 dollars) for a mature, Hamlin orange grove producing citrus for processed market in the Southwest Florida 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 $3.03 504 1,527.12 963.29 563.83 2001-02 120.7 $3.37 504 1,698.48 983.99 714.49 2002-03 114.6 $3.04 504 1,532.16 938.61 593.55 2003-04 107.9 $2.28 516 1,176.48 880.69 295.29 2004-05 100.0 $2.28 504 1,149.12 881.03 268.09 5-yr. avg. $2.80 506 1,416.80 929.53 487.27 Producer price index for each year adjusted to 2005 prices (2005 = 100), with 2005 producer 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 10.)

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15 Table 12.--Estimated annual per acre costs and returns and 5-year average costs and returns for a mature, red seedless grapefruit grove producing citrus for fresh market packing in the Southwest Florida area, 2000-01-05 Year On-tree price/box Yield a Gross revenue Total grove care expenses Total specified costs c Net return to land, trees, and ownership -----------------------------------------Dollars ------------------------------------2000-01 $2.28 555 1,265.40 864.79 912.79 352.61 2001-02 $2.54 555 1,409.70 874.54 922.54 487.16 2002-03 $2.49 555 1,381.95 871.47 919.47 462.48 2003-04 $4.17 555 2,314.35 874.29 922.29 1,392.06 2004-05 $14.27 555 7,919.85 949.74 997.74 6,922.11 b 5-yr. avg. $5.15 555 2,858.25 886.97 934.97 1,923.28 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 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. c

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16 Table 13.--Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2005 dollars) for a mature, red seedless grapefruit grove producing citrus for fresh fruit packing in the Southwest Florida 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 $2.69 555 1,492.95 1,076.18 416.77 2001-02 120.7 $3.07 555 1,703.85 1,113.51 590.34 2002-03 114.6 $2.86 555 1,587.30 1,124.31 462.99 2003-04 107.9 $4.50 555 2,497.50 995.15 1,502.35 2004-05 100.0 $14.27 555 7,919.85 997.74 6,922.11 5-yr. avg. $5.48 555 3,041.40 1,061.38 1,980.02 Producer price index for each year adjusted to 2005 prices (2005 = 100), with 2005 producer 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 12.)

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17 REFERENCES 1.Citrus Summary 2003-04. Florida Agricultural Statistics Service. Florida Agricultural Statistics. January 2005. 2.Muraro, Ronald P. "A Listing of Estimated Comparative Southwest Florida 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: August 2005. 4.______. "A Listing of 2005 Custom Rates Reported by Sixteen 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 p. 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.

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18 ADDENDA:Listing of Grove Care Programs for Southwest Florida Citrus Production for Both Round Oranges and Grapefruit a 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 2005 custom rates reported by sixteen Indian River and South Florida citrus caretakers............................................. 28 Table 9-A.2005 summary of average chemical price estimates....................... 30 Table 10-A.2005 summary of average fertilizer price estimates....................... 32 Table 11-A.A listing of estimated comparative Southwest Florida citrus production costs per acre for oranges, 2004-05........................................... 34 Table 12-A.A listing of estimated comparative Southwest Florida citrus production costs per acre for grapefruit, 2004-05.......................................... 35 Table 13-A.Estimated cost of planting and maintaining a reset citrus tree through three years of age, August 2005................................................ 36 Table 14-A.Estimated average picking, roadsiding and hauling charges for Florida citrus, 2004-05......................................................... 37 Table 15-A.Estimated average packing charges for Florida citrus, 2004-05.............. 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 = Iron Mn = ManganeseZn = Zinc Cu = CopperMg = MagnesiumN = Nitrogen The costs in the ADDENDA represent an owner managed operation. Therefore, the 10 a percent handling and supervision charge added to the material cost for a custom-managed operation is not included in the costs.

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19 Table 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 lbs 5 lbs 10 lbs 0.25 lb $21.00 4.15 3.20 1.17 _________ _________ _________ _________ Ground Application (PTO driven airblast) 125 gals23.80_________ Total per Application $53.32 ------------------------------------------------------------------------------------------------Spray Program #2Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Zn Mn Micromite 25WP 10 lbs 5 lbs 10 lbs 1.25 lbs $14.00 4.15 3.20 38.78 _________ _________ _________ _________ Ground Application (PTO driven airblast) 100 gals24.24_________ Total per Application $83.37 ------------------------------------------------------------------------------------------------Spray Program #3Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Agri-Mek Oil 97+% 7 lbs 10 ozs 3 gals $ 9.80 44.10 6.63 _________ _________ _________ Ground Application (PTO driven airblast) 100 gals24.24_________ Total per Application $84.77 ------------------------------------------------------------------------------------------------Spray Program #4Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Lorsban 4EC Hystop (pH Reducer) 7 lbs 4 pts 1 pt $ 9.80 17.08 2.30 _________ _________ _________ Ground Application (PTO driven airblast) 100 gals24.24_________ Total per Application $53.42

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20 Table 1-A.--Spray programs (cont'd.) POST BLOOM SPRAY (cont'd.) Spray Program #5Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Vendex 4L Cu (50% metallic) 2 lbs 10 lbs $29.72 14.00 _________ _________ Ground Application (PTO driven airblast) 250 gals27.95_________ Total per Application $71.67 ------------------------------------------------------------------------------------------------Spray Program #6Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Micromite Cu (50% metallic) Oil 97+% 1.25 lbs 7 lbs 3 gals $38.77 9.80 6.63 _________ _________ _________ Ground Application (PTO driven airblast) 250 gals27.95_________ Total per Application $83.15 ------------------------------------------------------------------------------------------------Spray Program #7Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Zn Mn B Micromite 7 lbs 5 lbs 10 lbs 0.25 lb 1.25 lbs $ 9.80 4.15 3.20 1.17 38.78 _________ _________ _________ _________ _________ Ground Application (PTO driven airblast) 250 gals27.95_________ Total per Application $85.05 ------------------------------------------------------------------------------------------------Spray Program #8Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Vendex 4L 2 lbs$29.72_________ Ground Application (PTO driven airblast) 125 gals23.80_________ Total per Application $53.52 ------------------------------------------------------------------------------------------------Spray Program #9Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre (Scale insects) Lorsban 4EC 5 pts$21.35_________ Ground Application (engine driven airblast) 500 gals36.60_________ Total per Application $57.95

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21 Table 1-A.--Spray programs (cont'd.) SUMMER SPRAY Spray Program #10Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Oil 97+% Cu (50% copper) 10 gals 7 lbs $22.10 9.80 _________ _________ Ground Application (PTO driven airblast) 250 gals27.95_________ Total per Application $59.85 ------------------------------------------------------------------------------------------------Spray Program #11Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Oil 97+% Zn Mn B 7 lbs 5 gals 5 lbs 10 lbs 0.25 lb $ 9.80 11.05 4.15 3.20 1.17 _________ _________ _________ _________ _________ Ground Application (PTO driven airblast) 125 gals23.80_________ Total per Application $53.17 ------------------------------------------------------------------------------------------------Spray Program #12Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Oil 97+% Agri-Mek 7 lbs 5 gals 10 ozs $ 9.80 11.05 44.10 _________ _________ _________ Ground Application (PTO driven airblast) 250 gals27.95 _________ Total per Application $92.90 ------------------------------------------------------------------------------------------------Spray Program #13Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Enable Oil 97+% Micromite 8 oz 5 gals 1.25 lbs $14.40 11.05 38.77 _________ _________ _________ Ground Application (PTO driven airblast) 125 gals23.80_________ Total per Application $88.02 -------------------------------------------------------------------------------------------------

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22 Table 1-A.--Spray programs (cont'd.) SUMMER SPRAY (contd.) Spray Program #14Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Cu (50% metallic) Oil 97+% 7 lbs 5 gals $ 9.80 11.05 _________ _________ Ground Application (PTO driven airblast) 125 gals23.80_________ Total per Application $44.65 FALL SPRAY Spray Program #15Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Agri-Mek 5 ozs$22.05_________ Ground Application (PTO driven airblast) 125 gals23.80_________ Total per Application $45.85 ------------------------------------------------------------------------------------------------Spray Program #16Materials/Ingredients Amount /Acre Cost/Acre Your Cost/Acre Vendex 4L 2 lbs$29.72_________ Aerial Application 15 GPA 8.82_________ Total per Application $38.54 Table 2-A.--Herbicide Herbicide Program #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 $21.36 7.74 7.28 __________ __________ __________ Ground Application (1 time) 9.06__________ Total for 1 Application $45.44 ------------------------------------------------------------------------------------------------Herbicide Program #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 $20.42 6.84 7.28 __________ __________ __________ Ground Application (1 time) 9.06__________ Total for 1 Application $43.60 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 surface acre is being treated.

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23 Table 2-A.--Herbicide (contd.) Herbicide Program #3Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Karmex WP Roundup Ultra Max 4 lbs 2 qts $ 7.74 7.28 __________ __________ Ground Application (1 time) 9.06__________ Total for 1 Application $33.14 ------------------------------------------------------------------------------------------------Herbicide Program #4Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Solicam 80DF Simazine 4L Roundup Ultra Max 8 lbs 4 qts 2 pts $62.68 6.84 3.64 __________ __________ __________ Ground Application (1 time) 9.06__________ Total for 1 Application $82.22 ------------------------------------------------------------------------------------------------Herbicide Program #5Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Roundup Ultra Max 4 qts$ 7.28__________ Ground Application (1 time) 9.06__________ Total for 1 Application $16.34 -----------------------------------------------------------------------------------------------Herbicide Program #6Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Krovar I Roundup Ultra Max 5 lbs 2 qts $28.45 7.28 __________ __________ Ground Application (1 time) 9.06__________ Total for 1 Application $44.79 ------------------------------------------------------------------------------------------------Herbicide Program #7Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Princep (Caliber 90) Hyvar X Adjuvant (Surfactant) 4 lbs 6 lbs 2 pts $ 6.58 56.79 3.03 __________ __________ __________ Ground Application (1 time) 9.06__________ Total for 1 Application $75.46

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24 Table 2-A.--Herbicide (cont'd.) Herbicide Program #8Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Roundup Ultra Max Princep (Caliber 90) 2 qts 4 lbs $ 7.28 6.58 __________ __________ Ground Application (1 time) 9.06__________ Total for 1 Application $22.92 ------------------------------------------------------------------------------------------------Herbicide Program #9Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Strip/band) Direx 4L Solicam Adjuvant (Surfactant) 3 qts 3 lbs 1 qt $ 6.21 21.36 3.04 __________ __________ __________ Ground Application (1 time) 9.06__________ Total for 1 Application $39.67 ------------------------------------------------------------------------------------------------Herbicide Program #10Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Chemical mow) Roundup Ultra 1 pt $1.82__________ Ground Application (1 time) 3.07__________ Total for 1 Application $4.89 ------------------------------------------------------------------------------------------------Herbicide Program #11Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Chemical mow)Roundup Ultra 1.5 pts$2.73__________ Ground Application (1 time) 3.07__________ Total for 1 Application $5.80 ------------------------------------------------------------------------------------------------Herbicide Program #12Materials Amount/ Treated Acre Cost/ Grove Acre a Your Cost/ Grove Acre (Spot treatment)Roundup Ultra 2 qts$ 7.28__________ Ground Application (1 time) 4.60__________ Total for 1 Application $11.88 -------------------------------------------------------------------------------------------------

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25 Table 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 lbs$105.25_________ Application 3 times 16.59_________ Total for 3 Applications $121.84 ------------------------------------------------------------------------------------------------Program #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (150 lbs N/Acre)15-2-15-2.4 MgO 1000 lbs$113.00_________ Application 3 times 16.59_________ Total for 3 Applications $129.59 ------------------------------------------------------------------------------------------------Program #3 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)15-2-15-2.4 MgO 1200 lbs$135.60_________ Application 3 times 16.59_________ Total for 3 Applications $152.19 ------------------------------------------------------------------------------------------------Program #4 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (204 lbs N/Acre)17-4-17-2.4 MgO 1200 lbs$142.80_________ Application 3 times 16.59_________ Total for 3 Applications $159.39 ------------------------------------------------------------------------------------------------Program #5 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (225 lbs N/Acre)15-2-15-2.4 MgO 1500 lbs$169.50 _________ Application 3 times 16.59 _________ Total for 3 Applications $186.09 -------------------------------------------------------------------------------------------------

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26 Table 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 lbs$151.85_________ Double Boom Custom Application3 times 37.65_________ Total for 3 Applications $189.50 ------------------------------------------------------------------------------------------------Program #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (180 lbs N/Acre)10-2-10 1800 lbs$160.20 _________ Double Boom Custom Application3 times 37.65 _________ Total for 3 Applications $197.85 ------------------------------------------------------------------------------------------------Program #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 $151.85 21.36 7.74 _________ _________ _________ Double Boom Custom Application3 times 37.65_________ Total for 3 Applications *Treated acre--one application $217.95 Table 5-A.--Nematicides Program #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre Temik 15G 33 lbs$105.60_________ Application 11.34_________ Total per Application $116.94 -------------------------------------------------------------------------------------------------

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27 Table 6-A.--Soil amendment Program #1 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (Every 3 years) Dolomite (Delivered) 1 ton$36.05 _________ Application 1 time 7.61 _________ Total for 1 Application $43.66 (Average 1/3 Ton Applied/Yr) $14.56 ------------------------------------------------------------------------------------------------Program #2 Analysis/Material Applied Amount /Acre Cost/Acre Your Cost/Acre (Every year) Dolomite (Delivered) 1000 lbs$18.03_________ Application 7.61_________ Total per Application $25.64 Table 7-A.--Irrigation--annual cost per acre DRIP Program #1 Your Cost/AcreProgram #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 45.25 $144.94 _________ _________ MICROSPRINKLER Program #3 Your Cost/AcreProgram #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 Program #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

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28 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)

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29 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 included y 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.

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30 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

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31 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.

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32 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.

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33 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.

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34 Table 11-A.--A listing of estimated comparative Southwest Florida citrus production costs per acre for oranges, 2004-2005 z Costs 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) $ 22.91 $ 22.91 $22.91 Chemical Mow Middles (2 times per year) 9.78 9.78 9.78 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) $29.12 $ 27.18 $27.18 Material 36.24 85.97 85.97 Total Herbicide Cost 65.36 113.15 113.15 Spray Post Bloom:Application (125 GPA) 23.80 Material 29.52 Total Post Bloom Cost 53.32 Summer Oil #1:Application (125 GPA) 23.80 23.80 Material 64.22 64.22 Total Summer Oil #1 Cost 88.02 88.02 Summer Oil #2:Application (PTO -125 GPA) 23.80 23.80 23.80 Material 68.14 29.37 20.85 xw Total Summer Oil #2 Cost 91.94 53.17 44.65 Fertilizer (Bulk):3 Applications 16.59 16.59 16.59 Material (17-4-17-2.4 MgO @ 204 lbs N per acre) 142.80 142.80 142.80 Total Fertilizer Cost 159.39 159.39 159.39 Dolomite (one ton applied every 3 years) Material/Application 14.56 14.56 14.56 Pruning:Topping ($27.50/A 2.5 yrs) 11.00 11.00 11.00 v Hedging ($25.75/A 2 yrs) 12.88 12.88 12.88 v Chop/Mow Brush after Hedging ($8.99/A 2 yrs) 4.50 4.50 4.50 v Total Pruning Cost 28.38 28.38 28.38 Tree Replacement 1 thru 3 years of age: (4 trees/acre) Remove Trees: Pull, Stack & Burn 4 Trees with Front-end Loader 20.32 20.32 20.32 Prepare Site & Plant Tree (Includes 4 reset trees) 47.88 47.88 47.88 Supplemental Fertilizer, Tree Wraps Maintenance, Sprout, Etc. (Trees 1-3 years old) 39.72 39.72 39.72 Total Tree Replacement Cost 107.92 107.92 107.92 Irrigation:Microsprinkler System 166.17 166.17 166.17 u 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 $735.99 $833.03 Supplemental Post Bloom: Application (250 GPA) 27.95 27.95 Material 55.20 55.20 Total Supplemental Post Bloom Cost 83.15 83.15 Fall Miticide Spray:Aerial Application (15 GPA) 8.82 8.82 Material 29.72 29.72 Total Fall Miticide Cost 38.54 38.54 IRRIGATED FRESH FRUIT PRODUCTION COSTS $954.72 $999.52 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 Southwest Florida Citrus Production and may not represent your particular grove situation in Southwest Florida. SOURCE: Ronald P. Muraro, University of Florida-IFAS, Citrus Research and Education Center, Lake Alfred, FL, August 2005.

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35 Table 12-A.--A listing of estimated comparative Southwest Florida citrus production costs per acre for grapefruit, 2004-05 z Costs 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) $ 22.91 $ 22.91 $22.91 Chemical Mow Middles (2 times per year) 9.78 9.78 9.78 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) $29.12 $27.18 $27.18 Material 36.24 85.97 85.97 Total Herbicide Cost 65.36 113.15 113.15 Spray Post Bloom:Application (125 GPA) 23.80 Material 29.52 Total Post Bloom Cost 53.32 Summer Oil #1:Application (125 GPA) 23.80 23.80 Material 64.22 64.22 Total Summer Oil #1 Cost 88.02 88.02 Summer Oil #2:Application (PTO -125 GPA) 23.80 23.80 23.80 Material 68.14 29.37 20.85 xw Total Summer Oil #2 Cost 91.94 53.17 44.65 Fertilizer (Bulk):3 Applications 16.59 16.59 16.59 Material (15-2-15-2.4 MgO @ 180 lbs N and @150 lbs N) 135.60 113.00 113.00 Total Fertilizer Cost 152.19 129.59 129.59 Dolomite (one ton applied every 3 years) Material/Application 14.56 14.56 14.56 Pruning:Topping ($27.50/A 2.5 yrs) 11.00 11.00 11.00 v Hedging ($25.75/A 2 yrs) 12.88 12.88 12.88 v Chop/Mow Brush after Hedging ($8.99/A 2 yrs)4.50 4.50 4.50 v Raise Skirts of Trees ($14.00 2 yrs) 7.00 7.00 v Total Pruning Cost 28.38 35.38 35.38 Tree Replacement 1 thru 3 years of age: (3 trees/acre) Remove Trees: Pull, Stack & Burn 3 Trees with Front-end Loader 15.24 15.24 15.24 Prepare Site & Plant Tree (Includes 3 reset trees) 35.91 35.91 35.91 Supplemental Fertilizer, Tree Wraps Maintenance, Sprout, Etc. (Trees 1-3 years old) 29.79 29.79 29.79 Total Tree Replacement Cost 80.94 80.94 80.94 Irrigation:Microsprinkler System 166.17 166.17 166.17 u 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 $701.81 $783.25 Supplemental Post Bloom Spray: Application (250 GPA) 27.95 27.95 Material 55.20 55.20 Total Supplemental Post Bloom Cost 83.15 83.15 Fall Miticide Spray:Aerial Application (15 GPA) 8.82 8.82 Material 29.72 29.72 Total Fall Miticide Cost 38.54 38.54 IRRIGATED FRESH FRUIT PRODUCTION COSTS $904.94 $949.74 The listed estimated comparative costs are for the example grove situation described in the Economic Information Report Series entitled: "Budgeting Costs z 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, Citrus Research and Education Center, Lake Alfred, FL, August 2005.

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36 Table 13-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 $2.50 a per tree. Source: Ronald P. Muraro, Farm Management Economist, CREC, Lake Alfred, FL, August 2005.

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37 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

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38 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.

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39 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.

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40 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).