Production Budget for Bell Peppers in Southwest Florida

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Material Information

Title:
Production Budget for Bell Peppers in Southwest Florida
Physical Description:
Fact Sheet
Creator:
VanSickle, John
Publisher:
University of Florida Cooperative Extension Service, Institute of Food and Agriculture Sciences, EDIS
Place of Publication:
Gainesville, Fla.

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:
"Published December 2009."
General Note:
"FE810"

Record Information

Source Institution:
University of Florida Institutional Repository
Holding Location:
University of Florida
Rights Management:
All rights reserved by the submitter.
System ID:
IR00003784:00001


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John VanSickle, Scott Smith, and Eugene McAvoy2 1. This is EDIS document FE810, a publication of the Food and Resource Economics Department, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL. Published December 2009. Please visit the EDIS website at http://edis.ifas.ufl.edu. 2. John VanSickle, professor, Food and Resource Economics Department, University of Florida, Gainesville, FL; Scott Smith, economic analyst, Food and Resource Economics Department, University of Florida, Gainesville, FL; and Eugene McAvoy, county extension director, Hardee County Extension, LaBelle, FL, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL. Bell peppers are an important crop to the state of Florida, with southwest Florida being the second largest production area. Statewide, Florida harvested 17,500 acres of bell peppers during the 2006 growing season, valued at $183 million dollars (Table 1). In 2007, acreage planted to bell pepper in Florida decreased 10 percent while acreage harvested increased by 6.7 percent. Yield per acre (28-pound bushels) peaked in the 2003 season at a state average of 1,107 bushels, and has averaged in the range of 861 to 886 bushels over the last three seasons. Production in Florida increased 7 percent in 2007 while value per bushel (dollars) decreased 8.2 percent. Overall, the total value of Florida's bell pepper crop has decreased 16 percent since the 2003 season. Bell pepper production practices vary considerably across the major Florida production areas. Most of the state's bell pepper crop is transplanted in double rows on polyethylene-mulched raised beds using either drip or seep irrigation technology. Methyl bromide in combination with chloropicrin is applied prior to planting transplants on more than 70 percent of Florida's bell pepper acreage for the management of soil insects, pathogens, nematodes, and weeds (especially nutsedge), all of which are major pests in bell pepper production. Approximately 33 percent of the Florida growers use stakes and twine around the bed perimeter to construct "corrals" to contain the plants. Standard spacing is six feet between bed centers, with plants typically planted ten inches apart. Bell peppers are usually hand harvested at least twice during the growing season. South Florida pepper growers may harvest up to five times in profitable market conditions. Table 2 is a per-acre composite budget breaking down specific cost components used to estimate the budget expense categories and total estimated production cost per acre. The budget is intended to reflect the cost of production using representative production practices that are considered typical for bell peppers grown in southwest Florida. What

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Production Budget for Bell Peppers in Southwest Florida 2 constitutes a representative production practice is defined by a consensus of opinion of UF/IFAS field experts, industry experts, and various producers in the production area. Cost estimates resulting from this process do not represent the average cost of production in a statistical sense, and the production practices listed are not necessarily recommended production practices. The intent of these cost budgets is to establish a benchmark within a comprehensive range of potential costs that could be expected to produce the crop. The budget also contains a Your Cost column that enables you to enter your individual expenses for comparative purposes. The production budget for 2008 indicates that the pre-harvest variable costs for bell peppers in southwest Florida totaled an estimated $7,282 per acre, an increase of 20 percent over pre-harvest variable costs estimated in 2006. The fixed costs for a representative grower totaled $4,403 per acre in 2008, a 20 percent increase over the fixed costs in 2006. With an assumed yield of 1,000 bushels per acre, harvest and marketing costs totaled $4,450 per acre, bringing the total cost of production to an estimated $16,134 per acre, or $16.13 per bushel, an increase of 13 percent over the 2006 costs. The cost item that has increased most significantly since the 2005 budget is fertilizer, which increased 315 percent. Overall, labor costs (general farm labor and tractor driver wages), miscellaneous costs (including hand weeding, driving stakes, tying plants, plastic mulch disposal preparation), and transplants increased 10 percent, 2 percent, and 11 percent, respectively, over this period. We have developed interactive workbooks containing data used to create the UF/IFAS estimated budget in Table 2. These workbooks can be used to produce cost estimates broken down by specific groups (e.g., herbicide). Included in these workbooks are pesticide worksheets listing all of the currently labeled pesticides so that users can estimate their own pesticide costs, and machinery worksheets listing the machinery cost coefficients so that users can estimate their own fixed and variable costs. The International Agricultural Trade and Policy Center internet site (http://www.iatpc.ifas.ufl.edun) contains a link to download these interactive Excel workbooks. These workbooks enable users to compare their production expenses to the UF/IFAS estimates presented. These workbooks may be saved to your computer and printed in their entirety or printed as individual worksheets. The following information is provided as a convenience to your research and decision making efforts. Botany: Family-Solanaceae, Pepper-Capsicum annuum Related crops in the Solanaceae Family: Tomato, Potato, Eggplant Common Bell Pepper Varieties for Commercial Production: Common Varieties: Aladdin, Aristotle, Brigadier, Crusader, Double-Up, Enterprise-X3R, Excursion II, Heritage, Lafayette, Legionnaire, Olympus, Orion, Paladin, Patriot, Polaris, Revolution, Sentry, Snapper, Telestar, Wizard-X3R. Specialty Varieties: Cubanelle, Aruba, Biscayne, Key Largo, Ancho Villa, Cherry Bomb, Grande, Hercules, Inferno, Large Red Thick, Mesilla, Mitla, Ventura. For further information on pepper production in Florida please refer to EDIS publication HS732 (http://edis.ifas.ufl.edu/CV130) or contact your local Extension specialists. Olson, S.M., Simone, W.M. Stall, K.L. Pernezny, S.E. Webb, T.G. Taylor and S.A. Smith. 2007. Chapter 34, Pepper Production in Florida. In Vegetable Production Handbook for Florida 2006-2007. Electronic Data Information Source (EDIS) CV130. Horticultural Sciences Department, University of Florida, Gainesville, FL. http://edis.ifas.ufl.edu/CV130 nUSDA/NASS. 2009. Crop Statistics. United States Department of Agriculture, National Agricultural Statistics Service, Washington, D.C. http://quickstats.nass.usda.gov/

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Production Budget for Bell Peppers in Southwest Florida 4 Florida bell pepper acreage, production, and value, crop years, 200203 through 2006. Season Planted Harvested Yield Production Unit Value Total Value (acres) (acres) (28-lb bushels) (1,000 bushels) (dollars) (1,000 dollars) 200217,80017,700 1,000 17,700 10.05 177,920 200318,50018,300 1,107 20,261 10.78 218,411 200419,40019,000 861 16,357 13.05 213,428 200519,80016,500 876 14,450 12.96 187,330 2006 18,000 17,500 886 15,500 11.82 183,148 Source: USDA/NASS, http://quickstats.nass.usda.gov/ Estimated costs of producing one acre of bell peppers in southwest Florida, 2007. Based on Yield of 1,100 Units Per Acre Unit Quantity Price Value Your Cost (dollars) (dollars) Pre-Harvest Variable Costs Transplants 1,000.00 Fertilizer, mixed and lime 1,438.50 Fumigant 600.00 Herbicide 31.19 Insecticide 630.55 Fungicide 307.71 Tractor + machinery 1,190.42 Truck (pickup) 39.00 Labor 452.36 Plastic mulch 330.00 Scouting 35.00 Level land 100.00 Drive stakes 83.49 String, stakes, and plastic disposal 399.30 Stakes 120.00 Tie plants 36.30 Interest on operating capital (10%) 462.76 Total Pre-Harvest Variable Costs 7,281.58

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Production Budget for Bell Peppers in Southwest Florida 5 Estimated costs of producing one acre of bell peppers in southwest Florida, 2007. Based on Yield of 1,100 Units Per Acre Unit Quantity Price Value Your Cost (dollars) (dollars) Pre-Harvest Fixed Costs Tractor + machinery 253.29 Land rent 500.00 Overhead and management 3,649.23 Total Pre-Harvest Fixed Costs 4,402.52 Total Pre-Harvest Costs 11,684.10 Harvest and Marketing Costs Pick/pack/haul bushel1,000 3.003,000.00 Sell bushel1,000 0.50500.00 Containers each 1,000 0.95950.00 Total Harvest and Marketing Costs 4,450.00 Total Costs 16,134.10