Production Costs and Commodity Budgets for Selected Florida Vegetables

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Material Information

Title:
Production Costs and Commodity Budgets for Selected Florida Vegetables
Physical Description:
Fact Sheet
Creator:
Smith, Scott A.
Publisher:
University of Florida Cooperative Extension Service, Institute of Food and Agriculture Sciences, EDIS
Place of Publication:
Gainesville, Fla.
Publication Date:

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 November 2003; revised May 2006. Reviewed February 2011"
General Note:
"FE436"

Record Information

Source Institution:
University of Florida Institutional Repository
Holding Location:
University of Florida
Rights Management:
All rights reserved by the submitter.
System ID:
IR00004161:00001


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Scott A. Smith and Timothy G. Taylor2 1. This is EDIS document FE436, 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 November 2003; revised May 2006. Reviewed February 2011. Please visit the EDIS website at http://edis.ifas.ufl.edu. 2. Scott A. Smith, Coordinator for Economic Analysis, and Timothy G. Taylor, Professor, Food and Resource Economics Department, Florida Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL. The estimated cost of production (budgets) for twelve vegetable crops produced in one or more of seven producing areas in Florida are available on the Internet via the Department of Food and Resource Economics website (http://www.fred.ifas.ufl.edu), specifically the Commodity Budgets link (http://www.agbuscenter.ifas.ufl.edu/cost). In all, twenty-four crop-area combinations are included. Historical cost-of-production data not yet posted to the Internet are also available upon request. The vegetable budgets presented in these reports are intended to reflect production practices that are considered typical for any given crop in a given area. A consensus of opinion among UF/IFAS personnel and various producers in each production area define typical production practices for each crop. Cost estimates resulting from this process should not be considered as representing the average cost of production in a statistical sense, nor should they be considered as necessarily relating to recommended production practices. The intent of these cost budgets is to establish a benchmark within the range of actual costs that could be expected to produce the crop. Eight budgets reflect double-crop production practices. Double-crop production refers to the practice of planting a following crop directly into the plastic mulch-covered beds used to produce an initial crop, thus utilizing any residual inputs and land preparation from the preceding crop. Most commonly, cucumbers or watermelons follow tomatoes or peppers, but other combinations may occur. The combination of crops produced is generally determined by grower preference. This system of farming is practiced in an effort to recover costs incurred in the production of the initial crop and to reduce production costs of the second (following) crop. Actual production practices for the initial crop, either tomatoes or peppers, are affected very little when double cropping is practiced. However, production of the subsequent crop can, in some cases, be affected significantly relative to growing the crop independently. The current vegetable cost budgets available are: Bush Beans nCabbage

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Production Costs and Commodity Budgets for Selected Florida Vegetables 2 nSweet Corn nCucumbers nEggplant nGreen Peppers nChip Potatoes nTable Potatoes nSummer Squash nStrawberries nTomatoes nWatermelons The budgets were constructed using a computerized budget generator program (AGSYS). Technical coefficients, such as fertilizer, fumigants, fungicides, insecticides, surfactants, labor, contracted services, machinery use, and miscellaneous other materials used in constructing the budgets, were obtained by consultation with, and review by, individual growers, county Extension faculty, and UF/IFAS researchers. The input prices used in conjunction with the technical coefficients are obtained by survey and correspondence with farm suppliers and growers in each of the areas in which production costs are reported. These items are entered into an interactive database from which budget line items are extracted to create individual production activities. Two tables are reported for each crop. Examples are provided for strawberries grown in the Plant City area of Florida (Tables 1 and 2). Table 1 provides a summary detailing estimated cost of production per acre, by type of input, as described in the methodology section. Subtotals of total operating cost, total fixed cost, and total pre-harvest and harvest costs are presented on a per-acre and per-unit basis. Table 2 reports a net-return range analysis, which provides information on the sensitivity of the estimated net return for the specified crop to variations in either yield per acre or price per unit based on production costs. For each crop, net returns are estimated for 25 price-yield combinations. For example, in Table 2, a price of $9.00 per flat, with a yield of 2,600 flats, would provide an estimated net return of $948.00 per acre. The ranges for both price and yield are intended to be broad enough to include the actual season average prices and yields obtained by growers in any given area. In the example provided, price received varies from $5.00 to $13.00 per flat and yields range from 2,400 to 3,200 flats per acre. To reiterate, the vegetable budgets presented in these reports are intended to reflect production practices that are considered typical for any given crop in a given area. Cost estimates resulting from this process should not be considered as representing the average cost of production in a statistical sense, nor should they be considered as necessarily relating to recommended production practices. Please contact the authors with any questions concerning the commodity budgets. Additional budgets for vegetables, field, and forage crops produced in the North Florida area; citrus, and forage crops in the South Florida area; and various miscellaneous commodity cost studies for Georgia, Alabama, and South Carolina can also be found via the Commodity Budgets web link. For more information, please contact the authors -Scott A. Smith at ssquare@ufl.edu or Timothy G. Taylor at tsquare@ufl.edu.

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Production Costs and Commodity Budgets for Selected Florida Vegetables 3 Sample per acre cost summary report. (dollars) (dollars) Yield (average 8-10 pound flats) 2,800.00 Operating Costs Transplants 1,700.00 Fertilizer 343.75 Fumigant 684.00 Fungicide 717.46 Herbicide 112.40 Insecticide 556.94 General Farm Labor 43.91 Machinery Variable Cost 346.52 Tractor Driver Labor 283.59 Miscellaneous Trickle Tube 360.00 Plastic Mulch 279.99 Scouting 55.00 Predatory Mites 120.00 Cover Crop Seed 37.50 Crop Insurance 100.00 Farm Vehicles 87.94 Transplant Labor 220.00 Plastic Disposal 75.00 Cut Runners, Hoe, and Weed 120.00 Interest on Operating Capital 486.28 Total Operating Cost Fixed Costs Land Rent 1,000.00 Machinery Fixed Cost 172.37 Overhead 2,225.09 Total Fixed Cost Total Preharvest Cost Harvest and Marketing Costs Sell Berries 2,520.00 0.90 Pick Berries 4,900.00 1.75 Pack, Load, and Haul Berries 700.00 0.25 Harvest Supervision 420.00 0.15 Boxes and Cups 4,732.00 1.69 Total Harvest and Marketing Costs Total Cost

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Production Costs and Commodity Budgets for Selected Florida Vegetables 4 Sample per acre net return analysis. (number of flats) -----------------------------------(dollars per flat)----------------------------------$5 per flat$7 per flat$9 per flat$11 per flat$13 per flat 2,400 -9,504.00-4.704.00 96.004,896.009,696.00 2,600 -9,452.00-4.252.00 948.006,148.0011,348.00 2,800 -9,400.00-3,800.001,800.007,400.0013,000.00 3,000 -9,348.00 -3,348.00 2,652.00 8,652.00 14,652.00 Strawberries: estimated net returns per acre for various price and yield combinations in the Plant City area, 2001, 2002.