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 Front Cover
 Abstract
 Acknowledgement
 Table of Contents
 Main
 Tables














Business analysis of container nurseries in Florida
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Full Citation
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Permanent Link: http://ufdc.ufl.edu/UF00026136/00003
 Material Information
Title: Business analysis of container nurseries in Florida
Series Title: Economic information report
Portion of title: Container nurseries in Florida
Physical Description: v. : ; 28 cm.
Language: English
Creator: Perkins, George R
Almeter, Carolyn A
Dasse, Frank A ( Frank Arthur ), 1933-
Gunter, Dan L
Strain, J. Robert
University of Florida -- Food and Resource Economics Dept
Publisher: Food and Resource Economics Dept., Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville Fla
Creation Date: 1975
Publication Date: 1975-
Frequency: annual
regular
 Subjects
Subjects / Keywords: Nurseries (Horticulture) -- Economic aspects -- Periodicals -- Florida   ( lcsh )
Potted plant industry -- Economic aspects -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
serial   ( sobekcm )
 Notes
Dates or Sequential Designation: 1973-
General Note: Title from cover.
 Record Information
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 000408267
oclc - 08153546
notis - ACF4735
System ID: UF00026136:00003

Table of Contents
    Front Cover
        Front Cover
    Abstract
        Abstract
    Acknowledgement
        Page i
    Table of Contents
        Page ii
        Page iii
    Main
        Page 1
        Page 2
        Page 3
        Page 4
    Tables
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        Page 18
        Page 19
        Page 20
Full Text

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ACKNOWLEDGMENTS


This report is made possible by the 14 cooperating container nursery-
men who made their production and accounting records available. Addition-
ally, Bruce Barmby, Jim Cummings, Louis Daigle, Klaus Geyer, Larry Halsey,
De Hull, and.Marlow Iverson, county extension agents, provided invaluable
assistance during the data collection process. Carolyn Almeter tabulated
the data for this report, and Millie Pfeifler typed the report. As
always any errors in the data or in the interpretation of the information
remain the responsibility of the author.












TABLE OF CONTENTS


ACKNOWLEDGMENTS. . .. .

LIST OF TABLES . . . .


INTRODUCTION . . . . .


PROCEDURE. . . . ..


ft f f f f f f

* f f f f f f f


* 4 f


S f f . f f


DEFINITIONS. . . . . ..


RESULTS AND DATA PRESENTATION. . .


. f # .


LIST OF TABLES


Table


1 Size of business, six large and eight smaller volume
wholesale ornamental container nurseries in Florida,
1975 . . . . . . .

2 Rates of production, six large and eight smaller volume
wholesale ornamental container nurseries in Florida,
1975 . . . . . . .

3 Labor efficiency, six large and eight smaller volume Whole-
sale ornamental container nurseries in Florida, 1975. ..

4 Efficiency in use of capital, six large and eight smaller
volume wholesale ornamental container nurseries in
Florida, 1975 . . . .

5 Efficiency in use of space, six large and eight smaller
volume wholesale ornamental container nurseries in
Florida, 1975 . . . . .

6 Comparison of certain cost and return measures, six large
and eight smaller volume wholesale ornamental container
nurseries in Florida, 1975. .. .

7 Average dollar costs per nursery for various categories of
expense, six large and eight smaller volume wholesale
ornamental container nurseries in Florida, 1975 .






LIST OF TABLES--Continued


Table Pag

8 Percent of total costs for various categories of expense,
six large and eight smaller volume wholesale ornamental
container nurseries in Florida, 1975. .. . 12

9 Average costs per square foot of production area, six
large and eight smaller volume wholesale ornamental con-
tainer nurseries in Florida, 1975 ..... ...... 13

10 Average costs per square foot of plant sales equivalent,
six large and eight smaller volume wholesale ornamental
container nurseries in Florida, 1975 ....... 14

11 Average costs per dollar of sales with plant inventory
increase added to sales, six large and eight smaller
volume wholesale ornamental container nurseries in Florida,
1975. . . . ... . .. 15

12 Average costs per dollar of sales without plant inven-
tory increase added to sales, six large and eight smaller
volume wholesale ornamental container nurseries in
Florida, 1975. . .. . . . 16

13 Income summary, six large and eight smaller volume whole-
sale ornamental container nurseries in Florida, 1975. 17

14 Factors associated with level of profit, six high and
eight lower profit wholesale ornamental container nur-
series in Florida, 1975 . . . .. .18

15 Range of figures on profits and eight factors associated
with profits,wholesale ornamental container nurseries in
Florida, 1975 . . . . . 19

16 Comparison of business analysis factors for six years for
the same seven wholesale ornamental container nurseris in
Florida, which furnished data for 1970, 1971, 1972, 1973,
1974, and 1975 . . .... . . 20











BUSINESS ANALYSIS OF CONTAINER NURSERIES IN FLORIDA, 1975


Dan L. Gunter


INTRODUCTION

This report is a continuation of the nursery business analysis series
initiated in the 1960s. This business analysis report presents informa-
tion on sales, costs, and production efficiency aspects of container nur-
series in Florida for 1975.
The purpose of the business analysis report is: (1) to furnish nur-
serymen various economic measures that may be used in evaluating the
efficiency of individual container nurseries; (2) to supply cooperating
nurserymen data so that they may make more informed management decisions;
(3) to provide individuals considering entering the-wholesale container
plant production business an estimate of the input requirements and
revenue; and (4) to provide the Florida extension personnel data which
may be used in educational programs with nurserymen.

PROCEDURE

The information presented in this report is based on data collected
from the accounting and production records of 14 nurserymen. The nursery-
men provided the data voluntarily and do not represent a statistically
selected sample. However, the container nurserymen participating in the
business analysis program are thought to represent some of the more
efficient nurseries in the state.
The data collected pertain to the individual nurseryman's 1975 tax
year which, in some cases, does not conform to the 1975 calendar year.


DAN L. GUNTER is an extension production economist.








The data from all the individual nurseries are averaged and pre-
sented in tabular form. The tables depict average values for all 14
nurseries, six "large" nurseries and eight "smaller" nurseries. For
this report, smaller nurseries are those that had plant sales of less
than $300,000 during 1975, while large nurseries are defined as those
with a value of plant sales greater than $300,000 during 1975.
Each table presents an analysis of some aspect of the container
nursery business. Where efficiency measures are presented, the "one
best measure" is shown and followed by "other useful indicators."

DEFINITIONS


Most of the terms used in the tables are self-explanatory. Defini-
tions of the terms used in this report, which may be less familiar, are
as follows:
Value of own plants sold.--This represents the total plant sales
minus the cost of plants purchased for immediate resale. Plants pur-
chased for growing-on are not deducted.
Square foot equivalent of own plants sold.--Each plant sold is
taking up a specific amount of land space expressed in square feet. The
square feet required for a plant depends upon container size and spacing.
Percent turnover of capital annually.--A ratio derived by dividing
the value of own plants sold by the total capital employed in the enter-
prise.
Percent of production area turnover annually.--The square foot equiv-
alent of own plants sold divided by the total production area of the
nursery.
Labor income.--The residual when total costs (not including opera-
tor's salary) are deducted from total gains. Gains are calculated as
plant sales plus inventory changes during the year and miscellaneous
income.
Nursery "farm income."--Labor income plus the calculated desired
return on investment presented in non-cash costs.
Net return.--Total gain less total costs or labor income less
operator's salary.







Return to capital.--Nursery farm income less operator's salary.
Percent return to capital.--Return to capital divided by total
owned capital.

RESULTS AND DATA PRESENTATION


During 1975, the 14 container nurseries that participated in the
nursery business analysis program had an average nursery "farm income"
of $85,279 on a total gain (made up of plant sales, inventory value
increases, and miscellaneous income)of $291,410.
The total costs for the average container nursery were $256,816.
Cash costs accounted for $212,638 of the container nursery expense,
while the non-cash costs accounted for $44,178. Subtracting the total
costs, $256,816, from total gain $291,410, the average container nur-
sery realized a net return of $34,594 during 1975.
The variation in net returns between the large and smaller contain-
er nurseries was substantial in 1975. The large nurseries had a net
return of $104,005, while the smaller nurseries had a net loss of
$17,464.
The average total cost per square foot of production area was about
67 cents for the large nurseries and about 64 cents for the smaller nur-
series. However, the average cost per dollar of sales was $1.40 for the
smaller nurseries and $1.12 for the larger nurseries.
Other differences between the large and smaller nurseries can be
seen by examination of the various efficiency parameters presented in
the tables.
The data in Tables 1 through 12 relate to the size of the business,
rate of production, labor efficiency, capital efficiency, production
space efficiency, and other efficiency factors. Analyses relating to
container nursery profitability are presented in Tables 13, 14, and 15.
For analyses presented in Tables 14 and 15 the nurseries are divided on
the basis of nursery "farm income." Table 16 presents information on
the efficiency and profitability of nine wholesale container nurseries
that have participated in the nursery business analysis program since
1970.







Where the information in the tables is rounded to the nearest whole
number, addition errors may be noted.
The information in Table 16 is of particular significance. The gross
income from the sale of container plant material for the nine nurseries
which have been continuously participating in the nursery business
analysis program was down five percent in 1975 from 1974. However, the
cost per dollar of sales was 88 cents in 1975 as compared with 97 cents
in 1974.
Employing the definitions provided above, nursery managers can
utilize this report by completing the column--"Your nursery." By doing
so, managers may be able to locate areas in their own operation where
production efficiency may be-improved.








Table l.--Size of business, six large and eight smaller volume wholesale
ornamental container nurseries in Florida, 1975

Average Average Average
Item Unit all 14 6 large 8 smaller Your
nurseries nurseries nurseries nursery


One best measure
Value of own plants
sold
Other useful indica-
tors
Value of own plants
sold adjusted for
plant inventory change
Sq. ft. equivalent
of own plants sold
Sq. ft. equivalent
of own plants sold
adjusted for plant
inventory change
Average sq. ft. of
own plants in pro-
duction
Average acre equiv-
alent of own plants
in production
Average number of
employees
Capital owned:
Growing plants
Land
Machinery & equipment
Bldgs., fences, wells,
etc.
Supplies
Total owned capital
Capital managed:
Growing plants
Land
Machinery & equipment
Bldgs., fences, wells,
etc.
Supplies
Total managed capital


216,369 374,006


288,416 512,987 119,987


Sq. ft. 133,675 215,384



Sq. ft. 178,186 295,421


Sq. ft. 389,858 623,090 214,933


Acre


8.95

14.09


270,998
22,145
30,800

58,037
8,852
390,833

270,998
25,860
30,800

58,282
8,852
394,793


14.30

21.59

389,285
32,916
53,180

94,025
11,640
581,046

389,285
41,582
53,180

94,025
11,640
589,712


aNurseries with annual sales of own plants exceeding $300,000.


98,142


72,393


88,507


4.93

8.46


182,284
14,068
14,015

31,045
6,761
248,173

182,284
14,068
14,015

31,475
.6,761
248,603


-i-




"` ~' ` I








Table 2.--Rates of production, six large and eight smaller volume whole-
sale ornamental container nurseries in Florida, 1975

Average Average Average
Item Unit all 14 6 large 8 smaller Your
nurseries nurseries nurseries nursery

One best measure
Sq. ft. equiv-
alent of own
plants sold
per acre in
production Sq. ft. 14,936 15,057 14,672

Other useful
indicators
Value of own
plants sold
per acre in
production $ 24,176 26,147 19,890
Value of own
plants sold
adjusted
for plant
inventory
change per
acre in
production $ 32,226 35,863 24,317


Nurseries with annual sales of own plants exceeding $300,000.








Table 3.--Labor efficiency, six large and eight smaller volume
ornamental container nurseries in Florida, 1975


wholesale


Average Average Average
Item Unit all 14 6 large 8 smaller Your
nurseries nurseries nurseries nursery

One best measure
Value of own
plants sold per
employee $ 15,356 17,323 11,601
Other useful in-
dicators
Value of own
plants sold
adjusted for
plant inven-
tory change
per employee $ 20,470 23,760 14,183
Sq. ft. equiv-
alent of own
plants sold
per employee Sq. ft. 9,487 9,976 8,557
Sq. ft. equiv-
alent of own
plants sold
adjusted for
plant inven-
tory change
per employee, Sq. ft. 12,646 13,683 10,462
Average sq. ft.
in production
per employee Sq. ft. 27,669 28,860 25,406


aNurseries with annual sales of own plants exceeding $300,000.







Table 4.--Efficiency in use of capital, six large and eight smaller volume
wholesale ornamental container nurseries in Florida, 1975

Average Average Average
Item Unit all 14 6 large 8 smaller Your
nurseries nurseries nurseries nursery

One best measure
Percent turnover of
owned capital annu-
ally % 55.36 64.37 39.55
Other useful indica-
tors
Percent turnover of
managed capital
annually % 54.81 63.42 39.48
Capital owned:
Per employee $ 27,738 26,913 29,335
Per acre $ 43,669 40,621 50,297
Capital managed:
Per employee $ 28,019 27,314 29,386
Per acre $ 44,111 41,227 50,384
Capital managed per
employee in:
Plants $ 19,233 18,031 21,547
Land $ 1,835 1,926 1,663
Machinery & equipment $ 2,186 2,463 1,657
Capital managed per
.acre in:
Plants $ 30,280 27,215 36,943
Land $ 2,889 2,907 2,851
Machinery & equipment $ 3,441 3,718 2,840
Percent of capital
managed in:
Plants % 68.64 66.01 73.32
Land % 6.55 7.05 5.66
Machinery & equipment % 7.80 9.02 5.64
Bldgs., wells, fences,
etc. % 14.76 15.94 12.66
Supplies % 2.24 1.97 2.72
Total $ 100.00 100.00 100.00


aNurseries with annual sales of own plants exceeding $300,000.








Table 5.--Efficiency in use of space, six large and eight smaller volume
wholesale ornamental container nurseries in Florida, 1975


Average Average Average
Item Unit all 14 6 large 8 smaller Your
nurseries nurseries nurseries nursery

One best measure
Percent of pro-
duction area
(or plant)
turnover annu-
ally % 34.29 34.57 33.68

Other useful in-
cdicators
Sq. ft. equivalent
of own plants
sold per acre in
production % 14,936 15,057 14,672
Sq. ft. equivalent
of own plants
sold adjusted for
plant inventory
increase per acre
in production Sq. ft. 19,909 20,653 17,937
Average value of
plant inventory
per acre in pro-
duction $ 30,280 27,215 36,943


aNurseries with annual sales of own plants exceeding $300,000.






Table 6.--Comparison of certain cost and return measures, six
eight smaller volume wholesale ornamental container
in Florida, 1975


large and
nurseries


Average Average Average
Item all 14 6 large 8 smaller Your
nurseries nurseries nurseries nursery

-- --Cents- - - -


Returns
Value of own plants sold
per sq. ft. of plant
sales equivalent

Costs
Total cost per sq. ft. of
plant sales equivalent

Net returns per sq. ft. of
plant sales equivalent
Value of own plants sold
and costs per sq. ft. of
plant equivalent

Price goal
Prices per sq. ft. of
plant sales equivalent
which would have been
required to yield a 15%
return on investment
(not including plant in-
ventory increase as part
of return).


161.86


192.12




-30.26








212.59


173.65


193.90




-20.25








212.78


135.57


190.22




-54.65








214.22


aNurseries with annual sales of own plants exceeding $300,000.








Table 7.--Average dollar costs per nursery for various categories of
expense, six large and eight smaller volume wholesale ornament-
al container nurseries in Florida, 1975


Average Average Average
Item all 14 6 large 8 smaller Your
nurseries nurseries nurseries nursery


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Cans & other growing con-
tainers
Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chem.
Other production supplies
Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone
Electricity
Taxes, licenses & bonds
Advertising
Rent; land and/or buildings
Other cash expenses


Total cash costs


Non-cash costs
Depreciation machinery &
equipment
Depreciation buildings
Inventory decrease on supp.
Interest on capital @ 8%
Total non-cash costs


Total all costs


- - - -Dollars- -


19,418
87,822
17,882

20,192
8,347
4,163
2,837
5,193
7,939
6,108
2,671
5,419
1,873
2,326
3,710
995
2,141
13,602


25,639
140,315
33,771

38,633
13,679
6,963
4,196
9,605
13,137
10,997
5,290
10,340
2,489
3,266
5,913
1,339
3,475
20,309


14,752
48,452
5,965

6,362
4,348
2,064
1,819
1,885
4,042
2,442
706
1,728
1,411
1,621
2,057
737
1,140
8,572


212,638 349,354 110,100


7,375 12,556 3,489
5,537 9,238 2,761
0 0 1,503
31,267 46,484 19,854
44,178 68,278 27,606


256,816


417,632


137,707


aNurseries with annual sales of own plants exceeding $300,000.








Table 8.--Percent of total costs for various categories of expense, six
large and eight smaller volume wholesale ornamental container
nurseries in Florida, 1975


Average Average Average
Item all 14 6 large 8 smaller Your
nurseries nurseries nurseries nursery


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Cans & other growing contain-
ers
Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chemicals
Other production supplies
Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone
Electricity
Taxes, licenses, & bonds
Advertising
Rent; land and/or buildings
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation buildings
Inventory decrease on supp.
Interest on capital @ 8%
Total non-cash costs


Total all costs


- - -Percent-


7.56
34.20
6.96

7.86
3.25
1.62
1.10
2.02
3.09
2.38
1.04
2.11
.73
.91
1.44
.39
.83
5.30


6.14
33.60
8.09

9.25
3.28
1.67
1.00
2.30
3.15
2.63
1.27
2.48
.60
.78
1.42
.32
.83
4.86


10.71
35.18
4.33

4.62
3.16
1.50
1.32
1.37
2.93
1.77
.51
1.25
1.02
1.18
1.49
.53
.83
6.22


82.80 83.65 79.95


2.87 3.01 2.53
2.16 2.21 2.00
0 0 1.09
12.17 11.13 14.42
17.20 16.35 20.05


100.00


100.00


100.00


aNurseries with annual sales of


own plants exceeding $300,000.








Table 9.--Average costs per square foot of production area, six large
and eight smaller volume wholesale ornamental container nur-
series in Florida, 1975


Average Average Average
Item all 14 6 large 8 smaller Your
nurseries nurseries nurseries nursery


- -Cents- -


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Cans & other growing contain-
ers
Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chemicals
Other production supplies
Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone
Electricity
Taxes, licenses, & bonds
Advertising
Rent; land and/or buildings
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery & equip.
Depreciation buildings
Inventory decrease on supplies
Interest on capital @ 8%
Total non-cash costs


Total all costs


4.98
22.53
4.59

5.18
2.14
1.07
.73
1.33
2.04
1.57
.69
1.39
.48
.60
.95
.26
.55
3.49


4.11
22.52
5.42

6.20
2.20
1.12
.67
1.54
2.11
1.76
.85
1.66
.40
.52
.95
.21
.56
3.26


6.86
22.54
2.78

2.96
2.02
.96
.85
.88
1.88
1.14
.33
.80
.66
.75
.96
.34
.53
3.99


54.54 56.07 51.23


1.89 2.02 1.62
1.42 1.48 1.28
0 0 .70
8.02 7.46 9.24
11.33 10.96 12.84


65.87


67.03


64.07


aNurseries with annual sales of own plants exceeding $300,000.


- - -




14



Table 10.--Average costs per square foot of plant sales equivalent, six
large and eight smaller volume wholesale ornamental container
nurseries in Florida, 1975


Item


Average costs per sq. ft.
plant sales equivalent


All 14
nurseries


6 large
nurseries


8 smaller
nurseries


Your
nursery


- - -- -Cents- -- -


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow on
Cans & other growing containers
Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chemicals
Other production supplies
Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone
Electricity
Taxes, licenses, & bonds
Advertising
Rent; land and/or buildings
Other cash expenses
Total cash cost

Non-cash costs
Depreciation machinery & equip.
Depreciation buildings
Inventory decrease on supplies
Interest on capital @ 8%
Total non-cash costs

Total all costs


10.90
49.29
10.04
11.33
4.68
2.34
1.59
2.91
4.46
3.43
1.50
3.04
1.05
1.31
2.08
.56
1.20
7.63


8.68
47.50
11.43
13.08
4.63
2.36
1.42
3.25
4.45
3.72
1.79
3.50
.84
1.11
2.00
.45
1.18
6.87


16.67
54.74
6.74
7.19
4.91
2.33
2.05
2.13
4.57
2.76
.80
1.95
1.59
1.83
2.32
.83
1.29
9.68


119.33 118.26 124.40


4.14 4.25 3.94 _
3.11 3.13 3.12
0 0 1.70
17.55 15.73 22.43
24.79 23.11 31.19


144.13


141.37


155.59


plant sales is shown


bNurseries with annual sales of own plants exceeding $300,000.i


aln this case, the square foot equivalent of
as item 4 in Table 1.







Table ll.--Average costs per dollar of sales with plant inventory increase
added to sales, six large and eight smaller volume wholesale
ornamental container nurseries in Florida, 1975

Average costs per $ sales with plant
Item inventory increase added to sales
All 14 6 largea 8 smaller Your
nurseries nurseries nurseries .nursery
- - -Cents- - - -


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow
on
Cans & other growing
containers
Peat, soil, shavings, etc.
Fertilizer & lime
Pesticides & other chem.
Other production supplies
Repairs & maintenance
Equipment operating costs
Travel & entertainment
Insurance
Telephone
Electricity
Taxes, licenses, & bonds
Advertising
Rent; land and/or bldgs.
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation buildings
Inventory decrease on
supplies
Interest on capital @ 8%
Total non-cash costs

Total all costs


6.73
30.45

6.20

7.00
2.89
1.44
.98
1.80
2.75
2.12
.93
1.88
.65
.81
1.29
.34
.74
4.72


5.00
27.35

6.58

7.53
2.67
1.36
.82
1.87
2.56
2.14
1.03
2.02.
.49
.64
1.15
.26
.68
3.96


12.30
40.38

4.97

5.30
3.62
1.72
1.52
1.57
3.37
2.03
.59
1.44
1.18
1.35
1.71
.61
.95
7.14


73.73 68.10 91.76


2.56 2.45 2.91
1.92 1.80 2.30

0 0 1.25
10.84 9.06 16.55
15.32 13.31 23.01


89.04


81.41


114.77


aNurseries with annual sales of


own plants exceeding $300,000.







Table 12.--Average costs per dollar of sales without plant inventory
increase added to sales, six large and eight smaller volume
wholesale ornamental container nurseries in Florida, 1975


Average costs per $ sales without
plant inventory increase added to
sales
Item
All 14 6 large 8 smaller Your
nurseries nurseries nurseries nursery


---


Cash costs
Operator's salary
Other wages & salaries
Plants & seeds to grow
on
Cans & other growing
containers
Peat, soil, shavings,
etc.
Fertilizer & lime
Pesticides & other chem.
Other production supplies
Repairs and maintenance
Equipment operating'costs
Travel & entertainment
Insurance
Telephone
Electricity
Taxes, licenses, & bonds
Advertising
Rent; land and/or bldgs.
Other cash expenses
Total cash costs

Non-cash costs
Depreciation machinery &
equipment
Depreciation buildings
Inventory decrease on
supplies
Interest on capital @ 8%
Total non-cash costs


Total all costs


8.97
40.59

8.26

9.33

3,86.
1.92
1.31
2.40
3.67
2.82
1.23
2.50
.87
1.07
1.71
.46
.99
6.29


6.86
37.52

9.03

10.33


3.66
1.86
1.12
2.57
3.51
2.94
1.41
2.76
.67
.87
1.58
.36
.93
5.43


15.03
49.37

6.08

6.48

4.43
2.10
1.85
1.92
4.12
2.49
.72
1.76
1.44
1.65
2.10
.75
1.16
8.73


98.28 93.41 112.19


3.41 3.36 3.56
2.56 2.47 2.81

0 0 1.53
14.45 12.43 20.23
20.42 18.26 28.13


118.69


111.66


140.31


aNurseries with annual sales of own plants exceeding $300,000.




17



Table 13.--Income summary, six large and eight smaller volume wholesale
ornamental container nurseries in Florida, 1975


Average Average Average
Item Unit all 14 6 large 8 smaller Your
nurseries nurseries nurseries nursery


Value of production
& other gain
Value of own plants
sold
Inventory change
own plants
Inventory increase
for supplies
Miscellaneous cash
income
Total gain
Cash costs less
operator's salary
Non-cash costs
Total gross costs
Labor income
Interest on invest-
ment
Nursery "farm
income"


216,369 374,006

72,046 138,981


2,667
291,410

193,219
44,178
237,398
54,012

31,267


2,768

5,881
521,636

323,714
68,278
391,992
129,644

46,484


85,279 176,128


Operator's salary $ 19,418 25,639 14,752
Net return ,$ 34,594 104,005 -17,464
Return to capital $ 65,861 150,488 2,390
Percent return to
capital % 16.85 25,90 .96

Cents per square foot of production area
Labor income 14 21 -1
Nursery "farm
income" ( 22 28 8
Net return t 9 17 -8
Return to capital 17 24 1


Cents Der square


foot of plant sales equivalentb


Labor income
Nursery "farm
income"
Net return
Return to capital


-3

19
-20
3


aNurseries with annual sales of own plants exceeding $300,000.

In this case, plant sales equivalent is item 4 shown in Table 1.


98,142

21,845

0

257
120,243

95,348
27,606
122,955
-2,711

19,143

17,854







Table 14.--Factors associated with level of profit six high and eight
lower profit wholesale ornamental container nurseries in
Florida, 1975


6 high 8 lower
Factor Unit profit profit Your
nurseries nurseries nursery

Profit
Nursery farm income $ 192,148 5,128
Size of business
Value of own plants sold $ 346,672 118,646
Level of cost
Cost per $ of sales and
plant inventory value
increase 81.33 131.00
Labor efficiency
Value of own plants sold
per employee $ 19,040 11,250
Sales price level
Difference between sales
value and costs per sq.
ft. of plant sales
equivalent -6.40 -110.26
Sales & inventory gain
Gain in sales & plant
inventory value from
previous year (item 2
in Table 1 compared
to same item the pre-
vious year) 62,296 -62,765
Production rate
Sq. ft. equivalent own
plants sold per acre
in production Sq. ft. 23,943 15,512
Capital use efficiency.
Percent of capital
turnover % 75.14 39.81
Space use efficiency
Percent plant turn-
over % 54.97 35.61







Table 15,--Range of figures on profits and eight factors associated with
profits, wholesale ornamental container nurseries in Florida,
1975

Average figures for the 3
best and the 3 poorest nur-
Factor Unit series on each factor
Average for Average for Your...
3 best 3 poorest nursery

Profit
Nursery farm income $ 281,559 -41,575
Size of business
Value of own plants
sold $ 412,933 43,542
Level of cost
Cost per $ of sales
and plant inventory
value increase 69.33 182.67
Labor efficiency
Value of own plants
sold per employee $ 21,498 8,512
Sales price level
Difference between
sales value and
costs per sq. ft.
of plant sales
equivalent 9.68 -216.05
Sales & inventory

Gan in sales and
plant inventory
value from pre-
vious year $ 143,594 211,316
Production rate
Sq. ft..equivalent
own plants sold
per acre in pro-
duction Sq. ft. 34,957 7,502
Capital use effi-
ciency
Percent of capital
turnover % 93.04 28.57
Space use efficiency
Percent plant turn-
over % 80.25 17.22






Table 16.--Comparison of business analysis factors for six years for the same seven wholesale onramental
container nurseries in Florida, which furnished data for 1970, 1971, 1972, 1973, 1974, and 1975


Average for the same

1970 1971 1972


seven nurseries in


1973


1974


Profit
Nursery farm income
Percent return to
capital
Size of business
Value of own plants sold
Level of cost
Cost per $ sales and
plant inventory value
increase
Labor efficiency
Value of own plants
sold
Sales price level
Difference between sales
value and costs per sq.
ft. of plant sales
equivalent
Sales & inventory gain
Gain in sales & plant
inventory value from
previous year
Production rate
Sq. ft. equivalent own
plants sold per acre
in production
Capital use efficiency
Percent of capital
turnover
Space use efficiency
Percent plant turnover


13,675


10.95


2.91


36,853

20.30


49,273

21.55


32,491

10.84


65,312 64,619 105,495 146,364


9,384


110


7,900


-12.20 -36.03


9,707


3,335


Sq. ft. 20,256 15,324


62.73

46.50


51.57


86


11,442




1.24


40,792


20,521


72.62


35.18 47.11


87


14,859




3.26


35,610


21,133


83.07


15,768




6.66


-2,461


15,962


85.58


19,71


154,321


14,504




-32.16


51,455


13,012


61.64


48.52 36.64 29.87


Factor


Unit


9175