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FLAG IFAS PALMM



Budgeting costs and returns for Southwest Florida citrus production
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Permanent Link: http://ufdc.ufl.edu/UF00026155/00013
 Material Information
Title: Budgeting costs and returns for Southwest Florida citrus production
Series Title: Economic information report
Portion of title: Southwest Florida citrus production
Physical Description: v. : ; 28 cm.
Language: English
Creator: Muraro, R. P
Holcomb, Edgar D
University of Florida -- Food and Resource Economics Dept
Publisher: Food & Resource Economics Dept., Agricultural Experiment Stations and Cooperative Extension Service, Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville
Creation Date: 2003
Frequency: annual
regular
 Subjects
Subjects / Keywords: Citrus fruit industry -- Economic aspects -- Florida   ( lcsh )
Citrus fruits -- Marketing -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
serial   ( sobekcm )
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Source Institution: Marston Science Library, George A. Smathers Libraries, University of Florida
Holding Location: Florida Agricultural Experiment Station, Florida Cooperative Extension Service, Florida Department of Agriculture and Consumer Services, and the Engineering and Industrial Experiment Station; Institute for Food and Agricultural Services (IFAS), University of Florida
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Table of Contents
    Title Page
        Title
    Abstract
        Page i
    Table of Contents
        Page ii
    List of Tables
        Page iii
    Budgeting costs and returns for Southwest Florida citrus productions, 2003-04
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
    Reference
        Page 17
    Historical cost trends
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
    Addenda
        Page 18
        Page 19
        Page 20
        Page 21
        Page 22
        Page 23
        Page 24
        Page 25
        Page 26
        Page 27
        Page 28
        Page 29
        Page 30
        Page 31
        Page 32
        Page 33
        Page 34
        Page 35
        Page 36
        Page 37
        Page 38
        Page 39
        Page 40
Full Text


Ronald P. Muraro
Fritz M. Roka


EDIS FE528
http://edis.ifas.ufl.edu/FE528


Robert E. Rouse





Budgeting Costs and Returns

for Southwest Florida Citrus

Production, 2003-04


Institute of Food and Agricultural Sciences
Food and Resource Economics Department
Florida Agricultural Experiment Station
Florida Cooperative Extension Service
Gainesville, FL 32611


September 2004














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 eighth 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, 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.

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.). Thus, the 2003-04 budget costs reflect lower fertilizer and
pesticide materials costs and increased per acre yield due to higher per acre tree densities.

The budget costs in this report represent an owner-managed operation for 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 of a mature
citrus grove (10+ years old), the grove care costs for a specific grove site may differ
depending on tree age, tree density and grove practices performed (e.g., spot herbicide for
grass/brush regrowth under trees could add an additional $9.50 per acre; Diaprepes control
could add $73.20 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 at $109.43 per acre,
could increase the total cultural costs per acre above the average costs shown in the
comparative budgets; or travel and set-up costs may vary due to size of the citrus grove and
distance from grove equipment barn and could add $25.98 per acre.


ACKNOWLEDGMENTS

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.














TABLE OF CONTENTS


Page

A B ST R A C T .................................................... ........... i

ACKN OW LEDGM ENTS ...................................................... i

LIST OF TABLES ........ ............................................ iii

IN TRODU CTION ........................................................... 1

METHOD OF DATA COLLECTION . ....... ................................... 1

COSTS AND INPUTS .......... .................................. ......... 1

THE GROVE SITUATION ..................................................... 2

BUDGET COSTS AND RETURNS ............................................. 6

HISTORICAL COST TRENDS ........... ........................................ 7

REFERENCES ......................................................... 17

ADDENDA ........ .................................................. 18


NOTE: The ADDENDA includes items such as Listing of Grove Care Programs
for Southwest Florida Citrus Production for Both Round Oranges and
Grapefruit; 2004 custom rate summary report; cost of establishing a citrus
grove; etc. Page 18 lists the tables included in the ADDENDA.














LIST OF TABLES


Table Page

1 Schedule of production practices and budget items for a Southwest Florida mature,
round orange grove, 2003-04 ............................................ 3

2 Schedule of production practices and budget items for a Southwest Florida mature,
red seedless grapefruit grove, 2003-04 ..................................... 4

3 Calculation of normal production per tree and per acre for Hamlin oranges, 2003-04 5

4 Calculation of normal production per tree and per acre for red seedless grapefruit,
2 0 0 3 -0 4 . . . . . . . . . . . . . .. .. 6

5 Estimated annual per acre costs and returns for a mature, Hamlin orange grove
producing for the processed market, Southwest Florida area, 2003-04 ............ 8

6 Estimated total delivered-in cost for Southwest Florida Hamlin oranges grown for the
processed juice market under three cultural cost programs, 2003-04 ............. 9

7 Estimated annual per acre costs and returns for a mature, red seedless grapefruit
grove producing for the fresh market, Southwest Florida area, 2003-04 ........... 10

8 Estimated total delivered-in cost for Southwest Florida Red grapefruit under three
cultural cost program s, 2003-04 .......................................... 11

9 Estimated F.O.B. cost for fresh market Southwest Florida Red grapefruit, 2003-04 12

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, 1999-00-2003-04 ................................. 13

11 Estimated annual per acre costs and returns and 5-year average costs and returns
(adjusted to 2004 dollars) for a mature, Hamlin orange grove producing citrus
for processed market in the Southwest Florida area, 1999-00-2003-04 ........... 14

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 fruit packing in the
Southwest Florida area, 1999-00-2003-04 ................................. 15

13 Estimated annual per acre costs and returns and 5-year average costs and returns
(adjusted to 2004 dollars) for a mature, red seedless grapefruit grove producing
citrus for fresh fruit packing in the Southwest Florida area, 1999-00-2003-04 ..... 16










BUDGETING COSTS AND RETURNS FOR SOUTHWEST
FLORIDA CITRUS PRODUCTION, 2003-04

Ronald P. Muraro, Fritz M. Roka, and Robert E. Rouse

INTRODUCTION

Southwest Florida has become a maj or citrus production area. In 2004, citrus acreage in Southwest
Florida represented over 22.6 percent of total state citrus acreage. Acreage in Southwest Florida
increased from 72,480 acres in 1986 to 179,948 acres in 1998 and then decreased to 169,386 acres in
2004. The 5.9 percent 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.
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, or 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.


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.


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. The ADDENDA shows
grower's costs (Tables 1 -A through 7-A), custom rate charges (Table 8-A), various chemical and fertilizer
costs (Tables 9-A and 10-A), costs of planting and maintaining reset trees through three years of age
(Table 13-A), and historic on-tree prices for selected citrus varieties (Table 16-A).




Ronald P. Muraro, Professor and Extension farm management economist, Department of Food
and Resource Economics, Citrus Research and Education Center, Lake Alfred; Fritz M. Roka, Associate
Professor, Department of Food and Resource Economics, Southwest Florida Research and Education
Center, Immokalee; and Robert E. Rouse, Associate Professor, Department of Horticultural Sciences,
Southwest Florida Research and Education Center, Immokalee, Florida Cooperative Extension Service,
Institute of Food and Agricultural Sciences, University of Florida, Gainesville, FL.









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.
This will allow 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, along with 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, an annual cash flow analysis can be helpful
in financial planning. 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 to 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.


Tree ages will vary due to tree losses and replacement. The budgets reflect age distribution and
yield for oranges and grapefruits.










Table 1.--Schedule of production practices and budget items for a Southwest Florida mature, round orange grove, 2003-04"

Month
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec


Total revenue:


20%
deposit


Less: Pick & haul cost
DOC advertisement tax


50%
Partial
payment
X
X


Final
payment


Grove expenses:
Mow X X X X 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 X X X X X
Microsprinkler irrigation (times/week) 1 1 2 3 3 3 2 2 2 2 1 1
Miscellaneous (clean ditches) X
Grove taxes including water management X
Interest expense X
Annual principal payment on mortgage X

aThis is a suggested schedule of practices. Actual practices would not necessarily be done on the exact schedule shown here.








Table 2.--Schedule of production practices and budget items for a Southwest Florida mature, red seedless grapefruit grove, 2003-04"

Month
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec


Total revenue:


20%
deposit


Less: Pick & haul cost

DOC advertisement tax


Final
payment
X
X


Grove expenses:
Disc

Chop
Mow X X X X 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 X X X X X
Microsprinkler irrigation (times/week) 1 1 2 3 3 3 2 2 2 2 1 1
Miscellaneous (clean ditches) X
Grove taxes including water management X
Interest expense X
Annual principal payment on mortgage X
aThis is a suggested schedule of practices. Actual practices would not necessarily be done on the exact schedule shown here.









Hamlin Oranges


Situation


3% pulled and reset
3% 1 year old
3% 2 years old
3% 3 years old
3% 4 years old
33% 5-15 years old
3% producing 50% of expected yield
49% over 15 years old


Red Seedless Grapefruit

Situation

3% pulled and reset
3% 1 year old
3% 2 years old
3% 3 years old
3% 4 years old
33% 5-15 years old
3% producing 50% of expected yield
49% over 15 years old


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, 2003-04
Boxes Total
Age of Tree Trees /Tree Boxes
Total no. Proportion No. Each
All Ages Each Age Ae -------- Number---------
3 years 145 x 0.03 = 4.4 x 0.7 = 3.1
4 years 145 x 0.03 = 4.4 x 1.5 = 6.6
5-15 years 145 x 0.33 = 47.9 x 4.0 = 191.6
Prod. 50% of
expected yield 145 x 0.03 = 4.4 x 2.2 = 9.7
Over 16 years 145 x 0.49 = 71.0 x 4.3 = 305.3
Total boxes = 516.3

aProportion adds up to 91 percent as 9 percent of the trees were non-bearing (pulled and reset,
1 and 2 year old trees).


Yield
Boxes/Tree

0.0
0.0
0.0
0.7
1.5
4.0
2.2
4.3


Yield
Boxes/Tree

0.0
0.0
0.0
0.9
1.6
4.0
2.9
6.5









Table 4.--Calculation of normal production per tree and per acre for red seedless grapefruit,
2003-04
Boxes Total
Age of Tree Trees /Tree Boxes
Total No. Proportion No. Each
All Ages Each Age Age --------- Number----------


3 years 119 x 0.03 = 3.6 x 0.9 = 3.2
4 years 119 x 0.03 = 3.6 x 1.6 = 5.8
5-15 years 119 x 0.33 = 39.3 x 4.0 = 157.2

Prod. 50% of
exp. yield 119 x 0.03 = 3.6 x 2.9 = 10.4
Over 16 years 119 x 0.49 = 58.3 x 6.5 = 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-
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, and are representative of an owner-managed citrus operation. Gross revenue estimates
are based on projected yields (Tables 3 and 4) and estimated preliminary on-tree prices for the 2003-04
season. The budgeted costs represent one possible citrus production program and were selected from the
costs shown in the ADDENDA tables (grove reset costs, harvesting and packing charges are shown in
Tables 11-A through 15-A and historical on-tree prices for selected Florida citrus varieties are shown in
Table 16-A).
As shown in Table 5, the total revenue for processed-market Hamlin oranges is estimated to be
$789.48 per acre. Total specified costs are $816.21, comprised of grove care costs of $768.21 plus
management costs of $48.00. Return to land, trees, and ownership of $26.73 per acre loss represents net
return above variable costs. At 350 and 550 boxes per acre, respectively, the break-even price required
to cover grove care costs for Hamlin oranges range from $2.19 to $1.40 per box on-tree and $0.76 to
$0.62 per pounds solids delivered-in.
In Table 7, total revenue for fresh market red seedless grapefruit is estimated to be $1,737.15 per
acre. Total specified costs are $922.29, comprised of grove care costs of $874.29 plus management costs
of $48.00. Return to land, trees, and ownership or net return above variable costs is $814.86. At 350 and
550 boxes per acre, respectively, the break-even price required to cover grove care costs for seedless
grapefruit range from $2.50 to $1.59 per box on-tree and $1.28 to $1.09 per pound solids delivered-in.









REFERENCES


1. Citrus Summary 2002-03. 2004. Florida Agricultural Statistics Service, Florida Agricultural
Statistics, Washington, D.C. (January).

2. Muraro, Ronald P. 2004 .-4 [,, tig ofEstimatedComparative SouthwestFlorida Citrus Production
Costs Per Acre for 2003-04. CREC Report, Citrus Research and Education Center, Lake Alfred,
FL (July).

3. 2004. Estimated Cost of Planting and Maintaining a Reset Citrus Tree through Three
Years ofAge. CREC Report, Citrus Research and Education Center, Lake Alfred, FL (July).

4. 2004. A Listing of 21l -4 Custom Rates Reported by Fifteen Indian River and South
Florida Citrus Caretakers. CREC Report, Citrus Research and Education Center, Lake Alfred, FL
(July).

5. Savage, Zach. 1960. Citrus Yields Per Tree Age. UF Agricultural Extension Service Staff Paper
SP60-8, University of Florida, Gainesville, FL.

6. Timmer, L. W. (editor). 2004. 2004 Florida Citrus Pest Management Guide. Florida Cooperative
Extension Service Staff Paper SP43, University of Florida, Gainesville, FL, 150pp (January).

7. Tucker, D. P. H., A. K. Alva, L. K. Jackson, and T. A. Wheaton (editors). 1995. Nutrition of
Florida Citrus Trees. Florida Cooperative Extension Service Staff Paper SP169, University of
Florida, Gainesville, FL, 61pp.









Ad valorem taxes, and overhead and administrative costs (e.g., 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, or variety of fruit, 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. Average annual debt payment (principal and interest) may be as high as $435
per acre ($3,700 average debt per acre at 10 percent interest amortized over 20 years), which would
reduce total available cash for grove expansion or other investment.
Estimated "delivered-in" costs are shown for 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 (Tables 11-A
and 12-A): Low Cost Processed Cultural Program; Reduced Cost Cultural Program; and
Typical/Historical Cultural Program. Scenarios 1 and 2 represent costs of two cultural programs directed
toward reducing the expenditures for fruit grown primarily for the fresh or processed market. Scenario
3 represents typical costs of grove practices that have been performed for citrus grown for the fresh
grapefruit market or the processed orange market. Modified herbicide and/or spray and fertilizer
programs account for the reduced costs. NOTE: Before modifying a grove management program to
reduce costs, an evaluation of the market program (processed or fresh), yield, and specific cultural
problems (nutrition, disease, etc.) for the specific grove site should be made. 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 1999-00 through 2002-03 along with 2003-04 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 2004 dollars, are presented in Tables 11 and 13.







Table 5.--Estimated annual per acre costs and returns for a mature, Hamlin orange grove producing for the processed market, Southwest Florida area, 2003-04a

Item Description Amount Your Cost


Revenue
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
Management
Total specified costs
Return (loss) to land, trees, and ownership
Break-even price for total grove care expenses
Boxes per acre
350 400 450 500 550

$ On-tree price per box
2.19 1.92 1.71 1.54 1.40


516 boxes (, $1.53b


3 times per year
2 times per year
(2 labor hours per acre)






($275.00/hr. + 10 A/hr.) + 2.5 yrs.
($245.00/hr. + 10 A/hr.) + 2 yrs.
($8.52/A + 2 yrs.)
(1 through 3 years)
4 trees per acre
Including 4 trees per acre
Including application




$4.00 per acre per month'


---------------------- Dollars ----------------------
789.48


22.76
10.88
25.34
106.54




11.00
12.25
4.26

18.96
47.64
36.96


165.52
131.69
135.33
12.01



27.51



103.56
152.07
40.52
768.21
48.00
816.21
(26.73)


Boxes per acre
350 400 450 500 550

$ Delivered-in price per pound solidse
0.76 0.71 0.67 0.65 0.62


a While estimated annual per acre grove costs in Tables 5 and 6 are representative of a mature Southwest Florida Hamlin orange and red seedless grapefruit grove, respectively, grove care costs for
specific grove site may differ depending on grove practices performed (e.g., a Temik application would add $109.43 per acre; extensive tree loss due to blight or tristeza may double tree replacement
and care costs; truck watering of resets could add another $8.31 per acre).
bOn-tree price per box is preliminary; assumes price for processed oranges only.
'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 and vary from situation to situation.
dOther cost items not included in budget are ad valorem taxes and interest on grove investment. In addition to these cost items, overhead and administrative costs (e.g., water 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.
eAssumes 6.0 pounds solids per box and $2.217 pick and haul cost per box (including canker decontamination costs) and Department of Citrus advertising assessment of $0.15 per box.










Table 6.--Estimated total delivered-in cost for Southwest Florida Hamlin oranges grown for the processed market under three cultural cost programs,
2003-04

Represents a mature (10+ years old) Processed Hamlin Oranges Processed Hamlin Oranges Fresh/Processed Hamlin Oranges
Southwest Florida Orange Grove Low Cost Cultural Program Reduced Cost Historical Cost
One-Year Alternative Cultural Program Cultural Program
$/Acre $/Box $/P.S. $/Acre $/Box $/P.S. $/Acre $/Box $/P.S.

Total Production/Cultural Costs $ 642.82 $1.246 $0.2076 $ 768.21 $1.489 $0.2481 $ 879.86 $1.705 $0.2842

Interest on Operating (Cultural) Costs 17.68 0.034 0.0057 38.41 0.074 0.0124 43.99 0.085 0.0142

Management Costs 48.00 0.093 0.0155 48.00 0.093 0.0155 48.00 0.093 0.0155

Taxes/Regulatory Costs:
Property Tax and Water Management
District Tax 64.05 0.124 0.0207 61.00 0.118 0.0197 61.00 0.118 0.0197
Canker Decontamination Costs 6.18 0.012 0.0020 4.54 0.009 0.0015 4.54 0.009 0.0015
Total Direct Grower Costs $ 778.73 $1.509 $0.2515 $920.16 $1.783 $0.2972 $1,037.39 $2.010 $0.3351

Interest on Avg Capital Investment Costs 321.22 0.623 $0.1038 321.22 0.623 0.1038 321.22 0.623 0.1038

Total Grower Costs $1,099.94 $2.132 $0.3553 $1,241.38 $2.406 $0.4010 $1,358.61 $2.633 $0.4388

Harvesting and Assessment Costs:
Pick/Spot Pick, Roadside & Haul and
Canker Decontamination Costs 1,143.97 2.217 0.3695 1,143.97 2.217 0.3695 1,143.97 2.217 0.3695
DOC Assessment 77.40 0.150 0.0250 77.40 0.150 0.0250 77.40 0.150 0.0250
Total Harvesting & Assessment Costs 1,221.37 2.367 0.3945 1,221.37 2.367 0.3945 1,221.37 2.367 0.3945

Total Delivered-In Cost $2,321.31 $4.499 $0.7498 $2,462.75 $4.773 $0.7955 $2.579.98 $5.000 $0.8333


P.S. = Pound Solids Cultural program (Table 11-A) Cultural program (Table 11-A)
Yield: 516 boxes/acre @) 6.0 P.S. per box Cultural program (Table 5)
Yield: 516boxs/acr 6.0P.S. box Only summer oil sprays with oil, Cultural program (Table 5) A Fall Miticide Spray added to the
145 trees per acre
copper, miticide and nutritional cultural program (Table 5)









Table 7.--Estimated annual per acre costs and returns for a mature, red seedless grapefruit grove producing for the fresh market, Southwest Florida area, 2003-04a

Item Description Amount Your Cost


I. Revenue
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
III. Management
[V. Total specified costs
V. Return to land, trees, and ownership
VI. Break-even price for total grove care expenses

Boxes per acre
350 400 450 500 550

$ On-tree price per box


555 boxes @ $3.13b


3 times per year
2 times per year
(2 labor hours per acre)






($275.00/hr. + 10 A/hr.) + 2.5 yrs.
($245.00/hr. 8 A/hr.) + 2 yrs.
($13.00/A + 2 yrs.)
($8.52/A + 2 yrs.)
(1 through 3 years)
3 trees per acre
Including 3 trees per acre
Including application


--------------------- Dollars -----------------------
1,737.15


22.76
10.88
25.34
106.54




11.00
12.25
6.50
4.46

14.22
35.73
27.72


165.52
285.36
106.93
12.01




34.21



77.67
152.07
40.52
874.29
48.00
922.29
814.86


Boxes per acre
350 400 450 500 550

$ Delivered-in price per pound solids for eliminationse
1.28 1.22 1.16 1.12 1.09


a While estimated annual per acre grove costsin Tables 5 and 6 are representative for a mature Southwest Florida Hamlin orange and red seedless grapefruit grove, respectively, grove care costs for
specific grove site may differ depending on grove practices performed (e.g., a Temik application would add $109.43 per acre; extensive tree loss due to blight or tristeza may double tree replacement
and care costs; truck watering of resets could add another $8.31 per acre).
bOn-tree price per box is preliminary; assumes average of all methods of sale (fresh and processed).

'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 and vary from situation to situation.
dOther cost items not included in the budget are ad valorem taxes and interest on grove investment. In addition to these cost items, overhead and administrative costs (e.g., water 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.
eAssumes 4.7 pounds solids per box and $2.27 pick and haul cost per box (includes spot picking and fruit drenching and canker decontamination costs), D.O.C. $0.25 advertising tax, $0.55 per box
handling through packinghouse, and $0.45 per box delivery to processing plant.










Table 8.--Estimated total delivered-in cost for Southwest Florida Red Grapefruit grown for the fresh/processed market under three cultural cost programs,
2003-04

Represents a mature (10+ years old) Processed Red Grapefruit Fresh Packed Red Grapefruit Fresh Packed Red Grapefruit
Low Cost Cultural Program Reduced Cost Typical/Historical
Southwest Florida Red Grapefruit Grove One-Year Alternative Cultural Program Cultural Program
One-Year Alternative Cultural Program Cultural Program


Total Production/Cultural Costs
Interest on Operating (Cultural) Costs
Management Costs
Taxes/Regulatory Costs:
Property Tax and Water Management
District Tax
Fly Protocol Cost
Canker Decontamination Costs
Total Taxes/Regulatory Costs
Total Direct Grower Costs
Interest on Average Capital Investment Costs
Total Grower Costs
Harvesting and Assessment Costs:
Pick/Spot Pick, Roadside & Haul and
Canker Decontamination
Fruit Drenching (Fresh)
DOC Assessment
Total Harvesting and Assessment Costs
Total Delivered-In Cost


$/Acre $/Box $/P.S.


$ 649.91
17.87
48.00


$1.171
0.032
0.086


$0.2492
0.0069
0.0184


51.24 0.092 0.0196


6.18
57.42
$ 773.20
321.22
$1,094.42


0.011
0.103
$1.393
0.579
$1.972


0.0024
0.0220
$0.2964
0.1231
$0.4196


1,046.18 1.885 0.4011


133.20
1,179.38
$2,273.79


0.240
2.125
$4.097


0.0511
0.4521
$0.8717


$/Acre $/Box $/Carton


$ 832.27
22.89
48.00



51.24
54.73
6.18
112.15
$1,015.31
321.22
$1,336.52



1,157.73
94.35
138.75
1,390.83
$2,727.35


$1.500
0.041
0.086



0.092
0.099
0.011
0.202
$1.829
0.579
$2.408



2.086
0.170
0.250
2.506
$4.914


$1.0144
0.0206
0.0432



0.0478
0.0477
0.0016
0.0971
$1.1754
0.2894
$1.4648



1.0430
0.0850
0.1250
1.2530
$2.7178


$/Acre

$874.29
24.04
48.00



51.24
54.73
6.18
112.15
$1,058.48
321.22
$1,379.70



1,157.73
94.35
138.75
1,390.83
$2,770.53


$/Box $/Carton


$1.575
0.043
0.086



0.092
0.099
0.011
0.202
$1.907
0.579
$2.486



2.086
0.170
0.250
2.506
$4.992


$1.0144
0.0217
0.0432



0.0478
0.0477
0.0016
0.0971
$1.1764
0.2894
$1.4658



1.0430
0.0850
0.1250
1.2530
$2.7188


Two cartons per box Cultural program (Table 12-A) Cultural program (Table 7) Cultural program (Table 12-A)
P.S. = Pound Solids Cultural program (Table 7) Cultural program (Table 12-A)
Yield: 555 boxes/acre @ 4.7 P.S. per box Two summer oil sprays with oil, Assumes 100% packout Assumes 100% packout
119 trees per acre copper, and miticide







12



Table 9.--Estimated F.O.B. cost for fresh market Southwest Florida Red grapefruit, 2003-04

Percent Packout 50.00% Percent Packout 60.00% Percent Packout 70.00%
Box Yield Per Acre 555 Box Yield Per Acre 555 Box Yield Per Acre 555

Per Acre Per Box Per Carton Per Acre Per Box Per Carton Per Acre Per Box Per Carton

Total Production/
Cultural Costs $874.29 $4.193 $2.0966 $874.29 $3.494 $1.7472 $874.29 $2.995 $1.4976

Interest on Operating
(Cultural Costs) 24.04 0.115 0.0577 24.04 0.096 0.0480 24.04 0.082 0.0412

Management 48.00 0.230 0.1151 48.00 0.192 0.0959 48.00 0.164 0.0822

Taxes/Regulatory 112.15 0.538 0.2689 112.15 0.448 0.2241 112.15 0.384 0.1921

Interest on Average
Capital Investment 321.22 1.541 0.7703 321.22 1.284 0.6419 321.22 1.100 0.5502

Harvesting (Pick, Haul, Etc.)
and DOC Assessment 1,390.83 6.671 3.3353 1,390.83 5.559 2.7794 ,390.83 4.765 2.3824

Total Delivered-In Cost $2,770.53 $13.288 $6.6440 $2,770.53 $11.073 $5.5366 $2,770.53 $9.491 $4.7457

Packing & Selling 2,047.95 7.380 3.6900 2,457.54 7.380 3.6900 2,867.13 7.380 3.6900

Fresh Eliminations Costs
(Credit)a -361.58 -1.734 -0.8671 -289.27 -1.156 -0.5781 -216.95 -0.743 -0.3716

Total F.O.B. Costs $4,456.90 $18.934 $9.4668 $4 938.80 $17297 $8.6486 $5420.71 $16.128 $8.0641

Percent Packout 80.00% Percent Packout 90.00% Percent Packout 100.00%
Box Yield Per Acre 555 Box Yield Per Acre 555 Box Yield Per Acre 555

Per Acre Per Box Per Carton Per Acre Per Box Per Carton Per Acre Per Box Per Carton

Total Production/
Cultural Costs $874.29 $2.621 $1.3104 $874.29 $2.330 $1.1648 $874.29 $2.097 $1.0483

Interest on Operating
(Cultural) Costs 24.04 0.072 0.0360 24.04 0.064 0.0320 24.04 0.058 0.0288

Management 48.00 0.144 0.0719 48.00 0.128 0.0639 48.00 0.115 0.0576

Taxes/Regulatory 112.15 0.336 0.1681 112.15 0.299 0.1494 112.15 0.269 0.1345

Interest on Average
Capital Investment 321.22 0.963 0.4814 321.22 0.856 0.4279 321.22 0.770 0.3851

Harvesting (Pick, Haul, Etc.)
and DOC Assessment 1,390.83 4.169 2.0846 1,390.83 3.706 1.8530 1390.83 3.335 1.6677

Total Delivered-In Cost $2,770.53 $8.305 $4.1525 $2,770.53 $7.382 $3.6911 $2,770.53 $6.644 $3.3220

Packing & Selling 3,276.72 7.380 3.6900 3,686.31 7.380 3.6900 4,095.90 7.380 3.6900

Fresh Eliminations Costs
(Credit)a -144.63 -0.434 -0.2168 -72.32 -0.193 0.0963 0.00 0.000 0.0000

Total F.O.B. Costs $5,902.61 $15251 $76257 $6384.52 $14.569 $7.2847 $6866.43 $14.024 $7.0120

"'Net Eliminations Cost" equals the average yield of 4.70 pound solids per box times $0.49 per pound solids less packinghouse elimination
charge and cannery hauling charge of $1.00 per box.












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, 1999-00-2003-04


On-tree Gross Total Grove Total Specified Net Return to Land,
Year Price/Boxa Yield Revenue Care Expenses Costsc Trees, and Ownership
------------------------------------------ Dollars -------------------------------------


1999-00 $3.07 504 1,547.28 758.85 806.85 740.43

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 $1.53b 516 789.48 768.21 816.21 (26.73)

5-yr. avg. $2.52 506 1,275.12 766.87 814.87 460.25

aOn-tree prices for processed oranges only as reported by the Florida Agricultural Statistics Service.
bPreliminary estimate by authors at time of printing and is not a published price.

cManagement cost of $4.00 per acre per month is included. Fixed costs (e.g., taxes, debt service, and crop insurance) are not included.












Table 11.--Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2004 dollars) for a mature, Hamlin
orange grove producing citrus for processed market in the Southwest Florida area, 1999-00-2003-04


Adjusted
Inflation On-tree Gross Total specified Net Return to Land,
Year Factor Indexa Price/Box Yield Revenue Costsb Trees, and Ownership
------------------------------ Dollars ------------- ---


1999-00 111.1 $3.41 504 1,718.64 929.57 789.07

2000-01 109.8 $2.82 504 1,421.28 919.88 501.40

2001-02 112.4 $3.14 504 1,582.56 962.13 620.43

2002-03 106.7 $2.83 504 1,426.32 873.91 552.41

2003-04 100.0 $1.53 516 789.48 816.21 (26.73)

5-yr. avg. $2.75 506 1,391.50 900.34 491.16

aProducer price index for each year adjusted to 2004 prices (2004 = 100), with 2004 producer price index estimated to be 147.4. Producer
price index for other years are: 2000 = 132.7; 2001 = 134.2; 2002 = 131.1; and 2003 = 138.1.

b Management cost of $4.00 per acre per month is included. Fixed costs (e.g., taxes, debt service, and crop insurance) are not included
(Table 10).












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, 1999-00-2003-04


On-tree Gross Total Grove Total Specified Net Return to Land,
Year Price/Boxa Yield Revenue Care Expenses Costsc Trees, and Ownership
------------------------------------------ Dollars -------------------------------------


1999-00 $3.85 555 2,136.75 867.06 915.66 1,221.69

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 $3.13 555 1,737.15 874.29 922.29 814.86

5-yr. avg. $2.86 555 1,587.30 870.43 918.55 668.87

aOn-tree prices for all sales methods as reported by the Florida Agricultural Statistics Service.
bPreliminary estimate by authors at time of printing and is not a published price.

cManagement cost of $4.00 per acre per month is included. Fixed costs (e.g., taxes, debt service, and crop insurance) are not included.












Table 13.--Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2004 dollars) for a mature, red seedless
grapefruit grove producing citrus for fresh fruit packing in the Southwest Florida area, 1999-00-2003-04


Adjusted
Inflation On-tree Gross Total Specified Net Return to Land,
Year Factor Index" Price/Box Yield Revenue Costsb Trees, and Ownership
------------------------------ Dollars ------------- ---

1999-00 111.1 $4.28 555 2,375.40 1,017.30 1,358.10

2000-01 109.8 $2.50 555 1,387.50 1,002.24 385.26

2001-02 112.4 $2.85 555 1,581.75 1,036.93 544.82

2002-03 106.7 $2.66 555 1,476.30 981.07 495.23

2003-04 100.0 $3.13 555 1,737.15 922.29 814.86

5-yr. avg. $3.08 555 1,709.40 991.97 717.43


"Producer price index for each year adjusted to 2004 prices (2004
price index for other years are: 2000 = 132.7; 2001 = 134.2; 2002 =


= 100), with 2004 producer price index estimated to be 147.4. Producer
131.1; and 2003 = 138.1.


b Management cost of $4.00 per acre per month is included. Fixed costs (e.g., taxes, debt service, and crop insurance) are not included
(Table 12).







18

ADDENDA: Listing of Grove Care Programs for Southwest Florida Citrus Production for Both
Round Oranges and Grapefruit
Page

Table 1-A. Spray programs ................................................... 19
Post bloom spray .. ...... ...................................... 19
Sum m er spray ......................................... ........ 21
F all sp ray . . . . . . . . . . . . .. 2 2

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
D rip . . . . . . . . . . . . . .. 2 7
M icrosprinkler .............................................. 27
Drainage ditch annual costs .......................................... 27

Table 8-A. A listing of 2004 custom rates reported by fifteen Indian River and South
Florida citrus caretakers ............................................. 28

Table 9-A. 2004 summary of average chemical price estimates ....................... 30

Table 10-A. 2004 summary of average fertilizer price estimates ....................... 32

Table 11-A. A listing of estimated comparative Southwest Florida citrus production costs per
acre for oranges, 2003-04 ......................................... 34

Table 12-A. A listing of estimated comparative Southwest Florida citrus production costs per
acre for grapefruit, 2003-04 .......................................... 35

Table 13-A. Estimated cost of planting and maintaining a reset citrus tree through three years
of age, July 2004 ....................................... ........ 36

Table 14-A. Estimated average picking, roadsiding and hauling charges for Florida citrus,
2 0 0 3 -0 4 . . . . . . . . . . . . ... 3 7

Table 15-A. Estimated average packing charges for Florida citrus, 2003-04 .............. 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 = Boron Fe = Iron Mn = Manganese Zn = Zinc
Cu = Copper Mg = Magnesium N = Nitrogen










Table 1-A.--Spray programs


POST BLOOM SPRAY


Spray Program #1


Materials/Ingredients

Cu (50% metallic)
Zn
Mn
B
Ground Application
(PTO driven airblast)


Total per Application $50.20


Spray Program #2


Materials/Ingredients
Cu (50% metallic)
Zn
Mn
Micromite 25WP

Ground Application
(PTO driven airblast)


Total per Application $76.40


Spray Program #3


Materials/Ingredients


Cu (50% metallic) 7 pounds $ 8.40
Agri-Mek 10 ounces 41.10
Oil 97+% 3 gallons 6.15

Ground Application 100 gallons 21.10
(PTO driven airblast)

Total per Application $76.75


Spray Program #4


Materials/Ingredients

Cu (50% metallic)
Potassium Nitrate
Lorsban 4EC
Hystop (pH Reducer)

Ground Application
(PTO driven airblast)

Total per Application


Your
Cost/Acre


Amount
/Acre
15 pounds
5 pounds
10 pounds
0.25 pound
150 gallons


Cost/Acre
$18.00
3.95
3.10
1.13
24.02


Your
Cost/Acre


Amount
/Acre
10 pounds
5 pounds
10 pounds
1.25 pounds
100 gallons


Cost/Acre
$12.00
3.95
3.10
36.25
21.10


Amount
/Acre


Cost/Acre


Your
Cost/Acre


Your
Cost/Acre


Amount
/Acre
7 pounds
10 pounds
4 pints
1 pint

100 gallons


Cost/Acre
$ 8.40
1.85
15.40
2.13

21.10


$48.88









Table 1-A.--Spray programs (continued)

POST BLOOM SPRAY (continued)


Spray Program #5


Materials/Ingredients
Vendex 4L
Cu (50% metallic)
Ground Application
(PTO driven airblast)


Total per Application $64.83


Spray Program #6


Materials/Ingredients
Micromite
Cu (50% metallic)
Oil 97+%o
Ground Application
(PTO driven airblast)


Total per Application $75.13


Spray Program #7


Materials/Ingredients
Cu (50% metallic)
Zn
Mn
B
Micromite
Ground Application
(PTO driven airblast)


Total per Application $77.16


Spray Program #8


Materials/Ingredients
Vendex 4L
Ground Application
(PTO driven airblast)


Total per Application $52.52


Spray Program #9
(Scale insects)


Materials/Ingredients
Lorsban 4EC
Ground Application
(engine driven airblast)
Total per Application


Amount
/Acre
2 pounds
10 pounds
250 gallons


Your
Cost/Acre


Cost/Acre
$28.50
12.00
24.33


Amount
/Acre
1.25 pounds
7 pounds
3 gallons
250 gallons


Your
Cost/Acre


Cost/Acre
$36.25
8.40
6.15
24.33


Your
Cost/Acre


Amount
/Acre
7 pounds
5 pounds
10 pounds
0.25 pound
1.25 pounds
250 gallons


Cost/Acre
$ 8.40
3.95
3.10
1.13
36.25
24.33


Amount
/Acre
2 pounds
150 gallons


Your
Cost/Acre


Cost/Acre
$28.50
24.02


Amount
/Acre
5 pints
500 gallons


Your
Cost/Acre


Cost/Acre
$19.25
31.85


$51.10










Table 1-A.--Spray programs (continued)


SUMMER SPRAY


Amount


Spray Program #10 Materials/Ingredients /Acre Cost/Acre
Oil 97+% 10 gallons $20.50
Cu (50% copper) 7 pounds 8.40
Ground Application 250 gallons 24.33
(PTO driven airblast)
Total per Application $53.23

Amount
Spray Program # 11 Materials/Ingredients /Acre Cost/Acre
Cu (50% metallic) 7 pounds $ 8.40
Oil 97+% 5 gallons 10.25
Zn 5 pounds 3.95
Mn 10 pounds 3.10
B 0.25 pound 1.13

Ground Application 150 gallons 24.02
(PTO driven airblast)

Total per Application $50.85

Amount
Spray Program # 12 Materials/Ingredients /Acre Cost/Acre
Cu (50% metallic) 7 pounds $ 8.40
Oil 97+% 5 gallons 10.25
Agri-Mek 10 ounces 41.10

Ground Application 250 gallons 24.33
(PTO driven airblast)
Total per Application $84.08

Amount
Spray Program # 13 Materials/Ingredients /Acre Cost/Acre
Enable 8 ounces $10.32
Oil 97+% 5 gallons 10.25
Micromite 1.25 pounds 36.25

Ground Application 150 gallons 24.02
(PTO driven airblast)

Total per Application $80.84


Your
Cost/Acre









Your
Cost/Acre












Your
Cost/Acre










Your
Cost/Acre









Table 1-A.--Spray programs (continued)
SUMMER SPRAY (continued)


Spray Program #14


Materials/Ingredients
Cu (50% metallic)
Oil 97+%o
Ground Application
(PTO driven airblast)
Total per Application


FALL SPRAY


Spray Program #15


Materials/Ingredients
Agri-Mek
Ground Application
(PTO driven airblast)


Amount
/Acre
5 ounces
150 gallons


Cost/Acre
$20.55
24.02


Total per Application $44.57

Amount
Spray Program #16 Materials/Ingredients /Acre Cost/Acre
Vendex 4L 2 pounds $28.50


Aerial Application
Total per Application


15 GPA


Your
Cost/Acre






Your
Cost/Acre


8.02
$36.52


Table 2-A.--Herbicide

Herbicide Program #1
(Strip/band)


Materials
Solicam 80DF
Karmex WP
Roundup Ultra Max
Ground Application
(1 time)


Amount/
Treated Acre
3 pounds
4 pounds
2 quarts


Total for 1 Application $43.33

Amount/ Cost/
Herbicide Program #2 Materials Treated Acre Grove Acrea


(Strip/band)


Surflan A80 DF
Simazine 4L
Roundup Ultra Max
Ground Application
(1 time)
Total for 1 Application


2 quarts
4 quarts
2 quarts


aWith herbicide materials, amount per grove acre does not equal amount per treated acre shown on label, only
a strip or band is being treated. In this report, it is assumed that only half a surface acre is being treated.


Amount
/Acre
7 pounds
5 gallons
150 gallons


Your
Cost/Acre


Cost/Acre
$ 8.40
10.25
24.02


$42.67


Cost/
Grove Acrea
$20.66
6.74
7.34
8.59


Your Cost/
Grove Acre








Your Cost/
Grove Acre


$19.14
6.44
7.34
8.59


$41.51










Table 2-A.--Herbicide (continued)


Herbicide Program #3

(Strip/band)


Materials
Karmex WP
Roundup Ultra Max
Ground Application
(1 time)


Amount/
Treated Acre

4 pounds
2 quarts


Total for 1 Application $22.67


Herbicide Program #4

(Strip/band)


Materials

Solicam 80DF
Simazine 4L
Roundup Ultra Max

Ground Application
(1 time)


Amount/
Treated Acre
8 pounds
4 quarts
2 pints


Total for 1 Application $73.78


Amount/


Herbicide Pro

(Strip/band)


Cost/


gram #5 Materials Treated Acre Grove Acrea

Roundup Ultra Max 4 quarts $ 7.34

Ground Application 8.59
(1 time)

Total for 1 Application $15.93


Herbicide Program #6

(Strip/band)


Materials

Krovar I
Roundup Ultra Max

Ground Application
(1 time)


Amount/
Treated Acre

5 pounds
2 quarts


Total for 1 Application $41.18


Herbicide Program #7

(Strip/band)


Materials
Princep (Caliber 90)
Hyvar X
Adjuvant (Surfactant)
Ground Application
(1 time)
Total for 1 Application


Amount/
Treated Acre
4 pounds
6 pounds
2 pints


Your Cost/
Grove Acre


Cost/
Grove Acrea
$ 6.74
7.34
8.59


Your Cost/
Grove Acre


Cost/
Grove Acrea
$55.08
6.44
3.67

8.59


Your Cost/
Grove Acre


Your Cost/
Grove Acre


Cost/
Grove Acrea
$25.25
7.34

8.59


Your Cost/
Grove Acre


Cost/
Grove Acrea
$6.10
50.94
2.81
8.59


$68.44










Table 2-A.--Herbicide (continued)


Herbicide Program #8

(Strip/band)


Materials
Roundup Ultra Max
Princep (Caliber 90)

Ground Application
(1 time)


Amount/
Treated Acre
2 quarts
4 pounds


Total for 1 Application $22.03


Herbicide Program #9

(Strip/band)


Materials

Direx 4L
Solicam
Adjuvant (Surfactant)
Ground Application
(1 time)
Total for 1 Application


Amount/
Treated Acre

3 quarts
3 pounds
1 quart


Amount/


Herbicide Pro

(Chemical m


Cost/


gram #10 Materials Treated Acre Grove Acrea

low) Roundup Ultra 1 pint $ 1.84
Ground Application 3.60
(1 time)

Total for 1 Application $5.44


Herbicide Program #11

(Chemical mow)


Materials

Roundup Ultra
Ground Application
(1 time)


Amount/
Treated Acre

1.5 pints


Total for 1 Application $ 6.36


Amount/


Herbicide Pro

(Spot treatm


Cost/


gram #12 Materials Treated Acre Grove Acrea

ent) Roundup Ultra 2 quarts $ 7.34
Ground Application 4.00
(1 time)

Total for 1 Application $11.34


Your Cost/
Grove Acre


Cost/
Grove Acrea
$ 7.34
6.10
8.59


Your Cost/
Grove Acre


Cost/
Grove Acrea
$ 5.34
20.66
2.81
8.59


$37.40


Your Cost/
Grove Acre


Your Cost/
Grove Acre


Cost/
Grove Acrea
$ 2.76
3.60


Your Cost/
Grove Acre










Table 3-A.--Dry fertilizer


Analysis/Material


Program #1

(125 lbs N/I


Amount


Applied /Acre Cost/Acre

Acre) 12-2-12-2.4 MgO 1042 pounds $ 91.70
Application 3 times 15.33

Total for 3 Applications $107.03


Analysis/Material


Program #2

(150 lbs N/A


Amount


Applied /Acre Cost/Acre

\cre) 15-2-15-2.4 MgO 1000 pounds $ 91.60
Application 3 times 15.33

Total for 3 Applications $106.93


Analysis/Material


Program #3

(180 lbs N/A


Amount


Applied /Acre Cost/Acre

\cre) 15-2-15-2.4 MgO 1200 pounds $109.92
Application 3 times 15.33

Total for 3 Applications $125.25


Analysis/Material


Program #4

(204 lbs N/I


Amount


Applied /Acre Cost/Acre

Acre) 17-4-17-2.4 MgO 1200 pounds $ 120.00
Application 3 times 15.33

Total for 3 Applications $135.33


Analysis/Material


Program #5

(225 lbs N/A


Amount


Applied /Acre Cost/Acre

\cre) 15-2-15-2.4 MgO 1500 pounds $137.40
Application 3 times 15.33

Total for 3 Applications $152.73


Your
Cost/Acre


Your
Cost/Acre


Your
Cost/Acre


Your
Cost/Acre


Your
Cost/Acre










Table 4-A.--Liquid fertilizer (double boom application)
Analysis/Material


Program #1
(180 lbs N/I


Program #2

(180 lbs N/A







Program #3
(180 lbs N/A


Amount


Applied /Acre Cost/Acre
Acre) 10-0-10 1800 pounds $125.82
Double Boom Custom Application 3 times 36.75
Total for 3 Applications $162.57


Analysis/Material Amount


Applied /Acre Cost/Acre

\cre) 10-2-10 1800 pounds $127.44
Double Boom Custom Application 3 times 36.75

Total for 3 Applications $164.19


Analysis/Material Amount
Applied /Acre Cost/Acre
cre) 10-0-10 1800 pounds $125.82
Solicam 80DF 3 pounds 20.66
Karmex WP 4 pounds 7.34

Double Boom Custom Application 3 times 36.75
Total for 3 Applications $190.57


*Treated acre--one application






Table 5-A.--Nematicides


Analysis/Material


Program #1


Amount


Applied /Acre Cost/Acre

Temik 15G 33 pounds $ 97.68
Application 11.75

Total per Application $109.43


Your
Cost/Acre


Your
Cost/Acre


Your
Cost/Acre


Your
Cost/Acre


A








a.










Table 6-A.--Soil amendment


Program #1
(Every 3 yea







Program #2
(Every year)


rs)


Analysis/Material
Applied
Dolomite (Delivered)
Application
Total for 1 Application
(Average 1/3 Ton Applied/Yr)


Amount
/Acre
1 ton
1 time


Cost/Acre
$28.68
7.35
$36.03
$12.01


Analysis/Material Amount
Applied /Acre Cost/Acre
Dolomite (Delivered) 1000 pounds $14.34
Application 7.35
Total per Application $21.69


Your
Cost/Acre


Your
Cost/Acre


Table 7-A.--Irrigation (annual cost per acre)


DRIP

Operating

Maintenance of System
Total Cash Expenses

Fixed Depreciation Expense

Total Cash and Fixed Expenses


MICROSPRINKLER

Operating

Maintenance of System
Total Cash Expenses

Fixed Depreciation Expense

Total Cash and Fixed Expenses


Program #1
(Electric)
$50.44
41.46
$91.90


Your
Cost/Acre


42.35


Program #2
(Diesel)
$45.38
41.25
$86.63


Your
Cost/Acre


45.25

$131.88


$134.35


Program #3
(Electric)
$ 57.35
46.21
$103.56


52.94


$156.50


Your
Cost/Acre


Program #4
(Diesel)
$ 48.28
47.23
$ 95.51


Your
Cost/Acre


56.56

$152.07


DRAINAGE DITCH ANNUAL COSTS


Program #5


Ditches/Canals Maintenance ($43.47/acre 3 years)
Weed Control in Ditches/Canals
Water Control: In/Out of Ditches and Canals
Total


Your
Cost/Acre


$14.76
13.05
12.71
$40.52










Table 8-A.--A listing of 2004 custom rates reported by fifteen Indian River and South Florida citrus caretakers

Range of Rate Average
Grove Practice Unit Reported Ratey Comments

CT TT.TTVATTON AND FO TTPMFNT-


Hand Labor
Mechanic Labor
Rotovate
Disc 7-8'
Disc 10-12'
Mow: 7-8'
9-10'
9-10'
15-16'
V-Mower
Sickle Mower
Herbicidez (Strip/Band-Single Boom)
Herbicidez (Strip/Band-Single Boom)
Herbicidez (Strip/Band-Double Boom)
Herbicidez (Chemical Mow)
Temikz
Plow
Backhoe
Vine Puller/Deviner
Middle Buster
Mound Builder
Grader Blade
Caterpillar Grader
Water Truck with Driver
Pickup Truck with Driver
Flatbed/Transport Truck with Driver
Tractor with Driver
ATV with Driver


Hour
Hour
Hour
Hour
Hour
Hour
Hour
Acre
Hour
Hour
Hour
Hour
Acre
Acre
Acre
Acre
Hour
Hour
Hour
Hour
Hour
Hour
Hour
Hour
Hour
Hour
Hour
Hour


$ 9.50-
32.00-
30.00-
25.00-
27.50-
27.50-
30.00-
9.00-
34.00-


30.00-
12.00-
11.50-
2.50-
10.00-

40.00-

31.00-
33.00-
28.00-

30.00-
28.00-
40.00-
27.00-
20.00-


$15.00 $12.67 Plus transport
40.00 36.00 Labor and serv
45.00 36.70
31.00 27.83
35.50 32.00
32.00 30.05
35.00 31.69
11.00 9.91
41.00 37.42 Average $8.88
27.50
34.00
32.00 31.33 Plus materials
13.40 12.63 Plus materials
13.00 12.21 Plus materials
5.00 3.60 Plus materials
13.00 11.75 Plus materials
32.50
50.00 46.21
32.00
34.00 32.71 With tractor ar
35.00 34.17 With tractor an
33.00 30.88 Tractor/blade
65.00
34.00 32.33
35.00 30.33 Average miles
45.00 42.50
33.00 30.00
23.50 21.60


tion and equipment
ice truck







/acre


d driver
Ld driver
md driver


traveled per year: Pick-up truck 22,663 miles


SPRAYING:z



500 GPA
250 GPA
125 GPA
100 GPA
Curtec (25 GPA)
Aerial
Aerial
Aerial
Aerial


PTO AIR BLAST SPRAYER
1,000 Gallon Tank 1,000 Gallon Tank 500 Gallon
with Electronic Sensing without Electronic Sensing Tank Average


Acre
Acre
Acre
Acre


37.75-
28.00-
23.00-


38.00
33.00
26.50


37.83
30.85
24.94
21.50


35.00-
25.00-
24.00-
20.25-


38.00
32.00
26.00
21.00


36.00
28.67
24.67
20.75


36.50
29.75
25.50


Acre 20.00
Fixed Wing: $ 4.81/acre @ 5 gallons per acre
Fixed Wing: $ 6.52/acre @ 10 gallons per acre Bell Helicopter: $15.00/acre @ 10 GPA
Fixed Wing: $ 8.02/acre @ 15 gallons per acre
Fixed Wing: $10.14/acre @ 20 gallons per acre
Hand Sprayer (500 gallon tank) with tractor and 2 workers $45.00/hour


FERTILIZING:z
Liquid Boom Application: Double Boom
Dry (Bulk)
Lime or Dolomite
Fertilize Young Trees:z Hand Spread
Fert. Spreader


Acre 11.00-
Acre 7.00-
Acre 7.00-
Hour 9.50-
Hour 30.00-


13.50
7.75
7.75
15.00
32.00


12.25
7.29
7.35
12.67
30.67


Average $34.00/ton
Plus transportation and materials
Plus materials; Average $7.25/acre











Table 8-A.--A listing of 2004 custom rates reported by fifteen Indian River and South Florida citrus caretakers (cont'd.)

Range of Rate Average
Grove Practice Unit Reported Rate Comments


IRRIGATION:
Ditch Mower
Water Furrow Disc
Water Furrow Cleaner
Water Furrow Shaper (Laser Control)
Rotary Ditcher or Auger
Microsprinkler/Drip Irrigation Maintenance
Microsprinkler

REMOVING TREES:
Front-end Loader
Tree Shearing (Cutting Tree at Ground Level)


Hour
Hour
Hour
Hour
Hour
Acre/Month


$33.00- $48.00 $ 39.60
30.00- 37.50 33.63
34.50
75.00
33.00- 35.00 34.17
3.50- 6.00 4.38


30.00/setting-application


Check & repair system; parts extra
Start/stop and supervision


Hour $45.00- $57.20 $52.74 Avg. range 3-15 trees per hour
Hour 45.00- 55.00 51.33 Avg. range 5-20 trees per hour


PRUNING:
Power Saw with Operator
Hedging:
Double Side (Tractor Pulled)
Double Side (Tractor Mounted)
Double Side (Self Propelled)
Double Side Rotary Boom (Self Propelled)
Double Side Self-Propelled Fixed Boom Hedger'
Topping:
Tractor Pulled
Double Sided Topper (Self Propelled)
Double Boom (Self Propelled)
Limb Lifter/Tree Skirt Trimmer
Limb Lifter/Tree Skirt Trimmer (Double Sided Rotary)
Removing Brush:
Haul Brush out of Grove (Front-end Loader)
Mow/Chop Brush

OTHER CUSTOM RATES:
Install Tree Wraps
Plant Trees (Solid Set)
Plant Trees (Resets)
Travel/Setup Charge
Grove Management Charge/Month:
Supervising Grove Care Operations
Handling Fruit Marketing
Supervising/Handling Chemicals/Fertilizer


Charge for personnel to oversee harvesting
operations and coordinate harvest in different
blocks/groves and keeping of harvesting labor
compliance records.

Consulting
Total Reported Acreage Provided Grove Service to:


Hour $17.00- $22.50 $19.88


Hour
Hour
Hour
Hour
Hour

Hour
Hour
Hour
Acre
Hour


100.00-
145.00-
225.00-


145.00
200.00
265.00


130.00
172.50
245.00
320.00
360.00


115.00- 175.00 145.00
265.00- 285.00 275.00
550.00
13.00
120.00


6 to 10 acres/hour

8 to 20 A/H depending on wood size; $14/A annual cut
5 to 15 A/H bed tops only; add 25% for furrows only
12 to 30 A/H bed tops only; 8 to 20 acres bed top
\and furrow; depending on wood size
2-5 acres/hour depending on wood size
Avg. 8-15 A depending on wood size type of cut;$25/A
15 to 30 A flattop cut from bed tops annual maint. cut
3 to 5 acres/hour
6 to 20 acres/hour


Hour 45.00- 55.00 52.00
Hour 32.00- 45.00 37.85


15-45/tree depending on type of wrap and number of trees; Annual maintenance cost: 25/tree
Tree $0.90- $ 1.50 $1.10 Varies as to density
Tree 2.00- 3.25 2.42 Varies as to the number of resets
Hour 25.23

Acre 3.25- 8.00 4.78 In addition to caretaking charges
$0.10-$0.25/box For Supervising and Marketing fruit
10% to 20% of materials cost


Box $0.10- $0.25


$ 0.17


Hour $ 85.00 $200.00 $136.00 Horticultural Evaluation and/or Financial Analysis/prospectus.


Acre


600- 8,000


2,922 Total acres reporting: 26,298


zPlus materials. Caretakers reporting rates include labor, tractor and sprayer; supply truck included by most caretakers.
Calculated by dividing total number of caretakers reporting a grove practice rate into the sum reported. Unless otherwise stated, labor included
with all charges.
'Low acres is for 2 years regrowth hedging; high acres is for annual maintenance hedging.


Source: Ronald P. Muraro, Extension Farm Management Economist, Lake Alfred CREC, July 2004.










Table 9-A.--2004 summary of average chemical price estimates


Item
Fungicides: Abound EC
Aliette 80WP
Basic Copper Sulfate
Copper Hydroxide
Copper (Kocide 101)
Copper (Kocide 2000)
Copper (Champ II Flowable)
Cuprofix Disperss
Nu-Cop 50 DF
Enable
Gem 25
Headline EC
Oil 435 or 455
Oil 470 (Bio-lever)
Ridomil Gold EC
Topsin
Insecticides/Nematicides:
Admire 2F
Agri-Mek (0.15EC)
Carbaryl 4L
Carbaryl 80S
Chlorpyrifos 4E
Clinch Fire Ant Bait
Danitol
Guthion 2L
Guthion 50WP
Imidan 70W (Diaprepes)
Lorsban 4EC
Lorsban 15G
Malathion 5 EC
Micromite 25 WS
Micromite 80 WG
Microthiol
Nexter 75WP
Sevin 80S
Sevin XLR
Sulphur 6F
Temik 15G
Vendex 50W


Your Price
(2004)


Unit
gallon
pound
pound
pound
pound
pound
gallon
pound
pound
gallon
40 ounces
gallon
gallon
gallon
gallon
pound

gallon
gallon
gallon
pound
gallon
pound
gallon
gallon
pound
pound
gallon
pound
gallon
pound
gallon
pound
pound
pound
gallon
gallon
pound
pound


Average
Price
196.38
10.16
1.20

1.58
2.07
21.80
1.79
1.78
51.60
103.33
182.52
2.05
2.35
591.67
13.40

454.00
526.67
26.55
4.46
50.18
8.63
129.38
29.96
8.19
7.50
30.82
1.74
21.66
29.00
82.25
0.58
85.16
4.59
26.62
3.10
2.96
14.25










Table 9-A.--2004 summary of average chemical price estimates (cont'd.)


Item
Herbicides: Aqua Master
Diuron 4L
Direx 4L
Direx 80 DF
Fusilade DX 2E
Glyphosate:
Glyphomax Plus
Roundup (Original)
Roundup Ultra Max
Touchdown
Gramoxone E (Paraquat)
Hyvar X 80 WP
Karmex 80 DF
Krovar I
Landmaster II
Mandate 2E
Pendimax
Poast Plus 1.0 EC
Princep (Caliber 90)
Princep 4L
Prowl
Simazine 90 DF
Simazine 4L
Solicam 80 DF
Simtrol
Surflan
Growth Regulators:


Unit
gallon
gallon
gallon
pound
gallon


gallon
gallon
gallon
gallon
gallon
pound
pound
pound
gallon
gallon
gallon
gallon
pound
gallon
gallon
pound
gallon
pound


gallon


Average
Price
42.53
16.13
14.23
3.06
117.67


15.25
22.25
29.37
33.17
34.92
16.98
3.37
10.10
17.39
161.53
22.73
52.39
3.05
13.22
21.48
2.66
12.87
13.77
18.00
76.53


Your Price
(2004)


Citrus Fix gallon 457.00
Pro-Gibb 3.91% 20-ounce bottle 30.79
Tree-Hold gallon 79.17
Other Spray Materials:
Borates (15%) pound 0.68
Manganese (32%) pound 0.31
Zinc (78%) pound 0.79
Adjuvant (Surfactant) gallon 22.50
Source: Ronald P. Muraro, Extension Farm Management Economist, University of Florida,
IFAS, CREC, Lake Alfred, Florida, August 2004.









Table 10-A.--2004 summary of average fertilizer price estimates


Average Your Price
Item Unit Price (2004)


FERTILIZER (FOB Price @ Plant)
$
Dry Mix (Bulk)
17-0-17-3Mg ton 196.99
17-4-17-2.4g ton 200.79
16-0-16 ton 181.72
16-0-16-4Mg ton 200.13
16-2-16-3Mg ton 198.99
15-2-15-2.4g ton 183.26
12-2-12-2.4g ton 176.29
8-8-8 w/minors* ton 169.82
8-4-8 w/minors* ton 155.77
8-2-8 w/minors* ton 141.94
6-6-6 w/minors* ton 150.77


Liquid Mix (Bulk)
8-2-8 ton 126.89
8-4-8 ton 126.55
9-3-9 ton 130.31
9-4-9 ton 138.77
10-0-10 ton 139.81
10-2-10 ton 141.62
12-0-6 ton 143.28
12-3-6 ton 150.88


*With organic nitrogen, the price averaged 25% higher.









Table 10-A.--2004 summary of average fertilizer price estimates (cont'd.)


Average Your Price
Item Unit Price (2004)


Other Fertilizer Materials (Bulk)
Ammonium Nitrate (21% N Liquid) ton 168.83
Ammonium Nitrate (33.5% N Dry) ton 235.60
Ammonium Sulfate (21% N) ton 147.92
Calcium Nitrate (19% Ca, 15.5% N) ton 223.85
Dolomite (at mine--49% CaCO3, 36% MgCO3) ton 15.90
Muriate of Potash (60% K20) ton 183.78
Potassium Nitrate (14% N; 46% K20) ton 370.75
Sul-Po-Mag (SPM--21.9% K20) ton 183.33
Super Phosphate (20% P205) ton 204.17
Triple Superphosphate (48% P205) ton 225.36
Average Delivery Cost ton 12.78


Foliar Macronutrients
Phos Might 0-22-20 gallon 24.87
Nutriphite Magnum 2-40-16 gallon 30.00
MKP (0-52-34) (Mono-Potassium Phosphate) pound 0.65



** SRN, Slow Release Nitrogen

Source: Ronald P. Muraro, Extension Farm Management Economist, University of Florida,
IFAS, CREC, Lake Alfred, Florida, August 2004.










Table 11-A.--A listing of estimated comparative Southwest Florida citrus production costs per acre for oranges, 2003-2004z

Low Cost Processed Processed and Reduced Typical/Historical
Costs represent a mature (10+ years old) Cultural Program Fresh Cost Fresh Fruit
Southwest Florida Orange Grove. One-Year Alternative Cultural Program Cultural Program
PRODUCTION/CULTURAL COSTS:7
Weed Management/Control:
Mechanical Mow Middles (3 times per year) $ 22.76 $22.76 $22.76
Chemical Mow Middles (2 times per year) 10.88 10.88 10.88
General Grove Work (2 labor hours per acre) 25.34 25.34 25.34
Herbicide (1/2 tree acre treated):
Application (6 glyphosate or 3 residual applications) $51.54 $ 25.77 $25.77
Material 44.04 80.77 80.77
Total Herbicide Cost 95.58 106.54 106.54
Spray
Post Bloom: Application (150 GPA) 24.02
Material 26.18
Total Post Bloom Cost 50.20
Summer Oil #1: Application (150 GPA) 24.02 24.02
Material 56.82 56.82
Total Summer Oil #1 Cost 80.84 80.84
Summer Oil #2: Application (PTO -- 150 GPA) 24.02 24.02 24.02
Material 63.08x 26.83' 18.65
Total Summer Oil #2 Cost 87.10 50.85 42.67
Fertilizer (Bulk): 3 Applications 15.33 15.33 15.33
Material (15-2-15-2.4 MgO @ 180 lbs N
and 204 lbs N per acre) 109.92 120.00 120.00
Total Fertilizer Cost 125.25 135.33 135.33
Dolomite (one ton applied every 3 years)
Material/Application 12.01 12.01 12.01
Pruning: Topping ($27.50/A + 2.5 yrs)' 11.00 11.00 11.00
Hedging ($24.50/A + 2 yrs)' 12.25 12.25 12.25
Chop/Mow Brush after Hedging ($8.52/A + 2 yrs)' 4.26 4.26 4.26
Total Pruning Cost 27.51 27.51 27.51
Tree Replacement 1 thru 3 years of age: (4 trees/acre)
Remove Trees: Pull, Stack & Burn 4 Trees with
Front-end Loader 18.96 18.96 18.96
Prepare Site & Plant Tree (Includes 4 reset trees) 47.64 47.64
Supplemental Fertilizer, Tree Wraps Maintenance,
Sprout, Etc. (Trees 1-3 years old) 24.84 36.96 36.96
Total Tree Replacement Cost 43.80 103.56 103.56
Irrigation: Microsprinkler System" 152.07 152.07 152.07
Clean Ditches (Weed Control) 13.05 13.05 13.05
Ditch and Canal Maintenance 14.76 14.76 14.76
Water Control (Pump water in/out of Ditches and
Canals) 12.71 12.71 12.71
Total Irrigation Cost 192.59 192.59 192.59
IRRIGATED PROCESSED FRUIT PRODUCTION COSTS $642.82 $768.21
Supplemental Post Bloom:
Application (250 GPA) 24.33 24.33
Material 50.80 50.80
Total Supplemental Post Bloom Cost 75.13 75.13
Fall Miticide Spray: Aerial Application (15 GPA) 8.02 8.02
Material 28.50 28.50
Total Fall Miticide Cost 36.52 36.52
IRRIGATED FRESH FRUIT PRODUCTION COSTS $879.86 $921.88
zListed estimated comparative costs are for example grove situation described in Economic Information Report Series, 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 2004.









Table 12-A.--A listing of estimated comparative Southwest Florida citrus production costs per acre for grapefruit, 2003-04z
Costs represent a mature (10+ years old) Low Cost Processed Processed and Reduced Typical/Historical
Southwest Florida Red Grapefruit rove Cultural Program Fresh Cost Fresh Fruit
Sout____we__stFr_______________________ One-Year Alternative Cultural Program Cultural Program
PRODUCTION/CULTURAL COSTS:y
Weed Management/Control:
Mechanical Mow Middles (3 times per year) $ 22.76 $ 22.76 $22.76
Chemical Mow Middles (2 times per year) 10.88 10.88 10.88
General Grove Work (2 labor hours per acre) 25.34 25.34 25.34
Herbicide (1/2 tree acre treated):
Application (6 glyphosate or 3 residual applications) $51.54 $25.77 $25.77
Material 44.04 80.77 80.77
Total Herbicide Cost 95.58 106.54 106.54
Spray
Post Bloom: Application (150 GPA) 24.02
Material 26.18
Total Post Bloom Cost 50.20
Summer Oil # 1: Application (250 GPA) 24.02 24.02 24.02
Material 56.82x 56.82 56.82
Total Summer Oil #1 Cost 80.84 80.84 80.84
Summer Oil #2: Application (PTO -- 150 GPA) 24.02 24.02 24.02
Material 26.83x 26.83 18.65
Total Summer Oil #2 Cost 50.85 50.85 42.67
Fertilizer (Bulk): 3 Applications 15.33 15.33 15.33
Material (12-2-12-2.4 MgO @ 180 lbs N
and 15-2-15-2.4 MgO @ 150 lbs N) 91.60 91.60 91.60
Total Fertilizer Cost 106.93 106.93 106.93
Dolomite (one ton applied every 3 years)
Material/Application 12.01 12.01 12.01
Pruning: Topping ($27.50/A + 2.5 yrs)V 11.00 11.00 11.00
Hedging ($24.50/A 2 yrs)v 12.25 12.25 12.25
Chop/Mow Brush after Hedging ($8.52/A + 2 yrs)' 4.46 4.46 4.46
Raise Skirts of Trees ($13.00 + 2 yrs)' 6.50 6.50
Total Pruning Cost 27.71 34.21 34.21
Tree Replacement 1 thru 3 years of age: (3 trees/acre)
Remove Trees: Pull, Stack & Burn 3 Trees with
Front-end Loader 14.22 14.22 14.22
Prepare Site & Plant Tree (Includes 3 reset trees) 35.73 35.73
Supplemental Fertilizer, Tree Wraps Maintenance,
Sprout, Etc. (Trees 1-3 years old) 18.63 27.72 27.72
Total Tree Replacement Cost 32.85 77.67 77.67
Irrigation: Microsprinkler System" 145.30 152.07 152.07
Clean Ditches (Weed Control) 13.05 13.05 13.05
Ditch and Canal Maintenance 14.76 14.76 14.76
Water Control (Pump water in/out of Ditches and
Canals) 11.05 12.71 12.71
Total Irrigation Cost 184.16 192.59 192.59
IRRIGATED PROCESSED FRUIT PRODUCTION COSTS $649.91 $720.62
Supplemental Post Bloom Spray:
Application (250 GPA) 24.33 24.33
Material 50.80 50.80
Total Supplemental Post Bloom Cost 75.13 75.13
Fall Miticide Spray: Aerial Application (15 GPA) 8.02 8.02
Material 28.50 28.50
Total Fall Miticide Cost 36.52 36.52
IRRIGATED FRESH FRUIT PRODUCTION COSTS $832.27 $874.29
zListed estimated comparative costs are for example grove situation described in Economic Information Report Series, 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 2004.








Table 13-A.--Estimated cost of planting and maintaining a reset citrus tree through three years
of age, July 2004
Number of Resets/Replacement Trees Per Acre
1-2 3-5 6-10 11-25 26+
------------------ Cost Per Tree ------------

Year # 1: $ $ $ $ $
Tree Removal 5.45 4.74 3.79 3.07 2.45
Tree Cost (Container Tree) 4.50 4.50 4.35 4.25 4.25
Site Preparationa 5.71 4.95 4.19 3.88 3.04
Plant Tree and First Watering 2.84 2.46 2.08 1.93 1.51
Total Planting Cost 13.05 11.91 10.62 10.06 8.80
Supplemental Fertilization 4 Times
(Application & Materials) 1.37 1.20 1.10 1.00 0.92
Supplemental Spraying
(Application & Materials)b 0.48 0.41 0.38 0.35 0.32
Spot Herbicide (Application & Materials) 0.21 0.18 0.16 0.14 0.13
Tree Wrap (Corrugated) 1.00 1.00 1.00 1.00 1.00
Sprouting/Pruning 0.42 0.42 0.39 0.39 0.35
Miscellaneous 0.17 0.16 0.15 0.14 0.14
Supervision & Overhead 0.27 0.25 0.24 0.23 0.21
Total Tree Care Cost Year #1 3.92 3.62 3.42 3.25 3.07
Total Cost Year #1 22.42 20.27 17.83 16.38 14.32
Year #2:
Supplemental Fertilization 3 Times
(Application & Materials) 1.81 1.61 1.41 1.19 1.09
Supplemental Spraying
(Application & Materials)b 0.55 0.49 0.43 0.36 0.33
Spot Herbicide (Application & Materials) 0.20 0.18 0.16 0.14 0.13
Sprouting/Pruning 0.50 0.50 0.42 0.42 0.38
Miscellaneous 0.15 0.14 0.12 0.11 0.10
Supervision & Overhead 0.24 0.20 0.19 0.17 0.15
Total Cost Year #2 3.45 3.12 2.73 2.39 2.18
Year #3:
Supplemental Fertilization 3 Times
(Application & Materials) 2.48 2.21 1.90 1.62 1.37
Miscellaneous 0.12 0.11 0.09 0.08 0.07
Supervision & Overhead 0.20 0.17 0.15 0.13 0.11
Total Cost Year #3b 2.80 2.49 2.14 1.83 1.55
Total Three-Year Cumulative Costs 28.67 25.88 22.70 20.60 18.05

aSite preparation for bedded citrus grove; cost of root removal, rotovating/leveling tree planting site. Fumigate
planting site would cost approximately $2.50 per tree.

bAdditional spray costs may be incurred if leafminer is a problem.

Source: Ronald P. Muraro, Farm Management Economist, CREC, Lake Alfred, FL, July 2004.









Table 14-A.--Estimated average picking, roadsiding and hauling charges for Florida citrus, 2003-04

Fresh Fruit Processed Fruit

Range Average Range Average

$/Box $/Box $/Box $/Box


Picking Charges:

Early and Mid-Season Oranges

Valencia Oranges

Pink/Red Grapefruit

White/Marsh Grapefruit

Temples/Tangelos

Tangerines


0.80

0.80

0.60

0.60

0.85

1.35


- 1.00

- 1.00

- 0.85

- 0.70

- 1.25

- 1.75

Fresh Fruit


Range

$/Box


Processed Fruit

Range Average

$/Box $/Box


Roadsiding Charges:

Early and Mid-Season Oranges

Valencia Oranges

Pink/Red Grapefruit

White/Marsh Grapefruit

Temples/Tangelos

Tangerines


0.70

0.75

0.65

0.65

0.75

1.12


- 1.06

- 1.06

- 0.87

- 0.85

- 1.11

- 1.21

Fresh Fruit

All Varieties

$/Box


0.860

0.868

0.766

0.743

0.938

1.155


0.65

0.65

0.55

0.55

0.75


- 1.07

- 1.07

- 0.66

- 0.66

- 1.07


0.801

0.817

0.620

0.620

0.833


Processed Fruit

All Varieties

$/Box


Hauling Charges:

0 30 miles

31 50 miles

51 80 miles

81 100 miles

100 + miles


0.840

0.840

0.658

0.633

0.950

1.563


0.65

0.65

0.55

0.55

0.70


- 0.95

- 0.95

- 0.70

- 0.70

- 1.25


0.772

0.791

0.590

0.590

0.851


Average

$/Box


0.410

0.460

0.553

0.625

0.687


0.392

0.457

0.530

0.570

0.625










Table 15-A.--Estimated average packing charges for Florida citrus, 2003-04

Domestic Export Temples/
Grapefruit Grapefruit Oranges Tangelos Tangerines

-------------------------/Carton-------------------------

Total Packing Charge" 3.636 3.741 3.993 4.026 4.795

--------------------------- $/Box ---------------------------

Drenching Charge 0.158 0.158 0.173 0.173 0.173

Packinghouse Elimination 0.523 0.523 0.544 0.544 0.544
Charges

Hauling Charges for 0.423 0.423 0.496 0.496 0.496
Eliminations
"Total Packing Charge includes the following items:

1. Materials, including mesh/plastic bags, labels/PLUs, etc.
2. Includes supervisor/foreman labor, grading, palletizing, shipping and general labor.
Includes payroll taxes (FICA), 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 items such as insurance-fire and casualty; taxes and licenses;
depreciation and rent.
5. G&A costs include office personnel (FICA, w/comp); packinghouse and general manager; office
supplies; telephone; etc.
6. Selling expenses include sales salaries, travel, telephone and telegraph and brokerage fees.
7. Special assessments include items such as advertising taxes; inspection fees; Florida Citrus Packers;
CAC.

Note: Packing charges represent a total of nine citrus packinghouses from both the Indian River and
Interior Production regions.


Source:


Ronald P. Muraro, University of Florida-IFAS, Citrus Research and Education Center, Lake
Alfred, FL, August 2004.









Table 16-A.--Historic prices for selected citrus varieties

Variety


Seedless Grapefruite


Earlyb and
Mid'-season Late Season Temple
Crop Year Oranges Orangesd Oranges '

1961-62 $1.93 $1.81 $2.17
1962-63 2.17 3.50 3.09
1963-64 4.43 4.45 4.45
1964-65 2.57 2.28 2.77
1965-66 1.44 1.79 1.80
1966-67 0.81 1.08 0.88
1967-68 1.86 2.28 2.79
1968-69 1.56 1.83 2.22
1969-70 1.15 1.13 1.47
1970-71 1.10 1.91 1.91
1971-72 1.98 2.11 1.95
1972-73 1.43 1.71 1.95
1973-74 1.38 1.59 1.64
1974-75 1.46 1.82 1.68
1975-76 1.69 1.88 1.79
1976-77 1.89 2.63 2.16
1977-78 3.90 4.40 3.92
1978-79 4.44 4.95 4.89
1979-80 3.59 3.89 2.89
1980-81 3.67 4.63 4.21
1981-82 4.27 4.29 4.01
1982-83 4.88 5.41 3.99
1983-84 5.09 6.72 5.34
1984-85 7.30 6.88 5.59
1985-86 3.92 3.97 3.01
1986-87 4.56 6.02 3.60
1987-88 6.72 8.73 5.69
1988-89 6.63 8.41 5.46
1989-90 6.01 6.53 5.64
1990-91 5.38 6.58 6.31
1991-92 5.44 6.65 6.51
1992-93 3.23 3.88 2.99
1993-94 3.76 4.61 2.73
1994-95 3.25 4.41 3.47
1995-96 3.62 5.57 4.44
1996-97 3.18 4.07 3.22
1997-98 2.81 4.88 3.07
1998-99 4.35 5.58 5.12
1999-00 3.19 4.33 2.55
2000-01 2.60 4.02 2.05

2001-02 2.88 4.20 2.19
2002-03'f 2.81 3.95 2.35
aOn-tree average price per box (1-3/5 bushel box equivalent) for all
bNavel and Hamlin 'Parson Brown and Pineapple dValencia

Source: Florida Agricultural Statistics Service.


methods of sale minus pick and haul charges.
eMarsh (white) or pink 'Preliminary


All
Fangerines

$2.04
3.02
3.18
2.68
2.14
1.06
4.29
2.55
2.23
1.88
2.97
2.37
2.82
3.05
3.02
3.29
4.79
4.99
4.25
5.45
6.23
7.57
5.93
15.91
12.69
10.92
12.99
12.64
15.28
17.10
18.00
13.75
9.83
11.98
12.59
7.99
8.49
12.07
6.67
6.40
7.81
8.53


Tangelos

$3.36
4.66
4.83
4.00
2.85
1.64
3.22
2.47
1.13
1.04
1.69
1.39
1.25
1.45
1.42
1.42
3.29
3.90
2.87
3.92
3.58
4.37
4.28
7.08
4.06
3.72
5.58
6.31
5.10
6.11
7.16
3.31
2.38
2.64
3.63
2.19
1.66
4.53
2.52
1.27
2.47
3.23


(white)
$0.68
1.29
2.24
1.51
1.39
0.73
2.05
0.98
1.72
1.89
2.27
2.06
1.58
1.55
1.29
1.49
1.47
2.21
3.12
3.46
1.92
1.51
2.08
3.02
3.56
4.45
5.35
4.33
5.21
4.59
6.46
2.22
3.23
2.58
2.14
1.12
0.93
1.95
3.87
2.07
1.96
1.62


(colored)
$0.86
1.81
2.54
1.82
1.64
0.94
2.48
1.15
1.92
2.15
2.69
2.53
2.12
2.59
2.23
2.04
2.09
3.13
3.80
4.22
2.80
3.20
4.05
4.84
4.98
5.80
5.93
4.71
6.30
6.85
6.87
3.11
3.38
1.66
1.77
1.91
1.50
2.65
3.36
2.28
2.54
2.49









Table 17-A.--Debt which can be supported per $1,000.00 annual payment capacity


Loan Interest Rate Paid on the Loan
Term
(years) 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%


926 922 917
1,783 1,771 1,759
2,577 2,554 2,531
3,312 3,276 3,240
3,993 3,941 3,890
4,623 4,554 4,486

5,206 5,119 5,033
5,747 5,639 5,535
6,247 6,119 5,995
6,710 6,561 6,418
7,139 6,969 6,805
7,536 7,345 7,161

7,904 7,691 7,487
8,244 8,010 7,786
8,559 8,304 8,061
8,851 8,576 8,313
9,122 8,825 8,543
9,372 9,056 8,756

9,603 9,268 8,950
9,818 9,463 9,129
10,675 10,234 9,823
11,258 10,747 10,274
11,655 11,088 10,567
11,925 11,315 10,757


913 909
1,747 1,754
2,509 2,487
3,204 3,170
3,840 3,791
4,420 4,355

4,950 4,868
5,433 5,335
5,875 5,759
6,279 6,145
6,647 6,495
6,984 6,814

7,291 7,103
7,572 7,367
7,828 7,606
8,062 7,824
8,276 8,022
8,471 8,201

8,650 8,365
8,812 8,514
9,438 9,077
9,835 9,427
10,087 9,644
10,247 9,779


905
1,724
2,465
3,136
3,743
4,292

4,789
5,239
5,646
6,015
6,348
6,650

6,923
7,170
7,394
7,596
7,779
7,945

8,095
8,231
8,739
9,047
9,234
9,348


901 897
1,713 1,701
2,444 2,423
3,102 3,070
3,696 3,650
4,230 4,170

4,712 4,640
5,146 5,056
5,537 5,431
5,889 5,768
6,207 6,070
6,492 6,341

6,750 6,583
6,982 6,801
7,191 6,997
7,379 7,172
7,549 7,329
7,702 7,470

7,839 7,596
7,963 7710a7
8,422 8,123
8,868 8,364
8,855 8,503
8,951 8,587


893
1,690
2,402
3,037
3,605
4,111

4,564
4,968
5,328
5,650
5,938
6,194

6,424
6,628
6,811
6,974
7,119
7,250

7,366
7,469
7,843
8,055
8,175
8,244


889
1,679
2,381
3,006
3,561
4,054

4,492
4,882
5,228
5,536
5,810
6,054

6,270
6,462
6,633
6,785
6,920
7,040

7,146
7,241
7,579
7,766
7,870
7,928


885
1,668
2,361
2,974
3,517
3,998

4,423
4,799
5,132
5,426
5,687
5,918

6,122
6,302
6,462
6,604
6,729
6,840

6,938
7,025
7,330
7,496
7,586
7,634


881 877 873 870
1,657 1,647 1,636 1,626
2,341 2,322 2,302 2,283
2,944 2,914 2,884 2,855
3,475 3,433 3,392 3,352
3,942 3,889 3,836 3,784

4,355 4,288 4,224 4,160
4,718 4,639 4,562 4,487
5,038 4,946 4,858 4,772
5,319 5,216 5,116 5,019
5,568 5,453 5,341 5,234
5,787 5,660 5,538 5,421

5,979 5,842 5,710 5,583
6,149 6,002 5,861 5,724
6,299 6,142 5,992 5,847
6,431 6,265 6,106 5,954
6,547 6,373 6,207 6,048
6,649 6,467 6,294 6,128

6,739 6,551 6,370 6,198
6,819 6,623 6,437 6,259
7,095 6,873 6,663 6,464
7,242 7,003 6,778 6,566
7,320 7,070 6,836 6,617
7,361 7,105 6,866 6,642


aExample. 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
($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).