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UF FLAG IFAS PALMM



Budgeting costs and returns
ALL VOLUMES CITATION SEARCH THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00026156/00001
 Material Information
Title: Budgeting costs and returns
Series Title: Economic information report
Portion of title: Budgeting costs and returns for Indian River citrus production
Budgeting costs and returns for for <sic> Indian river citrus production
Physical Description: v. : ; 27 cm.
Language: English
Creator: University of Florida -- Food and Resource Economics Dept
Publisher: Food and 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: 1973
Frequency: annual
regular
 Subjects
Subjects / Keywords: Citrus fruit industry -- Economic aspects -- Periodicals -- Florida -- Indian River County   ( lcsh )
Citrus fruits -- Periodicals -- Florida -- Indian River County   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
serial   ( sobekcm )
 Notes
General Note: Title varies slightly: <1992-93>- Budgeting costs and returns for Indian River citrus production.
General Note: Description based on: 1978-79; title from cover.
Funding: This collection includes items related to Florida’s environments, ecosystems, and species. It includes the subcollections of Florida Cooperative Fish and Wildlife Research Unit project documents, the Sea Grant technical series, the Florida Geological Survey series, the Coastal Engineering Department series, the Howard T. Odum Center for Wetland technical reports, and other entities devoted to the study and preservation of Florida's natural resources.
 Record Information
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 000313321
oclc - 08042665
notis - ABU0054
lccn - sn 82000632
System ID: UF00026156:00001

Table of Contents
    Front Cover
        Front cover
    Abstract
        Abstract
    Table of Contents
        Table of contents
    Main
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
    Bibliography
        Page 7
Full Text
WERM,













TABLE OF CONTENTS


Page


INTRODUCTION . . . .

METHOD . . . . .

THE GROVE SITUATION . . .

Age and Production per Tree. .
Calculations of Production per Acre

PRICES . . . . .

SPRAY PROGRAM .. .. .

COSTS AND RETURNS . .


BIBLIOGRAPHY . . .


* .

... .. .. .. .. .. .* *


.................................. .


LIST OF TABLES


Table
1


Prices of inputs, on a custom basis, used in calculat-
ing costs and returns on citrus, Indian River area,
Florida, 1974-75 . . . .


2 Prices of chemicals used in calculating costs and
returns for producing citrus in the Indian River area
of Florida, 1974-75 .. . . .

3 Spray program used in budget based on custom rates
and two 500 gallon tanks per acre, Indian River area,
Florida, 1974-75 . . . . .

4 Estimated annual per acre costs and returns for a
mature, White Seedless grapefruit on Sour Orange root-
stock, Indian River area, Florida, 1974-75 . .


1











BUDGETING COSTS AND RETURNS IN INDIAN RIVER
CITRUS PRODUCTION, 1974-75


C. L. Anderson and R. P. Muraro

INTRODUCTION

Current data on costs and returns are needed by citrus growers

in order to formulate realistic budgets. This paper presents a budget

synthesized from current data and will serve as a format for growers

to develop costs and returns from their individual records.


METHOD

The data presented here were developed by surveying custom
operators, input suppliers, growers and colleagues. The assumptions

made as to a particular grove situation are thought to be typical of

a healthy, mature, sour-orange-rooted, white, seedless grapefruit grove

in the Indian River area. The generation of costs and returns pro-

cedure is designed to be applicable to any grove situation. A grower,

realtor or land appraiser can substitute individual grove costs and

expected returns into the budget format and develop a budget for a

particular grove.





C. L. ANDERSON is assistant professor of food and resource
economics and farm management extension economist stationed at the
Agricultural Research and Education Center, Lake Alfred. R. P. MURARO
is a farm management extension agent in Polk County.







THE GROVE SITUATION


It is difficult to define a "typical" grove; therefore, it is

necessary to state the assumptions under which a budget was constructed.

Specific production practices may vary from grove to grove. Many

combinations of practices and combinations of trees seem to accomplish

the production of acceptable yields. In the following budget, good

management and cultural practices are assumed.

1. A 20-year-old irrigated grove;
2. Variety is white seedless on sour orange rootstock;
3. Tree loss is 3 percent annually;
4. Trees are pulled and replaced when production falls below
50 percent of expected yield;
5. Production is for fresh use;
6. Trees are planted 70 per acre.

Age and Production per Tree


Situation Boxes/tree

3% pulled and reset 0
3% 1 year old 0
3% 2 years old 0
3% 3 years old .5
3% 4 years old 1.1
57% 5-19 years old 4.4
3% producing 50% of expected yield 3.75
25% mature producing .7.5

Calculations of Production per Acre

70 x .03 x .5 = 1.05
70 x .03 x 1.1 = 2.31
70 x .57 x 4.4 = 175.56
70 x .03 x 3.75 = 7.88
70 x .25 x 7.50 = 131.25 :
Boxes/acre = 318.05








PRICES


Prices for various production input items are an average of data

reported by custom operators and suppliers of fertilizer, chemicals,

etc., in a January 1975 survey. These prices are shown in Tables

1 and 2. On-tree prices for all uses of white seedless grapefruit as

reported by the Florida Crop and Livestock Reporting Service were

used.


Table l.--Prices of inputs, on a custom basis, used in calculating
costs and returns on citrus, Indian River area, Florida
1974-75

Cost
Item Unit Low High Avg. Your cost

Labor Hr. $ 2.50 $ 3.55 $ 3.07 $
Mowing (9'-10' rotary) Hr. 9.00 10.00 9.33
Mowing (sickle-bar) Hr. 6.50 8.50 7.83
Herbiciding Hr. 8.00 10.00 9.00
Topping Hr. 105.00

Hedging (2-side) Hr. 35.00
Chipping Hr. 10.00
Removing trees
(front end loader) Hr. 18.00
Power saw Hr. 2.00 3.00 2.93
Tractor and driver Hr. 6.50 7.00 6.83

Truck and driver Hr. 4.00 7.00 6.30
Water truck Hr. .6.50 8.00 7.25
Mound builder Hr. 10.00 12.50 11.25
Rotary ditcher Hr. 7.50
Irrigation, flood In. 1.56

Fertilize, bulk A. 2.50
Spray, dilute Tank 8.00 15.00 8.30


SPRAY PROGRAM


The spray program presented here is believed to be of the type

followed by a majority of growers. It may not be the exact program






4

outlined in the 1975 Spray and Dust Schedule nor is it necessarily

the most economical spray program. Most growers in the Indian River

area produce grapefruit for the fresh market and their spray program

is formulated to produce a fruit of this quality. Table 3 outlines

the spray program which is used for calculations in the budget which

follows.


Table 2.--Prices of chemicals used in calculating costs
for producing citrus in the Indian River area
1974-75


and returns
of Florida,


Item Unit Price Your cost
Copper, tri-basic Lb. $ .94 $
Zinc, 36% zn Lb. .33
Manganese-sulfate Lb. .10
Chlorobenzilate Gal. 18.93
Ethion Gal. 11.85

Delnav Gal. 22.50
Benlate Lb. 8.30
Oil, 97% Gal. 1.16
Sticker Gal. 6.43
Sulphur dust Ton 110.00

Krovar II Lb. 5.05
16-0-16 fertilizer Ton 111.55
16-0-16-4 MgO fertilizer Ton 117.95
8-2-8 fertilizer Ton 84.14


COSTS AND RETURNS


Table 4 shows the estimated costs and returns based on data

presented earlier and with a custom-caretaker providing grove manage-

ment. This table, as do the others, has a column reserve for the

individual grower to insert data from a particular grove. This will

allow a comparison of the grower's costs and returns with those of

the hypothetical case presented.









Two items of costs which are not included in the budget are ad

valorem tax and interest on grove investment. They vary from grove

to grove depending on age, location, soil and time of purchase or

establishment. They should both be considered in arriving at a net

return.


Table 3.--Spray program used in budget based on custom rates and two
500 gallon tanks per acre, Indian River area, Florida,
1974-75

Item Amount/A. Cost Your cost
Dormant
Copper 3 pounds $ 2.82 $
Manganese 7 pounds .70
Zinc 7 pounds 2.31
Sticker 1 pint .80
Application 2 tanks 16.60

Total $23.23
Post bloom
Chlorobenzilate 2.5 pints $ 5.59
Application 2 tanks 16.60

Total $22.19
Summer oil
Oil 8 gals. $ 9.28
Copper 3 Ibs. 2.82
Application 2 tanks 16.30

Total $28.40
Miticide
Delnav 5 pints $14.05
Sticker 1 pint .80
Application 2 tanks 16.30

Total $31.15
*= <-'--







Table 4.--Estimated annual per acre costs and returns for a mature White Seedless grapefruit on
rootstock, Indian River area, Florida, 1974-75


Sour Orange


Item Description Amount Your Grove
I. Revenue 318 boxes @ $1.90 $604.20 $

II. Expenses
Spray program From Table 3 104.97
Fertilizer
Material 16-0-16, 625 Ibs. 36.86
Application 2 @ $2.50 5.00 41.86
Weed Control
Mow middles 5 times per year 23.30
Mow under trees 4 times per year 15.64
Pull vines by hand 4.69
Herbicide 2 Ibs. Krovar II, incl. appl. 13.68 57.31
Pruning (maintenance)
Topping 12.97
Hedging 9.19
Removing brush 13.04 35.20
Irrigation (flood) 6 appl. total 18 in./yr. 28.00
Tree replacement
Remove trees 2.1 trees per acre 11.36
Prepare site use of mound builders 5.90
Plant resets including 2.1 trees per acre 8.87
Water 2.28
Fertilizer including application 5.09 33.50
Management 5% of gross sale 30.21

III. Total specified costs $331.05

IV. Return to land and trees $273.15







BIBLIOGRAPHY

[1] DuCharme, E. P. "Tree Loss in Relation to Young Tree Decline and
Sand Hill Decline of Citrus in Florida, "Proceedings of the
Fla. State Hort. Soc. 84:48-52 (Oct. 1970}-

[2] Florida Citrus Spray and Dust Schedule 1975. Univ. of Fla. Coop.


bxt. Serve.


Cir. 393A, Feb. 1975.


[3] Muraro, Ronald P. "Comparative Citrus Budgets."
County Agricultural Department, Mar. 1975.


Bartow: Polk


[4] Reitz, H. J., C. D. Leonard, et al. Recommended Fertilizers and
Nutritional Sprays for Citrus. Univ. of Fla. Agr. Exp. Sta.


Bull. 536C,


Dec. 1972.


495 copies