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UF FLAG IFAS PALMM



Budgeting costs and returns
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Permanent Link: http://ufdc.ufl.edu/UF00026156/00019
 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: 1994
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.
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oclc - 08042665
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lccn - sn 82000632
System ID: UF00026156:00019

Table of Contents
    Front Cover
        Front cover
    Abstract
        Page i
    Acknowledgements
        Page i
    Table of Contents
        Page ii
    List of Tables
        Page iii
    Main
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
    Reference
        Page 11
    Addenda
        Page 12
        Page 13
        Page 14
        Page 15
        Page 16
        Page 17
        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
Full Text


Ronald P. Muraro
John W. Hebb


Economic Information


Report El 95-4


Budgeting Costs and Returns
for Indian River Citrus
Production, 1994-95


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


August 1995


100
F637fe
EI95-4

















ABSTRACT


Estimated costs and returns of growing seedless grapefruit in the Indian River area of
Florida are presented for the twentieth year. The format presented may be used by individual
growers to budget costs and returns, utilizing individual data on specific groves.

Key words: citrus, Indian River, budgeting, costs and returns, seedless grapefruit.

NOTE: The Indian River production area refers to the citrus producing counties on Florida's
east coast including Brevard, Indian River, Palm Beach, and St. Lucie counties.

The budget cost items have been revised to reflect current grove practices being used
by growers--e.g., chemical mowing, different spray materials, rates of fertilization,
microsprinkler irrigation, more reset trees, etc. Therefore, the revised costs shown
may be higher, or lower, than reported in previous years.

The budget costs in this report represent a custom-managed operation for the
production of grapefruit for the fresh market. Therefore, all equipment costs are
based on the average custom rate costs and a 10 percent handling and supervision
charge is added to the material cost.

Although the estimated annual per acre grove costs shown in Table 3 are represen-
tative for a mature Indian River white grapefruit grove, the grove care costs for a
specific grove site may differ depending upon the grove practices performed. For
example, extensive tree loss due to blight or tristeza could substantially increase the
tree replacement and care costs; travel and set-up costs may vary due to size of the
citrus grove and distance from the grove equipment barn and could add as much as
$24.37 per acre; etc.


ACKNOWLEDGEMENTS


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 the Indian
River citrus production area who provided suggestions for the revision of this manuscript.


i UNIVERSITY OF FLORIDA LIBRARIES


I

















ABSTRACT


Estimated costs and returns of growing seedless grapefruit in the Indian River area of
Florida are presented for the twentieth year. The format presented may be used by individual
growers to budget costs and returns, utilizing individual data on specific groves.

Key words: citrus, Indian River, budgeting, costs and returns, seedless grapefruit.

NOTE: The Indian River production area refers to the citrus producing counties on Florida's
east coast including Brevard, Indian River, Palm Beach, and St. Lucie counties.

The budget cost items have been revised to reflect current grove practices being used
by growers--e.g., chemical mowing, different spray materials, rates of fertilization,
microsprinkler irrigation, more reset trees, etc. Therefore, the revised costs shown
may be higher, or lower, than reported in previous years.

The budget costs in this report represent a custom-managed operation for the
production of grapefruit for the fresh market. Therefore, all equipment costs are
based on the average custom rate costs and a 10 percent handling and supervision
charge is added to the material cost.

Although the estimated annual per acre grove costs shown in Table 3 are represen-
tative for a mature Indian River white grapefruit grove, the grove care costs for a
specific grove site may differ depending upon the grove practices performed. For
example, extensive tree loss due to blight or tristeza could substantially increase the
tree replacement and care costs; travel and set-up costs may vary due to size of the
citrus grove and distance from the grove equipment barn and could add as much as
$24.37 per acre; etc.


ACKNOWLEDGEMENTS


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 the Indian
River citrus production area who provided suggestions for the revision of this manuscript.


i UNIVERSITY OF FLORIDA LIBRARIES


I

















TABLE OF CONTENTS


Page

ABSTRACT ............................................................ i

ACKNOWLEDGEMENTS ................................................. i

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

INTRODUCTION ...................................................... 1

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

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

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

BUDGET COSTS AND RETURNS ......................................... 4

HISTORICAL COST TRENDS ............................................ 6

REFERENCES ........................................................ 11

ADDENDA .......................................................... 12


NOTE: The ADDENDA includes a Listing of Grove Care Programs for
Indian River Citrus Production for Both Round Oranges and
Grapefruit; 1995 custom rate summary report; cost of establishing a
citrus grove; etc. Page 12 is a list of the tables included in the
ADDENDA.


j
















LIST OF TABLES


Table Page

1 Schedule of production practices and budget items for an Indian River
Florida grapefruit grove, 1994-95 .................................... 3

2 Calculation of normal production per acre, 1994-95 ...................... 4

3 Estimated annual per acre costs and returns for a mature, white seedless
grapefruit grove producing for the fresh market, Indian River area, 1994-95 ... 5

4 Estimated total delivered-in cost for Indian River White grapefruit grown
for the processed juice market under three cultural cost programs, 1994-95 .... 7

5 Estimated F.O.B. cost for fresh market Indian River White grapefruit, 1994-95 8

6 Estimated annual per acre costs and returns and 5-year average costs and
returns for a mature, white seedless grapefruit grove producing citrus for fresh
fruit market in the Indian River area, 1990-91--1994-95 ................... 9

7 Estimated annual per acre costs and returns and 5-year average costs and returns
(adjusted to 1995 dollars) for a mature, white seedless grapefruit grove producing
citrus for fresh fruit market in the Indian River area, 1990-91--1994-95 ...... 10









BUDGETING COSTS AND RETURNS FOR INDIAN RIVER
CITRUS PRODUCTION, 1994-95


Ronald P. Muraro and John W. Hebb


INTRODUCTION


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,
and to determine break-even prices. This report presents a budget constructed from current data
and serves as 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 Agricultural Research and Education Center in Ft. Pierce 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. Growers'
costs are shown in the ADDENDA, Table 1-A through 8-A. The custom rate costs are shown in
Table 9-A and the various chemical and fertilizer costs are shown in Table 10-A and 11-A in the
ADDENDA. The budget costs represent a custom-managed operation. Therefore, all equipment
costs are based upon the average custom-rate costs and a 10 percent handling and supervision
charge is added to the material cost.
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.





RONALD P. MURARO is a Professor of Food and Resource Economics and Extension
Farm Management Economist stationed at the Citrus Research and Education Center, Lake
Alfred. JOHN W. HEBB is Extension Agent, Citrus in St. Lucie County, Ft. Pierce.









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 an Indian River grapefruit grove are shown in Table 1 with times
during the year when they would likely be 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, it can be helpful if an annual cash flow analysis is
developed to plan financing. 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 example represents a white seedless grapefruit grove, 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 and
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 noted average management and cultural practices are
assumed. Beyond this general assumption, the following specifics are assumed.



1. A mature, low volume-irrigated grove;
2. Variety is white seedless on sour orange rootstock;
3. Tree loss is 3.5 percent annually;
4. Trees are pulled and replaced when production falls below
50 percent of expected yield;
5. Production is for fresh market;
6. Tree density is 83 trees per acre; and
7. Custom-caretaker is providing grove management.



As a result of tree losses and replacement, the tree ages will vary. The budget reflects the
following age distribution and yield for Indian River white seedless grapefruit:









Table l.--Schedule of production practices and budget items for an Indian River Florida grapefruit grove, 1994-95'

Month

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


Total revenue:


20%
deposit


Final
payment


Less: Pick & haul cost X

DOC advertisement tax X

Grove expenses:

Disc

Chop Chemical Chemical

Mow X X Mow Mow X

Labor, general grove work, pull vines X X

Herbicide (1/2 grove acre equivalent) X X X

Spray: Post bloom/nutritional X X

Summer oil/greasy spot X

Fall miticide X

Supplemental miticide X

Dust

Fertilizer 54# N/A 54# N/A 54# N/A Dolomite

Hedging and topping Hedge

Brush remova/chop brush Chop brush

Tree removal X

Young tree care X X X X X

Microjet irrigation (times/week) 1 1 2 3 3 3 2 2 2 2 1 1

Miscellaneous (dean ditches) X

Grove taxes including water management X

Interest expense X

Annual principal payment on mortgage X


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












3.5%
3.5%
3.5%
3.5%
3.5%
38.5%
3.5%
40.5%


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


Boxes/tree
0.0
0.0
0.0
1.0
1.7
5.5
3.5
75


Calculation of normal production per acre is shown in Table 2. Note that the proportion-of-
trees-by-age column only adds to 89.5 percent since 10.5 percent of the trees are non-bearing.


Table 2.--Calculation of normal production per acre, 1994-95

Boxes Total
Age of Tree Trees /tree boxes

Total no. Proportion No. ea.
all ages ea. age" aee ---------- No. --------
3 years 83 x 0.035 = 2.9 x 1.0 = 2.90
4 years 83 x 0.035 = 2.9 x 1.7 = 4.93
5-15 years 83 x 0.385 = 32.0 x 55 = 176.00
Prod. 50% of
exp. yield 83 x 0.035 = 2.9 x 3.5 = 10.15
Over 15 years 83 x 0.405 = 33.6 x 7.5 = 252.00
Total boxes = 445.98


"Proportion adds up to 0.895 (89.5 percent) as 10.5
(pulled and reset, 1 and 2 year old trees; see page 4).


percent of the trees were non-bearing


BUDGET COSTS AND RETURNS


The estimated budget costs and returns for the Indian River grove situation are shown in Table
3. The budgeted costs represent one possible citrus production program and were selected from the
costs shown in the ADDENDA tables. The gross revenue estimates are based on the projected yields
in Table 3 and estimated preliminary on-tree prices for the 1994-95 season. Historical on-tree prices
for selected Florida citrus varieties are shown in Table 12-A of the ADDENDA.









Table 3.--Estimated annual per acre costs and returns for a mature, white seedless grapefruit grove producing for the fresh market, Indian River area, 1994-95'

Item Description Amount Your cost

--------- Dollars ------------------

I. Revenue 446 boxes @ $3.27' 1,458.42

II. Expenses"

Weed control
Mow middles 3 times per year 26.40
Chemical mow (Table 2-A, Program #10) 2 times per year 24.92
General grove work/sprouting (2 labor hours per acre) 21.40
Herbicide (Table 2-A, Program #1, #7 & #8) 142.85 21557
Spray program (Table 1-A, Programs #1, #3, #7, #13 & #14) 342.07
Fertilizer (Table 3-A, Program #2) 134.85
Dolomite (Table 7-A, Program #1) 12.07
Pruning (maintenance)
Topping ($30750/hr. + 8.0 A/hr.) + 2.5 yrs. 1538
Remove brush from trees ($20.07/A + 25 yrs.) 8.03
Hedging ($245.00/hr. + 8.0 A/hr.) + 2 yrs. 1531
Removing/chop brush ($15.48/A + 2 yrs.) 7.74 46.46
Tree replacement and care (1 through 3 years)
Remove trees 3 trees per acre 16.89
Prepare sites, repair mound, and plant resets Including 3 trees per acre 32.94
Supplemental fertilizer, sprout, Ridomil/Aliette, etc. (Trees 1-3 years) Including application 27.85 77.68
Microsprinkler irrigation (Table 7-A, Program #4) 13138
Drainage ditch annual cost (Table 7-A, Program #5) 30.22 _
Total grove care expenses 99030

III. Management $4.00 per acre per month 48.00

IV. Total specified costs"' 038

V. Return to land, trees, and ownership 420.12

VI. Break-even price for total grove care expenses

Boxes per acre Boxes per acre

325 375 425 475 525 325 375 425 475 525

$ On-tree price per box S Delivered-in price per pound solids for eliminations'

3.05 2.64 233 2.08 1.89 132 1.23 1.16 1.10 1.06

'Although the estimated annual per acre gro costs shown in Table 3 are representative for a mature Indian River white seedless grapefruit grove, the gro care costs for a specific grove site may differ depending upon
the grove practices performed; e.g., a Temik application would add 143.77 per acre; extensive tree loss due to blight or tristeza would double the tree replacement and care costs; trial and set-up costs may vary due to size
of citrus grove and distance from grove equipment barn; etc. Also, truck watering of resets could add another $7.95 per acre (average 5 waterings).
'On-tree price per box is preliminary assumes average of all methods of sale (fresh and processed). Price assumes 75% of fruit harvested packed fresh.
Assumes material custom applied; therefore, a 10 percent handling and supervision charge Is added to material cost.
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. Other selected methods will give a different return to land and trees than reported here.
*Other cost items which are not included in the budget are ad valorem taxes and interest on grove investment In addition to these cost Items, overhead and administrative costs, such as 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 depending on age, location, and time of purchase or grove establishment.
'Assumes 4.5 pounds soids per box. $1.90 pick and haul cost per box (includes spot picking and fruit drenching), $0.55 per box handling through packinghouse, and $0.45 per box delivery to processing plant.










As shown in Table 3, the total revenue for fresh-market white seedless grapefruit is estimated
to be $1,458.32 per acre. Total specified costs are $1,038.30 and are comprised of grove care costs of
$990.30, plus management cost of $48.00. Return to land, trees, and ownership is $420.12 and
represents net return above fixed costs. The break-even price required to cover grove care costs for
seedless white grapefruit range from $3.05 to $1.89 per box on-tree and $1.32 to $1.06 per pounds
solids delivered-in for eliminations at 325 and 525 boxes per acre, respectively.
Ad valorem taxes, and overhead and administrative costs (such as 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, variety of fruit, etc. 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. Also, average annual debt payment (principal and
interest) may be as high as $530 per acre ($4,500 average debt per acre @ 10 percent interest
amortized over 20 years) which would reduce total available cash for grove expansion or other
investment.
An estimated "delivered-in" cost which includes the above mentioned additional costs (cultural/
production costs, management and regulatory costs and harvesting costs) is shown in Table 4. The
"delivered-in" cost is presented as a cost per acre, per box, and per pound solids. Three possible
budget cost scenarios are presented: 1) Typical/Historical Processed/Fresh Cultural Program; 2)
Reduced Cost Processed/Fresh Cultural Program; and 3) Low Cost Processed Cultural Program. The
first scenario represents typical costs of grove practices which have been performed during the 1980's
and early 1990's. Scenarios 2 and 3 represent costs of two possible cultural programs directed toward
reducing the expenditures during a low on-tree fruit price year. Modified 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
programs (nutrition, disease, etc.) for the specific grove site should be made. Also, in Table 5, the
total estimated F.O.B. cost for fresh packed white 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, fresh, white seedless grapefruit in the Indian
River area have been developed and published the past four years. Estimated cost and return
histories for 1990-91 through 1993-94 along with 1994-95, and a five-year average are presented in
Table 6. The affects of recent freezes on Florida's annual grapefruit supply has resulted in a
fluctuating on-tree price per box. However, even with increasing operating costs, annual net return to
land and trees has increased over the five-year period. To allow comparisons in current values, these
same costs and returns, adjusted to 1995 dollars, are presented in Table 7.









Table 4.--Estimated total delivered-in cost for Indian River White grapefruit grown for the processed juice market under three cultural cost
programs, 1994-95
i-


Total Production/Cultural Costs

Interest on Operating (Cultural) Costs

Management Costs

Taxes/Regulatory Costs:
Property Tax
Water Drainage
Fly Protocol Cost

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 and Haul
Fruit Drenching (Fresh)
DOC Assessment

Total Harvesting and Assessment Costs

Total Delivered-In Cost


Fresh Packed White Grapefruit
Typical/Historical
Cultural Program

$/Acre S/Box S/Carton

$ 990.30 $2.220 $1.1102


4952

48.00


53.13
58.82
20.00

131.95

$1,219.77

419.75

$1,63952


802.80
57.98
156.10

1,016.88

$656.40


0.111

0.108


0.119
0.132
0.045

0.296

$2.735

0.941

$3.676


1.800
0.130
0.350

2.280

$5.956


0.0555

0.0538


0.0596
0.0659
0.0224

0.1479

$1.3675

0.4706

$1.8380


0.9000
0.0650
0.1750

1.1400

$2.9780


Fresh Packed White Grapefruit
Reduced Cost
Cultural Program


S/Acre

$ 945.94

47.30

48.00


53.13
58.82
20.00

131.95

$1,173.19

419.75

$1,592.94


802.80
57.98
156.10

1,016.88

2.609.82


Processed White Grapefruit
Low Cost
Cultural Program


S/Box S/Carton I /Acre S/Box


$2.121

0.106

0.108


0.119
0.132
0.045

0.296

$2.630

0.941

$3572


1.800
0.130
0.350

2.280

$5.852


$1.0605

0.0530

0.0538


0.0596
0.0659
0.0224

0.1479

$1.3152

0.4706

$1.7858


0.9000
0.0650
0.1750

1.1400

$2.9258


$ 395.73 $0.887

19.79 0.044

48.00 0.108


53.13 0.119
58.82 0.132


111.95 0.251

$ 575.47 $1.290

419.75 0.941

$ 995.22 $2.231


802.80 1.800

75.82 0.170

878.62 1.970

$873.4 $4.201


$/P.S.

$0.1972

0.0099

0.0239


0.0265
0.0293
--

0.0558

$0.2867

$0.2091

$0.4959


0.4000

0.0378

0.4378

$0.9337


Two cartons per box Refer to cultural program Reduced cost of supplemental Only summer spray with oil,
shown in Table 6. Fall Miticide Spray; fertilizer copper, and Agri-Mek;
P.S. = Pound Solids reduced to 150 pounds of fertilizer reduced to 125
Assumes 100% packout nitrogen per acre. pounds of nitrogen per acre.
Yield: 510 boxes/acre @ 45 P.S. per box Assumes 100% packout












Table 5.-Estimated F.O.B. cost for fresh market Indian River White grapefruit, 1994-95

Percent Packout 50.00% Percent Packout 60.00% Percent Packout 70.00%
Box Yield Per Acre 446 Box Yield Per Acre 446 Box Yield Per Acre 446

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

Total Production/
Cultural Costs $990.30 $4.44 $2.2204 $990.30 $3.70 $1.8503 $990.30 $3.17 $15860

Interest on Operating
(Cultural Costs) 49.52 0.22 0.1110 49.52 0.19 0.0925 49.52 0.16 0.0793

Management 48.00 0.22 0.1076 48.00 0.18 0.0897 48.00 0.15 0.0769

Taxes/Regulatory 131.95 0.59 0.2959 131.95 0.49 0.2465 131.95 0.42 0.2113

Interest on Average
Capital Investment 410.09 1.84 0.9195 410.09 1.53 0.7662 410.09 1.31 0.6568

Harvesting (Pick, Haul,
Etc.) and
DOC Assessment 1.016.88 4.56 2.2800 1.016.88 3.80 1.9000 1.016.88 3.26 1.6286

Total Delivered-In Cost $2,646.74 $11.87 $5.9344 $2,646.74 $9.89 $4.9453 $2,646.74 $8.48 $4.2388

Packing & Selling 1,393.75 6.25 3.1250 1,672.50 6.25 3.1250 1,951.25 6.25 3.1250

Fresh Eliminations Costs
(Credit) (429.28) -1.93 -0.9625 343.42 -1.28 -0.6417 (27.57) -0.83 -0.4125

Total F.O.B. Costs 311.21 $16.19 $8.0969 $975.82 $14.86 $ $.340.42 $3.90 $69513

Percent Packout 80.00% Percent Packout 90.00% Percent Packout 100.00%
Box Yield Per Acre 446 Box Yield Per Acre 446 Box Yield Per Acre 446

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

Total Production/
Cultural Costs $990.30 $2.78 $1.3878 $990.30 $2.47 $1.2336 $990.30 $2.22 $1.1102

Interest on Operating
(Cultural) Costs 49.52 0.14 0.0694 49.52 0.12 0.0617 4952 0.11 0.0555

Management 48.00 0.13 0.0673 48.00 0.12 0.0598 48.00 0.11 0.0538

Taxes/Regulatory 131.95 0.37 0.1849 131.95 0.33 0.1644 131.95 0.30 0.1479

Interest on Average
Capital Investment 410.09 1.15 0.5747 410.09 1.02 05108 410.09 0.92 0.4597

Harvesting (Pick, Haul,
Etc.) and
DOC Assessment 1,016.88 2.85 1.4250 1.016.88 253 1.2667 1.016.88 2.28 1.1400

Total Delivered-In Cost $2,646.74 $7.42 $3.7090 $2,646.74 $6.59 $3.2969 $2,646.74 $5.93 $2.9672

Packing & Selling 2,230.00 6.25 3.1250 2,508.75 6.25 3.1250 2,78750 6.05 3.1250

Fresh Eliminations Costs
(Credit)' (171.71) -0.48 -0.2406 (85.85 -0.21 -0.1069 0.00 0.00 0.0000

Total F.O.B. Costs $4.7.03 $13.19 $6.5934 $5.069.63 $12.63 $6.3149 $5434.24 $11.98 $6.0922

'Represents a "net eliminations cost"; i.e., average yield of 4.50 pound solids per box times $0.65 per pound solids.











Table 6.--Estimated annual per acre costs and returns and 5-year average costs and returns for a mature, white seedless grapefruit grove
producing citrus for fresh fruit market in the Indian River area, 1990-91--1994-95


On-tree Gross Total grove Total specified Net return to land,
Year price/box' Yield revenue care expenses costs trees, and ownership
----------------------------------------- Dollars --------------------------------
1990-91 $5.08 446 2,265.68 917.97 965.97 1,299.71

1991-92 $751 446 3,349.46 941.52 98952 2,359.94

1992-93 $2.81 446 1,253.26 954.03 1,002.03 251.23

1993-94 $4.29 446 1,913.34 972.91 1,020.91 892.43

1994-95 $3.27b 446 1,458.42 990.30 1,038.30 420.12

5-yr. avg. $4.59 446 2,047.14 955.35 1,003.35 1,043.79

'On-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.
CA management cost of $4.00 per acre per month is included. Fixed costs such as taxes, debt service, and crop insurance are not
included.











Table 7.-Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 1995 dollars) for a mature,
white seedless grapefruit grove producing citrus for fresh fruit market in the Indian River area, 1990-91--1994-95


=


Inflation On-tree Gross Total specified Net return to land,
Year factor index' price/box Yield revenue costsb trees, and ownership

------------------------------- Dollars -a------------------
1990-91 105.8 $537 446 2,395.02 1,022.00 1,373.02

1991-92 105.2 $7.90 446 3,523.40 1,040.98 2,482.42

1992-93 103.7 $2.96 446 1,297.86 1,039.11 258.75

1993-94 102.4 $4.39 446 1,957.94 1,045.41 91253

1994-95 100.0 $3.27 446 1,458.42 1,038.30 420.12

5-yr. avg. $4.77 446 2,127.42 1,037.16 1,090.26

*Producer price index for each year adjusted to 1995 prices (1995 = 100), with 1995 consumer price index estimated to be 123.3.
Producer price index for other years are: 1991 = 116.5; 1992 = 117.2; 1993 = 118.9; and 1994 = 120.4.

bA management cost of $4.00 per acre per month is included. Fixed costs such as taxes, debt service, and crop insurance are not
included. (Refer to Table 6.)










REFERENCES


1. Knapp, J. L (Ed.). 1995 Florida Citrus Pest Management Guide. Univ. of Fla. Coop. Ext. Svc.
SP 43. Gainesville: Jan. 1995. 69 pp.

2. Muraro, Ronald P. "A Listing of Estimated Comparative Indian River Citrus Production Costs
Per Acre for 1994-95." Lake Alfred Citrus Research and Education Center (CREC) Report.
Lake Alfred, FL: May 1995.

3. "Cost for Establishing, Planting, and Maintaining a Citrus Grove through Four Years
of Age, South Florida Flatwoods Area." Lake Alfred CREC Report. Lake Alfred, FL: Nov.
1989.

4. "A Listing of 1995 Custom Rates Reported by Twenty-two Indian River and South
Florida Citrus Caretakers." Lake Alfred CREC Report. Lake Alfred, FL: May 1995.

5. Savage, Zach. Citrus Yields Per Tree Age. Univ. of Fla. Agr. Ext. Ser. 60-8. Gainesville:
1960.

6. Tucker, D. P. H., A. K. Alva, L. K. Jackson, and T. A. Wheaton (Eds.). Nutrition of Florida
Citrus Trees. Univ. of Fla. Coop. Ext. Svc. SP 169. Gainesville: 1995. 61 pp.










ADDENDA: Listing of Grove Care Programs for Indian River Citrus Production for Both
Round Oranges and Grapefruit'

Page

Table 1-A. Spray programs ................................................ 13

Post bloom spray ................................................ 13
Summer spray ................................................... 14
Fall spray .................................................... 15

Table 2-A. Herbicide ..................................................... 16

Table 3-A. Dry fertilizer .................................................. 18

Table 4-A. Liquid fertilizer (Double boom application) ........................... 19

Table 5-A. Nematicides ................................................... 20

Table 6-A. Soil amendment ............................................... 20

Table 7-A. Irrigation--annual cost per acre .................................... 21

D rip ........................................................ 21
Microsprinkler ................................................. 21
Drainage ditch annual costs ....................................... 21

Table 8-A. A listing of 1995 custom rates reported by twenty-two Indian River and South
Florida citrus caretakers ......................................... 22

Table 9-A. 1995 summary of average chemical price estimates ..................... 24

Table 10-A. 1995 summary of average fertilizer price estimates ...................... 26

Table 11-A. Cost for establishing, planting and maintaining a citrus grove through four
years of age, South Florida flatwoods area ............................ 28

Table 12-A. Historic prices for selected citrus varieties ............................ 29

Table 13-A. Debt which can be supported per $1,000.00 annual payment capacity ....... 30


Cu = Copper Mn = Manganese
Fe = Iron Zn = Zinc
Mg = Magnesium N = Nitrogen


'The costs in the ADDENDA represent a custom managed operation. Therefore, all equipment
costs are based upon the average custom rate costs and a 10 percent handling and supervision charge
is added to the material cost.










Table 1-A.-Spray programs


POST BLOOM SPRAY


Spray Program #1


Spray Program #2


Spray Program #3


Spray Program #4


Materials/Ingredients

Cu (50% metallic)
Zn
Mn
Ground Application
(engine driven airblast)
Total per Application


Materials/Ingredients
Cu (50% metallic)
Zn, Mn, Nitrates
Carzol 92 SP

Ground Application
(engine driven airblast)
Total per Application


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


Materials/Ingredients
Dicofol 4EC
Cu (50% metallic)
Ground Application
(engine driven airblast)
Total per Application


Amount
/Acre
15 lbs
5 lbs
10 lbs
250 gals


Your
Cost/Acre


Cost/Acre
$22.65
4.50
3.50
28.36


$59.01


Amount
/Acre
15 lbs
Ipt
lib

125 gals


Your
Cost/Acre


Cost/Acre
$22.65
1.27
29.20
20.00


$73.12


Amount
/Acre
5 pts
10 lbs
3 gals
500 gals


Your
Cost/Acre


Cost/Acre
$23.50
15.10
7.53
34.25


$80.38


Amount
/Acre
6pts
15 lbs
250 gals


Your
Cost/Acre


Cost/Acre
$38.76
22.65
28.36


$89.77


_ __ I_~


_ __ __ __ I_~ ____IUI~_~___~


- -- ------- -- --- --- ------ -- ----


___ ___ ________ ___----------_ _I___









Table 1-A.-Spray programs (cont'd.)

POST BLOOM SPRAY (cont'd.)


Spray Program #5


SUMMER SPRAY


Spray Program #6


Spray Program #7


Spray Program #8


Spray Program #9
(Scale insects)


Materials/Ingredients
Vendex WP
Aerial Application
Total per Application


Materials/Ingredients
Oil 97+%
Cu (50% metallic)
Ethion 4EC
Ground Application
(engine driven airblast)
Total per Application


Materials/Ingredients
Cu (50% metallic)
Oil 97+%
Agri-Mek
Ground Application
(engine driven airblast)
Total per Application


Materials/Ingredients
Cu (50% metallic)
Oil 97+%
Agri-Mek
Ground Application
(engine driven airblast)
Total per Application


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


Amount
/Acre
2 lbs
15 GPA


Amount
/Acre
5 gals
7 lbs
6 pts
500 gals


Your
Cost/Acre







Your
Cost/Acre


Cost/Acre
$46.10
6.50

$52.60


Cost/Acre
$12.55
10.57
28.20
34.25


$8557


Amount
/Acre
7 lbs
5 gals
10 ozs
500 gals


Your
Cost/Acre


Cost/Acre
$10.57
1255
53.10
34.25


$110.47


Amount
/Acre
7 lbs
10 gals
5 ozs
500 gals


Your
Cost/Acre


Cost/Acre
$10.57
25.10
26.55
34.25


$97.47


Amount
/Acre
7 pts

500 gals


Your
Cost/Acre


Cost/Acre
$42.63
34.25


$76.88


- ----- ------ -__ __I __ ____ __


- -------------- --- ----------------___1__


1__________1_1__ ___I___~C__ ___I









Table 1-A.-Spray programs (cont'd.)

FALL SPRAY


Spray Program #10


Spray Program #11


Spray Program #12


Spray Program #13


Spray Program #14


Materials/Ingredients
Kelthane MF
Ground Application
(engine driven airblast)
Total per Application


Materials/Ingredients
Vendex 50WP
Thiolux 80 DF (sulfur)
Ground Application
(engine driven airblast)
Total per Application


MaterialsfIngredients
Dicofol 4EC

Aerial Application
Total per Application


Materials/Ingredients
Vendex WP
Ground Application
(engine driven airblast)
Total per Application


Materials/Ingredients
Thiolux 80 DF (sulfur)
Aerial Application
Total per Application


Amount
/Acre
6 pts
250 gals


Your
Cost/Acre


Cost/Acre
$38.16
28.36


$6652


Amount
/Acre
2 lbs
15 lbs
250 gals


Your
Cost/Acre


Cost/Acre
$46.10
11.25
28.36


$85.71


Amount
/Acre

6 pts
15 GPA


Amount
/Acre
2 lbs
250 gals


Your
Cost/Acre







Your
Cost/Acre


Cost/Acre
$38.76
6.50
$45.36


Cost/Acre
$46.10
28.36


$74.46


Amount
/Acre
15 lbs
15 GPA


Your
Cost/Acre


Cost/Acre
$11.25
6.50
$17.75


I~__


-- - ------ --------- ---- -- - --------- -- ---- - -- -









Table 2-A.--Herbicide


Herbicide Program #1

(Strip/band)


Herbicide Program #2

(Strip/band)


Herbicide Program #3

(Strip/band)


Herbicide Program #4

(Strip/band)


Amount/
Materials Treated Acre


Solicam 80DF
Karmex WP
Roundup
Adjuvant (Surfactant)

Ground Application
(1 time)

Total for 1 Application


3 lbs
4 lbs
2 qts
2 pts


Amount/
Materials Treated Acre


Surflan A80 DF
Simazine 4L
Roundup
Adjuvant (Surfactant)

Ground Application
(1 time)
Total for 1 Application


2 qts
4 qts
2 qts
2 pts


Amount/
Materials Treated Acre


4 lbs
2 qts
2 pts


Karmex WP
Roundup
Adjuvant (Surfactant)

Ground Application
(1 time)

Total for 1 Application


Amount/
Materials Treated Acre


Krovar II
Gramoxone
Adjuvant (Surfactant)

Ground Application
(2 times)

Total for 2 Applications


8 lbs
6 pts
2 pts

80 gals


'With respect to herbicide materials, Amount Per Grove Acre does not equal Amount Per Treated
Acre shown on the label as only a strip or band is being treated. In this report, it is assumed that only
50% or one-half of a grove acre is being treated.


Your Cost/
Grove Acre


Your Cost/
Grove Acre


Your Cost/
Grove Acre


Cost/
Grove Acre'

$22.76
9.36
12.00
2.11

11.80


$58.03


Cost/
Grove Acre"

$15.36
8.10
12.00
2.11

11.80


$49.37


Cost/
Grove Acre"

$ 9.36
12.00
2.11


11.80


$35.27


Your Cost/
Grove Acre


Cost/
Grove Acre'

$47.91
16.27
2.11


23.60


$89.89


- ------ ------- -- ------- ---- ------- ---- ----


--- -- --- -- --- -- --- -- --- -- --- -- --- -- -- --- -- --- -- --- -- --- -- --- -- --- -- --


--- --- -- --- -- --- --- -- --- -- --- -- --- --- -- --- -- --- -- --- --- -- --- -- -- --









Table 2-A.-Herbicide (cont'd.)


Herbicide Program #5
(Strip/band)


Herbicide Program #6
(Strip/band)


Herbicide Program #7
(Strip/band)


Amount/
Materials Treated Acre


Solicam 80DF
Simazine 4L
Roundup
Ground Application
(1 time)
Total for 1 Application


4 lbs
4 qts
2 qts
40 gals


Amount/
Treated Acre


Materials


Roundup
Adjuvant (Surfactant)
Ground Application
(1 time)
Total for 1 Application


4 qts
2 pts
40 gals


Amount/
Materials Treated Acre


Krovar I
Roundup
Adjuvant (Surfactant)
Ground Application
(1 time)
Total for 1 Application


5 lbs
2 qts
2 pts
40 gals


Herbicide Program #8
(Strip/band)


Amount/
Materials Treated Acre


Roundup
Princep (Caliber 90)
Adjuvant (Surfactant)
Ground Application
(1 time)
Total for 1 Application


2 qts
4 lbs
2 pts
50 gals


Cost/
Grove Acre'
$12.00
8.10
2.11


11.80


$34.01


Herbicide Program #9
(Strip/band)


Amount/
Materials Treated Acre


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


3 qts
3 lbs
2 pts
50 gals


Your Cost/
Grove Acre


Cost/
Grove Acre"
$30.34
8.10
12.00


11.80


$62.24


Cost/
Grove Acre"
$24.00
2.11


Your Cost/
Grove Acre


11.80


$37.91


Your Cost/
Grove Acre


Cost/
Grove Acre"

$24.90
12.00
2.11


11.80


$50.81


Your Cost/
Grove Acre


Your Cost/
Grove Acre


Cost/
Grove Acre'
$ 9.37
22.76
2.11


11.80


$46.04


I~ __ I~__


______U__ ______________ _____________ ~_I__


____I___________________________________


______1_____1__________________ ______ __ ____~_








Table 2-A.-Herbicide (cont'd.)


Herbicide Program #10

(Chemical mow)


Herbicide Program #11

(Chemical mow)


Materials

Roundup
Adjuvant (Surfactant)

Ground Application
(1 time)
Total for 1 Application


Materials

Roundup
Adjuvant (Surfactant)
Ground Application
(1 time)
Total for 1 Application


Amount/
Treated Acre

1 pt
0.5 pt


Amount/
Treated Acre

1.5 pts
0.5 pt


Herbicide Program #12

(Spot treatment for
grass/brush regrowth
under trees)


Materials

Roundup
Adjuvant (Surfactant)


Ground Application
(1 time)
Total for 1 Application


Amount/
Treated Acre

2 qts
2 pts


Table 3-A.--Dry fertilizer


Program #1

(125 Ibs N/Acre)


Program #2
(162 lbs N/Acre)


Analysis/Material
Applied
12-2-12-2.4 MgO

Application

Total for 3 Applications


Analysis/Material
Applied
12-2-12-2.4 MgO
Application

Total for 3 Applications


Your Cost/
Grove Acre


Cost/
Grove Acre"

$ 3.00
1.06

8.40


$12.46


Your Cost/
Grove Acre


Cost/
Grove Acre'

$ 4.50
1.06
8.40


$13.96


Cost/
Grove Acre'

$12.00
2.11


Your Cost/
Grove Acre


4.50


$18.61


Amount
/Acre

1040 Ibs

3 times


Amount
/Acre
1350 Ibs
3 times


Your
Cost/Acre


Your
Cost/Acre


Cost/Acre
$ 88.54
20.25

$108.79


Cost/Acre
$114.75
20.10

$134.85


--- --- --- -----__ ____


--- --- -- --- ---- --- -- -- -- --- --- -- --- --- --- -- --- -


_______ __1______1____________________I__








Table 3-A.--Dry fertilizer (cont'd.)
Analysis/Material
Program #3 Applied
(180 lbs N/Acre) 15-2-15-2.4 MgO
Application
Total for 3 Applications


Program #4
(204 lbs N/Acre)


Program #5
(225 lbs N/Acre)


Analysis/Material
Applied
17-4-17-2.4 MgO
Application
Total for 2 Applications


Analysis/Material
Applied
15-2-15-2.4 MgO
Application
Total for 3 Applications


Table 4-A.--Liquid fertilizer (Double boom application)
Analysis/Material
Program #1 Applied
(180 lbs N/Acre) 10-0-10
Double Boom Application
Total for 3 Applications


Program #2
(180 lbs N/Acre)


Program #3
(180 Ibs N/Acre)


Analysis/Material
Applied
10-2-10
Double Boom Application
Total for 3 Applications


Amount
/Acre
1200 Ibs
3 times


Amount
/Acre

1200 lbs
3 times


Amount
/Acre

1500 lbs
3 times


Amount
/Acre

1800 Ibs
3 times


Amount
/Acre
1800 lbs
3 times


Analysis/Material Amount
Applied /Acre
10-0-10 1800 Ibs
Solicam 80DF 3 lbs*
Karmex WP 4 lbs*
Double Boom Application 3 times
Total for 3 Applications

*Treated acre (one herbicide application)


Cost/Acre
$106.92
20.10
$127.02


Your
Cost/Acre







Your
Cost/Acre







Your
Cost/Acre


Your
Cost/Acre







Your
Cost/Acre







Your
Cost/Acre


Cost/Acre
$122.76
20.10
$142.86


Cost/Acre
$133.65
20.10
$153.75


Cost/Acre
$114.84
30.00
$144.84


Cost/Acre
$126.72
30.00
$156.72


Cost/Acre
$114.84
22.76
9.36
30.00
$176.96


___


I______ _____ __________ ____~~___I~_


_ __ __________U________~_____________ll___








Table 5-A.-Nematicides


Program #1








Program #2








Program #3


Analysis/Material
Applied
Temik 15G
Application
Total per Application


Amount
/Acre
33 lbs
1 time


Cost/Acre
$131.77
12.00
$143.77


Analysis/Material Amount
Applied /Acre Cost/Acre
Nemacur 15G 67 Ibs $238.79
Application 1 time 12.00
Total per Application $250.79


Analysis/Material
Applied
Nemacur 15G

Application
Total per Application


Amount
/Acre
50 lbs
1 time


Cost/Acre
$178.20
12.00
$190.20


Table 6-A.-Soil amendment


Program #1
(Every 3 years)


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


- ----------------------- --- ----------------


Program #2
(Every year)


Analysis/Material
Applied
Dolomite (Delivered)
Application
Total per Application


Your
Cost/Acre







Your
Cost/Acre







Your
Cost/Acre


Amount
/Acre

1 ton
1 time


Cost/Acre
$29.58
6.64
$36.22
$12.07


Your
Cost/Acre









Your
Cost/Acre


Amount
/Acre
1000 lbs
1 time


Cost/Acre
$14.79
6.64
$21.43


--------I--








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

DRIP


Operating


Maintenance of System
Total Cash Expenses

Fixed Depreciation Expense

Total Cash and Fixed Expenses


Program #1
$ 29.92
(Electric)
37.70
$ 67.62

4235

$109.97


MICROSPRINKLER


Operating


Maintenance of System
Total Cash Expenses

Fixed Depreciation Expense

Total Cash and Fixed Expenses


Program #3
$ 34.00
(Electric)
44.88
$ 78.88

52.94

$131.82


DRAINAGE DITCH ANNUAL COSTS


Ditches/Canals Maintenance ($34.11/acre + 3 years)
Weed Control in Ditches/Canals
Water Control: In/Out of Ditches and Canals
Total


Your
Cost/Acre


Your
Cost/Acre


Program #2
$ 26.95
(Diesel)
37.70
$ 64.65

45.25

$109.90


Your
Cost/Acre


Program #4
$ 29.94
(Diesel)
44.88
$ 74.82

5656

S131.38


Your
Cost/Acre


Your
Cost/Acre


Program #5

$11.37
1051
8.34
$30.22


_ __ ___


_ ___ _____ ____ ___ __ _____ ____- ----------__ _


1








Table 8-A.-A listing of 1995 custom rates reported by twenty-to Indian River and South Florida citrus carekers

Range of Rate Average
Grove Practice Unit Reported Rate Cbmments

CULTIVATION AND EQUIPMENT:


Hand Labor
Tractor/Equipment Operator
Rolovate
Disc 7-'
Disc 10Y
Mow Off-setad or Side Mower
5-4'
9-10'
15-16'
V-Mower
Sickle Mower
Hebicide (Strip/Band-Single Boom)
Herbicide' (Strip/Band-Single Boom)
Hebicide' (Strip/B d-Double Boom)
Herbicide (Chemical Mow)
Temik/Nemacur
Plow
Backhoe
Vine Pulle
Middle Buster
Mound Builder
Grader Blade
Bush Hog
Water Truck with Driver
Pickup Truck with Driver
Pickup Truck without Driver
PlatbedTransport Truck with Driver
Tractor with Driver
Tractor without Driver


Hour 8.50-
Hour 10.50-
Hour 28.50-
Hour 24.00-
Hour 24.00-
Hour
Hour 24.00-
Hour 25.00-
Hour 2&00-
Hour 25.00-
Hour 3030-
Hour 28.00-
Acre 10.25-
Acre 11.0-
Acre 7.O-
Acre 1200-
Hour 23.O0-
Hour 35J)0-
Hour
Hour 24.00-
Hour 25.00-
Hour 23.00-
Hour -
Hour 24.00-
Hour 21.00-
Hour 12.00-
Hour 25.00-
Hour 23.00-
Hour 14.75-


$13.25
15.00
35.00
34.00
34.00

344)D
37.00
40.0J
3200
34.50
3600
15.75
12.00
1050
15.00
30.00
45.00

34.00
344)0
34.00

34.00
30.00
18.50
35.00
30.00
18.50


$10.70 Plus transportation and equipment
1256
31.61
28.64
28.75
3025
2733 Average $10S.acre
29.40 Average S950Vacre
32.05 Avrwae S7./acre
29.25 Average $lW0/acre
32.50
29.42 Plus materials
12.44 Plus materials
11.0 Plus materials
8.40 Plus materials
1333 Plus materials
26.42
4131
2600
28.95 With tractor and driver
2821 With tractor and driver
27.42 Tractor/blade and driver
28.50 Average 10.0/acre
27.88
2436 Average miles traveled per year: Pick-up truck 30,000 miles
16.75 Transport truck 15,000 miles
30.96 Average $1.25/mile
26.40
15.81


SPRAYINGe


Hand Sprayer
Air curtain Sprayer


Hour $ $ 40.00 Includes tractor, handgun sprayer and 2 workers
Acre 17.00 17.50 17.25 2-MPH Dicky John; Precott Boom: S39.00/50 pl tank

AIR BLAST SPRAYER

Engine Driven PTO Powered


Acre 25.00- 42.00
Acre 22.50- 34.00
Acre -
Acre -


34.25 30.00- 35.00 32.88
28.36 2000- 34.00 26.81 Average 20acre--250 GPA @ 2 MPH
20.00 19.00- 22.00 20.00 Average $18/acre-125 GPA @ 2 MPH
1800


ENGINE/PT DRIVEN SPRAYERS


Dilute
2X
3X
4X
6X

Aerial
Aerial
Aerial
Aerial

DUSTING.

Ground Application
Aeial Application

FERTIIZING'.

Liquid Boom Application:
Double Boom
Day (Bulk)
Dry (Bulk)
Lime or Dolomite
Fertilize Young Trees. Hand Spread
Pert. Spreader


Tank 25.00 36.00
Tank 31.00- 42.00
Tank 45.00- 62.00
Tank 6000- 72.00
Tank -


30.50 500 gallon tank
3725 500 gallon tank
51.40 500 gallon tank
6533 500 paon tank
80.00 500 gallon tank


Fixed Wing: 4.00/acre @ 5 pons per acre
Fixed Wing: 4.75/acre @ 10 gallons per acre
FanedWing: 50acre @ 15 gallons per acre
Fixed Wing: 7.00/cre @ 20 gallons per acre


Acre -
Acre -


S 6 75
7.50 70 per pound aeriala)


Acre S11.0- $12J0 S12.00
Acre 6.00- 400 6.70 Average S30.13/hour
Ton 18.00- 1815 1805
Acre 6.0- &00 6.64
Hour 8.50- 13.25 10.70 Plus transportation; one reporting 10/tree
Hour 25.00- 36.00 30.04 Plus materials; average 7.00acre


One reporting travel to/from grove site at one hour per day of pickup truck rate.


(OVER)


500 GPA
250 GPA
125 GPA
100 GPA








Table -A.-A listing of 1995 custom rates reported by twnty-two Indian River and South Florida trust caretakers (coatd.)

Range of Rate Average
Orove Practice Unit Reported Rate' ODnmets

IRRIGATION:


Ditch Ceaning Trac Hoe
Water Furrow Disc
Water urrow Ceaner
Water Furrow Shaper
Rotary Ditcher or Auger
Caterpillar Grader
Water Trencher
4 Wheeler for Microprinkler with Driver
Microprinker/Drip Irigation Maintenance

REMOVING TREES:


Front End Loader
Tree Shearing cuttingg Tree at Ground
1,d)
Vermeer Tree Spade for Relocating Tres

PRUNING:

General Pruning (Rehab/Preee Damage)
Saw with Operator
Hedging:
Single Side (Tractor Mounted)
Double Side (Tractor Pulled)
Double Side (Tractor Pulled)
Double Side (Self Popelled)
Double Side (Self Propelled)
Self Propelled Double Boom & Hedger
Topping:
Tractor Pulled
Single Boom (Self Propelled)

Double Sided Topper
Double Boom (Self Propelled)
Limb LiferTree Skirt Trimmer
Removing Brush:
Haul Brush out of Grove
Mow Brush

OTHER CUSTOM RATES:

Plant Trees (Solid Set)
Plant Trees (Resets)
Mechanic Labor
Grove Management Charge/Month:
Supevising Grove Care Operations
Handling Fruit Marketing
Supervising/Handling Cumicals/ertilizer

cmRbulting


Total Reported Acreage Provided Grove
Service to:


Hour
Hour
Hour
Hour
Hour
Hour
Hour
Hour
Acre/Month


Tree
Hour

Hour
Acre
Hour
Hour
Hour
Hour

Hour
Hour

Hour
Hour
Hour

Hour
Hour


S S 45.00 5 & bucket
2600- 35.00 31.06
25.00- 34.00 30.00
55.00- 70.00 6333
26.00- 34.00 29.92
50.00
2800- 34.00 3067
1400- 19.50 17.36 Average S4Jt(acre
3.00- 3.50 3.15 Check & repair ayrite parts et


S45.00- 49.50 $45.11 Avg. range 5-20 tree per hour bulldozer vg. $55.13/hour

5.00- 55.00 SL67 Avg. range 5-12 trees per hour
6000



$ $3.50
15.00- 25.00 18.25

50.00- 75.00 63.00 4 to 8 acre/hour
15.00
75.00- 107.00 93.00 4 to 15 acres/our; Double Side (Tractor Mounted): S205/hr
240.00- 250.00 245.00 8 to 20 acres/bour depending on wood size
30.00- 325.00 312.50 12to 25 acres/bour-double row beds; 8 to 12 acre-single
35000 \w beds depending on wood size

95.00- 107.00 99.25 2-5 ac/hr depending on wood ize; S30.00acre
300.- 315.00 307.50 4 to 10 acre/bour depending on wood size; 10 to 20 acres
\flttop cut from bed tops
240.00 Avg. 8 to 16 acres depending on wood size type of cut
510.00 2 to 10 acres/bour depending on wood size 15 to 30 acres
50.00- 60.00 56.75 3 to S acres/hour one reporting \flttop cut from bed tops
$S..00acre
40.00- 50.00 45.22 Front-end loader
26.00- 40.00 34.57 Average $10.00acre


S 0.60- S 1.50 S 1.12 Varies as to density
1.75- 250 2.23 Varies as to the number of resets
2600- 40.00 30.78 Labor and service truck

2.50- 600 3.9% In addition to caretaking charges
2.0- 6.00 4.17 Average 14S per box
2.50- 4.00 2.75 10% to 15% of materials cost


$100 per hour for Horticultural Evaluation and/or Financial Analysis/prospectus.
$2 per acre for Pest Management/Regulatory Cmpliance in addition to management charge.


463- 11000 3,087 Total acre reporting: 51301


Soue: Ronald P. Muraro, Extension Parm Management Economist, Lake Alfred CREC. May 1995.


Plus materials Caretaker reporting rates include labor, tractor and prayer; supply truck included by most caretaker.

1'lculated by dividing the total number of caretakers reporting a grove practice rate into the um reported. Unle otherwise stated, labor included with all charges







Table 9-A.-1995 summary of average chemical price estimates


Average
Item Unit Price


Fungicides:


Aliette 80WP
Benlate
Basic Copper Sulfate (53%)
Cupric Hydroxide (50%)
Copper (50%) (Kocide 101)
Copper (40%) (Kocide 606)
Copper (40%) (Champ)
Oil 412
Oil 435 or 455
Ridomil 2E
Ridomil 5G


Insecticides/Nematicides:
Admire
Agri-Mek (0.15EC)
Carzol 92 SP
Comite 6.55 EC
Cygon 4 EC
Dicofol 4 EC
Eclipse
Ethion
Guthion 2L
Guthion 50WP
Kelthane MF
Logic Bait
Lorsban 4EC
Lorsban 15G
Malathion 5 E
Metasystox-R
Methyl Bromide 98/2
Morestan 25WP
Nemacur 3EC
Nemacur 15G
Sevin 80S
Sevin XLR
Sulphur 6F
Sulphur Dust
Supracide 2 EC
Temik 15G
Thiolux 80 DF
Vapam
Vendex 50W


13.92
16.20
1.37
2.03
2.01
12.42
22.00
2.31
2.28
151.41
4.58


600.00
618.38
29.20
78.25
34.94
46.95
53.16
34.16
30.37
8.00
46.20
7.32
44.30
1.83
20.43
48.56
1.01
13.69
63.74
3.24
4.34
24.62
3.61
321.25
47.60
3.63
0.68
4.92
20.95


gal.
gal.
lb.
gal.
gal.
gal.
lb.
gal.
gal.
lb.
gal.
lb.
gal.
lb.
gal.
gal.
lb.
lb.
gal.
lb.
lb.
gal.
gal.
ton
gal.
lb.
lb.
gal.
lb.


(Continued on Reverse Side)








Table 9-A.-1995 summary of average chemical price estimates (cont'd.)


Average
Item Unit Price


Herbicides: Devrinol 50WP lb. 8.05
Direx 80 DF lb. 4.30
Direx 4L gal. 22.72
Eptam gal. 28.43
Fusilade OX gal. 137.52
Goal gal. 78.36
Gramoxone (Paraquat) gal. 39.47
Hyvar X lb. 14.22
Karmex Ib. 4.25
Krovar I lb. 9.05
Krovar II Ib. 10.89
Princep (Caliber 90) Ib. 3.68
Princep 4L gal. 16.56
Prowl gal. 27.28
Rodeo (30 gal drum) gal. 98.02
Roundup (30 gal drum) gal. 43.60
Simazine 4L gal. 14.75
Solicam Ib. 13.79
Surflan AS gal. 55.80
Torpedo 1E gal. 51.43
Touchdown gal. 64.77
Treflan gal. 32.90
Growth Regulators:
Fruit Fix gal. 103.70
Pro-Gibb 3.91% 20 oz. 34.09
Tre-Hold gal. 71.08
Other Spray Materials:
Borates (15%) lb. 0.78
Manganese (32%) lb. 0.32
Zinc (78%) lb. 0.82
Adjuvant (Surfactant) gal. 15.38
Nutritional Spray Mix:
Goemar BM 86 gal. 28.50
Goemar MZ 63 gal. 30.50
NutraLeaf (20-20-20) lb. 0.61
Sequestrene 138 FE lb. 11.15
Peter's 20-20-20 Foliar lb. 0.64
Key Plex 350 gal. 16.40
Dyna Gro Citrate 779 gal. 7.25
Dyna Gold MZF gal. 7.77



SOURCE: Ronald P. Muraro, Extension Farm Management Economist, University of
Florida, IFAS, CREC, Lake Alfred, Florida, May 1995.







Table 10-A.--1995 summary of average fertilizer price estimates


Average
Item Unit Price

FERTILIZER (FOB Price @ Plant) $
Slow Release (Young Tree)*
IBDU: 8-4-8 (N) ton 272.00
10-3-7 (N) ton 384.00
Osmocote: 17-6-9 (NPK) ton 1,750.00
ESCOTE: 19-6-12 (NPK) ton 1,524.00
Nutralene/Hydrolene (N 40%) ton 884.00
Sulfur Coated Urea (39%-40% N) ton 440.50
Dry Mix (Bulk)
17-0-17-3ms ton 182.67
17-4-17-2.4Mg ton 186.53
16-0-16 ton 151.60
16-0-16-2.4, ton 156.45
16-0-16-4, ton 179.83
16-2-16-3, ton 173.70
15-2-12-2.4 ton 162.27
12-2-12-2.4, ton 154.60
8-8-8 w/minors** ton 136.47
8-4-8 w/minors** ton 138.40
8-2-8 w/minors** ton 132.40
6-6-6 w/minors** ton 127.33
Liquid Mix (Bulk)
8-2-8 ton 118.37
8-4-8 ton 122.50
9-3-9 ton 125.35
9-4-9 ton 130.10
10-0-10 ton 117.85
10-2-10 ton 127.75
12-0-6 ton 121.40
12-3-6 ton 136.60

*Slow Release Elements are indicated in parenthesis.

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


(Continued on Reverse Side)








Table 10-A.-1995 summary of average fertilizer price estimates (cont'd.)

Average
Item Unit Price

Foliar N $
UNOCAL Plus (20% N) gal 1.45
Dynazone (28% N of which 20.1% Slow
Released) gal 5.50
Other Fertilizer Materials (Bulk)
Ammonium Nitrate (21% N Liquid) ton 124.27
Ammonium Nitrate (33.5% N Dry) ton 191.67
Ammonium Sulfate (21% N) ton 117.33
Calcium Nitrate (19% Ca, 15.5% N) ton (bags) 186.67
Dolomite (at mine-49% CaCO3, ton 15.00
36% MgCO3)
Gypsum (20%-28% Ca) ton 18.00
High Cal Lime (36%-39% Ca) ton 10.50
Muriate of Potash (42% K) ton 151.07
Potassium Nitrate (14% N) ton 375.00
Super Phosphate (8% P) ton 125.00
Triple Superphosphate (19% P) ton 155.00
Average Delivery Cost ton 13.08


SOURCE: Ronald P. Muraro, Extension Farm Management Economist, University of
Florida, IFAS, CREC, Lake Alfred, Florida, May 1995.









Table 11-A.-Cost for establishing, planting and maintaining a citrus grove through four years of age, South Florida flatwoods area

Cost Per Acre

Range Average

$ S
Land Cost' Improved Pasture Land 1,700-2,500 2,050
Raw Land and Semi-improved Pasture 1,150-1,800 1,450
Land Preparation: Pasture and Light Palmettos 125- 275 195
(Clearing) Raw Land (heavy pines, palmettos) 350- 600 465
Leveling: With Laser 200- 350 275
Without Laser 100- 250 160
Bedding: 2-rows (short rows 1,350+ feet) 100- 195 130
Soil Amendments: Dolomite 1 ton 35
Super Phosphate, 400 Ibs. 30
Canals, Ditches and Dikes 150- 260 195
Reservoirs and Roads 130- 180 155
Throw-out Pumps for Water Movement 45- 60 55
Culverts 65- 135 85
Middle Drop Drainage Pipes 45- 95 105
Drainage Tile 140- 160 150
Cover Crop 9- 16 12
Irrigation System: Microsprinkler with Well2 850-1,500 1,000
without Well 525-1,200 700
Drip with Well2 775-1,050 875
without Well 400- 825 560
Water Permits, Environmental Studies, and Engineering: Cost 40- 90 70
Time in Months 5- 12 8
Percent Land Utilization: Planted to Citrus 55%- 85% 71%
Ditches and Canals 5%- 10% 8%
Water Retention 10%- 30% 15%
Roads and Service Areas 3%- 15% 6%
South Florida

Year

1 2 3 4

Solidset Planted Trees' Cost Per Tree
Microsprinkler Irrigation and Ditch Maintenance $0.40 $050 $0.65 $0.85
Fertilize Tree 0.25 0.40 0.55 056
Supplemental Fertilization thru Irrigation 0.15 0.20 0.25 0.29
Spray 0.30 0.40 0.47 0.50
Insulated Tree Wrap (annual maintenance) 0.25 0.25 0.25 0.00
Sprouting (labor) 0.20 0.20 0.00 0.00
Cultivation/Mowing 0.44 0.44 0.44 0.44
Herbicide 054 054 054 0.54
Ridomil/Aliette 0.35 0.35 0.00 0.00
Miscellaneous 0.43 0.49 0.42 0.48
Total Cost Per Year $331 $3.77 $3.62 $3.66
Reset Trees (annual additional grove care costs) $2.13 $2.47 $1.84 -
Cost of Planting Trees' Solidset = $5.00 Reset = $6.30

'Land cost will vary from one county to another as well as from one parcel to another.

'Irrigation costs include distribution system, power unit and well (where indicated.) The higher cost ranges reported also included a cost for
fertigation equipment.

'he per tree costs shown are applicable for tree densities of 145 to 165 trees per acre. The per tree costs should be decreased for higher density
plantings and increased for lower density plantings; e.g, at 200 trees per acre decrease costs by 15%; at 115 trees per acre increase costs by 15%.

*Tree cost (bare root) $3.25; stake, plant, and water tree = $1.25 (solidset) and $2.55 (resets); and uninsulated tree wrap $050.


Source: Ronald P. Muraro, Farm Management Economist, CREC, Lake Alfred, FL, November 1989.









Table 12-A.-Historic prices' for selected citrus varieties

Variety

Earlyb and Seedless grapefruit
mid'-season Late season Temple
Crop year oranges oranges oranges Tangerines Tangelos (white) (colored)


1961-62
1962-63
1963-64
1964-65
1965-66
1966-67
1967-68
1968-69
1969-70
1970-71
1971-72
1972-73
1973-74
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80
1980-81
1981-82
1982-83
1983-84
1984-85
1985-86
1986-87
1987-88
1988-89
1989-90
1990-91


1991-92
1992-93
1993-94'


$1.93
2.17
4.43
257
1.44
0.81
.1.86
156
1.15
1.10
1.98
1.43
1.38
1.46
1.69
1.89
3.90
4.44
359
3.67
4.27
4.88
5.09
7.30
3.92
4.56
6.72
6.63
6.01
5.38


5.44
3.16
3.63


$1.81
3.50
4.45
2.28
1.79
1.08
2.28
1.83
1.13
1.91
2.11
1.71
1.59
1.82
1.88
2.63
4.40
4.95
3.89
4.63
4.29
5.41
6.72
6.88
3.97
6.02
8.73
8.41
653
658


6.65
3.88
5.07


$217
3.09
4.45
2.77
1.80
0.88
2.79
2.22
1.47
1.91
1.95
1.95
1.64
1.68
1.79
2.16
3.92
4.89
2.89
4.21
4.01
3.99
5.34
5.59
3.01
3.60
5.69
5.46
5.64
631


651
299
3.49


$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
1138


$336
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
3.44


$0.68
1.29
2.24
1.51
139
0.73
2.05
0.98
1.72
1.89
2.27
2.06
158
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
433
5.21
459


6.46
2.37
3.46


$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
332
358


'On-tree average price per box (1-3/5 bushel box equivalent) for all methods of sale minus pick and haul
charges.
bNavel and Hamlin dValencia 'Preliminary


'Parson Brown and Pineapple


"Marsh (white) or pink


Source: Florida Agricultural Statistics Service.












Table 13-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% 95% 10.0% 10.5% 11.0% 11.5% 12.0% 125% 13.0% 135% 14.0% 14.5% 15.0%

1 926 922 917 913 909 905 901 897 893 889 885 881 877 873 870
2 1,783 1,771 1,759 1,747 1,754 1,724 1,713 1,701 1,690 1,679 1,668 1,657 1,647 1,636 1,626
3 2,577 2,554 2,531 2,509 2,487 2,465 2,444 2,423 2,402 2,381 2,361 2,341 2,322 2,302 2,283
4 3,312 3,276 3,240 3,204 3,170 3,136 3,102 3,070 3,037 3,006 2,974 2,944 2,914 2,884 2,855
5 3,993 3,941 3,890 3,840 3,791 3,743 3,696 3,650 3,605 3,561 3,517 3,475 3,433 3,392 3,352
6 4,623 4,554 4,486 4,420 4,355 4,292 4,230 4,170 4,111 4,054 3,998 3,942 3,889 3,836 3,784
7 5,206 5,119 5,033 4,950 4,868 4,789 4,712 4,640 4,564 4,492 4,423 4,355 4,288 4,224 4,160
8 5,747 5,639 5,535 5,433 5,335 5,239 5,146 5,056 4,968 4,882 4,799 4,718 4,639 4,562 4,487
9 6,247 6,119 5,995 5,875 5,759 5,646 5,537 5,431 5,328 5,228 5,132 5,038 4,946 4,858 4,772
10 6,710 6,561 6,418 6,279 6,145 6,015 5,889 5,768 5,650 5,536 5,426 5,319 5,216 5,116 5,019
11 7,139 6,969 6,805 6,647 6,495 6,348 6,207 6.070 5,938 5,810 5,687 5,568 5,453 5,341 5,234
12 7,536 7,345 7,161 6,984 6,814 6,650 6,492 6,341 6,194 6,054 5,918 5,787 5,660 5,538 5,421
13 7,904 7,691 7,487 7,291 7,103 6,923 6,750 6,583 6,424 6,270 6,122 5,979 5,842 5,710 5,583
14 8,244 8,010 7,786 7,572 7,367 7,170 6,982 6,801 6,628 6,462 6,302 6,149 6,002 5,861 5,724
15 8,559 8304 8,061 7,828 7,606 7,394 7,191 6,997' 6,811 6,633 6,462 6,299 6,142 5,992 5,847
16 8,851 8,576 8313 8,062 7,824 7,596 7,379 7,172 6,974 6,785 6,604 6,431 6,265 6,106 5,954
17 9,122 8,825 8543 8,276 8,022 7,779 7,549 7,329 7,119 6,920 6,729 6,547 6,373 6,207 6,048
18 9,372 9,056 8,756 8,471 8,201 7,945 7,702 7,470 7,250 7,040 6,840 6,649 6,467 6,294 6,128
19 9,603 9,268 8,950 8,650 8,365 8,095 7,839 7,596 7,366 7,146 6,938 6,739 6551 6,370 6,198
20 9,818 9,463 9,129 8,812 8,514 8,231 7,963 7,710' 7,469 7,241 7,025 6,819 6,623 6,437 6,259
25 10,675 10,234 9,823 9,438 9,077 8,739 8,422 8,123 7,843 7,579 7,330 7,095 6,873 6,663 6,464
30 11,258 10,747 10274 9,835 9,427 9,047 8,868 8,364 8,055 7,766 7,496 7,242 7,003 6,778 6,566
35 11,655 11,088 10,567 10,087 9,644 9,234 8,855 8,503 8,175 7,870 7,586 7,320 7,070 6,836 6,617
40 11,925 11,315 10,757 10,247 9,779 9,348 8,951 8,587 8,244 7,928 7,634 7,361 7,105 6,866 6,642

'Example. Assumes a $10,000 after tax income at 115% 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).