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UF FLAG IFAS PALMM



Budgeting costs and returns
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Permanent Link: http://ufdc.ufl.edu/UF00026156/00020
 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: 1995
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
notis - ABU0054
lccn - sn 82000632
System ID: UF00026156:00020

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
foo
S937 -e-
X 964


Budgeting Costs and Returns
for Indian River Citrus
Production, 1995-96


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


August 1996


Economic Information
Report 96-4
















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 representative for
a mature Indian River white grapefruit grove, the grove care costs for a specific grove site
may differ depending upon the tree age, tree density and the grove practices performed; e.g.,
spot herbicide for grass/brush regrowth under tree could add an additional $18.94 per acre;
"skirting trees" or pruning the lower branches could add $14.80 per acre; 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 of Temik or
Nemacur could increase the total cultural costs per acre above the average costs shown in the
comparative budgets; travel and set-up costs may vary due to size of the citrus grove and
distance from grove equipment barn and could add $26.25 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.




_; )^ J ^ --- v-^ ^-y t3 1 iLA-i$~ LJ .tidtl.' 1-.1\
















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 representative for
a mature Indian River white grapefruit grove, the grove care costs for a specific grove site
may differ depending upon the tree age, tree density and the grove practices performed; e.g.,
spot herbicide for grass/brush regrowth under tree could add an additional $18.94 per acre;
"skirting trees" or pruning the lower branches could add $14.80 per acre; 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 of Temik or
Nemacur could increase the total cultural costs per acre above the average costs shown in the
comparative budgets; travel and set-up costs may vary due to size of the citrus grove and
distance from grove equipment barn and could add $26.25 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.




_; )^ J ^ --- v-^ ^-y t3 1 iLA-i$~ LJ .tidtl.' 1-.1\

















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; 1996
custom rate summary report; cost of establishing a citrus grove; etc.
Page 12 is a list of the tables included in the ADDENDA.

















LIST OF TABLES


Table Pa

1 Schedule of production practices and budget items for an Indian River Florida
grapefruit grove, 1995-96 ........................................ 3

2 Calculation of normal production per acre, 1995-96 ........... ........... 4

3 Estimated annual per acre costs and returns for a mature, white seedless grapefruit
grove producing for the fresh market, Indian River area, 1995-96 ............ 5

4 Estimated total delivered-in cost for Indian River White grapefruit grown for the
processed juice market under three cultural cost programs, 1995-96 .......... 7

5 Estimated F.O.B. cost for fresh market Indian River White grapefruit, 1995-96 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, 1991-92-1995-96 ............................ 9

7 Estimated annual per acre costs and returns and 5-year average costs and returns
(adjusted to 1996 dollars) for a mature, white seedless grapefruit grove producing
citrus for fresh fruit market in the Indian River area, 1991-92-1995-96 ........ 10


1












BUDGETING COSTS AND RETURNS FOR INDIAN RIVER
CITRUS PRODUCTION, 1995-96


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 7-A. The custom rate costs are shown in Table 8-A and the
various chemical and fertilizer costs are shown in Table 9-A and 10-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 .-Schedule of production practices and budget items for an Indian River Florida grapefruit grove, 1995-96*

Month

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


20%
deposit


Less: Pick & haul cost

DOC advertisement tax


Final
payment
X


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 removal/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 (clean 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.











situation Boxes/tree
3.5% pulled and reset 0.0
3.5% 1 year old 0.0
3.5% 2 years old 0.0
3.5% 3 years old 1.0
3.5% 4 years old 1.7
38.5% 5-15 years old 5.5
3.5% producing 50% of expected yield 3.5
40.5% over 15 years 7.5


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, 1995-96

Boxes Total
Age of Tree Trees /tree boxes

Total no. Proportion No. ea.
all ags. ea. age' age ---- N
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 5.5 = 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 percent of the trees were non-bearing (pulled and
reset, 1 and 2 year old trees; see page 4).

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 1995-96 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, 1995-96'

Item Description Amount Your cost


446 boxes @ $2.47b


1,101.62 --- -------
1,101.62


Expenses'
Weed control
Mow middles
Chemical mow (Table 2-A, Program #9)
General grove work/sprouting
Herbicide (Table 2-A, Program #1, #6 & #7)
Spray program (Table I-A, Programs #1, #3, #7, #13 & #14)
Fertilizer (Table 3-A, Program #2)
Dolomite (Table 7-A, Program #1)
Pruning (maintenance)
Topping
Remove brush from trees
Hedging
Removing/chop brush
Tree replacement and care
Remove trees
Prepare sites, repair mound, and plant resets
Supplemental fertilizer, sprout, etc. (Trees 1-3 years)
Microsprinkler irrigation (Table 7-A, Program #4)
Drainage ditch annual cost (Table 7-A, Program #5)
Total grove care expenses

Management

Total specified costs'

Return to land, trees, and ownership

Break-even price for total grove care expenses

Boxes per acre


S On-tree price per box


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





($320.00/hr. + 10 A/hr.) + 2 yrs.
($21.07/A + 2 yrs.)
($245.00/hr. + 10 A/hr.) + 1.5 yrs.
($16.25/A + 1.5 yrs.)
(1 through 3 years)
3 trees per acre
Including 3 trees per acre
Including application


25.50
24.36
21.82
141.96




16.00
10.54
16.33
1J83

16.98
32.76
30.66


$4.00 per acre per month


213.64
341.91
137.85
11.50




53.70



80.40
133.35
31.50
1,003.85

48.00

1.051.85


Boxes per acre


325 375 425 475 525
S Delivered-in price per pound solids for eliminations'


Albough the esmated annual per cre grove costs shown in Table 3 are representative for a mature Indian River white seedless grapefruit grove, the grove ae ca t for a specific grove site may differ depending upon
ihe grove practice performed; e.g., Temik application would add $129.82 per acre; extensive tree lo due to blight or tristez would double the tree replacement and care cota; travel and et-up coat may vary due to
size of cin grove mnd dim ce from grove equipment barn; etc.; truck watering of reset could add another $7.95 per acre (average 5 watering). Also, material cot for brown citrus aphid control could add $10.07 per
spray application.
On-tree price per box i preliminary; umums average of all methods of sale freshh and proceedd. Price asumme 75% of fruit harvested packed fresh.
'Asumes material custom applied; therefore, a 10 percent handling and supervision charge i added to material cost.
ermehods to ies ea mmaugemant cot-e.g., 5% of gross sales or 10% of total grove car cot-are used in the industry. Other selected method will give a different return to land and trees than reported here.
Other cot itms which are not iullded in the budget are ad valorem taxes amd interest on grove investment In addition to these cost items, overhead and administrative costa, such a water drainage/ditrict taxes, crop
insurance, and other grower saesmenta can add up to 12 percent to the total grove care costs. These cots vary from grove to grove depending on age, location, and time of purchase or grove establishment.
'Amumes 4.5 pounds solids per box, $1.93 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 proceing plant.


Revenue










As shown in Table 3, the total revenue for fresh-market white seedless grapefruit is estimated to be
$1,101.62 per acre. Total specified costs are $1,051.85 and are comprised of grove care costs of $1,003.85,
plus management cost of $48.00. Return to land, trees, and ownership is $49.77 and represents net return
above fixed costs. The break-even price required to cover grove care costs for seedless white grapefruit
range from $3.09 to $1.91 per box on-tree and $1.34 to $1.07 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" costs are shown for fresh packed white grapefruit in Table 4. "Delivered-
in" costs include grove care costs (Table 3) plus harvesting, regulatory, and grower assessment costs. The
"delivered-in" cost is presented as a cost per acre, per box, per carton, and per pound solids. Three possible
budget cost scenarios are presented: 1) Typical/ Historical 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 for citrus grown for the fresh fruit
market. Scenarios 2 and 3 represent costs of two possible cultural programs directed toward reducing the
expenditures grown primarily for fruit for the processed market. Modified herbicide and/or spray and
fertilizer programs account for the reduced costs. NOTE: Before modifying a prove 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. 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 1991-92
through 1994-95 along with 1995-96, 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 1996 dollars, are
presented in Table 7.








Table 4.--Estimated total delivered-in cost for Indian River White grapefruit grown for the fresh/processed juice markets under three cultural cost programs,
1995-96


Total Production/Cultural Costs

Interest on Operating (Cultural) Costs

Management Costs

Taxes/Regulatory Costs:
Property Tax/Water Management Tax
Water Drainage District Tax
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

$1,003.85

50.19

48.00


43.10
58.82
20.00

121.92

$1,223.97

419.75

$1,643.72


802.80
57.98
156.10

1,016.88


$/Box $/Carton


$2.251

0.113

0.108


0.097
0.132
0.045

0.273

$2.744

0.941

$3.685


1.800
0.130

2.28350
2.280


$1.1254

0.0563

0.0538


0.0483
0.0659
0.0224

0.1367

$1.3722

0.4706

$1.8427


0.9000
0.0650
0.1750

1.1400


$2.6Z.60 $L965 $29827


Fresh Packed White Grapefruit
Reduced Cost
Cultural Program


* I


$/Acre $/Box $/Carton


$964.00

48.20

48.00


43.10
58.82
20.00

121.92

$1,182.12

419.75

$1,601.87


802.80
57.98
156.10

1,016.88


$2.161

0.108

0.108


0.097
0.132
0945

0.273

$2.651

0.241

$3.592


1.800
0.130
QZ35

2.280


$1.0807

0.0540

0.0538


0.0483
0.0659
0.,224

0.1367

$1.3253

0.4706

$1.7958


0.9000
0.0650
0.1750

1.1400


$2.61&75 $5.8i72 52.9358


Processed White Grapefruit
Low Cost
Cultural Program


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


$ 728.59

36.43

48.00


43.10
58.82


101.92

$ 914.94

419.75

$1,334.69


802.80

75.82

878.62


$1.634

0.082

0.108


0.097
0.132


OL222

$2.051

0.941

$2.993


1.800



1.970


$0.3630

0.0182

0.0239


0.0215
0.0293


0.0508

$0.4559

$Q.2Q91

$0.6650


0.4000

0.0378

0.4378


$2.213.31 54.963 51.1028


Two cartons per box Refer to cultural program shown in Reduced cost of supplemental Fall Only summer spray with oil,
Table 3. Miticide Spray; fertilizer reduced copper, and Agri-Mek; fertilizer
P.S. = Pound Solids to 150 pounds of nitrogen per reduced to 150 pounds of
Assumes 100% packout acre. nitrogen per acre.
Yield: 446 boxes/acre @ 4.5 P.S. per box Assumes 100% packout







8




Table 5.--Estimated F.O.B. cost for fresh market Indian River White grapefruit, 1995-96

Percent Packout 50.00% Percent Packout 60.00% Percent Packout 70.00%
Box Yield Per Acre 419 Box Yield Per Acre 419 Box Yield Per Acre 419

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

Total Production/
Cultural Costs $1,003.85 $4.792 $2.3958 $1,003.85 $3.993 $1.9965 $1,003.85 $3.423 $1.7113

Interest on Operating
(Cultural) Costs 50.19 0.240 0.1198 50.19 0.200 0.0998 50.19 0.171 0.0856

Management 48.00 0.229 0.1146 48.00 0.191 0.0955 48.00 0.164 0.0818

Taxes/Regulatory 121.92 0.582 0.2910 121.92 0.485 0.2425 121.92 0.416 0.2078

Interest on Average
Capital Investment 419.75 2.004 1.0018 419.75 1.670 0.8348 419.75 1.431 0.7156

Harvesting (Pick/Spot
Pick, Haul, DOC Tax,
Etc.) 955.32 4.560 2.2800 955.32 3.800 19000 955.32 257 1,628

Total Delivered-In Cost $2,599.03 $12.406 $6.2029 $2,599.03 $10.338 $5.1691 $2,599.03 $8.861 $4.4307

Packing & Selling 1,361.75 6.500 3.2500 1,634.10 6.500 3.2500 1,906.45 6.500 3.2500

Net Fresh Eliminations
Costs' (450.421 -2.150 -1.0750 (360.34 -1433 -011 0.127.2) -221 -Q4607

Total F.O.B. Costs $3.510.36 $ $8J377 $3.872.79 $15.405 $77025 $4.235.23 $14440 $L220

Percent Packout 80.00% Percent Packout 90.00% Percent Packout 100.00%
Box Yield Per Acre 419 Box Yield Per Acre 419 Box Yield Per Acre 419

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

Total Production/
Cultural Costs 1,003.85 $2.995 $1.4974 $1,003.85 $2.662 $1.3310 $1,003.85 $2.396 $1.1979

Interest on Operating
(Cultural) Costs 50.19 0.150 0.0749 50.19 0.133 0.0666 50.19 0.120 0.0599

Management 48.00 0.143 0.0716 48.00 0.127 0.0636 48.00 0.115 0.0573

Taxes/Regulatory 121.92 0.364 0.1819 121.92 0.323 0.1617 121.92 0.291 0.1455

Interest on Average
Capital Investment 419.75 1.252 0.6261 419.75 1.113 0.5565 419.75 1.002 0.5009

Harvesting (Pick/Spot
Pick, Haul, DOC Tax,
Etc.) 955.32 2.850 1.4250 955.32 2.533 12667 955.32 22 11400

Total Delivered-In Cost $2,599.03 $7.754 $3.8768 $2,599.03 $6.892 $3.4461 $2,599.03 $6.203 $3.1015

Packing & Selling 2,178.80 6.500 3.2500 2,451.15 6.500 3.2500 2,723.50 6.500 3.2500

Net Fresh Eliminations
Costs' (180.17 -.537 -0.2687 (90.0 -0.239 -01194 0.00 0.00 0000

Total F.O.B. Costs $4.25. $13716 $6 1 $4960.1 $13.153 $67 $5.322.53 $12.3 $6.351

"Net Eliminations Cost" equals the average yield of 4.50 pound solids per box times $0.70 per pound solids less packinghouse elimination and cannery
hauling charge of $1.00 per box.











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, 1991-92-1995-96


On-tree Gross Total grove Total specified Net return to land,
Year price/box' Yield revenue care expenses costs" trees, and ownership
----------------------------- Dollars ------ ---
1991-92 $7.51 446 3,349.46 941.52 989.52 2,359.94

1992-93 $2.68 446 1,195.28 954.03 1,002.03 193.25

1993-94 $3.49 446 1,556.54 972.91 1,020.91 535.63

1994-95 $2.11 446 941.06 990.30 1,038.30 (97.24)

1995-96 $2.47b 446 1,101.62 1,003.85 1,051.85 49.77

5-yr. avg. $3.65 446 1,627.90 972.52 1,020.52 607.38

'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.
'A 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 1996 dollars) for a mature, white
seedless grapefruit grove producing citrus for fresh fruit market in the Indian River area, 1991-92-1995-96


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

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

1991-92 110.8 $8.32 446 3,710.72 1,096.39 2,614.33

1992-93 109.3 $2.93 446 1,306.78 1,095.22 211.56

1993-94 107.9 $3.77 446 1,681.42 1,101.56 579.86

1994-95 104.2 $2.20 446 981.20 1,081.91 (100.71)

1995-96 100.0 $2.47 446 1,101.62 1,051.85 49.77

5-yr. avg. -- $3.94 446 1,757.24 1,085.39 671.85

'Producer price index for each year adjusted to 1996 prices (1996 = 100), with 1996 consumer price index estimated to be 129.9. Producer
price index for other years are: 1992 = 117.2; 1993 = 118.9; 1994 = 120.4; and 1995 = 124.7.

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.). 1996 Florida Citrus Pest Management Guide. Univ. of Fla. Coop. Ext. Svc. SP
43. Gainesville: Jan. 1996. 69 pp.

2. Muraro, Ronald P. "A Listing of Estimated Comparative Indian River Citrus Production Costs Per
Acre for 1995-96." Lake Alfred Citrus Research and Education Center (CREC) Report. Lake Alfred,
FL: May 1996.

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 1996 Custom Rates Reported by Twenty-two Indian River and South Florida
Citrus Caretakers." Lake Alfred CREC Report. Lake Alfred, FL: May 1996.

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
Tres. 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 1996 custom rates reported by twenty-two Indian River and South
Florida citrus caretakers .................. .................... 22

Table 9-A. 1996 summary of average chemical price estimates .................... 24

Table 10-A. 1996 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

Abbreviations for important chemicals are:

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


Your
Cost/Acre


Cost/Acre

$22.50
4.05
3.70


26.62


Amount
/Acre
15 lbs
5 lbs
10 lbs
250 gals


Amount
/Acre
15 lbs
1 pt
1 lb
125 gals


Amount
/Acre
5 pts
10 lbs
3 gals
500 gals


Your
Cost/Acre


=


Your
Cost/Acre


Cost/Acre
$22.50
1.33
32.73

20.52


$77.08


Cost/Acre
$23.65
15.00
7.50

3508


$1.23


Amount
/Acre
6 pts
15 lbs
250 gals


Your
Cost/Acre


Cost/Acre
$38.82
22.50


26.2


$87.94


______ __ ~ I___ _______1_1_


1 __1___ 1___ _1__ __- ------------









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


Your
Cost/Acre


Your
Cost/Acre


Your
Cost/Acre


Your
Cost/Acre


Cost/Acre
$47.36

L50
$5486


Cost/Acre

$12.50
10.50
28.38

3508


Cost/Acre

$10.50
12.50
53.00
35.08


$111.08


Cost/Acre

$10.50
25.00
26.50


Amount
/Acre
2 lbs

15 GPA


Amount
/Acre
5 gals
7 lbs
6 pts
500 gals


Amount
/Acre
7 lbs
5 gals
10 ozs

500 gals


Amount
/Acre
7 lbs
10 gals
5 ozs

500 gals


Amount
/Acre

7 pts
500 gals


3508


Cost/Acre
$43.68


Your
Cost/Acre


3508


-------- -- ----- -------l______l___


__ ________ _____1 ~_11~_1~__ 1_____


yl_ _II__~C__ _










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

FALL SPRAY


Spray Program #10


Spray Program #11


Spray Program #12


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


Materials/Ingredients
Dicofol 4EC

Aerial Application

Total per Application


Spray Program #13


Materials/Ingredients
Vendex WP

Ground Application
(engine driven airblast)
Total per Application


Amount
/Acre

6pts

250 gals


Amount
/Acre
2 lbs
15 lbs
250 gals


Amount
/Acre

6pts
15 GPA


Amount
/Acre
2 lbs

250 gals


Cost/Acre
$47.36
11.25

2662


Cost/Acre

$38.82

-L56

$4".32


Cost/Acre
$47.36

262


Spray Program #14


Materials/Ingredients

Thiolux 80 DF (sulfur)

Aerial Application

Total per Application


Your
Cost/Acre


Cost/Acre

$38.82

2662


$65A4


Your
Cost/Acre


Your
Cost/Acre


Your
Cost/Acre


$7398


Amount
/Acre

15 lbs

15 GPA


Cost/Acre

$11.25


$18.75


Your
Cost/Acre


=


~_I~_ _I


_1_1 ___________I_____________ ___I ~


__


___ ______________I________________ ____ _I








Table 2-A.-Herbicide


Herbicide Program #1
(Strip/band)


Amount/
Materials Treated Acre


Solicam 80DF
Karmex WP
Roundup
Adjuvant (Surfactant)
Ground Application
(1 time)
Total for 1 Application


31bs
4 lbs
2 qts
2pts


Herbicide Program #2
(Strip/band)


Herbicide Program #3


(Strip/band)


Amount/
Materials Treated Acre


Surflan A80 DF
Simazine 4L
Roundup
Adjuvant (Surfactant)
Ground Application
(1 time)
Total for 1 Application


Materials


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


2 qts
4 qts
2 qts
2 pts


Amount/
Treated Acre
4 lbs
2qts
2 pts


Cost/
Grove Acre*
$15.92
7.36
12.32
2.12

1142





Cost/
Grove Acrer
$9.22
12.32
2.12


1142


$35.0


Herbicide Program #4
(Strip/band)


Amount/
Materials Treated Acre


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


4 lbs
4 qts
2 qts
40 gals


Cost/
Grove Acre'
$29.86
7.36
12.32


1142


Total for 1 Application $

"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


Cost/
Grove Acre'
$22.40
9.22
12.32
2.12

1142


$57.48


Your Cost/
Grove Acre


Your Cost/
Grove Acre


Your Cost/
Grove Acre


_~~~ ~









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


Herbicide Program #5

(Strip/band)


Materials

Roundup
Adjuvant (Surfactant)

Ground Application
(1 time)
Total for 1 Application


Herbicide Program #6

(Strip/band)


Materials

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

Total for 1 Application


Amount/
Treated Acre
5 lbs
2 qts
2pts
40 gals


Cost/
Grove Acre"

$25.30
12.32
2.12


1142


Herbicide Program #7
(Strip/band)


Herbicide Program #8

(Strip/band)


Materials
Roundup
Princep (Caliber 90)
Adjuvant (Surfactant)

Ground Application
(1 time)

Total for 1 Application


Materials
Direx 4L
Solicam
Adjuvant (Surfactant)

Ground Application
(1 time)

Total for 1 Application


Amount/
Treated Acre
2 qts
4 lbs
2pts

50 gals


Amount/
Treated Acre

3 qts
3 lbs
2pts
50 gals


Herbicide Program #9
(Chemical mow)


Materials


Roundup
Adjuvant (Surfactant)
Ground Application
(1 time)

Total for 1 Application


Amount/
Treated Acre


1 pt
0.5 pt


Cost/
Grove Acre'

$3.08
1.06

Q804


$12.18


Amount/
Treated Acre

4qts
2pts

40 gals


Your Cost/
Grove Acre


Cost/
Grove Acre"

$12.32
2.12

1142


Your Cost/
Grove Acre


Your Cost/
Grove Acre


Cost/
Grove Acre'
$12.32
7.46
2.12

1142


$3.32


Your Cost/
Grove Acre


Cost/
Grove Acre'

$8.64
22.40
2.12

1142


$4458


Your Cost/
Grove Acre


I


_ __I 1~1_


_ _I 1 1_1______1____








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


Herbicide Program #10
(Chemical mow)


Herbicide Program #11
(Spot treatment for
grass/brush regrowth
under trees)


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


Materials
Roundup
Adjuvant (Surfactant)


Ground Application
(1 time)

Total for 1 Application


Table 3-A.-Dry fertilizer


Program #1
(125 Ibs N/Acre)


Program #2

(162 lbs N/Acre)


Program #3
(180 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


Analysis/Material
Applied
15-2-15-2.4 MgO
Application

Total for 3 Applications


Amount/
Treated Acre

1.5 pts
0.5 pt


Cost/
Grove Acre'

$ 4.62
1.06

8.14


Your Cost/
Grove Acre


=


Your Cost/
Grove Acre


$172


Amount/
Treated Acre

2 qts
2 pts


Cost/
Grove Acre

$12.32
2.12


AQ$


$1&94


Amount
/Acre
1040 lbs
3 times


Amount
/Acre
1350 lbs
3 times


Amount
/Acre
1200 lbs
3 times


Your
Cost/Acre


Your
Cost/Acre


Your
Cost/Acre


Cost/Acre

$90.48

20.40
$11088


Cost/Acre

$117.45

20.40

$137.85


Cost/Acre
$116.40
20.40

$Ia8m


__________


_____I~ ___ __I___~


II~ _1_1~








Table 3-A.-Dry fertilizer (cont'd.)
Analysis/Material
Program #4 Applied
(204 lbs N/Acre) 17-4-17-2.4 MgO
Application
Total for 2 Applications


Amount
/Acre Cost/Acre
1200 lbs $129.60
3 times 20.40

$i5QAKI


Program #5
(225 lbs N/Acre)


Analysis/Material
Applied
15-2-15-2.4 MgO
Application


Amount
/Acre
1500 Ibs
3 times


Total for 3 Applications

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


Program #1
(180 lbs N/Acre)


Analysis/Material
Applied
10-0-10


Double Boom Application
Total for 3 Applications


Program #2
(180 Ibs N/Acre)


Program #3
(180 lbs N/Acre)


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


Analysis/Material
Applied
10-0-10
Solicam 80DF
Karmex WP


Double Boom Application
Total for 3 Applications


*Treated acre (one herbicide application)


Your
Cost/Acre


Your
Cost/Acre


Cost/Acre
$145.50
20.40
$165.90


Amount
/Acre
1800 Ibs
3 times


Your
Cost/Acre


Cost/Acre
$113.40

$35.01
$14841


Your
Cost/Acre


Amount
/Acre
1800 lbs
3 times


Amount
/Acre
1800 lbs
3 lbs*
4 lbs*
3 times


Cost/Acre
$118.80
35.01
$153.81


Cost/Acre
$113.40
22.40
9.22

35.01
$180.03


Your
Cost/Acre


_ __1~_ ~1______11









Table 5-A.-Nematicides


Analysis/Material
Applied
Temik 15G

Application
Total per Application


Analysis/Material
Applied

Nemacur 15G

Application

Total per Application


Analysis/Material
Applied
Nemacur 15G
Application

Total per Application


Your
Cost/Acre


Cost/Acre
$116.82

13.00

$129.8


Table 6-A.-Soil amendment


Program #1

(Every 3 years)


Program #2
(Every year)


Analysis/Material
Applied
Dolomite (Delivered)
Application
Total for 1 Application

(Average 1/3 Ton Applied/Yr)


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


Program #1


Program #2


Program #3


Amount
/Acre
33 lbs
1 time


Amount
/Acre
67 lbs

1 time


Amount
/Acre
50 lbs
1 time


Your
Cost/Acre


Your
Cost/Acre


Cost/Acre

$243.21

13.00
$256.21


Cost/Acre
$181.50

13.00
$194.50


Your
Cost/Acre


Amount
/Acre
1 ton

1 time


Amount
/Acre
1000 lbs
1 time


Cost/Acre

$27.55

6.94
$34.49


Cost/Acre
$13.78

-694
$20_2


Your
Cost/Acre


____


___ ______1_1______ ---------111-C- -1 I


----


------ I-----------------------1--1------11~-








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


DRIED


Operating


Maintenance of System
Total Cash Expenses

Fixed Depreciation Expense

Total Cash and Fixed Expenses


Program #1
$31.24
(Electric)
39.36
$70.60


42.35

$112.52


MICROSPRINKLER


Operating


Maintenance of System
Total Cash Expenses

Fixed Depreciation Expense

Total Cash and Fixed Expenses



DRAINAGE DITCH ANNUAL COSTS


Program #3
$ 35.50
(Electric)
46.85
$ 82.35

52.94

$135.29


Ditches/Canals Maintenance ($35.56/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
$28.14
(Diesel)
39.36

$ 67.50

45.25

$112.75


Your
Cost/Acre


Program #4
$ 29.94
(Diesel)
46.85
$ 76.79

56.56

$133.35


Your
Cost/Acre


Your
Cost/Acre


Program #5

$11.85
10.95
$31J2
$2-L50


__


1







Table 8-A.-A listing of 1996 custom rates reported by twenty-two Indian River and South Florida citrus caretakers

Range of Rate Average
Grove Practice Unit Reported Rate' Comments


Hand Labor
Tractor/Equipment Operator (Driver)
Rotovate
Disc 7-8'
Disc 10'
Mow: Off-set or Side Mower
5-8'
9-10'
15-16'
V-Mower
Sickle Mower
Herbicide (Strip/Band-Single Boom)
Herbicide' (Strip/Band-Single Boom)
Herbicide' (Strip/Band-Double Boom)
Herbicide' (Chemical Mow)
Temik/Nemacur'
Plow
Backhoe
Vine Puller
Middle Buster
Mound Builder
Grader Blade
Bush Hog
Water Truck with Driver
Pickup Truck with Driver
Pickup Truck without Driver
Flatbed/Transport Truck with Driver
Tractor with Driver
Tractor without Driver


Hand Sprayer


Hour $ 8.50- $13.75 $10.91 Plus transportation and equipment
Hour 12.50- 18.00 14.61
Hour 27.50- 36.00 31.63
Hour 24.00- 35.00 28.03 Average $10.00/acre
Hour 25.00- 35.00 28.33
Hour 35.00
Hour 24.00- 32.00 26.88 Average $10.00/acre
Hour 25.00- 35.00 29.68 Average $9.50/acre
Hour 28.00- 41.00 32.80 Average $7.50/acre
Hour 25.00- 35.00 30.11 Average $10.00/acre
Hour 31.00
Hour 28.00- 36.50 29.79 Plus materials
Acre 11.00- 14.00 12.40 Plus materials
Acre 9.50- 12.50 11.42 Plus materials
Acre 6.15- 10.50 8.04 Plus materials
Acre 12.00- 15.00 13.00 Plus materials
Hour 24.00- 35.00 28.40
Hour 38.00- 50.00 42.05
Hour 26.00
Hour 24.00- 35.00 28.29 With tractor and driver
Hour 27.00- 35.00 31.00 With tractor and driver
Hour 24.00- 32.00 27.38 Tractor/blade and driver
Hour 28.00- 35.00 31.00 Average $10.00/acre
Hour 26.00- 35.00 30.69
Hour 20.00- 25.00 22.97 Average miles traveled per year: Pick-up truck 30,000 miles
Hour 10.00- 18.00 13.33 Transport truck 15,000 miles
Hour 35.00- 50.00 42.56 Average $1.25/mile; $100.00 per move
Hour 25.00- 35.00 27.19
Hour 14.75- 15.00 15.06



Hour $ $ $40.00 Includes tractor, handgun sprayer and 2 workers


Air Curtain Sprayer: $17.50/acre @ 25 GPA; Curtec Sprayer: $17.50/acre @ 25 GPA; Spectrum Sprayer: $18.00/acre @ 25 GPA

AIR BLAST SPRAYER

Engine Driven PTO Powered


Acre 32.88- 37.25 35.08 30.00- 36.50 33.73
Acre 25.00- 28.00 26.62 22.00- 27.00 25.25 Average $20/acre-250 GPA @ 2 MPH
Acre 20.00- 21.50 20.52 18.00- 22.00 19.75 Average $18/acre-125 GPA @ 2 MPH
Acre 17.50- 19.00 18.17


Tank 25.00- 33.00 29.33 500 gallon tank
Tank 32.00- 40.00 36.56 500 gallon tank
Tank 45.00- 65.00 54.83 500 gallon tank
Tank 58.00- 74.00 65.33 500 gallon tank
Tank 80.00- 82.00 80.67 500 gallon tank

Fixed Wing: $4.00/acre @ 5 gallons per acre
Fixed Wing: $5.00/acre @ 10 gallons per acre
Fixed Wing: $6.50/acre @ 15 gallons per acre
Fixed Wing: $8.50/acre @ 20 gallons per acre


Ground Application
Aerial Application


Acre $ $- $ 6.50
Acre 5.75- 9.00 7.50


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


Acre $ $ $ 7.00
Acre 11.00- 12.50 11.75
Acre 6.00- 8.25 6.80 Average $32.13/hour
Ton 17.50- 18.50 18.00
Acre 6.00- 8.25 6.94
Hour 8.50- 13.75 10.91 Plus transportation; one reporting 10C/tree
Hour 25.00- 36.00 29.07 And materials; average $7.13/acre


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


Dilute
2X
3X
4X
6X

Aerial
Aerial
Aerial
Aerial







Table 8-A.-A listing of 1996 custom rates reported by twenty-two Indian River and South Florida citrus caretaker (cont'd.)

Range of Rate Average
Grove Practice Unit Reported Rate' Comments

IRRIGATION:


Ditch Cleaning Trac Hoe
Water Furrow Disc
Water Furrow Cleaner
Water Furrow Shaper (Laser Control)
Rotary Ditcher or Auger
Caterpillar Grader
4 Wheel ATV for microsprinkler with Driver
3 Wheel ATV for microsprinkler with Driver
Microsprinkler/Drip Irrigation Maintenance

REMOVING TREES:

Front End Loader
Tree Shearing (Cutting Tree at Ground
Level)
Vermeer Tree Spade for Relocating Trees

PRUNING:

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

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

OTHER CUSTOM RATES:

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

Supervising/Handling Chemical/Fertilizer

Consulting


Total Reported Acreage Provided Grove
Service to:


Hour
Hour
Hour
Hour
Hour
Hour
Hour
Hour
Acre/Month


$ -
26.50-
25.00-

28.00-

18.00-
15.00-
3.00-


$ $45.00 5 ft. bucket
35.00 30.73
35.00 30.30
70.00
35.00 31.67
48.00
25.00 20.89
18.00 16.83
3.50 3.15 Check & repair system; parts extra


Hour $40.00- $49.50 $45.30 Avg. range 5-20 trees per hour, bulldozer avg. $55.13/hr


Hour
Hour



Tree
Hour

Hour
Hour
Hour
Hour
Hour

Hour
Hour
Hour

Hour
Hour
Hour

Hour
Hour


45.00- 50.00 48.33 Avg. range 5-12 trees per hour
60.00



$ $ $3.50
14.50- 22.00 17.83

87.00- 90.00 88.50 6 to 10 acres/hour
57.50- 70.00 63.75 4 to 8 acres/hour
85.00- 97.50 93.90 4 to 15 acres/hr; Double Side (Tractor Mounted): $220/hr
240.00- 250.00 245.00 8 to 20 acres/hour depending on wood size
335.00 12to 30 acres/hour-bed top only; 8 to 20 acres-bed top
\aj furrow; depending on wood size
95.00- 100.00 96.90 2-5 ac/hr depending on wood size; $30.00/acre
150.00- 175.00 162.50
320.00 4to 10 acres/hour rooftop; 10 to 20 acres flattop cut from
bd tops
240.00 Avg. 8 to 15 acres depending on wood size type of cut
520.00 4 to 10 acres/hour roof top; 15 to 30 acres flattqgcut from
45.00- 57.00 50.67 3 to 5 acresihr, one reporting avg. $12.50/ac bd tops

40.00- 48.00 44.29 Front-end loader
25.00- 38.00 34.57 Average $10.00/acre


Tree $ 0.60- $ 1.50 $ 1.10 Varies as to density
Tree 1.00- 2.50 2.17 Varies a to the number of resets
Hour 25.00- 40.00 31.10 Labor and service truck
Hour 26.40

Acre 3.00- 6.00 4.04 In addition to caretaking charges
Box 0.15- 0.25 0.20

10% to 15% of materials cost

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


Acre


1,000- 7,000 2,617 Total acres reporting: 36,637


Source: Ronald P. Muraro, Extension Farm Management Economist, Lake Alfred CREC, May 1996.


'Plus materials. Caretakers reporting rate include labor, tractor and sprayer; supply truck included by most caretakers.

'Calculated by dividing the total number of caretakers reporting a grove practice rate into the sum reported. Unless otherwise stated, labor included with all
charges.







Table 9-A.--1996 summary of average chemical price estimates


Average
Item Unit Price


Fungicides: Aliette 80WP lb. 13.53
Benlate lb. 15.82
Basic Copper Sulfate (53%) lb. 1.36
Copper (50%) (Kocide 101) lb. 2.03
Copper (40%) (Kocide 606) gal. 14.63
Carbamate 76WP lb. 3.86
Oil 435 or 455 gal. 2.27
Ridomil 2E gal. 154.28
Ridomil 5G lb. 4.65
Insecticides/Nematicides:
Admire gal. 538.75
Agri-Mek (0.15EC) gal. 617.20
Carzol 92 SP lb. 29.75
Comite 6.55 EC gal. 77.55
Dicofol 4 EC gal. 47.06
Eclipse lb. 53.13
Ethion gal. 34.40
Guthion 2L gal. 30.76
Guthion 50WP lb. 8.01
Kelthane MF gal. 47.72
Logic Bait lb. 7.52
Lorsban 4EC gal. 45.34
Lorsban 15G lb. 1.85
Malathion 5 E gal. 21.53
Metasystox-R gal. 48.80
Methyl Bromide 98/2 (200 lbs.) lb. 1.15
Micromite 25WP lb. 30.80
Morestan 25WP lb. 13.80
Nemacur 3EC gal. 66.90
Nemacur 15G lb. 3.30
Sevin 80S lb. 4.30
Sevin XLR gal. 24.71
Sulphur 6F gal. 3.62
Sulphur Dust ton 326.67
Supracide 2 EC gal. 47.26
Temik 15G lb. 3.22
Thiolux 80 DF lb. 0.68
Vapam gal. 4.96
Vendex 50W lb. 21.53


(Continued on Reverse Side)







Table 9-A.--1996 summary of average chemical price estimates (cont'd.)

Average
Item Unit Price


Herbicides: DeVine pt. 75.00
Devrinol 50WP lb. 7.87
Direx 4L gal. 20.63
Eptam gal. 29.84
Fusilade DX gal. 141.34
Goal gal. 74.68
Gramoxone (Paraquat) gal. 36.51
Hyvar X lb. 14.76
Karmex lb. 4.19
Krovar I lb. 9.20
Princep (Caliber 90) lb. 3.39
Princep 4L gal. 15.13
Prowl gal. 28.58
Rodeo (30 gal drum) gal. 104.61
Roundup (30 gal drum) gal. 44.78
Simazine 4L gal. 13.33
Solicam lb. 13.57
Surflan AS gal. 57.90
Torpedo 1E gal. 49.20
Touchdown gal. 63.25
Treflan gal. 32.90
Growth Regulators:
Citrus Fix gal. 400.99
Pro-Gibb 3.91% 20 oz. 41.72
Tre-Hold gal. 72.72
Other Spray Materials:
Borates (15%) lb. 0.77
Manganese (32%) lb. 0.34
Zinc (78%) lb. 0.74
Adjuvant (Surfactant) gal. 15.42
Nutritional Spray Mix:
Goemar BM 86 gal. 28.50
Goemar MZ 63 gal. 30.50
NutraLeaf (20-20-20) lb. 0.67
Sequestrene 138 FE lb. 10.70
Peter's 20-20-20 Foliar lb. 0.64
Key Plex 350 gal. 15.24
Dyna Gold MZF gal. 7.34
Soil Applied Iron Humate lb. 0.10


SOURCE: Ronald P. Muraro, Extension Farm Management Economist, University
of Florida, IFAS, CREC, Lake Alfred, Florida, May 1996.






Table 10-A.--1996 summary of average fertilizer price estimates
Average
Item Unit Price

FERTILIZER (FOB Price @ Plant) $
Slow Release (Young Tree)*
IBDU (N 31%) ton 800.00
Osmocote: 18-4-12 (NPK) ton 1,250.00
ESCOTE: (N 40%) ton 1,725.00
Nutralene/Hydrolene (N 40%) ton 932.80
Sulfur Coated Urea (39%-40% N)
Bulk ton 355.00
In Bags ton 385.00
Dry Mix (Bulk
17-0-17-3h ton 188.15
17-4-17-2.4m ton 196.56
16-0-16 ton 160.20
16-0-16-44 ton 190.76
16-2-16-3, ton 187.36
15-2-12-2.4, ton 175.28
12-2-12-2.4, ton 158.62
8-8-8 w/minors** ton 141.71
8-4-8 w/minors** ton 135.04
8-2-8 w/minors** ton 136.38
6-6-6 w/minors** ton 132.02
Liquid Mix (Bulk)
8-2-8 ton 104.80
8-4-8 ton 112.10
9-3-9 ton 116.30
9-4-9 ton 119.17
10-0-10 ton 113.80
10-2-10 ton 120.73
12-0-6 ton 121.27
12-3-6 ton 132.57

*Slow Release Elements are indicated in parenthesis.

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


(Continued on Reverse Side)






Table 10-A.--1996 summary of average fertilizer price estimates (cont'd.)

Average
Item Unit Price

Foliar N $
UNOCAL Plus (20% N) gal 1.45
Spray Grade Urea (46% N) ton 335.63
Spray Grade Urea (23% N) gal 0.95
Spray Grade Potassium Nitrate (14% N) ton (bags) 397.50
Other Fertilizer Materials (Bulk)
Ammonium Nitrate (21% N Liquid) ton 148.75
Ammonium Nitrate (33.5 % N Dry) ton 211.67
Ammonium Sulfate (21% N) ton 129.00
Calcium Nitrate (19% Ca, 15.5% N) ton 209.00
Dolomite (at mine--49% CaCO3, 36% MgCO3) ton 15.00
Gypsum (at mine--20%-28% Ca) ton 16.00
High Cal Lime (at mine--36%-39% Ca) ton 16.75
Muriate of Potash (42% K) ton 139.00
Potassium Nitrate (14% N) ton 327.50
Sul-Po-Mag (SPM) ton 171.25
Super Phosphate (8% P) ton 150.67
Triple Superphosphate (19% P) ton 213.83
Average Delivery Cost ton 9.95
Double Liquid Boom Application Charge acre 11.50

SOURCE: Ronald P. Muraro, Extension Farm Management Economist, University
of Florida, IFAS, CREC, Lake Alfred, Florida, May 1996.







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
$ $
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 lbs. 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 $0.50 $0.65 $0.85
Fertilize Tree 0.25 0.40 0.55 0.56
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 0.54 0.54 0.54 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 $3.31 $3.77 $3.62 $3.66

Reset Trees (annual additional grove care costs) $2.13 $2.47 $1.84

Cost of Planting Trees4 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.

The 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%.

*ree cost (bare root) = $3.25; stake, plant, and water tree = $1.25 (solidset) and $2.55 (resets); and uninsulated tree wrap = $0.50.

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 All
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
1994-95'


$1.93
2.17
4.43
2.57
1.44
0.81
1.86
1.56
1.15
1.10
1.98
1.43
1.38
1.46
1.69
1.89
3.90
4.44
3.59
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
3.58
2.56


$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
6.53
6.58
6.65
3.88
4.61
4.29


$2.17
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
6.31
6.51
2.99
2.73
2.54


$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
11.51


$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
1.34


$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
2.84
1.78


$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
2.85
1.71


"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
"Parson Brown and Pineapple


dValencia

"Marsh (white) or pink


Source: Florida Agricultural Statistics Service.


'Preliminary













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% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 12.5% 13.0% 13.5% 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 8,304 8,061 7,828 7,606 7,394 7,191 f6.299 6,811 6,633 6,462 6,299 6,142 5,992 5,847
16 8,851 8,576 8,313 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 8,543 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 6,551 6,370 6,198
20 9,818 9,463 9,129 8,812 8,514 8,231 7,963 2,71Q 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 10,274 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 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).