Budgeting costs and returns

Ronald P. Muraro

John W. Hebb

EDIS FE630

http://edis.ifas.ufl.edu/FE630

Budgeting Costs and Returns

for Indian River Citrus

Production, 2004-05

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

September 2005

ABSTRACT

Estimated costs and returns of growing seedless grapefruit in the Indian River area of Florida
are presented for the twenty-second 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, Martin, Palm Beach, and St. Lucie counties.

The budgeted cost information presented herein is the most current available. The budget
cost items have been revised to reflect current grove practices being used by growers--e.g.,
chemical mowing, different spray materials and rates of fertilization, microsprinkler
irrigation, more reset trees, etc. The 2004-2005 budgets reflect major cost increases in all
production inputs: fuel averaged a 22% increase; fertilizer products increased 15%;
chemicals averaged an 8% increase; and equipment operation costs increased 7%. Along
with the increased costs, three major hurricanes (storms) during August and September 2004
resulted in wide tree damage and fruit loss. The Indian River region experienced fruit loss
of 70% to 80% on red and white grapefruit, respectively. Hamlin orange losses in the
Central Florida (ridge) region were 30% to 40% with Valencia orange losses between 20%
and 30%. The only citrus growing region that was not significantly affected by the three
storms was the Southwest Florida citrus region. As a result of the excessive fruit loss, the
per box, per pound solid and per carton costs for the Indian River and Central (ridge)
growing regions were substantially higher than in recent years.

The budget costs in this report represent a custom-managed operation. 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 listed are representative for a
mature citrus grove (10+ years old), 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 trees could add an additional $16.60 per
acre; Diaprepes control could add $84.18 per acre for each foliar application; extensive tree
loss due to blight or tristeza could substantially increase the tree replacement and care costs;
spray applications to control citrus leafminer and nematicide applications such as Temik
($127.50/acre) 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 the grove equipment barn and could add $28.86 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.

ABSTRACT

Estimated costs and returns of growing seedless grapefruit in the Indian River area of Florida
are presented for the twenty-second 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, Martin, Palm Beach, and St. Lucie counties.

The budgeted cost information presented herein is the most current available. The budget
cost items have been revised to reflect current grove practices being used by growers--e.g.,
chemical mowing, different spray materials and rates of fertilization, microsprinkler
irrigation, more reset trees, etc. The 2004-2005 budgets reflect major cost increases in all
production inputs: fuel averaged a 22% increase; fertilizer products increased 15%;
chemicals averaged an 8% increase; and equipment operation costs increased 7%. Along
with the increased costs, three major hurricanes (storms) during August and September 2004
resulted in wide tree damage and fruit loss. The Indian River region experienced fruit loss
of 70% to 80% on red and white grapefruit, respectively. Hamlin orange losses in the
Central Florida (ridge) region were 30% to 40% with Valencia orange losses between 20%
and 30%. The only citrus growing region that was not significantly affected by the three
storms was the Southwest Florida citrus region. As a result of the excessive fruit loss, the
per box, per pound solid and per carton costs for the Indian River and Central (ridge)
growing regions were substantially higher than in recent years.

The budget costs in this report represent a custom-managed operation. 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 listed are representative for a
mature citrus grove (10+ years old), 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 trees could add an additional $16.60 per
acre; Diaprepes control could add $84.18 per acre for each foliar application; extensive tree
loss due to blight or tristeza could substantially increase the tree replacement and care costs;
spray applications to control citrus leafminer and nematicide applications such as Temik
($127.50/acre) 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 the grove equipment barn and could add $28.86 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.

TABLE OF CONTENTS

Page

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

ACKNOW LEDGEM ENTS ....................................................... i

LIST OF TA BLES ............................................ ......... ....... iii

IN TR O D U C TIO N .................................................... ........ 1

M ETHOD OF DATA COLLECTION ............................................ 1

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

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

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

HISTORICAL COST TRENDS ................................................... 5

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

A D D EN D A ........................................................ ........ 12

NOTE: The ADDENDA include a Listing of Grove Care Options for Indian
River Citrus Production for Both Round Oranges and Grapefruit; 2005
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 Page

1 Schedule of production practices and budget items for an Indian River Florida
grapefruit grove, 2004-05 ............................................... 3

2 Calculation of normal production per acre, 2004-05 .......................... 4

3 Estimated annual per acre costs and returns for a mature, white seedless grapefruit
grove producing for the fresh market, Indian River area, 2004-05 ............... 6

4 Estimated total delivered-in cost for Indian River White grapefruit grown for the
processed juice market under three cultural cost programs, 2004-05 ............. 7

5 Estimated F.O.B. cost for fresh market Indian River White grapefruit, 2004-05 .... 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, 2000-01-2004-05 ................................... 9

7 Estimated annual per acre costs and returns and 5-year average costs and returns
(adjusted to 2005 dollars) for a mature, white seedless grapefruit grove producing
citrus for fresh fruit market in the Indian River area, 2000-01-2004-05 ........... 10

BUDGETING COSTS AND RETURNS FOR INDIAN RIVER
CITRUS PRODUCTION, 2004-05

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.
The 2004-2005 budgets reflect major cost increases in all production inputs: fuel averaged a 22%
increase; fertilizer products increased 15%; chemicals averaged an 8% increase; and equipment operation

costs increased 7%. Along with the increased costs, three major hurricanes (storms) during August and
September 2004 resulted in wide tree damage and fruit loss. The Indian River region experienced fruit

loss of 70% to 80% on red and white grapefruit, respectively. Hamlin orange losses in the Central Florida
(ridge) region were 30% to 40% with Valencia orange losses between 20% and 30%. The only citrus
growing region that was not significantly affected by the three storms was the Southwest Florida citrus
region. As a result of the excessive fruit loss, the per box, per pound solid and per carton costs for the
Indian River and Central (ridge) growing regions were substantially higher than in recent years.

METHOD OF DATA COLLECTION

The data presented here were developed by surveying custom operators, input suppliers, growers,

and colleagues at both the Indian River Research and Education Center in Ft. Pierce and the Citrus
Research and Education Center in Lake Alfred and County Extension Citrus Agents in the Indian River
production region. 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, Tables 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

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.

BUDGETING COSTS AND RETURNS FOR INDIAN RIVER
CITRUS PRODUCTION, 2004-05

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.
The 2004-2005 budgets reflect major cost increases in all production inputs: fuel averaged a 22%
increase; fertilizer products increased 15%; chemicals averaged an 8% increase; and equipment operation

costs increased 7%. Along with the increased costs, three major hurricanes (storms) during August and
September 2004 resulted in wide tree damage and fruit loss. The Indian River region experienced fruit

loss of 70% to 80% on red and white grapefruit, respectively. Hamlin orange losses in the Central Florida
(ridge) region were 30% to 40% with Valencia orange losses between 20% and 30%. The only citrus
growing region that was not significantly affected by the three storms was the Southwest Florida citrus
region. As a result of the excessive fruit loss, the per box, per pound solid and per carton costs for the
Indian River and Central (ridge) growing regions were substantially higher than in recent years.

METHOD OF DATA COLLECTION

The data presented here were developed by surveying custom operators, input suppliers, growers,

and colleagues at both the Indian River Research and Education Center in Ft. Pierce and the Citrus
Research and Education Center in Lake Alfred and County Extension Citrus Agents in the Indian River
production region. 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, Tables 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

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.

BUDGETING COSTS AND RETURNS FOR INDIAN RIVER
CITRUS PRODUCTION, 2004-05

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.
The 2004-2005 budgets reflect major cost increases in all production inputs: fuel averaged a 22%
increase; fertilizer products increased 15%; chemicals averaged an 8% increase; and equipment operation

costs increased 7%. Along with the increased costs, three major hurricanes (storms) during August and
September 2004 resulted in wide tree damage and fruit loss. The Indian River region experienced fruit

loss of 70% to 80% on red and white grapefruit, respectively. Hamlin orange losses in the Central Florida
(ridge) region were 30% to 40% with Valencia orange losses between 20% and 30%. The only citrus
growing region that was not significantly affected by the three storms was the Southwest Florida citrus
region. As a result of the excessive fruit loss, the per box, per pound solid and per carton costs for the
Indian River and Central (ridge) growing regions were substantially higher than in recent years.

METHOD OF DATA COLLECTION

The data presented here were developed by surveying custom operators, input suppliers, growers,

and colleagues at both the Indian River Research and Education Center in Ft. Pierce and the Citrus
Research and Education Center in Lake Alfred and County Extension Citrus Agents in the Indian River
production region. 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, Tables 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

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.

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.
All tables have a column reserved for the individual growers to insert data from a particular

grove allowing 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 average management and cultural practices are assumed. Beyond

this general assumption, the following specifics are assumed.

1. A mature (10+ years old), low volume-irrigated grove;

2. Variety is white seedless on sour orange rootstock;
3. Tree loss is 5.0 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 95 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 1.--Schedule of production practices and budget items for an Indian River Florida grapefruit grove, 2004-05"

Total revenue:

Pick & haul cost

DOC advertisement tax

Month

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

20% Final
deposit payment

X

X

Grove expenses:

Chemical

Chemical

Mow X X Mow Mow X

Labor, general grove work, pull vines X X

Herbicide (sprayed strip estimated as 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

Fertilizer 42# N/A 42# N/A 42# 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.

Less:

% of
grove

5.0%
5.0%
5.0%
5.0%
5.0%
55.0%
5.0%
15.0%

Tree age and condition

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

Yield
boxes/tree

0.0
0.0
0.0
1.0
1.7
5.7
3.5
7.0

Calculation of normal production per acre is shown in Table 2. Note that the proportion-of-trees-

by-age column only adds to 85 percent since 15 percent of the trees are non-bearing. The impact of

the three hurricanes in 2004 is reflected in a 78.5% reduction in normal yields.

Table 2.--Calculation of normal production per acre, 2004-05
Boxes Total
Age of Tree Trees /tree boxes
Total no. Proportion No. ea.
all ages ea. age" age ---------- No. ----------

3 years 95 x 0.05 4.75 x 1.0 4.8

4 years 95 x 0.05 4.75 x 1.7 8.1

5-15 years 95 x 0.55 52.30 x 5.7 298.1

Prod. 50% of
exp. yield 95 x 0.05 4.75 x 3.5 16.6

Over 15 years 95 x 0.15 14.30 x 7.0 100.1

Total boxes 427.7

Yields adjusted to 21.5% of normal yields due to three hurricanes in 2004. 92.0

"Proportion adds up to 0.85 (85 percent) as 15 percent of the trees were non-bearing (pulled and
reset, 1 and 2 year old trees).

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 2004-05 season. Grove establishment and
reset costs, alternative cost scenarios, harvesting and packing charges can be found in Tables 11-A
through 15-A in the ADDENDA. Also, historical on-tree prices for selected Florida citrus varieties
are shown in Table 16-A of the ADDENDA.

As shown in Table 3, the total revenue for fresh-market white seedless grapefruit is estimated
to be $1,099.40 per acre. Total specified costs are $1,195.78 and are comprised of grove care costs of
$1,147.78, plus management cost of $48.00. Return to land, trees, and ownership, which represents
net return above variable costs, was estimated to be a $96.38 per acre loss. At 325 and 525 boxes per
acre, respectively, the break-even price required to cover grove care costs for seedless white grapefruit
range from $3.54 to $2.19 per box on-tree and $1.54 to $1.25 per pounds solids delivered-in for
eliminations.
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 $460 per acre ($3,900 average debt per acre @ 10 percent interest amortized
over 20 years) which would reduce total available cash for grove expansion or other investment.
Estimated "delivered-in" costs are shown for 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 (Refer to Table 13-A): 1) Low Cost
Processed Cultural Program; 2) Processed and Reduced Cost Fresh Cultural Program; and 3)
Typical/Historical Fresh Fruit Cultural Program. The first scenario represents costs of a cultural
program directed toward reducing the expenditures for fruit grown primarily for the processed market.
Scenario 2 represents a program using reduced inputs but with production directed at the fresh market.
And the third scenario represents typical costs for grove practices which have been performed for citrus
grown for the fresh fruit market. Modified herbicide and/or spray and fertilizer programs account for
the reduced costs. NOTE: Before modifying a grove management program to reduce costs, an
evaluation of the market program (processed or fresh), yield, and specific cultural problems (nutrition,
disease, etc.) for the specific grove site should be made. 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 2000-01 through 2003-04 along with 2004-05, and a five-year average are presented in Table 6.
The affects of over planting following the 1980s freezes on Florida's annual grapefruit supply has
resulted in a fluctuating on-tree price per box. Despite general reduction in operating costs, annual net
return to land and trees has decreased over the five-year period. To allow comparisons in current
values, these same costs and returns, adjusted to 2005 dollars, are presented in Table 7.

Table 3.--Estimated annual per acre costs and returns for a mature, white seedless grapefruit grove producing for the fresh market, Indian River area, 2004-05'

Item Description Amount Your cost
---------- --- Dollars -------------
I. Revenue 92 boxes @ $11.95b 1,099.40
II. Expenses'
Weed control
Mow middles 3 times per year 29.91
Chemical mow (Table 2-A, Option #9) 2 times per year 10.16
General grove work/sprouting, etc. (2 labor hours per acre) 27.12
Herbicide (Table 2-A, Options #1, #6 & #7) 132.88 200.07
Spray program (Table 1-A, Options #1, #3, #4 @ 2, #8 & #12) 405.43
Fertilizer (Table 3-A, Option #2) 140.18
Dolomite (Table 7-A, Option #1) 14.65
Pruning (maintenance)
Topping ($275.00/hr. + 10 A/hr.) 2 yrs. 13.75
Hedging ($257.50/hr. + 10 A/hr.) + 1.5 yrs. 17.17
Removing/chop brush ($8.99/A + 1.5 yrs.) 6.00
Raise skirts of trees ($14.00/A + 2 yrs.) 7.00 43.92
Tree replacement and care (1 through 3 years)
Remove trees (Table 12-A) 5 trees per acre 25.40
Prepare sites, repair mound, and plant resets Including 5 trees per acre 59.85
Supplemental fertilizer, sprout, etc. (Trees 1-3 years) Including application 49.65 134.90
Microsprinkler irrigation (Table 7-A, Option #4) 166.17
Drainage ditch annual cost (Table 7-A, Option #5) 42.46
Total grove care expenses 1,147.78
III. Management $4.00 per acre per month 48.00
IV. Total specified costs 1 195.78
V. Return (loss) to land, trees, and ownership (96.38)
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 $ Delivered-in price per pound solids for eliminationsf
3.54 3.06 2.70 2.42 2.19 1.54 1.44 1.36 1.30 1.25
'Although the estimated annual per acre grove costs shown in Table 3 are representative for a mature Indian River white seedless grapefruit grove, the grove care costs for a specific grove site may
differ depending upon the grove practices performed; e.g., a Temik application would add $127.50 per acre; extensive tree loss due to blight or tristeza may double the tree replacement and care costs;
travel and set-up costs may vary due to size of citrus grove and distance from grove equipment barn; etc.; truck watering of resets could add another $7.95 per acre (average 5 waterings).
bOn-tree price per box is preliminary; assumes average of all methods of sale (fresh and processed).
'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 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 4.7 pounds solids per box, $2.63 pick and haul cost per box (includes spot picking and fruit drenching plus D.O.C. $0.25 advertising tax and canker decontamination costs), $0.55 per box
handling through packinghouse, and $0.45 per box delivery to processing plant.

Table 4. Estimated total delivered-in cost for Indian River White grapefruit grown for the fresh/processed market under three cultural cost programs,
2004-05

Sa m Processed White Grapefruit Fresh Packed White Grapefruit Fresh Packed White Grapefruit
Represents a mature (10+ years old)
Rrn mtue (1 r Low Cost Reduced Cost Typical/Historical
Indian River White Grapefruit GroveCultul
Cultural Program Cultural Program Cultural Program

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
Canker Decontamination Costs
Total Taxes/Regulatory Costs

Total Direct Grower Costs

Interest on Average Capital Investment Costs

Total Grower Costs

Harvesting and Assessment Costs:
Pick/Spot Pick, Roadside & Haul and
Canker Decontamination
Fruit Drenching (Fresh)
DOC Assessment
Total Harvesting and Assessment Costs

Total Delivered-In Cost

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

$ 850.02 $9.239 $1.9658

23.38 0.254 0.0541

48.00 0.522 0.1110

47.04 0.511 0.1088
63.00 0.685 0.1457

6.18
116.22

$1,037.62

321.22

$1,358.83

0.067
1.263

$11.278

3.491

$14.770

0.0143
0.2688

$2.3997

1.7457

$4.1454

191.54 2.082 0.4430

22.08
213.62

0.240
2.322

0.0511
0.4940

$1,572.45 $17.092 $4.6394

$/Acre $/Box $/Carton

$1,124.82 $2.528 $1.2638

56.24 0.126 0.0632

48.00 0.522 0.2609

44.80
60.00
54.73
6.18
165.71

$1,394.77

321.22

$1,715.99

218.41
17.02
23.00
258.43

0.487
0.652
0.595
0.067
1.801

$4.977

3.491

$8.468

2.374
0.185
0.250
2.809

0.2435
0.3261
0.2974
0.0336
0.9006

$2.4885

1.7457

$4.2342

1.1870
0.0925
0.1250
1.4045

$1,974.41 $11.277 $5.6387

$/Acre

$/Box $/Carton

$1,147.78 $12.476 $6.2379

57.39 0.624

48.00 0.522

44.80
60.00
52.13
6.18
163.11

$1,416.28

321.22

$1,737.49

218.41
17.02
23.00
258.43

0.487
0.652
0.567
0.067
1.773

$15.394

3.491

$18.886

2.374
0.185
0.250
2.809

0.3119

0.2609

0.2435
0.3261
0.2833
0.0336
0.8865

$7.6972

1.7457

$9.4429

1.1870
0.0925
0.1250
1.4045

$1,995.92 $21.695 $10.8474

Two cartons per box Refer to cultural program
Two cartons per box Refer to cultural program Refer to cultural program shown Refer to cultural program shown
P.S. = Pound Solids shown on Table 13-A. in Table 13-A. in Table 3.
in Table 13-A. in Table 3.
Yield: 92 boxes/acre @ 4.7 P.S. per box Two summer oil sprays with Assums 10
95Assumes 100% packout Assumes 100% packout
95 trees per acre oil, copper, and Agri-mek

8

Table 5.--Estimated F.O.B. cost for fresh market Indian River White grapefruit, 2004-05

Percent Packout 50.00% Percent Packout 60.00% Percent Packout 70.00%
Box Yield Per Acre 445 Box Yield Per Acre 445 Box Yield Per Acre 445
Per Per Per
Packed Packed Packed
Per Acre Box Per Carton Per Acre Box Per Carton Per Acre Box Per Carton

Total Production/
Cultural Costs $1,147.78 $5.159 $2.5793 $1,147.78 $4.299 $2.1494 $1,147.78 $3.685 $1.8423

Interest on Operating
(Cultural) Costs 57.39 0.258 0.1290 57.39 0.215 0.1075 57.39 0.184 0.0921

Management 48.00 0.216 0.1079 48.00 0.180 0.0899 48.00 0.154 0.0770

Taxes/Regulatory 163.11 0.733 0.3665 163.11 0.611 0.3054 163.11 0.524 0.2618

Interest on Average
Capital Investment 321.22 1.444 0.7218 321.22 1.203 0.6015 321.22 1.031 0.5156

Harvesting (Pick/Spot Pick,
Haul, DOC Tax, Etc.) 1,250.01 5.618 2.8090 1,250.01 4.682 2.3408 1,250.01 4.013 2.0064

Total Delivered-In Cost $2,987.50 $13.427 $6.7135 $2,987.50 $11.189 $5.5946 $2,987.50 $9.591 $4.7953

Packing & Selling (Export) 1,642.05 7.380 3.6900 1,970.46 7.380 3.6900 2,298.87 7.380 3.6900

Net Fresh Eliminations
Costs" -1,743.51 -7.836 -3.9180 -1,394.81 -5.224 -2.6120 -1,046.11 -3.358 -1.6791

Total F.O.B. Costs $2,886.04 $12.971 $6.4855 $3 563.15 $13.345 $6.6726 $4240.26 $13.612 $6.8062

Percent Packout 80.00% Percent Packout 90.00% Percent Packout 100.00%
Box Yield Per Acre 445 Box Yield Per Acre 445 Box Yield Per Acre 445
Per Per Per
Packed Packed Packed
Per Acre Box Per Carton Per Acre Box Per Carton Per Acre Box Per Carton

Total Production/
Cultural Costs $1,147.78 $3.224 $1.6121 $1,147.78 $2.866 $1.4329 $1,147.78 $2.579 $1.2896

Interest on Operating
(Cultural) Costs 57.39 0.161 0.0806 57.39 0.143 0.0716 57.39 0.129 0.0645

Management 48.00 0.135 0.0674 48.00 0.120 0.0599 48.00 0.108 0.0539

Taxes/Regulatory 163.11 0.458 0.2291 163.11 0.407 0.2036 163.11 0.367 0.1833

Interest on Average
Capital Investment 321.22 0.902 0.4511 321.22 0.802 0.4010 321.22 0.722 0.3609

Harvesting (Pick/Spot Pick,
Haul, DOC Tax, Etc.) 1,250.01 3.511 1.7556 1,250.01 3.121 1.5606 1,250.01 2.809 1.4045

Total Delivered-In Cost $2,987.50 $8.392 $4.1959 $2,987.50 $7.459 $3.7297 $2,987.50 $6.713 $3.3567

Packing & Selling (Export) 2,627.28 7.380 3.6900 2,955.69 7.380 3.6900 3,284.10 7.380 3.6900

Net Fresh Eliminations
Costs" -697.40 -1.959 -0.9795 -348.70 -0.871 -0.4353 0.00 0.000 0.0000

Total F.O.B. Costs $4 917.38 $13.813 $6.9064 $5 594.49 $13.969 $6.9844 $6271.60 $14.093 $7.0467

"Net Eliminations Cost" equals the average yield of 4.70 pound solids per box times $1.88 per pound solids less packinghouse
elimination charge and cannery hauling charge of $1.00 per box.

Table 6.--Estimated annual per acre costs and returns for a mature, white seedless grapefruit grove producing citrus for fresh fruit market in the
Indian River area, 2000-01-2004-05

On-tree Gross Total grove Total specified Net return to land,
Year price/box" Yield revenue care expenses costs trees, and ownership

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

2000-01 $2.15 425c 913.75 974.46 1,022.46 (108.71)

2001-02 $1.95 417d 813.15 1,008.77 1,056.77 (243.62)

2002-03 $2.08 417d 867.36 1,024.54 1,072.54 (205.18)

2003-04 $1.88 445 836.60 1,041.13 1,089.13 (252.53)

2004-05 $11.95b 92' 1,099.40 1,147.78 1,195.78 (96.38)

'On-tree prices for all sales methods as reported by the Florida Agricultural Statistics Service.
bPreliminary estimate by FASS for 2004-05 season.

CThe severe drought affected yields for the 2001-02 season and three hurricanes in 2004 reduced yields by 78.5%.
increased tree loss due to citrus tristeza virus reduced yields.

'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 (adjusted to 2005 dollars) for a mature, white seedless grapefruit grove producing citrus
for fresh fruit market in the Indian River area, 2000-01-2004-05

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

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

2000-01 117.9 $2.54 425 1,079.50 1,205.48 (125.98)

2001-02 120.7 $2.36 417 984.12 1,275.53 (291.41)

2002-03 114.6 $2.39 417 996.63 1,229.13 (232.50)

2003-04 107.9 $2.03 445 903.35 1,175.18 (271.83)

2004-05 100.0 $11.95 92 1,099.40 1,195.78 (96.38)

"Producer price index for each year adjusted to 2005 prices (2005 100), with 2005 consumer price index estimated to be 158.2. Producer
price index for other years are: 2001 -134.2; 2002 131.1; 2003 138.1; and 2004 146.7.

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. Preliminary Summary 2004-05. Florida Agricultural Statistics Service. Florida Agricultural
Statistics. September 2005.

2. Muraro, Ronald P. "A Listing of Estimated Comparative Indian River Citrus Production Costs
Per Acre for 2004-05." Lake Alfred Citrus Research and Education Center (CREC) Report. Lake
Alfred, FL: August 2005.

3. ___ "Estimated Cost of Planting and Maintaining a Reset Citrus Tree through Three Years
of Age." Lake Alfred CREC Report. Lake Alfred, FL: July 2004.

4. _____. "A Listing of 2005 Custom Rates Reported by Twenty-five Indian River and South
Florida Citrus Caretakers." Lake Alfred CREC Report. Lake Alfred, FL: July 2005.

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

6. Timmer, L. W. (Ed.). 2005 Florida Citrus Pest Management Guide. Univ. of Fla. Coop. Ext. Svc.
SP 43. Gainesville: Jan. 2005. 150 pp.

7. 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.

12

ADDENDA: Listing of Grove Care Options for Indian River Citrus Production for Both Round
Oranges and Grapefruita

Page
Table 1-A Spray options ......... ......................................... 13

Post bloom spray ................................................. 14
Sum m er spray .................................................... 14
F all spray ............................................... ........ 15

Table 2-A H erbicide options ................................................. 15

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

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

Table 5-A N em aticides options ............................................... 19

Table 6-A Soil am endm ent options ............................................ 19

Table 7-A. Irrigation--annual cost per acre ...................................... 20
D rip . . . .. . . . . . . . . .. . . 2 0
M icrosprinkler .................................................... 20
Drainage ditch annual costs ......................................... 20

Table 8-A. A listing of 2005 custom rates reported by fifteen Indian River and South
Florida citrus caretakers ............................................ 21

Table 9-A. 2005 summary of average chemical price estimates ...................... 23

Table 10-A. 2005 summary of average fertilizer price estimates ....................... 25

Table 11-A. A listing of estimated comparative Indian River citrus production costs per
acre, 2004-05 .......................................... ......... 27

Table 12-A. Estimated cost of planting and maintaining a reset citrus tree through three
years of age, July 2004 ............................................... 28

Table 13-A. Estimated average picking, roadsiding and hauling charges for Florida citrus,
2 0 0 4 -0 5 . . . . . . . . . . . . . .. 2 9

Table 14-A. Estimated average packing charges for Florida citrus, 2004-05 ............... 30

Table 15-A. Historic prices for selected citrus varieties ............................. 31

Table 16-A. Debt which can be supported per $1,000.00 annual payment capacity ........ 32

Abbreviations for important chemicals are:
Cu Copper Mg Magnesium N Nitrogen
Fe Iron Mn Manganese Zn Zinc

"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 options

POST BLOOM SPRAY

Spray Option #1

Materials/Ingredients

Micromite
Oil 97+%
Cu (50% metallic)
Zn
Mn

Ground Application 250 gals 32.92
(PTO driven airblast)

Total per Application $106.99

Spray Option #2

Materials/Ingredients

Agri-Mek
Cu (50% metallic)
Oil 97+%

Ground Application
(Curtec sprayer)

Total per Application $93.58

Amount
)n #3 Materials/Ingredients /Acre Cost/Acre

Cu (50% metallic) 7 lbs $10.92
Oil 97+% 5 gals 12.30
Ground Application 250 gals 32.92
(PTO driven airblast)
Total per Application $56.14

Spray Option #4

Materials/Ingredients

Cu (50% metallic)
Ground Application
(PTO driven airblast)
Total per Application

Amount
/Acre

1.25 lbs
5 gals
7 lbs
5 lbs
10 lbs

Your
Cost/Acre

Cost/Acre

$ 42.65
12.30
10.92
4.60
3.60

Amount
/Acre

10 ozs
10 lbs
3 gals

25 GPA

Your
Cost/Acre

Cost/Acre

$48.60
15.60
7.38

22.00

Spray Opti

Your
Cost/Acre

Amount
/Acre

7 lbs
125 gals

Your
Cost/Acre

Cost/Acre

$10.92
28.03

$38.95

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

SUMMER SPRAY

Amount
)n #5 Materials/Ingredients /Acre Cost/Acre
Oil 97+% 5 gals $12.30
Cu (50% metallic) 7 lbs 10.92
Micromite 1.25 lbs 42.65
Ground Application 250 gals 39.92
(PTO driven airblast)
Total per Application $98.59

Amount
)n #6 Materials/Ingredients /Acre Cost/Acre
Cu (50% metallic) 7 lbs $ 10.92
Oil 97+% 5 gals 12.30
Agri-Mek 10 ozs 48.60
Ground Application 250 gals 32.92

(PTO driven airblast)

Total per Application $104.74

Amount
)n #7 Materials/Ingredients /Acre Cost/Acre
Cu (50% metallic) 7 lbs $10.92
Oil 97+% 10 gals 24.60
Agri-Mek 5 ozs 24.30
Ground Application 500 gals 38.00

(PTO driven airblast)

Total per Application $97.82

Amount
on #8 Materials/Ingredients /Acre Cost/Acre

8 oz
5 gals
1.25 lbs
250 gals

$ 15.80
12.30
42.65
32.92

Enable
Oil 97+%
Micromite
Ground Application
(PTO driven airblast)

Total per Application $103.67

Amount
)n #9 Materials/Ingredients /Acre Cost/Acre

Cu (50% metallic) 7 lbs $10.92
Oil 97+% 5 gals 12.30
Zn 5 lbs 4.60
Mn 10 lbs 3.60
B 0.25 lbs 1.34
Ground Application 250 gals 32.92

$65.68

(PTO driven airblast)
Total per Application

Spray Opti

Spray Opti

Spray Optio

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Spray Opti

Your
Cost/Acre

Spray Optio

Your
Cost/Acre

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

SUMMER SPRAY (cont'd.)

Spray Option #10

(Scale insects)

FALL SPRAY

Spray Option #11

Spray Opti

Spray Opti

Materials/Ingredients

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

Materials/Ingredients

Vendex 50WP
Microthiol (sulfur)

Ground Application
(PTO driven airblast)

Amount
/Acre

5 pts
500 gals

Cost/Acre

$23.50
38.00

Your
Cost/Acre

$61.50

Amount
/Acre

2 lbs
15 lbs

250 gals

Cost/Acre

$32.70
11.55

32.92

Total per Application $77.17

Amount
on #12 Materials/Ingredients /Acre Cost/Acre

Vendex WP 2 lbs $32.70

Ground Application 125 GPA 28.03

Your
Cost/Acre

Your
Cost/Acre

(PTO driven airblast)

Total per Application $60.73

Amount
on #13 Materials/Ingredients /Acre Cost/Acre

Microthiol (sulfur) 15 lbs $11.55

Aerial Application 15 GPA 8.82

Total per Application

Your
Cost/Acre

$20.37

Table 2-A.--Herbicide options

Herbicide Option #1

(Strip/band)

Materials

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

Amount/
Treated Acre

3 lbs
4 lbs
2 qts

Your Cost/
Grove Acre

Cost/
Grove Acre"

$23.51
8.52
8.02
12.75

$52.80

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

Herbicide Option #2

(Strip/band)

Materials

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

Amount/
Treated Acre

2 qts
4 qts
2 qts

Total for 1 Application $50.81

Herbicide Option #3

(Strip/band)

Materials

Karmex WP
Roundup Ultra Max

Amount/
Treated Acre

4 lbs
2 qts

Ground Application 12.75
(1 time)
Total for 1 Application $29.29

Herbicide Option #4

(Strip/band)

Amount/
Materials Treated Acre

Solicam 80DF
Simazine 4L
Roundup Ultra Max

4 lbs
4 qts
2 qts

Cost/
Grove Acres

$23.51
7.56
8.02

Your Cost/
Grove Acre

Ground Application 12.75
(1 time)
Total for 1 Application $51.84

Herbicide Option #5

(Strip/band)

Amount/
Materials Treated Acre

Roundup Ultra Max
Ground Application
(1 time)

2 qts

Cost/
Grove Acres

$ 8.02
12.75

Your Cost/
Grove Acre

Total for 1 Application $20.77

Herbicide Option #6

(Strip/band)

Amount/
Treated Acre

Materials

Krovar I
Roundup Ultra Max
Ground Application
(1 time)
Total for 1 Application

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

Your Cost/
Grove Acre

Cost/
Grove Acres

$22.48
7.56
8.02
12.75

Cost/
Grove Acres

$ 8.52
8.02

Your Cost/
Grove Acre

5 lbs
2 qts

Your Cost/
Grove Acre

Cost/
Grove Acres

$31.30
8.02
12.75

$52.07

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

Herbicide Option #7

(Strip/band)

Materials

Roundup Ultra Max
Princep (Caliber 90)
Ground Application
(1 time)

Amount/
Treated Acre

2 qts
4 lbs

Total for 1 Application $28.01

Amount/ Cost/ Your Cost/
)ption #8 Materials Treated Acre Grove Acre" Grove Acre

d) Direx 4L 3 qts $ 6.84
Solicam 3 lbs 23.51
Ground Application 12.75
(1 time)

Total for 1 Application $43.10

Amount/ Cost/ Your Cost/

)ption #9 Materials Treated Acre Grove Acre" Grove Acre

mow) Roundup Ultra Max 1 pt $ 2.01
Ground Application 3.07
(1 time)
Total for 1 Application $ 5.08

Herbicide Option #10

(Chemical mow)

Materials

Roundup Ultra Max

Ground Application
(1 time)

Amount/
Treated Acre

1.5 pts

Total for 1 Application $ 6.09

Herbicide Option #11

(Spot treatment for
grass/brush regrowth
under trees)

Materials

Roundup Ultra Max

Ground Application
(1 time)

Total for 1 Application

Amount/
Treated Acre

2 qts

Your Cost/
Grove Acre

Cost/
Grove Acre"

$ 8.02
7.24
12.75

Herbicide C

(Strip/ban

Herbicide

(Chemica

Your Cost/
Grove Acre

Cost/
Grove Acrea

$ 3.02

3.07

Cost/
Grove Acre"

$ 8.02

Your Cost/
Grove Acre

4.56

$12.58

I

Table 3-A.--Dry fertilizer options

Analysis/Material Amount
Option #1 Applied /Acre Cost/Acre

(100 lbs N/Acre) 12-2-12-2.4 MgO 835 lbs $ 93.52

Application 3 times 23.70

Total for 3 Applications $117.22

Analysis/Material Amount
Option #2 Applied /Acre Cost/Acre

(125 lbs N/Acre) 12-2-12-2.4 MgO 1040 lbs $116.48

Application 3 times 23.70

Total for 3 Applications $140.18

Analysis/Material Amount
Option #3 Applied /Acre Cost/Acre

(162 lbs N/Acre) 12-2-12-2.4 MgO 1350 lbs $151.20

Application 3 times 23.70

Total for 3 Applications $174.90

Analysis/Material Amount
Option #4 Applied /Acre Cost/Acre

(180 lbs N/Acre) 15-2-15-2.4 MgO 1200 lbs $150.00
Application 3 times 23.70
Total for 3 Applications $173.70

Option #5

(204 lbs N

Option #6

(225 lbs N

Analysis/Material Amount
Applied /Acre Cost/Acre

/Acre) 17-4-17-2.4 MgO 1200 lbs $157.20
Application 3 times 23.70
Total for 2 Applications $180.90

Analysis/Material Amount
Applied /Acre Cost/Acre

/Acre) 15-2-15-2.4 MgO 1500 lbs $187.50
Application 3 times 23.70
Total for 3 Applications $211.20

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

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

Analysis/Material Amount
Applied /Acre Cost/Acre

/Acre) 10-0-10 1800 lbs $167.40
Double Boom Application 3 times 37.65
Total for 3 Applications $205.05

Analysis/Material Amount
Applied /Acre Cost/Acre

/Acre) 10-2-10 1800 lbs $176.40
Double Boom Application 3 times 37.65
Total for 3 Applications $214.05

Option #3

(180 lbs N/Acre)

Analysis/Material
Applied

10-0-10
Solicam 80DF
Karmex WP
Double Boom Application
Total for 3 Applications

Amount
/Acre

1800 lbs
3 lbs*
4 lbs*
3 times

*Treated acre (one herbicide application)

Table 5-A.--Nematicides options
Analysis/Material Amount
Option #1 Applied /Acre
Temik 15G 33 lbs
Application 1 time
Total per Application

Cost/Acre

$167.40
23.51
8.52
37.65
$237.08

Cost/Acre
$116.16
11.34
$127.50

Table 6-A.--Soil amendment options
Analysis/Material Amount
Option #1 Applied /Acre Cost/Acre
(Every 3 years) Dolomite (Delivered) 1 ton $36.05
Application 1 time 7.90
Total for 1 Application $43.95
(Average 1/3 Ton Applied/Yr) $14.65

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Option #2
(Every year)

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

Option #1

(180 lbs N

Option #2

(180 lbs N

Your
Cost/Acre

Your
Cost/Acre

Amount
/Acre
1000 lbs
1 time

Your
Cost/Acre

Cost/Acre
$18.03
7.90
$25.93

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

DRIP

Operating

Maintenance of System

Total Cash Expenses

Fixed Depreciation Expense

Total Cash and Fixed
Expenses

Option #1

(Electric)
$ 62.10

44.04

$106.14

42.35

$148.49

Your
Cost/Acre Option #2

(Diesel)
$ 55.87

43.82

$ 99.69

42.25

$144.91

MICRO SPRINKLER

Operating

Maintenance of System

Total Cash Expenses

Fixed Depreciation Expense

Total Cash and Fixed
Expenses

Option #3

(Electric)
$ 70.60

49.08

$119.68

52.94

$172.62

Your
Cost/Acre

Option #4

(Diesel)
$ 59.44*

50.17

$109.61

56.56

$166.17

DRAINAGE DITCH ANNUAL COSTS

Ditches/Canals Maintenance ($45.17/acre 3 years)
Weed Control in Ditches/Canals
Water Control: In/Out of Ditches and Canals
Total

Option #5

$15.06
14.19
13.21
$42.36

*Indicates higher cost for fuel; diesel or electric.

Your
Cost/Acre

Your
Cost/Acre

Your
Cost/Acre

Table 8-A.--A listing of 2005 custom rates reported by sixteen Indian River and South Florida citrus caretakers

Range of Rate Average
Grove Practice Unit Reported Rate' Comments

CULTIVATION AND EQUIPMENT:
Labor
Mechanic Labor
Rotovate
Disc 7-8'
Disc 10-12'
Mow: 7-8'
9-10'
9-10'
15-16'
V-Mower
Herbicidez (Strip/Band-Single Boom)
Herbicidez (Strip/Band-Single Boom)
Herbicidez (Strip/Band-Double Boom)
Herbicidez (Chemical Mow)
Temikz
Plow
Backhoe
Middle Buster
Mound Builder
Grader Blade
Water Truck with Driver
Pickup Truck with Driver

Flatbed/Transport Truck with Driver
Tractor with Driver
ATV with Driver

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

Hour
Hour
Hour

$ 9.50-
30.00-
33.00-
27.50-
32.00-
27.50-
31.00-
9.00-
35.00-
33.00-
30.00-
13.00-
12.00-
2.50-
10.50-
32.50-
45.00-

31.00-
28.00-
30.00-
28.00-

35.00-
28.00-
20.00-

SPRAYING:

$17.50
50.00
40.00
38.50
40.00
35.00
38.50
11.00
41.25
35.00
32.00
13.75
14.00
3.50
12.50
38.50
47.50

38.50
38.50
35.00
35.00

50.00
35.00
25.00

$13.56
39.56
37.75
33.00
35.84
31.14
33.97
9.97
39.85
34.34
31.33
13.39
12.75
3.07
11.34
34.67
45.70
38.50
34.84
33.60
32.75
31.67

45.00
31.69
23.25

Plus transportation and equipment
Labor and service truck

$9.00/acre

Plus materials
Plus materials; $35.00/hour
Plus materials
Plus materials
Plus materials

With tractor and driver
With tractor and driver
Tractor/blade and driver

Average miles traveled per year: Pick-up truck 21,298
miles

PTO AIR BLAST SPRAYER
1,000 Gallon Tank
with Electronic Sensing

Low High Average

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

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

Acre
Acre
Acre

29.00-
25.00-

36.00
29.00

38.00
32.92
28.03

500 Gallon Tank

Average
39.00
29.00
27.00

Acre -22.00
Fixed Wing: $ 5.13/acre @ 5 gallons per acre
Fixed Wing: $ 7.17/acre @ 10 gallons per acre Bell Helicopter: $20.00/acre @ 10 GPA
Fixed Wing: $ 8.82/acre @ 15 gallons per acre
Fixed Wing: $11.25/acre @ 20 gallons per acre
Hand Sprayer (500 gallon tank) with tractor and 2 workers $45.00/hour

Acre 12.00- 13.40 12.55
Acre 7.00- 8.75 7.90 Average with VRT: $10.38/acre
Acre 7.50- 8.75 7.90
Hour 9.50- 17.50 13.56 Plus transportation and materials; 150/tree
Average: $7.25/acre; $26.00/hour Plus materials

(OVER)

Table 8-A.--A listing of 2005 custom rates reported by sixteen Indian River and South Florida citrus caretakers (cont'd.)

Range of Rate Average
Grove Practice Unit Reported Ratey Comments

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

REMOVING TREES:
Front-end Loader
Tree Shearing (Cutting Tree at Ground Level)
Prepare Site for Replanting

PRUNING:
Hedging:
Single Side (Tractor Mounted)
Double Side (Tractor Pulled)
Double Side (Self Propelled)

Double Side Rotary (Self Propelled)'
Topping:
Double Sided Topper (Self Propelled)

Topping Self Propelled
Limb Lifter/Tree Skirt Trimmer
Limb Lifter/Tree Skirt Trimmer (Double Sided
Rotary)
Removing Brush:
Haul Brush out of Grove (Front-End Loader)
Mow/Chop Brush

OTHER CUSTOM RATES:
Install Tree Wraps

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

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

Consulting

Hour
Hour
Hour
Hour
Hour
Hour
Acre/Month

$32.00- $44.50 $ 36.20
30.00- 38.50 34.67
35.00- 38.50 36.34
65.00
80.00
33.00- 38.50 35.50
3.50- 4.75 4.25

Hour $50.00- $65.00
Hour 50.00- 65.00
Tree $0.25 $1.00

Hour
Hour
Hour

Hour

$ $ $ 55.00
65.00
250.00- 265.00 257.50

Check & repair system; parts extra

$56.79 Avg. range 3-15 trees per hour
56.25 Avg. range 5-20 trees per hour

8 to 20 A/H depending on wood size; $14/A annual

185.00 5 to 15 A/H bed tops only; add 25% for furrows only

Hour 265.00- 285.00 275.00 Avg. 8-15 ac depending on wood size type of

Hour
Acre
Hour

150.00
14.00
120.00

cut;$30/acre

3 to 5 acres/hour
6 to 20 acres/hour

Hour 55.00- 65.00 59.25
Hour 32.00- 40.00 34.60

15-50 /tree depending on type of wrap and number of trees; Annual maintenance cost:

35C/tree
Tree $ 0.90-
Tree 2.00-
Hour

$ 1.75 $ 1.32 Varies as to density
2.50 2.17 Varies as to the number of resets
22.62

Acre 3.00- 7.50 5.15 In addition to caretaking charges
$0.10-$0.25/box For Supervising and Marketing fruit
5% to 15% of materials cost

Box $ 0.05- $ 0.25

$0.15

Hour $125.00- $200.00 $150.00 Horticultural Evaluation and/or Financial
Analysis/prospectus.

Total Reported Acreage Provided Grove Service to: Acre

1,000- 14,000

4,870 Total acres reporting: 48,700

Source: Ronald P. Muraro, Extension Farm Management Economist, Lake Alfred CREC, July 2005.

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

Table 9-A.--2005 summary of average chemical price estimates

Item
Fungicides: Abound EC
Aliette 80WP
Basic Copper Sulfate
Copper (Kocide 101)
Copper (Kocide 2000)
Copper (Champ II Flowable)
Cuprofix Disperss
Nu-Cop 50 DF
Enable
Gem 25
Headline EC
Oil 435 or 455
Oil 470 (Bio-lever)
Ridomil Gold EC
Safe-T-Oil
Topsin
Insecticides/Nematicides:
Admire 2F
Agri-Mek (0.15EC)
Award Fire Ant Bait
Bio-Vector
Carbaryl 4L
Carbaryl 80S
Chlorpyrifos 4E
Danitol
Guthion 2L
Guthion 50WP
Imidan 70W (Diaprepes)
Lorsban 4EC
Lorsban 15G
Malathion 5 EC
Micromite 80 WG
Microthiol
Nexter 75WP
Provado 1.6 F (nursery)
Sevin 80S
Sevin XLR
Spintor 2 S C
Sulphur 6F
Temik 15G
Vendex 50W
Vydate

Your Price
(2005)

Unit
gal.
lb.
lb.
lb.
lb.
gal.
lb.
lb.
gal.
40 ozs.
gal.
gal.
gal.
gal.
gal.
lb.

gal.
gal.
lb.
gal.
gal.
lb.
gal.
gal.
gal.
lb.
lb.
gal.
lb.
gal.
gal.
lb.
lb.
gal.
lb.
gal.
gal.
gal.
lb.
lb.
gal.

Average
Price
218.12
11.59
1.40
1.80
2.33
22.55
1.75
1.88
57.55
120.59
206.13
2.21
2.46
649.15
3.15
14.08

520.28
563.52
9.01
412.50
27.25
4.47
57.26
147.58
32.48
10.07
8.25
34.15
1.72
25.18
87.95
0.70
89.56
417.75
5.17
30.96
492.50
4.00
3.20
14.86
56.28

Table 9-A.--2005 summary of average chei

Item

nical price estimates (cont'd.)
Average Your Price
Unit Price (2005)
gal. 48.39
gal. 16.04
gal. 16.50
lb. 3.87
gal. 131.14

Herbicides: Aqua Master
Diuron 4L
Direx 4L
Direx 80 DF
Fusilade DX 2E
Glyphosate:
Glyphomax Plus
Roundup (Original)
Roundup Ultra Max
Roundup Weather Max
Roundup Original Max
Touchdown
Gramoxone E (Paraquat)
Hyvar X 80 WP
Karmex 80 DF
Krovar I
Landmaster II
Mandate 2E
Pendimax
Poast Plus 1.0 EC
Princep (Caliber 90)
Princep 4L
Prowl
Simazine 90 DF
Simazine 4L
Solicam 80 DF
Simtrol
Surflan
Growth Regulators:
Citrus Fix
Pro-Gibb 3.91%
Tree-Hold
Other Spray Materials:
Borates (15%)
Manganese (32%)
Zinc (78%)
Adjuvant (Surfactant)

gal.
gal.
gal.
gal.
gal.
gal.
gal.
lb.
lb.
lb.
gal.
gal.
gal.
gal.
lb.
gal.
gal.
lb.
gal.
lb.

gal.

gal.
20 oz. bottle
gal.

lb.
lb.
lb.
gal.

SOURCE: Ronald P. Muraro, Extension Farm Management Economist, University of
Florida, IFAS, CREC, Lake Alfred, Florida, August 2005.

18.22
23.60
29.12
50.16
43.50
37.05
37.53
18.93
3.87
11.38
18.66
166.09
24.37
52.50
3.29
14.51
22.12
2.80
13.66
14.24
19.00
81.64

494.00
33.16
79.17

0.70
0.32
0.83
23.59

Table 10-A.--2005 summary of average fertilizer price estimates

Average Your Price
Item Unit Price (2005)

FERTILIZER (FOB Price @ Plant)
$
Dry Mix (Bulk)
17-0-17-3,g ton 238.82
17-4-17-2.4Mg ton 243.35
16-0-16 ton 218.35
16-0-16-4Mg ton 239.49
16-2-16-3Mg ton 240.45
15-2-15-2.4Mg ton 224.47
12-2-12-2.4Mg ton 201.02
8-8-8 w/minors* ton 182.90
8-4-8 w/minors* ton 170.29
8-2-8 w/minors* ton 162.12
6-6-6 w/minors* ton 159.99

Liquid Mix (Bulk)
8-2-8 ton 151.53
8-4-8 ton 159.73
9-3-9 ton 166.33
9-4-9 ton 172.47
10-0-10 ton 166.62
10-2-10 ton 176.25
12-0-6 ton 166.89
12-3-6 ton 180.25
7-0-0-6 (Magnesium Nitrate) ton 218.00

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

Table 10-A.--2005 summary of average fertilizer price estimates (cont'd.)

Average Your Price
Item Unit Price (2005)

Other Fertilizer Materials (Bulk)
Ammonium Nitrate (21% N Liquid) ton 179.88
Ammonium Nitrate (33.5% N Dry) ton 259.38
Ammonium Sulfate (21% N) ton 152.94
Calcium Nitrate (19% Ca, 15.5% N) ton 288.13
Dolomite (at mine--49% CaCO3, 36% MgCO3) ton 19.75
Muriate of Potash (60% K2O) ton 242.29
Potassium Nitrate (14% N; 46% K2O) ton 453.57
Sul-Po-Mag (SPM--21.9% K20) ton 202.43
Super Phosphate (20% P2O5) ton 214.25
Triple Superphosphate (48% P205) ton 242.92
Average Delivery Cost ton 14.32

Foliar Macronutrients
Phos Might 0-22-20 gal. 24.29
Nutriphite Magnum 2-40-16 gal. 35.00
MKP (0-52-34) (Mono-Potassium Phosphate) lb. 0.80
RSA ActaPhos 0-28-25 gal. 18.00
Peter's 20-20-20 Foliar lb. 0.54
MZF gal. 6.53
Slow Release Nitrogen (SRN)
CitriBlen
15-3-19 ton 245.15
17-5-12 ton 237.50
18-6-11 ton 243.80
Sulfur Coated Urea (SCU) ton 586.80
Agriform 20-10-5 (500 tablets/box) box 40.00

SOURCE: Ronald P. Muraro, Extension Farm Management Economist, University of
Florida, IFAS, CREC, Lake Alfred, Florida, August 2005.

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 Trees3 --------------- 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.
3 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%.
4 Tree cost (bare root) = $3.25; stake, plant, and water tree = $1.25 (solidset) and $2.55 (resets); and uninsulated tree wrap
S$0.50.
Source: Ronald P. Muraro, Farm Management Economist, CREC, Lake Alfred, FL, November 1989.

Table 12-A.--Estimated cost of planting and maintaining a reset citrus tree through three years
of age, Southwest Florida area, August 2005

Resets/Replacement Trees Per Acre
1-2 3-5 6-10 11-25 26+
-------------- $ Cost Per Tree ---------------

Tree Removal 6.67 5.34 4.45 3.56 2.67

Plant ResetTree
Tree Cost (Container Tree) 4.50 4.50 4.35 4.35 4.35
Plant Tree and First Watering (Custom Charge) 2.93 2.55 2.17 1.84 1.57
Total Planting Costs 7.43 7.05 6.52 6.19 5.92

Site Preparationa
Rotovate 2.65 2.31 1.96 1.67 1.42
Re-Build Beds 3.00 2.61 2.22 1.89 1.60
Total Site Preparation 5.65 4.92 4.18 3.56 3.02

Total Planting and Site Preparation Costs 13.08 11.97 10.70 9.75 8.94

Supplemental Maintenance Year#1 4.13 3.82 3.59 3.39 3.19
(Trees 1-3 years old) Year #2 3.79 3.39 2.96 2.59 2.27
(Fertilizer, Tree Wraps, Sprout, etc.) Year #3 3.07 2.73 2.34 2.01 1.73

Total Supplemental Maintenance Costs 10.99 9.94 8.89 7.99 7.19

Summary of Tree Replacement Costs 1 3 6 6 6
Tree Removal Costs 6.67 5.34 4.45 3.56 2.67
Planting and Tree Removal Costs 13.08 11.97 10.70 9.75 8.94
Supplemental Maintenance Costs (Years 1 thru 3) 10.99 9.93 8.90 7.99 7.19
Total Three-Year Cumulative Costs 30.74 27.24 24.05 21.30 18.80

aSite preparation for bedded citrus grove. Fumigate planting site would cost approximately
$2.50 per tree.

Source: Ronald P. Muraro, Farm Management Economist, CREC, Lake Alfred, FL, August 2005.

Table 13-A.--A listing of estimated comparative Indian River citrus production costs per acre for grapefruit, 2004-2005z

Low Cost Processed Processed and Typical/Historical
Costs represent a mature (10+ years old) Cultural Program Reduced Fresh Cost Fresh Fruit
Indian River Grapefruit Grove. One Year Cultural Program Cultural Program
Alternative

PRODUCTION/CULTURAL COSTS:y
Weed Management/Control:
Mechanical Mow Middles (3 times per year)
Chemical Mow Middles (2 times per year)
General Grove Work (2 labor hours per acre)
Herbicide (1/2 tree acre treated):
Application (4 glyphosate or 3 residual applications)
Material
Total Herbicide Cost

Spray:
Post Bloom:

Summer Oil #1:

Summer Oil #2:

Fertilizer (Bulk):

Dolomite (one ton

Pruning:

Tree Replacement

Application (150 GPA)
Material
Total Post Bloom Cost
Application (250 GPA)
Material
Total Summer Oil #1 Cost
Application (PTO -- 250 GPA)
Material
Total Summer Oil #2 Cost
3 Applications
Material (12-2-12-2.4 MgO @ 125 lbs N
and 100 lbs N per acre)
Total Fertilizer Cost
applied every 3 years)
Material/Application
Topping ($27.50/A + 2 yrs)"
Hedging ($25.75/A + 1.5 yrs)"
Chop/Mow Brush after Hedging
($8.99/A + 1.5 yrs)"
Raise Skirts of Trees ($14.00/A + 2 yrs)"
Total Pruning Cost
- 1 thru 3 years of age: (5 trees/acre)

Remove Trees: Pull, Stack & Burn 5 Trees with
Front-end Loader
Prepare Site and Plant Tree (Includes 5 reset trees)
Supplemental Fertilizer, Tree Wraps Maintenance,
Sprout, etc. (Trees 1-3 years old)
Total Tree Replacement Cost
Irrigation: Microsprinkler System'
Clean Ditches (Weed Control)
Ditch and Canal Maintenance
Water Control (Pump water in/out of Ditches
and Canals)
Total Irrigation Cost
IRRIGATED PROCESSED FRUIT PRODUCTION COSTS
Supplemental Post Bloom Spray: (2 Applications)
Application (125 GPA)
Material (Copper)
Total Supplemental Post Bloom Spray Cost
Fall Miticide Spray: Application (125 GPA)
Material
Total Fall Miticide Spray Cost
IRRIGATED FRESH FRUIT PRODUCTION COSTS

$ 29.91
10.16
27.12

$51.00
32.08

32.92
65.87

32.92
32.76"

23.70

116.48

13.75
17.17

6.00

25.40
59.85

49.65

166.17
14.19
15.06

13.21

83.08

98.79

65.68

140.18

14.65

36.92

134.90

208.63
$850.02

$ 29.91
10.16
27.12

$38.25
94.63

32.92
74.07

32.92
70.75

32.92
23.22

23.70

93.52

13.75
17.17

6.00
7.00

25.40
59.85

49.65

166.17
14.19
15.06

13.21

56.06
21.84

28.03
32.70

132.88

106.99

103.67

56.14

117.22

14.65

43.92

134.90

208.63
$ 986.19

77.90

60.73
$1 124.82

$38.25
94.63

32.92
74.07

32.92
70.75

32.92
23.22

23.70

116.48

13.75
17.17

6.00
7.00

25.40
59.85

49.65

166.17
14.19
15.06

13.21

56.06
21.84

28.03
32.70

$ 29.91
10.16
27.12

132.88

106.99

103.67

56.14

140.18

14.65

43.92

134.90

208.63

77.90

60.73
$1 147.78

zThe listed estimated comparative costs are for the example grove situation described in the Economic Information Report Series entitled:
"Budgeting Costs and Returns for Indian River Citrus Production" and may not represent your particular grove situation in Indian River.

SOURCE: Ronald P. Muraro, University of Florida-IFAS, Citrus Research and Education Center, Lake Alfred, FL, August 2005.

Table 14-A.-- Estimated average picking, roadsiding and hauling charges for Florida citrus, 2004-05

Fresh Fruit Processed Fruit

Range Average Range Average

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

Picking Charges:

Early and Mid-Season Oranges

Valencia Oranges

Pink/Red Grapefruit

White/Marsh Grapefruit

Temples/Tangelos

Tangerines

Add for Spot Picking

0.70

0.70

0.60

0.60

0.85

1.25

0.10

1.75

1.25

1.25

1.25

1.65

2.00

0.50

Fresh Fruit

Range

$/Box

Roadsiding Charges:

Early and Mid-Season Oranges

Valencia Oranges

Pink/Red Grapefruit

White/Marsh Grapefruit

Temples/Tangelos

Tangerines

0.60

0.67

0.65

0.65

0.70

0.75

- 1.15

- 1.12

- 1.03

- 1.03

- 1.35

- 1.35

Fresh Fruit

All Varieties

$/Box

0.895

0.899

0.840

0.854

1.003

1.095

0.65

0.65

0.65

0.65

0.75

0.85

- 1.17 0.817

- 1.17 0.836

- 1.20 0.796

- 1.20 0.789

- 1.23 0.890

- 1.70 1.054

Processed Fruit

All Varieties

$/Box

Hauling Charges:

0 30 miles

31 50 miles

51 80 miles

81 100 miles

100 + miles

0.65

0.65

0.55

0.55

0.80

1.00

- 1.05

- 1.25

- 1.25

- 1.25

- 1.50

- 1.70

0.954

0.938

0.739

0.744

1.163

1.529

0.314

Average

$/Box

0.829

0.870

0.669

0.667

1.043

1.204

Fruit

Average

$/Box

Processed

Range

$/Box

0.417

0.512

0.573

0.640

0.746

0.393

0.464

0.515

0.632

0.728

Table 15-A.--Estimated Average Packing Charges for Florida Citrus, 2004-05a
Domestic Export Temples/ Tangerines
.. Oranges Tangerines
Grapefruit Grapefruit Tangelos
------------------------- $/Carton --------------------
Total Packing Chargeb 3.835 4.245 4.192 4.495 5.056
--------------------------- $/Box ----------------------
Drenching Charge 0.178 0.178 0.186 0.186 0.186
Packinghouse Elimination
Packinghouse Elimination 0.594 0.594 0.571 0.571 0.571
Charges
Hauling Charges for
0.425 0.425 0.410 0.410 0.410
Eliminations
aPacking charges represents a total of nine citrus packinghouses from both the Indian River
and Interior production regions.

bTotal Packing Charge includes the following items:

1. Materials including mesh/plastic bags, labels/Price Lookup Codes (PLUs), etc.
2. Includes supervisor/foreman labor, grading, palletizing, shipping and general labor.
Includes payroll taxes, workers' compensation, ground insurance, etc.
3. Other direct packing costs include: fruit treating; power, lights and water; repairs
maintenance; miscellaneous supplies; etc.
4. Indirect packing costs include such items as: insurance-fire and casualty; taxes and
licenses; depreciation and rent.
5. General and Administrative (G&A) costs include: office personnel (payroll taxes,
w/comp); packinghouse and general manager; office supplies; telephone; etc.
6. Selling Expenses which include sales salaries, travel, telephone and telegraph and
brokerage fees.
7. Special assessments include such items as: advertising taxes; inspection fees; a Florida
Citrus Packers tax; and a Citrus Administrative Committee (CAC) tax.

SOURCE: Ronald P. Muraro, University of Florida-IFAS, Citrus Research and Education
Center, Lake Alfred, FL, September 2005.

Table 16-A.--Historic prices for selected citrus varieties
Variety
Earlyb and Seedless grapefruit
mid'-season Late season Temple All
d (white) (colored)
Crop year oranges oranges oranges Tangerines Tangelos (white)
1961-62 $1.93 $1.81 $2.17 $2.04 $3.36 $0.68 $0.86
1962-63 2.17 3.50 3.09 3.02 4.66 1.29 1.81
1963-64 4.43 4.45 4.45 3.18 4.83 2.24 2.54
1964-65 2.57 2.28 2.77 2.68 4.00 1.51 1.82
1965-66 1.44 1.79 1.80 2.14 2.85 1.39 1.64

1966-67 0.81 1.08 0.88 1.06 1.64 0.73 0.94
1967-68 1.86 2.28 2.79 4.29 3.22 2.05 2.48
1968-69 1.56 1.83 2.22 2.55 2.47 0.98 1.15
1969-70 1.15 1.13 1.47 2.23 1.13 1.72 1.92
1970-71 1.10 1.91 1.91 1.88 1.04 1.89 2.15

1971-72 1.98 2.11 1.95 2.97 1.69 2.27 2.69
1972-73 1.43 1.71 1.95 2.37 1.39 2.06 2.53
1973-74 1.38 1.59 1.64 2.82 1.25 1.58 2.12
1974-75 1.46 1.82 1.68 3.05 1.45 1.55 2.59
1975-76 1.69 1.88 1.79 3.02 1.42 1.29 2.23

1976-77 1.89 2.63 2.16 3.29 1.42 1.49 2.04
1977-78 3.90 4.40 3.92 4.79 3.29 1.47 2.09
1978-79 4.44 4.95 4.89 4.99 3.90 2.21 3.13
1979-80 3.59 3.89 2.89 4.25 2.87 3.12 3.80
1980-81 3.67 4.63 4.21 5.45 3.92 3.46 4.22

1981-82 4.27 4.29 4.01 6.23 3.58 1.92 2.80
1982-83 4.88 5.41 3.99 7.57 4.37 1.51 3.20
1983-84 5.09 6.72 5.34 5.93 4.28 2.08 4.05
1984-85 7.30 6.88 5.59 15.91 7.08 3.02 4.84
1985-86 3.92 3.97 3.01 12.69 4.06 3.56 4.98

1986-87 4.56 6.02 3.60 10.92 3.72 4.45 5.80
1987-88 6.72 8.73 5.69 12.99 5.58 5.35 5.93
1988-89 6.63 8.41 5.46 12.64 6.31 4.33 4.71
1989-90 6.01 6.53 5.64 15.28 5.10 5.21 6.30
1990-91 5.38 6.58 6.31 17.10 6.11 4.59 6.85

1991-92 5.44 6.65 6.51 18.00 7.16 6.46 6.87
1992-93 3.23 3.88 2.99 13.75 3.31 2.22 3.11
1993-94 3.76 4.61 2.73 9.83 2.38 3.23 3.38
1994-95 3.25 4.41 3.47 11.98 2.64 2.58 1.66
1995-96 3.62 5.57 4.44 12.59 3.63 2.14 1.77

1996-97 3.18 4.07 3.22 7.99 2.19 1.12 1.91
1997-98 2.81 4.88 3.07 8.49 1.66 0.93 1.50
1998-99 4.35 5.58 5.12 12.07 4.53 1.95 2.65
1999-00 3.19 4.33 2.55 6.67 2.52 3.87 3.36
2000-01 2.60 4.02 2.05 6.40 1.27 2.07 2.28

2001-02 2.88 4.20 2.19 7.81 2.47 1.96 2.54
2002-03 2.62 3.85 2.01 8.40 2.60 1.59 2.79
2003-04 2.20 3.64 1.07 7.46 7.48 1.88 3.28
2004-05' 2.56 4.34 2.48 12.02 2.45 11.95 13.65

aOn-tree average price per box (1-3/5 bushel box equivalent) for all methods of sale minus pick and haul charges.
bNavel and Hamlin cParson Brown and Pineapple dValencia eMarsh (white) or pink fPreliminary

Source: Florida Agricultural Statistics Service.

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

Loan Interest rate paid on the loan
term
(years) 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 12.5% 13.0% 13.5% 14.0% 14.5% 15.0%

926
1,783
2,577
3,312
3,993
4,623

5,206
5,747
6,247
6,710
7,139
7,536

7,904
8,244
8,559
8,851
9,122
9,372

9,603
9,818
10,675
11,258
11,655
11.925

922
1,771
2,554
3,276
3,941
4,554

5,119
5,639
6,119
6,561
6,969
7,345

7,691
8,010
8,304
8,576
8,825
9,056

9,268
9,463
10,234
10,747
11,088
11.315

917
1,759
2,531
3,240
3,890
4,486

5,033
5,535
5,995
6,418
6,805
7,161

7,487
7,786
8,061
8,313
8,543
8,756

8,950
9,129
9,823
10,274
10,567
10.757

913
1,747
2,509
3,204
3,840
4,420

4,950
5,433
5,875
6,279
6,647
6,984

7,291
7,572
7,828
8,062
8,276
8,471

8,650
8,812
9,438
9,835
10,087
10.247

909
1,754
2,487
3,170
3,791
4,355

4,868
5,335
5,759
6,145
6,495
6,814

7,103
7,367
7,606
7,824
8,022
8,201

8,365
8,514
9,077
9,427
9,644
9.779

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

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

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

8,095
8,231
8,739
9,047
9,234
9.348

901
1,713
2,444
3,102
3,696
4,230

4,712
5,146
5,537
5,889
6,207
6,492

6,750
6,982
7,191
7,379
7,549
7,702

7,839
7,963
8,422
8,868
8,855
8.951

897
1,701
2,423
3,070
3,650
4,170

4,640
5,056
5,431
5,768
6,070
6,341

6,583
6,801
6,997"
7,172
7,329
7,470

7,596
7,710a
8,123
8,364
8,503
8.587

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

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

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

7,366
7,469
7,843
8,055
8,175
8.244

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

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

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

7,146
7,241
7,579
7,766
7,870
7.928

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

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

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

6,938
7,025
7,330
7,496
7,586
7.634

881
1,657
2,341
2,944
3,475
3,942

4,355
4,718
5,038
5,319
5,568
5,787

5,979
6,149
6,299
6,431
6,547
6,649

6,739
6,819
7,095
7,242
7,320
7.361

877
1,647
2,322
2,914
3,433
3,889

4,288
4,639
4,946
5,216
5,453
5,660

5,842
6,002
6,142
6,265
6,373
6,467

6,551
6,623
6,873
7,003
7,070
7.105

873
1,636
2,302
2,884
3,392
3,836

4,224
4,562
4,858
5,116
5,341
5,538

5,710
5,861
5,992
6,106
6,207
6,294

6,370
6,437
6,663
6,778
6,836
6.866

870
1,626
2,283
2,855
3,352
3,784

4,160
4,487
4,772
5,019
5,234
5,421

5,583
5,724
5,847
5,954
6,048
6,128

6,198
6,259
6,464
6,566
6,617
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).

	Front Cover
	Abstract
	Acknowledgement
	Table of Contents
	List of Tables
	Introduction
	Method of data collection
	Costs and inputs
	The grove situation
	Budget costs and returns
	Historical cost trends
	References
	Addenda

MILLISECOND	CLASS.METHOD	MESSAGE
0	sobekcm_page_globals.constructor
0	sobekcm_page_globals.constructor	Application State validated or built
0	sobekcm_database.verify_item_lookup_object
0	sobekcm_page_globals.constructor	Navigation Object created from URI query string
0	sobekcm_database.verify_item_lookup_object
0	sobekcm_page_globals.display_item	Retrieving item or group information
0	sobekcm_page_globals.get_entire_collection_hierarchy	Retrieving hierarchy information
0	sobekcm_assistant.get_entire_collection_hierarchy
0	cached_data_manager.retrieve_item_aggregation
0	cached_data_manager.retrieve_item_aggregation	Found item aggregation on local cache
0	item_aggregation_builder.get_item_aggregation	Found 'all' item aggregation in cache
0	system.web.ui.page.page_load (ufdc.page_load)
0	sobekcm_page_globals.constructor.on_page_load
0	html_echo_mainwriter.add_style_references	Adding style references to HTML
0	html_echo_mainwriter.add_text_to_page	Reading the text from the file and echoing back to the output stream
48	html_echo_mainwriter.add_text_to_page	Finished reading and writing the file