<%BANNER%>
HIDE
 Title Page
 Abstract
 Table of Contents
 List of Tables
 Budgeting costs and returns for...
 Reference
 Addenda


FLAG IFAS PALMM



Budgeting costs and returns
ALL VOLUMES CITATION SEARCH THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00026157/00026
 Material Information
Title: Budgeting costs and returns
Series Title: Economic information report
Portion of title: Budgeting costs and returns for Central Florida citrus production
Budgeting costs and returns for for <sic> Central Florida 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: 2003
Frequency: annual
regular
 Subjects
Subjects / Keywords: Citrus fruit industry -- Economic aspects -- Periodicals -- Florida   ( lcsh )
Citrus fruits -- Marketing -- Periodicals -- Florida   ( lcsh )
Genre: governmental publication   ( marcgt )
serial   ( sobekcm )
 Notes
General Note: Title varies slightly: <1992-93>- Budgeting costs and returns for Central Florida Citrus Production.
General Note: Description based on: 1978-79; cover title.
 Record Information
Source Institution: Marston Science Library, George A. Smathers Libraries, University of Florida
Holding Location: Florida Agricultural Experiment Station, Florida Cooperative Extension Service, Florida Department of Agriculture and Consumer Services, and the Engineering and Industrial Experiment Station; Institute for Food and Agricultural Services (IFAS), University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 000313320
oclc - 08042638
notis - ABU0053
lccn - sn 82000631 /g
System ID: UF00026157:00026

Table of Contents
    Title Page
        Title
    Abstract
        Page i
    Table of Contents
        Page ii
    List of Tables
        List, Tables
    Budgeting costs and returns for Central Florida citrus production, 2003-04
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
    Reference
        Page 10
    Addenda
        Page 11
        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
W. Greg Hartt
W. C. Oswalt


Budgeting Costs and


EDIS FE526
http://edis.ifas.ufl.edu/FE526


Returns


for Central Florida Citrus
Production, 2003-04


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


September 2004










ABSTRACT


Estimated costs and returns of growing round oranges in the Central Florida citrus area are
presented for the twentieth consecutive year. Due to the freezes of the 1980s, the Central Florida citrus
area refers primarily to Polk and Highlands Counties. The format presented may be used by individual
growers to budget costs and returns, utilizing individual data on specific groves.

Key words: citrus, Central Florida, budgeting, costs and returns

NOTE: The Central Florida production area refers to Polk and Highlands Counties. However, the
costs presented in this report are applicable to other counties such as Hardee, Hillsborough,
Lake, and Orange.

The budgeted cost information presented herein is the most current available. The budget
cost items have been revised to reflect current grove practices being used by growers (e.g.,
chemical mowing, different spray materials and rates of fertilization, microsprinkler
irrigation, more reset trees, etc.). Thus, the 2003-04 budget costs reflect lower fertilizer and
pesticide materials costs and increased per acre yield due to higher per acre tree densities.

The budget costs in this report represent a custom-managed operation. Therefore, all
equipment costs are based on average custom rate costs along with a 10 percent handling and
supervision charge added to the material cost.

Although the estimated annual per acre grove costs listed are representative of a mature
citrus grove (10+ years old), the grove care costs for a specific grove site may differ
depending on tree age, tree density, and grove practices performed (e.g., spot herbicide for
grass/brush regrowth under trees could add an additional $19.23 per acre; Diaprepes
control could add $73.20 per acre for each foliar application; extensive tree loss due to blight
or tristeza could substantially increase the tree replacement and care costs; spray applications
to control citrus leafminer and nematicide applications, such as Temik at $122.22 per acre,
could increase the total cultural costs per acre above the average costs shown in the
comparative budgets; or travel and set-up costs may vary due to size of the citrus grove and
distance from grove equipment barn and could add $25.98 per acre).


ACKNOWLEDGMENTS

Appreciation is extended to Mrs. Jane Wilson for typing the final draft of this manuscript.
Appreciation is also extended to the citrus growers and production managers of the Central Florida citrus
production area who provided suggestions for the revision of this manuscript.










TABLE OF CONTENTS


Page

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

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

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

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

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

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

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

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

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

REFERENCES ......................................................... 10

ADDENDA ........ .................................................... 11


NOTE: The ADDENDA includes items such as Listing of Grove Care Programs
for Central Florida Citrus Production for Both Round Oranges and
Grapefruit; 2004 custom rate summary report; cost of establishing a citrus
grove; etc. Page 11 lists the tables included in the ADDENDA.










LIST OF TABLES


Table Page

1 Schedule of production practices and budget items for a Central Florida citrus grove,
2 0 0 3 -0 4 . . . . . . . . . . . . . . .. .. 3

2 Calculation of normal production per acre, 2003-04 .............................. 4

3 Estimated annual per acre costs and returns for a mature, Valencia orange grove
producing for the processed market, Central Florida area, 2003-04 .................. 6

4 Estimated total delivered-in cost for Central Florida (Ridge) Valencia oranges grown
for the processed juice market under three cultural cost programs, 2003-04 ............ 7

5 Estimated annual per acre costs and returns and 5-year average costs and returns for a
mature, Valencia orange grove producing citrus for processing in the Central Florida
area, 1999-00-2003-04 ..................................................... 8

6 Estimated annual per acre costs and returns and 5-year average costs and returns
(adjusted to 2004 dollars) for a mature, Valencia orange grove producing citrus for
processing in the Central Florida area, 1999-00-2003-04 .......................... 9










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


Ronald P. Muraro, W. Greg Hartt and W. C. Oswalt


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, or 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. During the 1980s, several
freezes occurred which changed the character of the Central Florida citrus production area. The
December 1983 and January 1985 freezes caused extensive tree and acreage losses in north central
counties such as Lake and Orange. The December 1989 freeze resulted in severe tree damage and tree
loss in north and central Polk County. Thus, Central Florida in this report refers primarily to Polk and
Highlands Counties.


METHOD OF DATA COLLECTION


The data presented here were developed by surveying custom operators, input suppliers, growers,
colleagues at the Citrus Research and Education Center in Lake Alfred, and County Extension citrus
agents in the Central Florida 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. The ADDENDA shows
grower's costs (Tables 1-A through 7-A), custom rate costs (Table 8-A), and various chemical and




Ronald P. Muraro, Professor and Extension farm management economist, Department of Food and
Resource Economics, Citrus Research and Education Center, Lake Alfred; W. Greg Hartt, Extension
citrus agent, Highlands County, Sebring; .and W.C. Oswalt, multi-county Extension citrus agent, Polk
and Hillsborough Counties, Bartow; Florida Cooperative Extension Service, Institute of Food and
Agricultural Sciences, University of Florida, Gainesville, FL.









fertilizer costs (Tables 9-A and 10-A). The budget costs represent a custom-managed operation.
Therefore, all equipment costs are based on the average custom-rate costs along with a 10 percent
handling and supervision charge 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 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 a Central Florida round orange grove are shown in Table 1 along with
times during the year when they are normally performed. There are two benefits to developing such a
table for an individual grove. First, it shows what work is needed and when so that operations can be
planned well in advance. Second, an annual cash flow analysis can be helpful in financial planning. The
individual grower may benefit from developing a plan for a particular grove.
Specific production practices vary from grove to grove, making it difficult to define a "typical"
grove. Many combinations of practices and various tree variety combinations produce acceptable yields
and returns. Although the example represents a Valencia orange 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 to develop a budget for a particular
grove. A "your cost" column is appropriately provided for this purpose in subsequent tables.
In the following budget, above average management and cultural practices are assumed. Beyond
this general assumption, the following specifics are assumed.


1. A 10+ year-old, low volume-irrigated grove.

2. Variety is Valencia round orange.

3. Tree loss is three percent annually.

4. Trees are pulled and replaced when production falls below 50 percent of expected yield.

5. Production is for processed use.

6. Tree density is 112 trees per acre.


7. Custom-caretaker is providing grove management.








Table 1.--Schedule of production practices and budget items for a Central Florida citrus grove, 2003-04a

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


Total revenue:


Less: Pick & haul cost
DOC advertisement tax


20%
deposit

X


50%
Partial
payment


Final
payment


x


Grove expenses:
Disc X X
Chop
Mow X X X
Labor, general grove work, pull vines X X
Herbicide (1/2 grove acre equivalent) X X

Spray: Post bloom/nutritional X

Summer oil/greasy spot X

Fall miticide X

Supplemental miticide

Dust

Fertilizer 68# N/A 68# N/A 68# N/A Dolomite

Hedging and topping Hedge

Brush removal/chop brush Chop brush

Tree removal X 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

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.









Tree ages will vary due to tree losses and replacement. The budget reflects the following age
distribution and yield for Central Florida Valencia oranges:


3%
3%
3%
3%
3%
45%
3%
37%


Situation

pulled and reset trees
1-yearlold trees
2-year-old trees
3-year-old trees
4-year-old trees
5- to 19-year-old trees
trees producing 50% of expected yield
mature producing trees


Yield
Boxes/Tree

0.0
0.0
0.0
0.7
0.9
4.2
3.1
6.0


Calculation of normal production per acre is shown in Table 2. Note that the proportion-of-trees-
by-age column only adds up to 91 percent since 9 percent of the trees are non-bearing.


Table 2.--Calculation of normal production per acre, 2003-04
Boxes Total
Age of Tree Trees /Tree Boxes

Total no. Proportion No. each
all ages each agge a --------- Number----------

3 years 112 x 0.03 = 3.4 x 0.7 = 2.4
4 years 112 x 0.03 = 3.4 x 0.9 = 3.1
5-19 years 112 x 0.45 = 50.4 x 4.2 = 211.7
Prod. 50% of
expected yield 112 x 0.03 = 3.4 x 3.1 = 10.5
20 years 112 x 0.37 = 41.4 x 6.0 = 248.4
Total boxes = 476.1
aProportion adds up to 0.91 (91 percent) as 9 percent of the trees were non-bearing (pulled and
reset, 1- and 2-year-old trees).


BUDGET COSTS AND RETURNS
Estimated budget costs and returns for a Central Florida grove situation are shown in Table 3. Gross
revenue estimates are based on projected yields (Table 3) and estimated preliminary on-tree prices for the
2003-04 season. The budgeted costs represent one possible citrus production program and were selected
from the costs shown in the ADDENDA tables (grove establishment and reset costs and harvesting and
packing charges are shown in Tables 11-A through 14-A and historical on-tree prices for selected Florida
citrus varieties are shown in Table 15-A).









As shown in Table 3, the total revenue for processed-market Valencia oranges is estimated to be
$1,190.00 per acre. Total specified costs are $822.18, comprised of grove care costs of $774.18 plus
management costs of $48.00. A return to land, trees, and ownership of $367.82 per acre loss represents
net return above variable costs. At 300 and 500 boxes per acre, respectively, the break-even prices
required to cover grove care costs for Valencia oranges range from $2.58 to $1.55 per box on-tree and
$0.74 to $0.58 per pounds solids delivered-in.
Ad valorem taxes, and overhead and administrative costs (e.g., water drainage district taxes, crop
insurance, and other grower assessments) can add up to 12 percent of total grove care costs. These costs
vary from grove to grove, depending on age, location, or variety of fruit, and should be considered in
arriving at net return to land, trees, and ownership (total return minus total costs). Harvest costs (pick,
roadside, and hauling costs) also add to the total fruit cost delivered to either a processing plant or fresh
fruit packinghouse. Average annual debt payment (principal and interest) may be as high as $440 per acre
($3,750 average debt per acre at 10 percent interest amortized over 20 years), which would reduce total
available cash for grove expansion or other investment.
Estimated "delivered-in" costs for processed oranges are shown 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 and per pound solids. Three possible budget
cost scenarios are presented (Table 11 -A): Low Cost Processed Cultural Program; Reduced Cost Cultural
Program; and Typical/Historical Cultural Program. Scenarios 1 and 2 represent costs of two possible
cultural programs directed toward reducing expenditures for fruit grown primarily for the processed
market. Scenario 3 represents typical costs of grove practices that have been performed for citrus grown
for the fresh/processed 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 ,0 *., L.. 1 or fresh), yield, and specific cultural problems (nutrition,
disease, etc.) for the specific grove site should be made.


HISTORICAL COST TRENDS


Annual budgets of costs and returns for mature, processed Valencia oranges in the Central Florida
area have been developed and published the past four years. Estimated cost and return histories for
1999-00 through 2002-03 along with 2003-04 and a five-year average are presented in Table 5. To allow
comparisons in current values, these same costs and returns (adjusted to 2004 dollars) are presented in
Table 6.









Table 3.--Estimated annual per acre costs and returns for a mature, Valencia orange grove producing for the processed market, Central Florida area, 2003-04a

Item Description Amount Your Cost


Revenue
Expenses'
Weed control
Discing
Mow middles
General grove work/sprouting, etc.
Herbicide (Table 2-A, Program #1, #2 & #7)
Spray program (Table 1-A, Programs #8 & #10)
Fertilizer (Table 3-A, Program #3)
Dolomite (Table 6-A, Program #2)
Pruning (maintenance)
Topping
Hedging
Mow/chop brush
Tree replacement and care (Table 12-A)
Remove trees/stack/burn
Prepare sites and plant resets
Supplemental fertilizer, tree wraps, maintenance, sprout, etc.
Microsprinkler irrigation (Table 7-A, Program #4)
Total grove care expenses
Management
Total specified costs
Return to land, trees, and ownership
Break-even price for total grove care expenses


476 boxes @ $2.50bd



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






($361.69/hr. + 10 A/hr.) + 2.5 yrs.
($338.75/hr. + 10 A/hr.) + 2 yrs.
($8.92/A + 2 yrs.)
(1 through 3 years)
3 trees per acre
Including 3 trees per acre
Including application



$4.00 per acre per month


-- -------- Dollars --- -----
1,190.00


20.00
40.76
26.56
117.73


14.47
16.94
4.46

14.22
26.82
28.38


205.05
135.74
166.29
9.74



35.87



69.42
152.07
774.18
48.00
822.18
367.82


Boxes per acre Boxes per acre
300 350 400 450 500 300 350 400 450 500

$ On-tree price per box $ Delivered-in price per pound solids'
2.58 2.21 1.94 1.72 1.55 0.74 0.69 0.64 0.61 0.58

aWhile estimated annual per acre grove costs in Table 3 are representative for a mature Central Florida Valencia orange grove, grove care costs for specific grove site may differ depending on
grove practices performed (e.g., Temik application would add $122.22 per acre; extensive tree loss due to blight or tristeza would double tree replacement/care costs).
bOn-tree price per box is preliminary; assumes price for processed oranges only.

cAssumes material custom applied; therefore, a 10 percent handling and supervision charge is added to material cost.
d Other methods to estimate a management cost (e.g., 5% of gross revenue or 10% of total grove care costs are used in the industry).

eOther cost items not included in budget are ad valorem taxes and interest on grove investment. In addition to these cost items, overhead and administrative costs (e.g., water drainage district
taxes, crop insurance, and other grower assessments, can add up to 12% of total grove care costs). These costs vary from grove to grove.
'Assumes 6.6 pounds solids per box and $2.19 pick and haul cost per box (including canker decontamination costs) and Department of Citrus advertising assessment of $0.15 per box.









Table 4.--Estimated total delivered-in cost for Central Florida (Ridge) Valencia oranges grown for the processed market under three cultural cost programs, 2003-04

Represents a mature (10+ years old) Processed Valencia Orange Processed Valencia Orange Fresh/Processed Valencia Orange
Low Cost Cultural Program
Central Florida (Ridge) Orange Grove Low Cost Cultural Program Cultural Program Cultural Program
One-Year Alternative

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

Total Production/Cultural Costs $ 692.43 $1.455 $0.2204 $774.18 $1.626 $0.2464 $828.49 $1.741 $0.2637

Interest on Operating (Cultural) Costs 19.04 0.040 0.0061 21.29 0.045 0.0068 22.78 0.048 0.0073

Management Costs 48.00 0.101 0.0153 48.00 0.101 0.0153 48.00 0.101 0.0153

Taxes/Regulatory Costs:
Property Tax and Water Management Tax 61.87 0.130 0.0197 61.87 0.130 0.0197 61.87 0.130 0.0197
Canker Decontamination Costs 5.52 0.012 0.0018 5.52 0.012 0.0018 5.52 0.012 0.0018

Total Direct Grower Costs $ 826.86 $1.737 $0.2632 $ 910.86 $1.914 $0.2899 $ 966.66 $2.031 $0.3077

Interest on Average Capital Investment Costs 321.22 0.675 $0.1022 321.22 0.675 0.1022 321.22 0.675 0.1022

Total Grower Costs $1,148.07 $2.412 $0.3654 $1,232.07 $2.588 $0.3922 $1,287.87 $2.706 $0.4099

Harvesting and Assessment Costs:
Pick/Spot Pick, Roadside & Haul and
Canker Decontamination Costs 1,042.44 2.190 0.3318 1,042.44 2.190 0.3318 1,042.44 2.190 0.3318
DOC Assessment 71.40 0.150 0.0227 71.40 0.150 0.0227 71.40 0.150 0.0227

Total Harvesting and Assessment Costs 1,113.84 2.340 0.3545 1,113.84 2.340 0.3545 1,113.84 2.340 0.3545

Total Delivered-In Cost $2 261.91 $4.752 $0.7200 $2345.91 $4.928 $0.7467 $2 401.71 $5.046 $0.7645

P.S. = Pound Solids Cultural program (Table 11-A) Cultural program (Table 11-A).
Yield: 476 boxes/acre 6.6 P.S. per box Cultural program (Table 3)
Two summer oil sprays with oil, A Fall Miticide Spray added to cultural
112 trees per acre copper, miticide and nutritional program (Table 3)









Table 5.--Estimated annual per acre costs and returns and 5-year average costs and returns for a mature, Valencia orange grove producing citrus for processing in the
Central Florida area, 1999-00-2003-04


On-tree Gross Total Grove Total Ppecified Net Return to Land,
Year Price/Boxa Yield Revenue Care Expenses Costs' Trees, and Ownership

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

1999-00 $4.31 448 1,930.88 783.43 831.43 1,099.45


2000-01 $3.70 436d 1,613.20 758.85e 806.85 806.35


2001-02 $4.17 446 1,859.82 767.77 815.77 1,044.05


2002-03 $3.91 446 1,743.86 777.69 825.59 918.27


2003-04 $2.50b 476c 1,190.00 774.18 822.18 367.82


5-yr. avg. $3.72 450 1,674.00 772.38 820.38 853.62


'On-tree prices for processed oranges only as reported by the Florida Agricultural Statistics Service.
bPreliminary estimate by authors at time of printing and is not a published price.
cHigher per acre yield is due to increased statewide production of Valencia oranges in 2003-04 season.
dThe severe drought affected yields for the 2000-01 season.
eBegan using two summer oil sprays (one with nutritional) in budget estimates.
'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 6.-- Estimated annual per acre costs and returns and 5-year average costs and returns (adjusted to 2004 dollars) for a mature, Valencia orange grove producing
citrus for processing in the Central Florida area, 1999-00-2003-04


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

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

1999-00 111.1 $4.79 448 2,145.92 923.72 1,222.20


2000-01 109.8 $4.06 436 1,770.16 885.92 884.24


2001-02 112.4 $4.69 446 2,091.74 916.93 1,174.81


2002-03 106.7 $4.17 446 1,859.82 880.90 978.92


2003-04 100.0 $2.50 476 1,190.00 822.18 367.82


5-yr. avg. $4.04 450 1,818.00 885.93 932.07


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

bManagement cost of $4.00 per acre per month is included. Fixed costs such as taxes, debt service, and crop insurance are not included (Table 5).









REFERENCES


1. Citrus Summary 2002-03. 2003. Florida Agricultural Statistics Service, Orlando, FL.
http://www.nass.usda.gov/fl.

2. Muraro, Ronald P. 2004. A [ ,,It:g ofEstimated Comparative Central Florida (Ridge) Citrus
Production Costs PerAcrefor 2003-04. CREC Report, Citrus Research and Education Center,
Lake Alfred, FL (July).

3. 2004. Estimated Cost ofPl, ,:in :g andMaintaining a Reset Citrus Tree ;),, iigih Three
Years ofAge. CREC Report, Citrus Research and Education Center, Lake Alfred, FL (July).

4. 2004. A Iiu,,g of 2-i Custom Rates Reported by Twenty-Eight Ridge Citrus
Caretakers. CREC Report, Citrus Research and Education Center, Lake Alfred, FL (July).

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

6. Timmer, L.W., editor. 2004. 2"'4 Florida Citrus Pest Management Guide. Florida
Cooperative Extension Service Staff Paper SP43, University of Florida, Gainesville, FL,
150pp (January).

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










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

Table 1-A Spray program s .................................................... 12
Post bloom spray ................................................... 12
Sum m er spray ........................................... ........ 13
F all sp ray . . . . . . . . . . . . ... 14

Table 2-A. Herbicide ......................................................... 15

Table 3-A Dry fertilizer ....................................................... 16

Table 4-A. Liquid fertilizer (double boom application) ............................. 17

Table 5-A. Nematicides ....................................................... 17

Table 6-A Soil am endm ent .................................................... 18

Table 7-A. Irrigation--annual cost per acre ...................................... 18
Perm anent overhead ................................................. 18
Microsprinkler ..................................................... 18

Table 8-A. A listing of 2004 custom rates reported by thirty-three Ridge citrus caretakers ... 19

Table 9-A. 2004 summary of average chemical price estimates ........................ 21

Table 10-A. 2004 summary of average fertilizer price estimates ...................... 23

Table 11-A. A listing of estimated comparative Central Florida (Ridge) citrus production
costs per acre for 2003-04 .......................................... 25

Table 12-A. Estimated cost of planting and maintaining a reset citrus tree through three years
of age, July 2004 ......................................... ........ 26

Table 13-A. Estimated average picking, roadsiding, and hauling charges for Florida citrus,
2 0 0 3 -0 4 . . . . . . . . . . . . . ... 2 7

Table 14-A. Estimated average packing charges for Florida citrus, 2003-04 ............... 28

Table 15-A. Historic prices for selected citrus varieties ............................. 29

Table 16-A. Debt which can be supported per $1,000.00 annual payment capacity .......... 30

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

aCosts in ADDENDA represent a custom managed operation. All equipment costs are based on
average custom rate costs along with a 10 percent handling and supervision charge added to material cost.










Table 1-A.--Spray programs


POST BLOOM SPRAY


Spray Program #1


Spray Program #2

(Scab/melanose)


Spray Program #3


Spray Program #4


Materials/Ingredients

Oil 97+%0
Cu (50% metallic)
Zn
Mn

Ground Application
(PTO driven airblast)

Total per Application


Materials/Ingredients

Cu (50% metallic)
Zn
Mn
Micromite 25WP

Ground Application
(PTO driven airblast)

Total per Application


Materials/Ingredients

Cu (50% metallic)
Agri-Mek

Ground Application
(engine driven airblast)

Total per Application


Materials/Ingredients

Vendex 50WP
Zn
Mn

Ground Application
(PTO driven airblast)

Total per Application


Your
Cost/Acre


Amount
/Acre

5 gallons
10 pounds
5 pounds
10 pounds

125 gallons


Cost/Acre

$11.50
13.20
4.35
3.40

22.95


$55.40


Your
Cost/Acre


Amount
/Acre

10 pounds
5 pounds
10 pounds
1.25 pounds

125 gallons


Cost/Acre

$13.20
4.35
3.40
39.88

22.95


$83.78


Amount
/Acre

15 pounds
10 ounces

250 gallons


Your
Cost/Acre


Cost/Acre

$19.80
45.38

29.67


$75.05


Amount
/Acre

2 pounds
5 pounds
10 pounds

125 gallons


Your
Cost/Acre


Cost/Acre

$31.36
4.35
3.40

22.95


$62.06


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


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


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


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










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

POST BLOOM SPRAY (continued)


Spray Prograr

(Scale insect


Amount
m #5 Materials/Ingredients /Acre Cost/Acre

s) Lorsban 4EC 5 pints $21.20
Ground Application 500 gallons 31.00
(engine driven airblast)
Total per Application $52.20


SUMMER SPRAY


Spray Program #6


Spray Program #7


Spray Progra


Materials/Ingredients

Oil 97+%0
Cu (50% material)
Micro-Mite
Ground Application
(PTO driven airblast)
Total per Application


Materials/Ingredients
Oil 97+%o
Agri-Mek
Cu (50% material)

Ground Application
(engine driven airblast)

Total per Application


Amount
/Acre
5 gallons
7 pounds
1.25 pounds
250 gallons


Cost/Acre
$11.30
9.24
39.88
29.67


Your
Cost/Acre


Your
Cost/Acre


$90.09


Amount
/Acre
5 gallons
10 ounces
7 pounds
250 gallons


Cost/Acre
$11.30
45.38
9.24

29.67


Your
Cost/Acre


$95.59


Amount
m #8 Materials/Ingredients /Acre Cost/Acre
Oil 97+% 5 gallons $11.30
Micromite 1.25 pounds 39.88
Cu (50% material) 7 pounds 9.24
Ground Application 125 gallons 22.95
(PTO driven airblast)
Total per Application $83.37


Your
Cost/Acre


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










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

SUMMER SPRAY (continued)


Spray Program #9


Spray Program #10


Materials/Ingredients
Oil 97+%o

Ground Application
(engine driven airblast)

Total per Application


Materials/Ingredients

Cu (50% metallic)
Oil 97+%o

Zn
Mn

B
Ground Application
(PTO driven airblast)
Total per Application


Amount
/Acre
7 gallons

250 gallons


Cost/Acre
$15.82

29.67


$45.49


Amount
/Acre
7 pounds
5 gallons

5 pounds
10 pounds

0.25 pounds
125 gallons


Cost/Acre
$ 9.24
11.30

4.35
3.40

1.13
22.95


$52.37


FALL SPRAY


Spray Prograr


Spray Prograr


Amount
n #11 Materials/Ingredients /Acre Cost/Acre
Vendex 50WP 2 pounds $31.36
Ground Application 125 gallons 22.95
(PTO driven airblast)
Total per Application $54.31

Amount
n #12 Materials/Ingredients /Acre Cost/Acre
Microthiol 15 pounds $ 9.60

Ground Application 125 gallons 22.95


(PTO driven airblast)

Total per Application $32.55


Your
Cost/Acre


Your
Cost/Acre


Your
Cost/Acre


Your
Cost/Acre


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










Table 2-A.--Herbicide


Amount/


Herbicide Prc

(Strip/band)


Herbicide Prc

(Strip/band)


Herbicide Prc

(Strip/band)


Cost/


gram #1 Materials Treated Acre Grove Acrea
Solicam 80 DF 3 pounds $22.73
Karmex WP 4 pounds 7.42
Roundup Ultra Max 2 quarts 8.08

Ground Application 14.01
(1 time)

Total for 1 Application $52.24

Amount/ Cost/
gram #2 Materials Treated Acre Grove Acrea
Mandate 2 pints $22.21
Direx 4L 3 quarts 5.88
Roundup Ultra Max 2 quarts 8.08
Ground Application 14.01
(1 time)

Total for 1 Application $50.18

Amount/ Cost/
gram #3 Materials Treated Acre Grove Acrea
Karmex WP 4 pounds $ 7.42
Roundup Ultra Max 2 quarts 8.08
Ground Application 14.01
(1 time)


Total for 1 Application

Amount/


Herbicide Pro

(Strip/band)


Herbicide Pro

(Strip/band)


$29.51


Cost/


gram #4 Materials Treated Acre Grove Acrea
Roundup Ultra Max 2 quarts $ 8.08
Ammonium Sulfate 17 pounds 1.39

Ground Application 14.01
(1 time)

Total for 1 Application $23.48

Amount/ Cost/
gram #5 Materials Treated Acre Grove Acrea
Roundup Ultra Max 2 quarts $ 8.08
Princep (Caliber 90) 4 pounds 6.72

Ground Application 14.01
(1 time)


Total for 1 Application $28.81


Your Cost/
Grove Acre


Your Cost/
Grove Acre


Your Cost/
Grove Acre


Your Cost/
Grove Acre


Your Cost/
Grove Acre









Table 2-A.--Herbicide (continued)


Herbicide Program #6
(Strip/band)


Materials
Direx 4L
Solicam
Roundup Ultra Max
Ground Application
(1 time)


Amount/
Treated Acre
3 quarts
3 pounds
2 quarts


Herbicide Pro
(Spot herbici
grass/brush i
under trees.)


Total for 1 Application $50.70

Amount/ Cost/
gram #7 Materials Treated Acre Grove Acre"
ide for Roundup Ultra Max 2 quarts $ 8.08


growth


Ground Application
(1 time)
Total for 1 Application


15 gallons


7.23


$15.31


a For herbicide materials, amount per grove acre does not equal amount per treated acre shown on label, only
a strip or band is being treated. This report assumes that only half a grove surface is being treated.


Table 3-A. Dry Fertilizer


Program # 1
(162 lbs N/Acre)


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


Application 3 times 26.04
Total for 3 Applications $156.86


Program #2
(180 lbs N/Acre)


Analysis/Material
Applied
16-0-16-4 MgO


Application 3 times 26.04
Total for 3 Applications $149.79


Program #3
(204 lbs N/Acre)


Analysis/Material
Applied
16-0-16-4 MgO


Application 3 times 26.04
Total for 3 Applications $166.29


Program #4
(225 lbs N/Acre)


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


Your Cost/
Grove Acre


Cost/
Grove Acre'
$5.88
22.73
8.08
14.01


Your Cost/
Grove Acre


Amount
/Acre
1350 pounds


Cost/Acre
$ 130.82


Your
Cost/Acre


Amount
/Acre
1125 pounds


Cost/Acre
$ 123.75


Your
Cost/Acre


Amount
/Acre
1275 pounds


Cost/Acre
$140.25


Your
Cost/Acre


Amount
/Acre
1500 pounds
3 times


Your
Cost/Acre


Cost/Acre
$151.50
26.04
$177.54







17


Table 4-A.--Liquid Fertilizer (double boom application)
Analysis/Material Amount Your
Program #1 Applied /Acre Cost/Acre Cost/Acre
(180 lbsN/Acre) 10-0-10 1800 pounds $138.42
Double Boom Application 3 times 45.99
Total for 3 Applications $184.41


Analysis/Material Amount Your
Program #2 Applied /Acre Cost/Acre Cost/Acre
(180 lbs N/Acre) 10-2-10 1800 pounds $140.22
Double Boom Application 3 times 45.99
Total for 3 Applications $186.21


Analysis/Material Amount Your
Program #3 Applied /Acre Cost/Acre Cost/Acre
(180 lbs N/Acre) 10-0-10 1800 pounds $138.42
Solicam 80 DF 3 pounds* 22.73
Karmex WP 4 pounds* 7.42
Double Boom Application 3 times 45.99
Total for 3 Applications $214.56

*Treated acre (one herbicide application)



Table 5-A.--Nematicides
Analysis/Material Amount Your
Program #1 Applied /Acre Cost/Acre Cost/Acre
Temik 15G 33 pounds $107.58
Application 14.64
Total per Application $122.22



Analysis/Material Amount Your
Program #2 Applied /Acre Cost/Acre Cost/Acre
Temik 15G 17 pounds $ 55.42
Application 14.64
Total per Application $ 70.06










Table 6-A.--Soil Amendment


Analysis/Material


Program #1
(Every 3 yea









Program #2

(Every 4 yea


Amount


Applied /Acre Cost/Acre

ars) Dolomite (Delivered) 1 ton $30.27
Application 1 time 8.68
Total for 1 Application $38.95

(Average 1/3 Ton Applied/Yr) $12.98


ars)


Analysis/Material
Applied

Dolomite (Delivered)

Application
Total for 1 Application
(Average 1/4 Ton Applied/Yr)


Amount
/Acre
1 ton
1 time


Cost/Acre
$30.27
8.68

$38.95
$ 9.74


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


PERMANENT OVERHEAD


Operating


Maintenance

Total Cash
Fixed Depre
Total Cash


Your
Program #1 Cost/Acre Program #2
(Electric) (Diesel)
$119.15 $ 96.78

of System 42.34 44.41

Expenses $161.49 $141.19
ciation Expense 55.73 59.54
and Fixed Expenses $217.22 $200.73


MICROSPRINKLER



Operating


Maintenance of System
Total Cash Expenses
Fixed Depreciation Expense
Total Cash and Fixed Expenses


Program #3

(Electric)
$ 57.35

46.21
$103.56
52.94
$156.50


Your
Cost/Acre


Program #4

(Diesel)
$ 48.28*

47.23
$ 95.51
56.56
$152.07


*Reflects the higher cost of fuel; diesel and electricity.


Your
Cost/Acre


Your
Cost/Acre


Your
Cost/Acre


Your
Cost/Acre










Table 8-A.--A listing of 2004 custom rates reported by twenty-eight Ridge citrus caretakers

Range of Rate Average
Grove Practice Unit Reported Ratey Comments

CULTIVATION AND EQUIPMENT:


Hand Hoe/Hand Labor
Mechanic Labor
Rotovate
Disc 7'
Disc 7'
Disc 9'-10'
Disc 9'-10'
Chop
Chop
Mow 5'-7'
Mow 9'-12'
Mow 5'-7'
Mow 9'-12'
Mow 15'-16'
Herbicides (Strip/Band--Single Boom)
Herbicides (Strip/Band--Single Boom)
Herbicides (Strip/Band--Double Boom)
Herbicides (Chemical Mow)
Temikz
Plow
Deviner
Bush Hog
Backhoe
Pickup Truck with Driver
Pickup Truck w/out Driver
Flatbed Transport Truck with Driver
Low-Boy Transport
Tractor with Driver
Water/Supply Truck
ATV


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


$11.00-
25.00-
27.50-
26.70-
7.00-
27.50-
9.00-
28.00-
7.00-
27.90-
34.50-
8.50-
9.00-
10.00-
26.40-
12.50-
12.50-
6.00-
12.00-
25.00-

28.50-
40.00-
23.00-
15.00-
30.00-
50.00-
25.00-
28.00-
19.00-


$15.35
47.50
45.00
35.00
12.00
40.00
12.00
40.00
10.00
40.00
40.00
11.25
12.50
12.75
35.00
17.00
15.70
9.25
16.00
35.00

44.00
65.00
35.00
22.00
40.00
65.00
35.00
40.00
29.80


$13.28
34.28
32.53
31.40
9.56
32.13
10.00
33.95
9.00
31.19
35.61
9.69
10.19
10.80
30.19
13.16
14.01
7.44
14.64
30.85
40.00
35.11
50.00
30.21
19.38
35.00
55.00
29.83
32.25
22.98


Plus transportation
Includes truck


One-way discing

One-way discing








Plus materials
Plus materials
Plus materials; Avg. $31.17/hour
Plus materials
Plus materials


One reporting $13.00/acre

Average miles/year/pickup: 21,089

Average miles/year: 24,213
Average miles/year: 30,000


SPRAYING:z


AIR BLAST SPRAYER


Engine Driven
1,000 gallon tank


500 GPA
250 GPA
125 GPA
100 GPA
50 GPA
Aerial (Bell-47 Helicopter)

FERTILIZE AND SOIL AMENDMENTS:z
Inject Liquid Fertilizer into Irrigation System
Inject Liquid Fertilizer into Irrigation System
Liquid Boom Application: Double Boom
Dry (Bulk)
Lime or Dolomite
Lime or Dolomite
Fertilize Young Trees:z Hand Spread
Fert. Spreader
IRRIGATION:
Microsprinkler
Microsprinkler
ATV with Driver
Ring Young Trees: Hand Labor
Mechanical


Acre
Acre
Acre
Acre
Acre


30.00-
25.00-
25.00-


35.75
33.50
31.50


33.61
29.79
28.50


PTO Powered
1,000 gallon tank


28.00 -
24.00 -
20.00 -
19.00 -
15.00 -


35.00
35.00
25.00
25.00
18.00


31.00
29.67
22.95
22.06
16.00


Average with
Electronic Sensing
Technology

$33.60/acre
$29.75/acre
$26.45/acre
$23.60/acre
$20.35/acre


$10.00 (a) 5 GPA; $15.00 (a) 10 GPA; $17.50 (a) 15 GPA; $22.00 (a) 20 GPA


Hour
Acre
Acre
Acre
Acre
Ton
Hour
Hour


$25.00-
1.50-
13.50-
7.50-
7.50-
7.50-
11.00-
25.50-


$40.00
3.50
16.50
10.75
10.75
9.00
15.35
35.00


$31.28
2.69
15.33
8.95
8.68
8.17
13.28
30.91


Avg. $3.98/acre; Avg. $37.50/month
Hour 25.00- 35.00 28.86
Hour 19.00- 29.80 22.98
Hour 11.00- 15.35 13.28
Hour 23.10- 27.00 25.34


Truck plus labor
Average $66.25/irrigation injection hookup




Plus transportation and materials
Plus materials; Average $8.33/acre


Start/stop and supervision
Start/stop and supervision; truck and driver
Check/repair microsprinkler irrigation system-plus materials
Plus transportation
Labor and equipment











Table 8-A.--A listing of 2004 custom rates reported by twenty-eight Ridge citrus caretakers (continued)

Range of Rate Average
Grove Practice Unit Reported Ratey Comments


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

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

COLD PROTECTION:
Mechanical (Bank and Unbank)
Install Wraps
Cost Wraps

OTHER CUSTOM RATES:
Plant Resets
Solid Set Planting
Travel/Setup Charge
Grove Management Charge/Month:
Supervising Grove Care Operations
Handling Fruit Marketing
Supervising/Handling Chemicals/Fertilizer


Hour
Hour
Hour
Hour


Hour
Hour

Hour
Hour
Hour
Hour
Hour

Hour
Hour
Hour
Hour

Hour
Hour
Hour


Hour
Each
Each


Per Tree
Per Tree
Hour


$50.00- $65.00 $59.13
50.00- 60.00 54.02
50.00
65.00


Average trees sheared: 5 to 20 trees/hour
Average trees removed: 5 to 15 trees/hour


$17.00- $25.00 $19.94 Plus transportation
205.00 Cover 9-18 acres one pass


75.00- 80.00 76.67
80.00- 100.00 88.96
250.00
325.00- 360.00 338.75
250.00- 300.00 277.50

195.00- 200.00 196.67
100.00
345.00- 375.00 361.69
550.00


29.00-
50.00-
30.00-


40.00
60.00
37.50


35.17
53.56
33.95


Cover 2-5 acres/hour
Cover 3-5 acres/hour

Cover 10-25 acres/hour depending on wood size
Cover 4-12 acres/hour depending on wood size


Cover 1-3 acres/hour
Cover 5-10 acres/hr (Roof Top); 5-20 acres/hr (Flat Top)
Cover 2-12 acres/hr (Roof Top); 15-30 acres/hr (Flat Top)

Tractor-trailer/truck, driver plus 1 person; plus 2 people
2-10 acres/hour
3-6 acres/hour; Average $11.67/acre


$- $- $23.43
0.15- 0.50 0.36
0.30- 0.50 0.41


$ 2.00-
1.00-


$4.00 $ 2.50
1.50 1.33
30.00


Stake, plant and first watering
Stake, plant and first watering
Average for those reporting; One reporting $75.00


Acre 2.00- 5.50 3.15 In addition to caretaking charges; One reporting 6% of
Box 0.10- 0.25 0.15 \equipment labor charge
10% to 25% of materials cost


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


10/box to 18i/box; average 16C/box


Note: One reporting adding a 5% fuel surcharge if
gasoline price is above $1.50/gallon and diesel
fuel above $1.00/gallon.


Cultural Management/Horticultural Evaluation $50/hr to $200/hr
Financial Analysis Prospectus $350/hr


Total Reported Acreage Provided Grove
Service to:


Acre


500- 13,872 3,342 Total acres reporting: 63,498


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


Consulting


zPlus materials. Caretakers reporting rates include labor, tractor and sprayer; supply truck included by most caretakers.
Y 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.
'Low acres is for 2- c..i -.1'..' Hi h1i...i_- high acres is for annual maintenance hedging.










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


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


Your Price
(2004)


Unit
gallon
pound
pound
pound
pound
pound
gallon
pound
pound
gallon
40 ozs.
gallon
gallon
gallon
gallon
pound

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


Average
Price
196.38
10.16
1.20

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

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










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


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


Unit
gallon
gallon
gallon
pound
gallon


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


gallon


Average
Price
42.53
16.13
14.23
3.06
117.67


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


Your Price
(2004)


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









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


Average Your Price
Item Unit Price (2004)


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

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


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









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


Average Your Price
Item Unit Price (2004)

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

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


** SRN, Slow Release Nitrogen

Source: Ronald P. Muraro, Extension Farm Management Economist, University of Florida,
Citrus Research and Education Center (CREC), Lake Alfred, Florida, August 2004.









Table 11-A.--A listing of estimated comparative Central Florida (Ridge) citrus production costs per acre for 2003-2004z
Costs represent a mature (10+ years old) Low Cost Processed Processed and Typical/Historical
Central Florida (Ridge) Orange rove Cultural Program Reduced Fresh Cost Fresh Fruit
One-Year Alternative Cultural Program Cultural Program
PRODUCTION/CULTURAL COSTS:y
Weed Management/Control:
Discing (2 times per year) $ 20.00 $ 20.00 $ 20.00
Mechanical Mow Middles (4 times per year) 40.76 40.76 40.76
General Grove Work (2 labor hours per acre) 26.56 26.56 26.56
Herbicide (1/2 tree acre treated):
Application (6 glyphosate or 2 residual applications) $84.06 $28.02 $28.02
Material 48.48 74.40 74.40
Spot Treatment (Material/application) 15.31 15.31
Total Herbicide Cost 132.54 117.73 117.73
Spray:
Summer Oil #1 (Processed @ 125 GPA) or
Post Bloom (Fresh @ 150 GPA):
Application 22.95 22.95
Material 60.42 60.83
Total Summer Oil #1 or Post Bloom Cost 83.37 83.78
Summer Oil #2: Application (PTO- 125 GPA) 22.95 22.95 29.67
Material 69.30x 29.42' 65.92
Total Summer Oil #2 Cost 92.25 52.37 95.59
Supplemental Fall Miticide:
Application (PTO 150 GPA) 22.95
Material 9.60
Total Supplemental Fall Miticide Cost 32.55
Fertilizer (Bulk): 3 Applications 26.04 26.04 26.04
Material (16-0-16-4 MgO @ 180 lbs N
and 204 lbs N per acre) 123.75 140.25 140.25
Total Fertilizer Cost 149.79 166.29 166.29
Dolomite (one ton applied every 4 years)
Material/Application 9.74 9.74 9.74
Pruning: Topping ($36.17/A + 2.5 yrs)' 14.47 14.47 14.47
Hedging ($33.88/A + 2 yrs)v 16.94 16.94 16.94
Chop/Mow Brush after Hedging ($8.92/A-2 yrs)' 4.46 4.46 4.46
Total Pruning Cost 35.87 35.87 35.87
Tree Replacement--1 thru 3 years of age: (3 trees/acre)
Remove Trees: Pull, Stack & Bum 3 Trees with
Front-end Loader 14.22 14.22 14.22
Prepare Site & Plant Tree (Includes 3 reset trees) 26.82 26.82
Supplemental Fertilizer, Tree Wraps Maintenance,
Sprout, Etc. (Trees 1-3 years old) 18.63 28.38 28.38
Total Tree Replacement Cost 32.85 69.42 69.42
Irrigation: Microsprinkler System" 152.07 152.07 152.07
IRRIGATED PROCESSED FRUIT PRODUCTION COSTS $692.43 $774.18
Fall Miticide: Application (125 GPA) 22.95 26.83
Material 31.36 32.72
Total Fall Miticide Cost 54.31 59.55
IRRIGATED FRESH FRUIT PRODUCTION COSTS $828.49 $909.91

zEstimated comparative costs are for example grove situation described in Economic Information Report Series, Budgeting Costs and
Returns for Central Florida Citrus Production, and may not represent your particular grove situation in Central Florida.

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








Table 12-A--Estimated cost of planting and maintaining a reset citrus tree through three years of age, July 2004
Number of Resets/Replacement Trees Per Acre
1-2 3-5 6-10 11-25 26+
------------------ Cost Per Tree ------------

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

aSite preparation for bedded citrus grove; cost of root removal, rotovating/leveling tree planting
site. Fumigate planting site would cost approximately $2.50 per tree.
bAdditional spray costs may be incurred if leafminer is a problem.

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









Table 13-A.--Estimated average picking, roadsiding and hauling charges for Florida citrus, 2003-04

Fresh Fruit Processed Fruit

Range Average Range Average

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


Picking Charges:

Early and Mid-Season Oranges

Valencia Oranges

Pink/Red Grapefruit

White/Marsh Grapefruit

Temples/Tangelos

Tangerines


0.80

0.80

0.60

0.60

0.85

1.35


- 1.00

- 1.00

- 0.85

- 0.70

- 1.25

- 1.75

Fresh Fruit


Range

$/Box


Processed Fruit

Range Average

$/Box $/Box


Roadsiding Charges:

Early and Mid-Season Oranges

Valencia Oranges

Pink/Red Grapefruit

White/Marsh Grapefruit

Temples/Tangelos

Tangerines


0.70

0.75

0.65

0.65

0.75

1.12


- 1.06

- 1.06

- 0.87

- 0.85

- 1.11

- 1.21

Fresh Fruit

All Varieties

$/Box


0.860

0.868

0.766

0.743

0.938

1.155


0.65

0.65

0.55

0.55

0.75


- 1.07

- 1.07

- 0.66

- 0.66

- 1.07


0.801

0.817

0.620

0.620

0.833


Processed Fruit

All Varieties

$/Box


Hauling Charges:

0 30 miles

31 50 miles

51 80 miles

81 100 miles

100 + miles


0.840

0.840

0.658

0.633

0.950

1.563


0.65

0.65

0.55

0.55

0.70


- 0.95

- 0.95

- 0.70

- 0.70

- 1.25


0.772

0.791

0.590

0.590

0.851


Average

$/Box


0.410

0.460

0.553

0.625

0.687


0.392

0.457

0.530

0.570

0.625










Table 14-A.--Estimated average packing charges for Florida citrus, 2003-04

Domestic Export Temples/
Grapefruit Grapefruit Oranges Tangelos Tangerines

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

Total Packing Charge" 3.636 3.741 3.993 4.026 4.795

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

Drenching Charge 0.158 0.158 0.173 0.173 0.173

Packinghouse Elimination 0.523 0.523 0.544 0.544 0.544
Charges

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

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

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


Source:


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








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


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 'Parson Brown and Pineapple dValencia eMarsh (white) or pink 'Preliminary

Source: Florida Agricultural Statistics Service.


Crop year
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
1995-96
1996-97
1997-98
1998-99
1999-00
2000-01
2001-02
2002-03'


Early and
Mid'-season
Oranges
$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
3.23
3.76
3.25
3.62
3.18
2.81
4.35
3.19
2.60
2.88
2.81


Late Season
Orangesd
$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
4.41
5.57
4.07
4.88
5.58
4.33
4.02
4.20
3.95


Temple
Oranges
$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
3.47
4.44
3.22
3.07
5.12
2.55
2.05
2.19
2.35


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


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


Seedless Grapefruite

(white) (colored)
$0.68 $0.86
1.29 1.81
2.24 2.54
1.51 1.82
1.39 1.64
0.73 0.94
2.05 2.48
0.98 1.15
1.72 1.92
1.89 2.15
2.27 2.69
2.06 2.53
1.58 2.12
1.55 2.59
1.29 2.23
1.49 2.04
1.47 2.09
2.21 3.13
3.12 3.80
3.46 4.22
1.92 2.80
1.51 3.20
2.08 4.05
3.02 4.84
3.56 4.98
4.45 5.80
5.35 5.93
4.33 4.71
5.21 6.30
4.59 6.85
6.46 6.87
2.22 3.11
3.23 3.38
2.58 1.66
2.14 1.77
1.12 1.91
0.93 1.50
1.95 2.65
3.87 3.36
2.07 2.28
1.96 2.54
1.62 2.49









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


Loan Interest Rate Paid on the Loan
Term
(years) 8.0% 8.5% 9.0% 9.5% 10.0% 10.5% 11.0% 11.5% 12.0% 12.5% 13.0% 13.5% 14.0% 14.5% 15.0%


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

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

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

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


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

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

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

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


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

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

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

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


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

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

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

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


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

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

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

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


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

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

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

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


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

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

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

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


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

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

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

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


aExample. Assumes a $10,000 after tax income at 11.5% interest rate and a 15-year term mortgage, the total debt which can be supported is $69,970
($6,997 x 10). At 11.5% interest rate and a 20-year term mortgage, the total debt which can be supported is $77,100 ($7,710 x 10).