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Estimated cost of picking and hauling Florida citrus
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Permanent Link: http://ufdc.ufl.edu/UF00026327/00001
 Material Information
Title: Estimated cost of picking and hauling Florida citrus
Series Title: Economic information report
Physical Description: v. : ; 28 cm.
Language: English
Creator: University of Florida -- Food and Resource Economics Dept
Publisher: Food and Resource Economics Department, Agricultural Experiment Stations, Institute of Food and Agricultural Sciences, University of Florida
Place of Publication: Gainesville Fla
Creation Date: 1981
Publication Date: 1985-
Frequency: annual
regular
 Subjects
Subjects / Keywords: Citrus fruits -- Transportation -- Costs -- Periodicals -- Florida   ( lcsh )
Citrus fruit industry -- Costs -- Periodicals -- Florida   ( lcsh )
Citrus fruits -- Harvesting -- Costs -- Periodicals -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
statistics   ( marcgt )
serial   ( sobekcm )
 Notes
Dates or Sequential Designation: 1981-82 season-
General Note: Title from cover.
 Record Information
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: aleph - 001571339
oclc - 21204159
notis - AHJ5148
lccn - sn 90019992
System ID: UF00026327:00001
 Related Items
Preceded by: Estimated cost of picking and hauling fresh Florida citrus

Table of Contents
    Historic note
        Historic note
    Front Cover
        Front Cover
    Abstract
        Abstract
    Table of Contents
        Table of Contents
    Main
        Page 1
        Page 2
        Page 3
        Page 4
        Page 5
        Page 6
        Page 7
        Page 8
        Page 9
        Page 10
        Page 11
    Reference
        Page 12
Full Text





HISTORIC NOTE


The publications in this collection do
not reflect current scientific knowledge
or recommendations. These texts
represent the historic publishing
record of the Institute for Food and
Agricultural Sciences and should be
used only to trace the historic work of
the Institute and its staff. Current IFAS
research may be found on the
Electronic Data Information Source
(EDIS)

site maintained by the Florida
Cooperative Extension Service.






Copyright 2005, Board of Trustees, University
of Florida




R. Clegg Hooks
R. Clegg Hooks


Economic Information


Report 213




Estimated Cost of Picking
and Hauling Florida Citrus,
1981-82 Season


Food and Resource Economics Department
Agricultural Experiment Stations
Institute of Food and Agricultural Sciences
University of Florida, Gainesville 32611


December 1985












ABSTRACT


Florida citrus picking and hauling cost estimates for the 1981-82
season are presented. Data used to develop the estimates were col-
lected from 13 citrus handling firms, representing 11.9 percent of
Florida's citrus production.

Orange picking and roadsiding costs in the 1981-82 season were
139 cents per box, an increase of 3.7 percent from the figure estimat-
ed for the 1980-81 season. Grapefruit, tangerine, and tangelo picking
and roadsiding costs were estimated to be $1.00, $2.17, and $1.71 per
box, respectively.

Hauling costs for all types of fruit were estimated to be 27.6
cents per box, an increase of 15.0 percent from 1980-81 levels.

Total citrus picking and hauling costs increased for 1981-82 in
all varieties. Total picking and hauling costs estimates for oranges,
grapefruit, tangerines, and tangelos were higher by 5.8, 0.8, 5.2 and
4.4 percent from their 1980-81 levels respectively.





Key words: citrus picking, citrus hauling, picking costs, hauling
costs, citrus.









TABLES OF CONTENTS

Page


SUMMARY ............................................................. I

SAMPLE FIRMS...................... ................................. 2

DATA COLLECTED AND COST i)LSrRBIJTION PROCEDURES......................2

PICKING AND HAULING COST EST LATES ........................ ...... ...4

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

SELECTED REFERENCES....................................................12





LIST OF TABLES

Table Page


1 Estimated average cost per box for picking
and hauling citrus fruits for fresh packing
and processing, 1981-82 season....................


2 Average cost per box for picking and hauling
citrus fruit, 32 seasons, 1950-51 to 1981-82 ......


.......... 5




..........7


3 Relationship of picking and hauling cost to
the per-box price of oranges used for concentrate,
23 seasons, 1960-1982 .........................................8


4 Index of citrus picking and hauling cost,19b0-bl
through 1981-82 seasons (1960-61 1964-65 = 100).............9


5 Changes in the cost items that make up estimated
total picking and hauling costs for oranges,
22 seasons 1960-61 through 1981-82
(Index = 1960-61 to 1964-65 average)........................10











ESTIMATED COST OF PICKING AND HAULING FLORIDA CITRUS
1981-82 SEASON


R. Clegg Hooks


SUMMARY




Florida citrus picking and hauling cost estimates for the 1981-82
season are presented. Data used to develop the estimates were col-
lected from 13 citrus handling firms, representing 11.9 percent of
Florida's citrus production.

Orange picking and roadsiding costs in the 1981-82 season were
139 cents per box--an increase of 3.7 percent from the figure estimat-
ed for the 1980-81 season. Grapefruit, tangerine, and tangelo picking
and roadsiding costs were estimated to be $1.00, $2.17, and $1.71
cents per box, respectively.

Hauling costs for all types of fruit were estimated to be 27.6
cents per box, an increase of 15.0 percent from 1980-81 levels.

Total citrus picking and hauling costs increased in 1981-82 in
all varieties. Total picking and hauling cost estimates for oranges,
grapefruit, tangerines and tangelos were higher by 5.8, 0.8, 5.2, and
4.4 percent respectively from 1980-81 season estimates.













R. Clegg Hooks is an Assistant in Food and Resource Economics.











SAMPLE FIRMS


Estimates of the cost of picking, roadsiding and hauling oranges,
grapefruit, tangerines and tangelos were developed by summarizing
accounting records available from 13 citrus handling firms. Of the 13
firms in the sample, 12 were located in the Interior and one was
located in the Indian River area. Two of the firms were independent
citrus dealers and 11 were packinghouses and/or processors. The
larger firms in the sample handled fruit from throughout the citrus-
producing regions.

Picking cost information was available on 21.9 million boxes of
fruit or approximately 11.9 percent of total Florida production [4, p.
7]. Hauling cost information was available on 26.0 million boxes of
fruit or approximately 14.1 percent of total Florida production [4, p.
7]. Picking cost information was provided on an average of 1.69 mil-
lion boxes per firm and hauling cost information was provided on an
average of 2.0 million boxes per firm.

Most firms contracted with other operators to pick and haul some
of their total volume. The costs of contract crews, if data pertain-
ing to them could be separated, were not included because it was dif-
ficult to determine the services performed, the kind of fruit and the
number of boxes hauled. However, in many firms, costs for contracting
were inseparably mixed with the information on services performed by
the firm's own crews; therefore, the averages include total costs for
contract and company crews and equipment.




DATA COLLECTED AND COST DISTRIBUTION PROCEDURES


The data supplied by most firms in the sample were accounting
information from their auditors' reports. Some auditors reports pro-











vided cost information for picking and a separate series of costs for
hauling. Other auditors' reports included only the combined costs of
picking and hauling. Only four firms in the sample provided informa-
tion by type of fruit. For those firms providing only total dollar
amounts for each expense item for picking, roadsiding, and hauling
operations, it was first necessary to allocate picking expenses by
type of fruit. Hauling costs per box were assumed not to vary by type
of fruit hauled.

In general, the allocations of expenses between picking and haul-

ing among types of fruit are based on personal knowledge of a firm's
operation or on information provided by other firms in the sample.
Quite often it was also necessary to separate a total labor figure
into the five labor categories shown in Table 1. None of the sample
firms provided information in a form comparable with that shown in
Table 1. Therefore, the validity of the comparison among types of
fruit depends on information provided by the firms that do provide
comparisons.

Distance [2], hauling methods [1], truck size [1] and other
factors have been documented to affect picking and hauling costs. The
data used to develop the averages presented in this report were not
provided in sufficient detail to analyze the effects of these factors
on total picking and hauling costs because the auditor's report for
each firm summarizes the cost results for a variety of distances,
hauling methods and truck sizes. Also, fruit delivered to processors
is handled differently than fruit delivered to packinghouses. It is
not known if the sample firms properly represent the industry
distribution of type of fruit by method or destination.

Picking costs include all amounts paid for direct labor for pick-
ing and delivery to the roadside, field truck and tractor expense, and
a portion of overhead and administrative expenses. Picking labor
costs, when not available by type of fruit, were allocated to the












various types of fruit by estimated piece rates. Fuel and repairs
were allocated equally per box for all kinds of fruit picked. Certain
other expenses, which do not fluctuate directly with changes in volume
were distributed such that the per-box costs would be in the ratio of
1.00 for grapefruit, 1.50 for oranges, 2.50 for tangerines and 2.00
for tangelos. Expenses in this group include licenses and taxes,
depreciation, insurance, miscellaneous items and administrative ex-
pense.


PICKING AND HAULING COST ESTIMATES


Picking and loading refers to all activities involved in getting
the fruit from the tree to roadside. Itemized average picking costs
per box for oranges, grapefruit, tangerines and tangelos and hauling
costs are shown in Table 1. The numbers reported in the table are
calculated by summing the total dollars spent for each item by the
sample firms and dividing by the total boxes of fruit harvested by the
sample firms (i.e., the averages are weighted averages where the
weights are the share of total boxes harvested by the firm).

Buyers' salaries, commissions and expenses for fruit procurement
and sales are omitted. Costs such as telephone and auto expenses,
which are associated with selling as well as harvesting operations,
are difficult to assign to specific operations and may still be in-
cluded in the information obtained from a few firms.

The largest item in the cost of picking citrus is labor. All
labor costs including payroll taxes and workmen's compensation
insurance constituted 80.0 percent of the total cost of picking and
loading oranges, 80.2 percent for grapefruit, 84.9 percent for
tangerines and 83.2 percent for tangelos. The amount paid the fruit
picker was approximately 64.6 percent of the labor cost.









Table 1. Estimated average cost per box for picking and hauling citrus fruits for fresh packing
and processing, 1981-82 season.
Service Performed and Commodity
Service Performed and Commodity


Picking and Roadsiding

Oranges Grapefruit Tangerines Tangelos


Hauling
to


Total Pick and Haul


Plant or Oranges Grapefruit Tangerines Tangelos


Packinghouse

Number of Operators 13 13 13 9 13
Average Volume 1,181,917 357,474 72,710 109,943 1,996,412
(1 3/5 bu. boxes)
- - Dollars per box - - - -

Labor
Supervisorya 0.1024 0.0764 0.1271 0.1454 0.0100 0.1024 0.0764 0.1271 0.1454
Pickers 0.7364 0.4773 1.2308 0.9185 0.0000 0.7364 0.4773 1.2308 0.9185
Loaders & Drivers 0.0789 0.1246 0.1801 0.1412 0.0000 0.0789 0.1246 0.1801 0.1412
Semi-drivers 0.0000 0.0000 0.0000 0.0000 0.0589 0.0589 0.0589 0.0589 0.0589
Other labor 0.0171 0.0094 0.0225 0.0160 0.0106 0.0277 0.0200 0.0331 0.0266
Subtotal 0.9348 0.6877 1.5605 1.2211 0.0695 1.0043 0.7572 1.6300 1.2906
Payroll taxes 0.1809 0.1138 0.2850 0.2070 0.016U8 0.1977 0.1306 0.3018 0.2238
Total Labor 1.1157 0.8015 1.8455 1.4281 0.0863 1.2020 0.8878 1.9318 1.5144
Other Costs
Fuel & oil 0.0407 0.0348 0.0383 0.0384 0.0527 0.0934 0.0875 0.0910 0.0911
Repairs & maintenance 0.0661 0.0553 0.0540 0.0598 0.0633 0.1294 0.1186 0.1173 0.1231
Licenses & taxes 0.0033 0.0021 0.0067 0.0033 0.0048 0.0081 0.0069 0.0115 0.0081
Depreciation 0.0325 0.0204 0.0637 0.0429 0.0290 0.0615 0.0494 0.0927 0.0719
Insurance 0.0088 0.0047 0.0126 0.0095 0.0060 0.0148 0.0107 0.0186 0.0155
Supplies 0.0162 0.0088 0.0188 0.0202 0.01171 0.0233 0.0159 0.0259 0.0273
E uipment rental 0.0070 0.0012 0.0019 0.0049 0.0024 0.0094 0.0036 0.0043 0.0073
Migratory labor exp. 0.0111 0.0025 0.0042 0.0108 0.0000 0.0111 0.0025 0.0042 0.0108
Miscellaneous 0.0061 0.0032 0.0070 0.0071 0.0038 0.0099 0.0070 0.0108 0.0109
Total Other Costs 0.1918 0.1330 0.2072 0.1969 0.1691 0.3609 0.3021 0.3763 0.3660
Administrative 0.0869 0.0648 0.1206 0.0899 0.0205 0.1074 0.0853 0.1411 0.1104
Total Costs 1.3944 0.9993 2.1733 1.7149 0.2759 1.6703 1.2752 2.4492 1.9908

Range in costs--low 0.9359 0.6738 1.7971 1.2917 0.1172 1.0633 0.8041 1.9274 1.4089
--high 1.6564 1.1998 3.1784 2.2652 0.3890 1.9317 1.4992 3.5169 2.5286
Standard deviation 0.2645 0.1926 0.4960 0.3334 0.0818 0.2828 0.2145 0.5253 0.3749

alncludes foremen.


bAlso includes workmen's compensation and fringe benefits.

CIncludes management and office salaries, office supplies, auto travel and
advertising, dues and subscriptions, donations and telephone and telegraph.


entertainment, interest paid, legal and audit,


dA range of one standard deviation above and below the mean usually includes about two-thirds of the observations. Ninety-five
percent of the firms are within the range of two standard deviations from the mean.











The hauling operation refers to the transportation of fruit from
the roadside to the processing plant or fresh packinghouses. Labor,
including payroll taxes and workmen's compensation insurance,
accounted for 31.3 percent of the total hauling cost. Other items of
cost were repairs 22.9 percent, depreciation 10.5 percent, fuel 19.1
percent and administration 7.4 percent. Hauling cost for 1981-82
increased 15.0 percent from the previous season.

The combined picking and hauling costs for 1981-82 (Table 1) were
obtained by adding the picking cost for each type of fruit to the
hauling cost. Labor costs accounted for 72.0, b9.b, 78.9, and 76.1
percent of the total picking and hauling costs for oranges,
grapefruit, tangerines and tangelos, respectively.




COST TRENDS


Citrus picking and hauling costs increased during the 1981-82
season (Table 2). Total picking and hauling costs for oranges, grape-
fruit, tangerines and tangelos increased 5.8, 0.8, 5.2, and 4.4 per-
cent from the 1980-81 season. Some of the season-to-season variation
in the cost for each service is due to changes in the firms in the
sample. However, the longterm trend shows that costs have increased
steadily over the past 32 seasons (Table 2).

Orange picking and hauling costs decreased relative to the deliv-
ered-in value of oranges for 1981-82 (Table 3). During the first five
seasons reported in Table 3, picking and hauling costs average 16.4
percent of the per-box delivered-in price of oranges. During the last
five-year period, picking and hauling costs averaged 25.4 percent of
the delivered-in price. In 1981-82 season, picking and hauling costs
represent 26 percent of the delivered-in value of the fruit.








Table 2. Average cost per box for picking and hauling citrus fruits, 32 seasons, 1950-51
to 1981-82.a


Picking & Loading
Season Hauling Oranges Grape- Tanger- Tangelosb
fruit ines


Total Picking,
Loading _Hauling
Oranges Grape- Tanger- Tangelos


fruit


ines


- - - - Cents per box - - -


1950-51
1951-52
1952-53
1953-54
1954-55

1955-56
1956-57
1957-58
1958-59
1959-60

1960-61
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


10.31
9.81
9.71
9.61
9.38

9.47
9.27
11.31
11.46
11.23

11.17
10.41
12.90
13.73
11.66

11.96
10.74
13.32
11.98
13.18

13.04
13.61
14.70
15.66
15.36

15.45
17.19
18.18
19.79
21.80


28.36
38.42
29.12
28.87
28.93

30.52
31.36
33.30
33.30
34.17

34.96
33.79
39.57
43.04
43.43

46.12
46.25
54.09
57.77
61.12

64.86
70.86
82.16
91.08
84.16

85.36
94.00
105.50
120.77
123.41


24.01 133.91 102.54
27.59 139.44 99.93


18.62
19.51
21.98
20.58
20.91

21.73
23.46
24.09
24.16
25.16

26.69
25.75
28.32
31.47
33.08

37.77
37.65
41.45
42.99
46.98

48.61
52.41
59.11
69.37
67.94

69.05
73.62
82.07
90.63
93.17


56.93
61.93
59.62
60.86
64.72

66.39
73.96
75.35
74.90
83.68

83.53
81.66
95.97
100.71
102.63

107.47
113.47
118.46
120.55
129.82

124.51
140.46
147.15
158.09
158.23

157.82
174.16
185.65
188.66
218.45

208.80
217.33


112.70
130.07
137.70
147.26

166.65
171.49


38.67
38.23
38.83
38.48
38.31

39.99
40.63
44.61
44.76
45.40

46.13
44.20
52.51
56.77
55.09

58.08
56.99
67.41
69.75
74.30

77.90
84.47
98.86
106.74
99.52

100.71
111.19
123.68
140.47
145.21


28.93
29.32
31.69
30.19
30.29

31.20
32.73
35.40
35.62
36.39

37.86
36.16
41.26
45.20
44.74

49.73
48.39
54.77
54.97
60.16

61.65
66.02
73.81
85.03
83.30

84.50
90.81
100.25
110.33
114.97


157.92 126.55 232.81
167.03 127.52 244.92


67.24
71.74
69.33
70.47
74.10

75.86
83.23
86.84
86,36
94.91

94.70
92.07
108.91
114.44
114.29

119.43
124.21
131.78
132.53
143.00

147.55
154.07
161.85
173.75
173.59

173.27
191.35
203.83
208.36
240.25


aData for the seasons prior to 1981-82 are from Hooks [5].
bprior to 1976-77 pick, load and haul costs were not calculated for tangelos.


129.89
148.25
157.40
169.06

190.66
199.08







Table 3. Relationship of picking and hauling cost to the per-box price of
for concentrate, 23 seasons, 1960-82


Season ending
in July
(column 1)


1960
1961
1962
1963
1964

1965
1966
1967
1968
1969

1970
1971
1972
1973
1974

1975
1976
1977
1978
1979

1980
1981
1982


Delivered-in per box
price for oranges used
for concentrate
(column 2)


- - Dollars

2.54
3.47
2.26
2.71
5.25

3.37
2.28
1.29
2.76
2.70

1.94
2.07
2.91
2.36
2.58

2.41
3.11
2.59
5.42
6.42


5.16
5.55
6.49


Estimated per box pick
and haul cost for
orangesb
(column 3)


per box -


0.45
0.46
0.44
0.56
0.57

0.55
0.58
0.57
0.67
0.70

0.74
0.78
0.84
0.97
1.07

1.00
1.01
1.11
1.24
1.40

1.45
1.58
1.67


Picking and Lnal'. :.. cos
as a perceytcage of
delivered-in prices
(column 4)

-. .' cent -


28
28
26


al3, p. 10A]

bFrom Table 1.

CCol. 4 (col.3/col.2) X 100.


ussed


-- ----~--------- ----------I






Table 4. Index of citrus picking and hauling costs, 1960-61 through 1981-82
seasons (1960-61 1964-65 = 100)

Total picking, loading and hauling index for
Season Oranges Grapefruit Tangerine

- - Index - - - -
1960-61 91 92 90
1961-62 87 88 88
1962-63 103 101 104
1963-64 111 110 109
1964-65 108 109 109

1965-66 114 121 114
1966-67 112 118 118
1967-68 132 133 126
1968-69 137 134 126
1969-70 146 147 136

1970-71 153 150 141
1971-72 166 161 147
1972-73 194 180 154
1973-74 210 207 166
1974-75 195 203 166

1975-76 198 206 165
1976-77 218 221 182
1977-78 243 244 194
1978-79 276 269 197
1979-80 285 280 227

1980-81 310 308 222
1981-82 328 312 234












Table 4 shows how total picking and hauling costs have changed
compared with the average reported figure for the 1960-61 through
1964-65 seasons--the base year. With few exceptions, the increases
for all types of fruit have been very steady. For the 1981-82 season,
orange and grapefruit picking and hauling costs are 3.28 and 3.12
times the levels during the base period, while tangerine costs are
estimated to be 2.34 times the base period.

Table 5 shows how the components of total orange picking and
hauling costs have changed in absolute magnitude and relative to their
base-period levels. Note that labor, the largest component, has shown
the greatest increase relative to the base period. While Table 4
shows that total picking and hauling costs for oranges in 1981-82 were
328 percent of the base-period (1960-1961 through 1964-65) total
picking and hauling costs for oranges are estimated to have increased
116.1 cents and picking labor costs have increased 54.7 cents; that
is, 45.5 percent of the increase is accounted for by picking labor
cost increases. Labor costs have increased relatively more than any
other component and also account for a major share of the total
absolute increase.







Table 5. Changes in the cost
costs for oranges,
1964-65 average)


items that make up estimated total picking and hauling
23 seasons, 1960-61 through 1981-82 (Index = 1960-61 to


Picking Labor


Other Labora


Fuel, Oil, Repairs,
Depreciation


Administrative
and other


c/box Index


1960-61
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


18.90
19.64
22.50
24.24
26.38

28.54
29.53
33.42
37.51
38.54

38.70
40.91
52.60
57.86
51.87

50.61
54.96
58.96
65.76
67.82

72.92
73.64


85
88
101
109
118

128
132
150
168
173

173
183
236
259
232

227
246
264
294
304

327
330


c/box Index


c/box Index
12.52 96
12.17 93
13.29 101
14.17 108
13.35 102

14.43 110
13.79 105
16.96 129
15.69 120
17.00 130

17.99 137
22.34 171
22.00 168
23.10 17b
22.87 175

25.52 195
27.60 211
33.46 255
40.31 308
39.60 302

44.37 339
46.56 355


8.37
7.56
9.98
10.33
9.72

9.88
8.42
10.88
10.82
12.32

12.75
13.38
15.06
16.57
16.53

17.38
19.29
20.34
23.32
25.47

26.83
28.43


91
82
109
112
106

107
92
118
118
134

139
146
164
180
180

189
210
221
254
277

292
309


aIncludes supervisory, loaders, drivers, semi-drivers, miscellaneous and payroll
workmen's compensation.


blncludes licenses, taxes, insurance, supplies,
and miscellaneous costs.


equipment rental, migratory labor expense


Season


c/box Index
6.34 100
4.83 76
6.74 107
8.03 127
5.64 89

5.23 83
5.25 83
6.15 97
5.73 91
6.44 102

8.46 134
7.83 124
7.20 114
9.21 146
8.25 131

7.20 114
9.34 148
10.92 173
11.08 175
12.32 195

13.80 218
18.40 291


taxes and


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SELECTED REFERENCES


[1] Bowman, Earl K., A. H. Spurlock, Scott Hedden and William
Grierson. Modernizing Handling Systems for Florida Citrus
from Picking to Packing Line. USDA Marketing Research
Report No. 914. Washington: U.S. Government Printing
Office, December 1971, pp.54



[2] Chern, Wen-Shyong. Determination of the Optimal Number, Size
and Location of Orange Packing and Processing Plants in
Florida. Unpublished M.S. thesis, University of Florida,
Gainesville, 1969.



[3] Florida Citrus Processors Association. Statistical Summary,
1981-82 Season. Winter Haven; 1983.



[4] Florida Division of Fruit and Vegetable Inspection. 1981-82
Season Annual Report. Winter Haven: 1982.



[5] Hooks, R. Clegg, A. H. Spqrlock and Richard L. Kilmer.
Estimated Costs of Picking and Hauling Florida Citrus
Fruits, 1980-81. Food and Resource Economics Department
Economic Information Report 188, Gainesville: University
of Florida, June 1983.