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 Copyright
 Title Page
 Abstract
 Acknowledgments
 Table of Contents
 Introduction
 Procedures
 Results
 Reference
 Florida cut foliage business analysis...


FLAG IFAS PALMM UF



Analysis of cut foliage businesses in Florida
ALL VOLUMES CITATION SEARCH THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00027609/00002
 Material Information
Title: Analysis of cut foliage businesses in Florida
Series Title: Economic information report - Food & Resource Economics Department - EIR 00-1
Physical Description: iii, 15 p. : charts ; 28 cm.
Language: English
Creator: Hodges, Alan W. (Alan Wade), 1959-
Satterthwaite, Loretta N.
Haydu, John J.
Affiliation: University of Florida -- Food & Resource Economics Department -- Institute of Food & Agricultural Sciences
Publisher: Food & Resource Economics Dept., Agricultural Experiment Stations and Cooperative Extension Service, Institute of Food & Agricultural Sciences, University of Florida
Creation Date: 1992
 Subjects
Subjects / Keywords: Agriculture   ( lcsh )
Farm life   ( lcsh )
Farming   ( lcsh )
University of Florida.   ( lcsh )
Agriculture -- Florida   ( lcsh )
Farm life -- Florida   ( lcsh )
Cut foliage industry -- Economic aspects -- Florida   ( lcsh )
Foliage plant industry -- Economic aspects -- Florida   ( lcsh )
Potted plant industry -- Economic aspects -- Florida   ( lcsh )
Nurseries (Horticulture) -- Economic aspects -- Florida   ( lcsh )
Genre: serial   ( sobekcm )
Spatial Coverage: North America -- United States of America -- Florida
 Notes
Funding: Florida Historical Agriculture and Rural Life
 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, Board of Trustees of the University of Florida
Resource Identifier: oclc - 44150957
notis - AMT0862
aleph - 002564584
System ID: UF00027609:00002

Table of Contents
    Copyright
        Copyright
    Title Page
        Page i
    Abstract
        Page ii
    Acknowledgments
        Page ii
    Table of Contents
        Page iii
    Introduction
        Page 1
        The cut foliage industry
            Page 1
        The University of Florida business analysis program
            Page 1
    Procedures
        Page 1
        Sample of firms and industry groups analyzed
            Page 1
        Information collected and reported
            Page 2
        Accounting and measurement conventions
            Page 2
    Results
        Page 2
        Income and value produced
            Page 2
            Annual sales
                Page 2
            Plant inventory change and total value produced
                Page 2
            Total income
                Page 3
            Monthly sales
                Page 3
        Resources used
            Page 3
            Land
                Page 3
            Labor
                Page 3
            Capital managed
                Page 3
        Productivity, efficiency and intensity indicators
            Page 4
            Value produced per acre
                Page 4
            Value produced per worker
                Page 4
            Capital managed per acre
                Page 4
            Growing area managed per worker
                Page 4
            Managed capital turnover
                Page 4
        Expenses and cost efficiency
            Page 5
            Employee expenses
                Page 5
            Materials expenses
                Page 5
            Finished product purchases
                Page 5
            Facility and equipment expenses
                Page 5
            Administrative overhead expenses
                Page 5
            Capital costs
                Page 5
            Management/owner compensation
                Page 6
            Total costs
                Page 6
            Cost as a share of sales
                Page 6
            Cost per acre
                Page 6
                Page 7
        Net returns and profitability
            Page 8
            Net firm income
                Page 8
            Net margin
                Page 8
            Rate of return on assets
                Page 8
            Rate of return on net worth
                Page 8
        Balance sheet and financial ratios
            Page 9
            Assets
                Page 9
            Liabilities
                Page 9
            Net worth
                Page 9
            Leverage
                Page 9
            Quick radio
                Page 9
                Page 10
        Changes in business performance between 1996 and 1997
            Page 11
    Reference
        Page 11
    Florida cut foliage business analysis worksheet
        Page 12
        Page 13
        Page 14
        Page 15
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






Alan W. Hodges
Loretta N. Satterthwaite


Economic Information
Report El 00-1


John J. Haydu





Analysis of Cut Foliage Businesses
In Florida, 1997


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


March 2000









ANALYSIS OF CUT FOLIAGE BUSINESSES IN FLORIDA, 1997

Alan W. Hodges, Loretta N. Satterthwaite and John J. Haydu
University of Florida, Institute of Food & Agricultural Sciences
Food & Resource Economics Department, Gainesville, FL
and Mid-Florida Research and Education Center, Apopka, FL
Revised March 28, 2000


ABSTRACT

Information is presented on sales, production,
costs, assets and liabilities, and efficiency
indicators for 12 cut foliage businesses in
Florida for the year of 1997, and changes in
business performance from the previous year.
The average firm had annual sales of $902
thousand (K), used 45 acres of production
area, employed 23 full-time equivalent (FTE)
persons, and managed $1.158 million (M) in
owned and leased capital. Value produced per
acre of growing area averaged $15.3K. Total
sa!es per FTE person averaged $38.9K. Total
capital managed per FTE and per acre of
growing space averaged $50.0K and $25.8K,
respectively. Managed capital turnover
averaged 0.78. Total costs averaged $892K
and total costs per acre of production area
averaged $14.4K. As a share of total sales,
expenses averaged 41 percent for employee
labor, 13 percent for materials, 18 percent for
finished products brokered, 3 percent for
equipment/facilities, 12 percent for
administrative overhead, 7 percent for capital,
and 5 percent for management/owners. Net
income, including owner/management
compensation, averaged $166K and net profit
margin averaged 16 percent. Rate of return
on assets and rate of return on net worth were
18.8 and 34.7 percent, respectively. Overall
business profitability was markedly improved in
1997 over the previous year for the same firms
sampled. Similar information is presented for
large-, medium-, and small-sized firms, as well
as highly profitable firms.

ZKEY WORDS: cut foliage, fernery, ornamental
plant products, business analysis, sales, costs,
returns, efficiency, Florida.


ACKNOWLEDGMENTS

This report was made possible by the owners
and managers of cooperating firms who made
their records available on a confidential basis
for analysis and averaging. Assistance was
provided by University of Florida Extension
Ornamental Horticulture Agents Linda
Landrum, Diane Dilger and Austin Tilton, and
Cut Foliage Extension Specialist Dr. Robert
Stamps. Data collection and analysis was
underwritten, in part, by Farm Credit of
DeLand, FL.









ANALYSIS OF CUT FOLIAGE BUSINESSES IN FLORIDA, 1997

Alan W. Hodges, Loretta N. Satterthwaite and John J. Haydu
University of Florida, Institute of Food & Agricultural Sciences
Food & Resource Economics Department, Gainesville, FL
and Mid-Florida Research and Education Center, Apopka, FL
Revised March 28, 2000


ABSTRACT

Information is presented on sales, production,
costs, assets and liabilities, and efficiency
indicators for 12 cut foliage businesses in
Florida for the year of 1997, and changes in
business performance from the previous year.
The average firm had annual sales of $902
thousand (K), used 45 acres of production
area, employed 23 full-time equivalent (FTE)
persons, and managed $1.158 million (M) in
owned and leased capital. Value produced per
acre of growing area averaged $15.3K. Total
sa!es per FTE person averaged $38.9K. Total
capital managed per FTE and per acre of
growing space averaged $50.0K and $25.8K,
respectively. Managed capital turnover
averaged 0.78. Total costs averaged $892K
and total costs per acre of production area
averaged $14.4K. As a share of total sales,
expenses averaged 41 percent for employee
labor, 13 percent for materials, 18 percent for
finished products brokered, 3 percent for
equipment/facilities, 12 percent for
administrative overhead, 7 percent for capital,
and 5 percent for management/owners. Net
income, including owner/management
compensation, averaged $166K and net profit
margin averaged 16 percent. Rate of return
on assets and rate of return on net worth were
18.8 and 34.7 percent, respectively. Overall
business profitability was markedly improved in
1997 over the previous year for the same firms
sampled. Similar information is presented for
large-, medium-, and small-sized firms, as well
as highly profitable firms.

ZKEY WORDS: cut foliage, fernery, ornamental
plant products, business analysis, sales, costs,
returns, efficiency, Florida.


ACKNOWLEDGMENTS

This report was made possible by the owners
and managers of cooperating firms who made
their records available on a confidential basis
for analysis and averaging. Assistance was
provided by University of Florida Extension
Ornamental Horticulture Agents Linda
Landrum, Diane Dilger and Austin Tilton, and
Cut Foliage Extension Specialist Dr. Robert
Stamps. Data collection and analysis was
underwritten, in part, by Farm Credit of
DeLand, FL.










TABLE OF CONTENTS

ABSTRACT .. ....................... ii

ACKNOWLEDGMENTS ................ ii

INTRODUCTION .................... 1
The Cut Foliage Industry ......... 1
The University of Florida Business
Analysis Program ......... 1

PROCEDURES .......... .. . 1
Sample of Firms and Industry Groups
Analyzed ............... 1
Information Collected and Reported 2
Accounting and Measurement
Conventions ............. 2

RESULTS .......................... 2
Income and Value Produced ...... 2
Annual Sales ............ 2
Plant Inventory Change and
Total Value Produced 2
Total Income ............ 3
Monthly Sales ........... 3
Resources Used ............... 3
Land ................... 3
Labor .................. 3
Capital Managed ......... 3
Productivity, Efficiency and Intensity
Indicators ............... 4
Value Produced per Acre ... 4
Value Produced per Worker. 4
Capital Managed per Acre .. 4
Growing Area Managed per
Worker ........... 4
Managed Capital Turnover.. 4
Expenses and Cost Efficiency ..... 5
Employee Expenses ...... 5
Materials Expenses ....... 5
Finished Product Purchases 5
Facility and Equipment
Expenses ......... 5
Administrative Overhead
Expenses ......... 5
Capital Costs ............ 5
Management/Owner
Compensation ..... 6
Total Costs .............. 6
Cost as a Share of Sales ... 6
Cost per Acre ............ 6


Net Returns and Profitability 8 ......
Net Firm Income ......... 8
Net Margin .............. 8
Rate of Return on Assets ... 8
Rate of Return on Net Worth 8
Balance Sheet and Financial Ratios 9
Assets ............ ... 9
Liabilities ............... 9
Net W orth .............. 9
Leverage ............... 9
Quick Ratio ............. 9
Changes in Business Performance
Between 1996 and 1997 .. 11

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

APPENDIX. Florida Cut Foliage Business
Analysis Worksheet ............ 12


LIST OF TABLES

Table 1. Income and value produced for
Florida cut foliage businesses, 1997 3
Table 2. Productive resources used by Florida
cut foliage businesses, 1997. ..... 4
Table 3. Resource productivity, efficiency and
use intensity indicators for Florida cut
foliage businesses, 1997 ......... 5
Table 4. Operating expenses for Florida cut
foliage businesses, 1997 ......... 7
Table 5. Cost efficiency indicators for Florida
cut foliage businesses, 1997 ...... 8
Table 6. Net returns and profitability for Florida
cut foliage businesses, 1997 ...... 9
Table 7. Assets, liabilities and net worth for
Florida cut foliage businesses, 1997 10
Table 8. Financial ratios for Florida cut foliage
businesses, 1997 ............. 10
Table 9. Percentage change in business
performance for Florida cut foliage
businesses, 1996-97 ........... 11


LIST OF FIGURES

Figure 1. Sales of cut foliage by United States
and Florida growers, 1985-97. .... 1
Figure 2. Average monthly sales per firm for
Florida cut foliage businesses, 1997. 3
Figure 3. Distribution of expenses for Florida
cut foliage businesses, 1997. ..... 6







ANALYSIS OF CUT FOLIAGE
BUSINESSES IN FLORIDA, 1997
Alan W. Hodges1, Loretta N. Satterthwaite2
and John J. Haydu


INTRODUCTION

The Cut Foliage Industry

The state of Florida is the largest producer of
cultivated ornamental cut foliage products in
the U.S. with total farmgate sales in 1997 of
$86 million from 130 wholesale producers and
7,382 acres in production (NASS, 1998).
Leatherleaf fern (Rumohra adiantiformis) is the
most important cut foliage product in Florida,
accounting for 69 percent of all cut foliage
sales and 63 percent of production area.
Other cut foliage crops produced in Florida,
include several species of ornamental
asparagus (Asparagus spp.), Japanese
pittosporum (Pittosporum tobira), English ivy
(Hedera helix) and aspidistra (Aspidistra
elatior) (Stamps and Conover, 1986). Sales of
cut foliage by growers in Florida and other
states over the period 1985-97 are shown in
Figure 1. The cut foliage industry in Florida
grew rapidly during the 1970s and early 1980s,
then slowed in the latter 1980s and 1990s
(NASS, 1999). Sales were down sharply in
1997 from the previous year.

The University of Florida Business
Analysis Program

Information in this report was collected as part
of the University of Florida's ongoing Business
Analysis and Planning Program for the state's
horticultural industries (Hodges et al, 1997).
Since the 1960s, this program has gathered
and analyzed confidential production and
accounting records from wholesale nurseries
in Florida to compile industry average financial


Coordinator of Economic Analysis, University of
Florida, Food & Resource Economics
Department, PO Box 110240, Gainesville FL
32611, tel 352-392-1881 x312, fax 352-392-
3646, email hodges@fred.ifas.ufl.edu.
2 Senior Statistician and Extension Economist,
respectively, University of Florida, Mid-Florida
Research and Education Center, Apopka, FL.


US (36 states)

Florida


70
60 I---------------- I -
85 86 7 9I 89 0 91 72 93 94 95 96 7
Year
Figure 1. Cut foliage sales for Florida and the
United States, 1985-97.

performance benchmarks. In 1996, the
Business Analysis Program included the cut
foliage industry for the first time (Hodges et al.,
1998). This report presents results for a
second year (1997).


PROCEDURES

Sample of Firms and Industry Groups
Analyzed. Information for this report was
collected from twelve (12) wholesale cut
foliage grower firms in Florida for the 1997
fiscal year. Firms were located in Volusia,
Lake and Putnam counties. The firms
participated in the program on a voluntary
basis and in exchange received a report with
information similar to that presented in this
paper. The sample of businesses analyzed in
this report is believed to represent firms with
above-average management quality, by virtue
of their willingness to participate in quality
improvement programs such as this. Records
were compiled and analyzed separately for
three different groups of firms based upon total
annual sales: large firms had sales of $1
million or greater; medium firms had sales of
$500 to $999 thousand; small firms had sales
of less than $500 thousand. Results for a
subgroup of seven firms with rates of return on
net worth of at least 30 percent were also
analyzed and reported separately as as "highly
profitable" firms.


120

110







ANALYSIS OF CUT FOLIAGE
BUSINESSES IN FLORIDA, 1997
Alan W. Hodges1, Loretta N. Satterthwaite2
and John J. Haydu


INTRODUCTION

The Cut Foliage Industry

The state of Florida is the largest producer of
cultivated ornamental cut foliage products in
the U.S. with total farmgate sales in 1997 of
$86 million from 130 wholesale producers and
7,382 acres in production (NASS, 1998).
Leatherleaf fern (Rumohra adiantiformis) is the
most important cut foliage product in Florida,
accounting for 69 percent of all cut foliage
sales and 63 percent of production area.
Other cut foliage crops produced in Florida,
include several species of ornamental
asparagus (Asparagus spp.), Japanese
pittosporum (Pittosporum tobira), English ivy
(Hedera helix) and aspidistra (Aspidistra
elatior) (Stamps and Conover, 1986). Sales of
cut foliage by growers in Florida and other
states over the period 1985-97 are shown in
Figure 1. The cut foliage industry in Florida
grew rapidly during the 1970s and early 1980s,
then slowed in the latter 1980s and 1990s
(NASS, 1999). Sales were down sharply in
1997 from the previous year.

The University of Florida Business
Analysis Program

Information in this report was collected as part
of the University of Florida's ongoing Business
Analysis and Planning Program for the state's
horticultural industries (Hodges et al, 1997).
Since the 1960s, this program has gathered
and analyzed confidential production and
accounting records from wholesale nurseries
in Florida to compile industry average financial


Coordinator of Economic Analysis, University of
Florida, Food & Resource Economics
Department, PO Box 110240, Gainesville FL
32611, tel 352-392-1881 x312, fax 352-392-
3646, email hodges@fred.ifas.ufl.edu.
2 Senior Statistician and Extension Economist,
respectively, University of Florida, Mid-Florida
Research and Education Center, Apopka, FL.


US (36 states)

Florida


70
60 I---------------- I -
85 86 7 9I 89 0 91 72 93 94 95 96 7
Year
Figure 1. Cut foliage sales for Florida and the
United States, 1985-97.

performance benchmarks. In 1996, the
Business Analysis Program included the cut
foliage industry for the first time (Hodges et al.,
1998). This report presents results for a
second year (1997).


PROCEDURES

Sample of Firms and Industry Groups
Analyzed. Information for this report was
collected from twelve (12) wholesale cut
foliage grower firms in Florida for the 1997
fiscal year. Firms were located in Volusia,
Lake and Putnam counties. The firms
participated in the program on a voluntary
basis and in exchange received a report with
information similar to that presented in this
paper. The sample of businesses analyzed in
this report is believed to represent firms with
above-average management quality, by virtue
of their willingness to participate in quality
improvement programs such as this. Records
were compiled and analyzed separately for
three different groups of firms based upon total
annual sales: large firms had sales of $1
million or greater; medium firms had sales of
$500 to $999 thousand; small firms had sales
of less than $500 thousand. Results for a
subgroup of seven firms with rates of return on
net worth of at least 30 percent were also
analyzed and reported separately as as "highly
profitable" firms.


120

110







ANALYSIS OF CUT FOLIAGE
BUSINESSES IN FLORIDA, 1997
Alan W. Hodges1, Loretta N. Satterthwaite2
and John J. Haydu


INTRODUCTION

The Cut Foliage Industry

The state of Florida is the largest producer of
cultivated ornamental cut foliage products in
the U.S. with total farmgate sales in 1997 of
$86 million from 130 wholesale producers and
7,382 acres in production (NASS, 1998).
Leatherleaf fern (Rumohra adiantiformis) is the
most important cut foliage product in Florida,
accounting for 69 percent of all cut foliage
sales and 63 percent of production area.
Other cut foliage crops produced in Florida,
include several species of ornamental
asparagus (Asparagus spp.), Japanese
pittosporum (Pittosporum tobira), English ivy
(Hedera helix) and aspidistra (Aspidistra
elatior) (Stamps and Conover, 1986). Sales of
cut foliage by growers in Florida and other
states over the period 1985-97 are shown in
Figure 1. The cut foliage industry in Florida
grew rapidly during the 1970s and early 1980s,
then slowed in the latter 1980s and 1990s
(NASS, 1999). Sales were down sharply in
1997 from the previous year.

The University of Florida Business
Analysis Program

Information in this report was collected as part
of the University of Florida's ongoing Business
Analysis and Planning Program for the state's
horticultural industries (Hodges et al, 1997).
Since the 1960s, this program has gathered
and analyzed confidential production and
accounting records from wholesale nurseries
in Florida to compile industry average financial


Coordinator of Economic Analysis, University of
Florida, Food & Resource Economics
Department, PO Box 110240, Gainesville FL
32611, tel 352-392-1881 x312, fax 352-392-
3646, email hodges@fred.ifas.ufl.edu.
2 Senior Statistician and Extension Economist,
respectively, University of Florida, Mid-Florida
Research and Education Center, Apopka, FL.


US (36 states)

Florida


70
60 I---------------- I -
85 86 7 9I 89 0 91 72 93 94 95 96 7
Year
Figure 1. Cut foliage sales for Florida and the
United States, 1985-97.

performance benchmarks. In 1996, the
Business Analysis Program included the cut
foliage industry for the first time (Hodges et al.,
1998). This report presents results for a
second year (1997).


PROCEDURES

Sample of Firms and Industry Groups
Analyzed. Information for this report was
collected from twelve (12) wholesale cut
foliage grower firms in Florida for the 1997
fiscal year. Firms were located in Volusia,
Lake and Putnam counties. The firms
participated in the program on a voluntary
basis and in exchange received a report with
information similar to that presented in this
paper. The sample of businesses analyzed in
this report is believed to represent firms with
above-average management quality, by virtue
of their willingness to participate in quality
improvement programs such as this. Records
were compiled and analyzed separately for
three different groups of firms based upon total
annual sales: large firms had sales of $1
million or greater; medium firms had sales of
$500 to $999 thousand; small firms had sales
of less than $500 thousand. Results for a
subgroup of seven firms with rates of return on
net worth of at least 30 percent were also
analyzed and reported separately as as "highly
profitable" firms.


120

110







ANALYSIS OF CUT FOLIAGE
BUSINESSES IN FLORIDA, 1997
Alan W. Hodges1, Loretta N. Satterthwaite2
and John J. Haydu


INTRODUCTION

The Cut Foliage Industry

The state of Florida is the largest producer of
cultivated ornamental cut foliage products in
the U.S. with total farmgate sales in 1997 of
$86 million from 130 wholesale producers and
7,382 acres in production (NASS, 1998).
Leatherleaf fern (Rumohra adiantiformis) is the
most important cut foliage product in Florida,
accounting for 69 percent of all cut foliage
sales and 63 percent of production area.
Other cut foliage crops produced in Florida,
include several species of ornamental
asparagus (Asparagus spp.), Japanese
pittosporum (Pittosporum tobira), English ivy
(Hedera helix) and aspidistra (Aspidistra
elatior) (Stamps and Conover, 1986). Sales of
cut foliage by growers in Florida and other
states over the period 1985-97 are shown in
Figure 1. The cut foliage industry in Florida
grew rapidly during the 1970s and early 1980s,
then slowed in the latter 1980s and 1990s
(NASS, 1999). Sales were down sharply in
1997 from the previous year.

The University of Florida Business
Analysis Program

Information in this report was collected as part
of the University of Florida's ongoing Business
Analysis and Planning Program for the state's
horticultural industries (Hodges et al, 1997).
Since the 1960s, this program has gathered
and analyzed confidential production and
accounting records from wholesale nurseries
in Florida to compile industry average financial


Coordinator of Economic Analysis, University of
Florida, Food & Resource Economics
Department, PO Box 110240, Gainesville FL
32611, tel 352-392-1881 x312, fax 352-392-
3646, email hodges@fred.ifas.ufl.edu.
2 Senior Statistician and Extension Economist,
respectively, University of Florida, Mid-Florida
Research and Education Center, Apopka, FL.


US (36 states)

Florida


70
60 I---------------- I -
85 86 7 9I 89 0 91 72 93 94 95 96 7
Year
Figure 1. Cut foliage sales for Florida and the
United States, 1985-97.

performance benchmarks. In 1996, the
Business Analysis Program included the cut
foliage industry for the first time (Hodges et al.,
1998). This report presents results for a
second year (1997).


PROCEDURES

Sample of Firms and Industry Groups
Analyzed. Information for this report was
collected from twelve (12) wholesale cut
foliage grower firms in Florida for the 1997
fiscal year. Firms were located in Volusia,
Lake and Putnam counties. The firms
participated in the program on a voluntary
basis and in exchange received a report with
information similar to that presented in this
paper. The sample of businesses analyzed in
this report is believed to represent firms with
above-average management quality, by virtue
of their willingness to participate in quality
improvement programs such as this. Records
were compiled and analyzed separately for
three different groups of firms based upon total
annual sales: large firms had sales of $1
million or greater; medium firms had sales of
$500 to $999 thousand; small firms had sales
of less than $500 thousand. Results for a
subgroup of seven firms with rates of return on
net worth of at least 30 percent were also
analyzed and reported separately as as "highly
profitable" firms.


120

110







ANALYSIS OF CUT FOLIAGE
BUSINESSES IN FLORIDA, 1997
Alan W. Hodges1, Loretta N. Satterthwaite2
and John J. Haydu


INTRODUCTION

The Cut Foliage Industry

The state of Florida is the largest producer of
cultivated ornamental cut foliage products in
the U.S. with total farmgate sales in 1997 of
$86 million from 130 wholesale producers and
7,382 acres in production (NASS, 1998).
Leatherleaf fern (Rumohra adiantiformis) is the
most important cut foliage product in Florida,
accounting for 69 percent of all cut foliage
sales and 63 percent of production area.
Other cut foliage crops produced in Florida,
include several species of ornamental
asparagus (Asparagus spp.), Japanese
pittosporum (Pittosporum tobira), English ivy
(Hedera helix) and aspidistra (Aspidistra
elatior) (Stamps and Conover, 1986). Sales of
cut foliage by growers in Florida and other
states over the period 1985-97 are shown in
Figure 1. The cut foliage industry in Florida
grew rapidly during the 1970s and early 1980s,
then slowed in the latter 1980s and 1990s
(NASS, 1999). Sales were down sharply in
1997 from the previous year.

The University of Florida Business
Analysis Program

Information in this report was collected as part
of the University of Florida's ongoing Business
Analysis and Planning Program for the state's
horticultural industries (Hodges et al, 1997).
Since the 1960s, this program has gathered
and analyzed confidential production and
accounting records from wholesale nurseries
in Florida to compile industry average financial


Coordinator of Economic Analysis, University of
Florida, Food & Resource Economics
Department, PO Box 110240, Gainesville FL
32611, tel 352-392-1881 x312, fax 352-392-
3646, email hodges@fred.ifas.ufl.edu.
2 Senior Statistician and Extension Economist,
respectively, University of Florida, Mid-Florida
Research and Education Center, Apopka, FL.


US (36 states)

Florida


70
60 I---------------- I -
85 86 7 9I 89 0 91 72 93 94 95 96 7
Year
Figure 1. Cut foliage sales for Florida and the
United States, 1985-97.

performance benchmarks. In 1996, the
Business Analysis Program included the cut
foliage industry for the first time (Hodges et al.,
1998). This report presents results for a
second year (1997).


PROCEDURES

Sample of Firms and Industry Groups
Analyzed. Information for this report was
collected from twelve (12) wholesale cut
foliage grower firms in Florida for the 1997
fiscal year. Firms were located in Volusia,
Lake and Putnam counties. The firms
participated in the program on a voluntary
basis and in exchange received a report with
information similar to that presented in this
paper. The sample of businesses analyzed in
this report is believed to represent firms with
above-average management quality, by virtue
of their willingness to participate in quality
improvement programs such as this. Records
were compiled and analyzed separately for
three different groups of firms based upon total
annual sales: large firms had sales of $1
million or greater; medium firms had sales of
$500 to $999 thousand; small firms had sales
of less than $500 thousand. Results for a
subgroup of seven firms with rates of return on
net worth of at least 30 percent were also
analyzed and reported separately as as "highly
profitable" firms.


120

110










Information Collected and Reported. Data
gathered from participating firms included
monthly sales, other income, expenses
itemized in 26 categories, assets and liabilities,
inventory values, value of leased property,
production area, and labor hours or number of
full-time persons employed. Information was
gathered through personal interviews with
management, from company financial
statements, income tax forms, and other
production records. Data was transcribed to
standard worksheet forms (see Appendix) and
entered into computer spreadsheets for
analysis. Results were calculated as weighted
averages for firms in each group, so larger
firms had greater influence on the results by
virtue of their greater production or financial
values.

Accounting and Measurement
Conventions. A number of accounting
conventions were adopted for this analysis in
order to standardize the collection of
information from different firms. Because most
of these firms operate under a cash-based
accounting system, sales and expenses reflect
collections and disbursements made during
the period, respectively. Sales of finished
products purchased brokered for other firms
were deducted from total sales to yield own-
product sales. All assets and liabilities were
evaluated to represent a mid-year position by
averaging the beginning and ending values for
the period (Jan. 1 to Dec. 31). Investments in
buildings, site improvements, machinery and
equipment were taken at book value, i.e.
original cost less accumulated depreciation.
Leased capital assets in land, buildings, and
equipment were estimated at current market
value. Investments in land were generally
valued at the original purchase price, rather
than the current appreciated values.
Depreciation expenses on fixed assets were
taken from company depreciation schedules,
which were computed according to the IRS
Accelerated Cost Recovery System (ACRS)
method (3, 5, or 7 years) for equipment, and
straight-line or double declining balance
methods (10 to 20 years) for buildings and
improvements. Product inventories were
accounted for on an accrual basis, where
changes in inventory values were added to
sales to calculate total value of production and
total income. Inventories were also included
among owned capital investments. In addition


to book values or computed field values for
inventories, plant inventories included an
additional 25 percent of annual sales to adjust
for the value of the established crop beds,
which take 9 months to 1 year to begin
producing and 2 to 3 years to reach full
production. In cases where assets were
personally owned by corporate officers and
leased exclusively to the company, these
assets were taken at book value rather than
market value, and debts to corporate officers
were not included among company liabilities
when there was no intention to repay these
debts. In some cases, lease payments for
land were taken as compensation for
management. For firms that did not have
current records available on their growing
area, the net usable growing space was
estimated at 70 percent of the overall
production area.


RESULTS

Income and Value Produced

Annual Sales. Total annual sales averaged
$902 thousand (K) for all firms and ranged
from $2.11 million (M) for large firms to $296K
for small firms as shown in Table 1. Sales of
own products grown by firms averaged $670K
or 74% of total sales, while sales of finished
products purchased for immediate resale
("brokered") were $233K. Highly profitable
firms and medium firms had a slightly higher
percentage of brokered sales.

Plant Inventory Change and Total Value
Produced. Changes in plant inventory values
during 1997(Jan. 1 to Dec. 31) were positive
for the overall industry average at $17K, and
increased $108K for large firms, but decreased
for all other groups. Total value produced, a
measure of productive effort calculated as the
sum of own plant sales and change in plant
inventory value, averaged $687K for all firms
and ranged from $1.68M for large firms to
$219K for small firms.










Information Collected and Reported. Data
gathered from participating firms included
monthly sales, other income, expenses
itemized in 26 categories, assets and liabilities,
inventory values, value of leased property,
production area, and labor hours or number of
full-time persons employed. Information was
gathered through personal interviews with
management, from company financial
statements, income tax forms, and other
production records. Data was transcribed to
standard worksheet forms (see Appendix) and
entered into computer spreadsheets for
analysis. Results were calculated as weighted
averages for firms in each group, so larger
firms had greater influence on the results by
virtue of their greater production or financial
values.

Accounting and Measurement
Conventions. A number of accounting
conventions were adopted for this analysis in
order to standardize the collection of
information from different firms. Because most
of these firms operate under a cash-based
accounting system, sales and expenses reflect
collections and disbursements made during
the period, respectively. Sales of finished
products purchased brokered for other firms
were deducted from total sales to yield own-
product sales. All assets and liabilities were
evaluated to represent a mid-year position by
averaging the beginning and ending values for
the period (Jan. 1 to Dec. 31). Investments in
buildings, site improvements, machinery and
equipment were taken at book value, i.e.
original cost less accumulated depreciation.
Leased capital assets in land, buildings, and
equipment were estimated at current market
value. Investments in land were generally
valued at the original purchase price, rather
than the current appreciated values.
Depreciation expenses on fixed assets were
taken from company depreciation schedules,
which were computed according to the IRS
Accelerated Cost Recovery System (ACRS)
method (3, 5, or 7 years) for equipment, and
straight-line or double declining balance
methods (10 to 20 years) for buildings and
improvements. Product inventories were
accounted for on an accrual basis, where
changes in inventory values were added to
sales to calculate total value of production and
total income. Inventories were also included
among owned capital investments. In addition


to book values or computed field values for
inventories, plant inventories included an
additional 25 percent of annual sales to adjust
for the value of the established crop beds,
which take 9 months to 1 year to begin
producing and 2 to 3 years to reach full
production. In cases where assets were
personally owned by corporate officers and
leased exclusively to the company, these
assets were taken at book value rather than
market value, and debts to corporate officers
were not included among company liabilities
when there was no intention to repay these
debts. In some cases, lease payments for
land were taken as compensation for
management. For firms that did not have
current records available on their growing
area, the net usable growing space was
estimated at 70 percent of the overall
production area.


RESULTS

Income and Value Produced

Annual Sales. Total annual sales averaged
$902 thousand (K) for all firms and ranged
from $2.11 million (M) for large firms to $296K
for small firms as shown in Table 1. Sales of
own products grown by firms averaged $670K
or 74% of total sales, while sales of finished
products purchased for immediate resale
("brokered") were $233K. Highly profitable
firms and medium firms had a slightly higher
percentage of brokered sales.

Plant Inventory Change and Total Value
Produced. Changes in plant inventory values
during 1997(Jan. 1 to Dec. 31) were positive
for the overall industry average at $17K, and
increased $108K for large firms, but decreased
for all other groups. Total value produced, a
measure of productive effort calculated as the
sum of own plant sales and change in plant
inventory value, averaged $687K for all firms
and ranged from $1.68M for large firms to
$219K for small firms.










Information Collected and Reported. Data
gathered from participating firms included
monthly sales, other income, expenses
itemized in 26 categories, assets and liabilities,
inventory values, value of leased property,
production area, and labor hours or number of
full-time persons employed. Information was
gathered through personal interviews with
management, from company financial
statements, income tax forms, and other
production records. Data was transcribed to
standard worksheet forms (see Appendix) and
entered into computer spreadsheets for
analysis. Results were calculated as weighted
averages for firms in each group, so larger
firms had greater influence on the results by
virtue of their greater production or financial
values.

Accounting and Measurement
Conventions. A number of accounting
conventions were adopted for this analysis in
order to standardize the collection of
information from different firms. Because most
of these firms operate under a cash-based
accounting system, sales and expenses reflect
collections and disbursements made during
the period, respectively. Sales of finished
products purchased brokered for other firms
were deducted from total sales to yield own-
product sales. All assets and liabilities were
evaluated to represent a mid-year position by
averaging the beginning and ending values for
the period (Jan. 1 to Dec. 31). Investments in
buildings, site improvements, machinery and
equipment were taken at book value, i.e.
original cost less accumulated depreciation.
Leased capital assets in land, buildings, and
equipment were estimated at current market
value. Investments in land were generally
valued at the original purchase price, rather
than the current appreciated values.
Depreciation expenses on fixed assets were
taken from company depreciation schedules,
which were computed according to the IRS
Accelerated Cost Recovery System (ACRS)
method (3, 5, or 7 years) for equipment, and
straight-line or double declining balance
methods (10 to 20 years) for buildings and
improvements. Product inventories were
accounted for on an accrual basis, where
changes in inventory values were added to
sales to calculate total value of production and
total income. Inventories were also included
among owned capital investments. In addition


to book values or computed field values for
inventories, plant inventories included an
additional 25 percent of annual sales to adjust
for the value of the established crop beds,
which take 9 months to 1 year to begin
producing and 2 to 3 years to reach full
production. In cases where assets were
personally owned by corporate officers and
leased exclusively to the company, these
assets were taken at book value rather than
market value, and debts to corporate officers
were not included among company liabilities
when there was no intention to repay these
debts. In some cases, lease payments for
land were taken as compensation for
management. For firms that did not have
current records available on their growing
area, the net usable growing space was
estimated at 70 percent of the overall
production area.


RESULTS

Income and Value Produced

Annual Sales. Total annual sales averaged
$902 thousand (K) for all firms and ranged
from $2.11 million (M) for large firms to $296K
for small firms as shown in Table 1. Sales of
own products grown by firms averaged $670K
or 74% of total sales, while sales of finished
products purchased for immediate resale
("brokered") were $233K. Highly profitable
firms and medium firms had a slightly higher
percentage of brokered sales.

Plant Inventory Change and Total Value
Produced. Changes in plant inventory values
during 1997(Jan. 1 to Dec. 31) were positive
for the overall industry average at $17K, and
increased $108K for large firms, but decreased
for all other groups. Total value produced, a
measure of productive effort calculated as the
sum of own plant sales and change in plant
inventory value, averaged $687K for all firms
and ranged from $1.68M for large firms to
$219K for small firms.










Information Collected and Reported. Data
gathered from participating firms included
monthly sales, other income, expenses
itemized in 26 categories, assets and liabilities,
inventory values, value of leased property,
production area, and labor hours or number of
full-time persons employed. Information was
gathered through personal interviews with
management, from company financial
statements, income tax forms, and other
production records. Data was transcribed to
standard worksheet forms (see Appendix) and
entered into computer spreadsheets for
analysis. Results were calculated as weighted
averages for firms in each group, so larger
firms had greater influence on the results by
virtue of their greater production or financial
values.

Accounting and Measurement
Conventions. A number of accounting
conventions were adopted for this analysis in
order to standardize the collection of
information from different firms. Because most
of these firms operate under a cash-based
accounting system, sales and expenses reflect
collections and disbursements made during
the period, respectively. Sales of finished
products purchased brokered for other firms
were deducted from total sales to yield own-
product sales. All assets and liabilities were
evaluated to represent a mid-year position by
averaging the beginning and ending values for
the period (Jan. 1 to Dec. 31). Investments in
buildings, site improvements, machinery and
equipment were taken at book value, i.e.
original cost less accumulated depreciation.
Leased capital assets in land, buildings, and
equipment were estimated at current market
value. Investments in land were generally
valued at the original purchase price, rather
than the current appreciated values.
Depreciation expenses on fixed assets were
taken from company depreciation schedules,
which were computed according to the IRS
Accelerated Cost Recovery System (ACRS)
method (3, 5, or 7 years) for equipment, and
straight-line or double declining balance
methods (10 to 20 years) for buildings and
improvements. Product inventories were
accounted for on an accrual basis, where
changes in inventory values were added to
sales to calculate total value of production and
total income. Inventories were also included
among owned capital investments. In addition


to book values or computed field values for
inventories, plant inventories included an
additional 25 percent of annual sales to adjust
for the value of the established crop beds,
which take 9 months to 1 year to begin
producing and 2 to 3 years to reach full
production. In cases where assets were
personally owned by corporate officers and
leased exclusively to the company, these
assets were taken at book value rather than
market value, and debts to corporate officers
were not included among company liabilities
when there was no intention to repay these
debts. In some cases, lease payments for
land were taken as compensation for
management. For firms that did not have
current records available on their growing
area, the net usable growing space was
estimated at 70 percent of the overall
production area.


RESULTS

Income and Value Produced

Annual Sales. Total annual sales averaged
$902 thousand (K) for all firms and ranged
from $2.11 million (M) for large firms to $296K
for small firms as shown in Table 1. Sales of
own products grown by firms averaged $670K
or 74% of total sales, while sales of finished
products purchased for immediate resale
("brokered") were $233K. Highly profitable
firms and medium firms had a slightly higher
percentage of brokered sales.

Plant Inventory Change and Total Value
Produced. Changes in plant inventory values
during 1997(Jan. 1 to Dec. 31) were positive
for the overall industry average at $17K, and
increased $108K for large firms, but decreased
for all other groups. Total value produced, a
measure of productive effort calculated as the
sum of own plant sales and change in plant
inventory value, averaged $687K for all firms
and ranged from $1.68M for large firms to
$219K for small firms.










Information Collected and Reported. Data
gathered from participating firms included
monthly sales, other income, expenses
itemized in 26 categories, assets and liabilities,
inventory values, value of leased property,
production area, and labor hours or number of
full-time persons employed. Information was
gathered through personal interviews with
management, from company financial
statements, income tax forms, and other
production records. Data was transcribed to
standard worksheet forms (see Appendix) and
entered into computer spreadsheets for
analysis. Results were calculated as weighted
averages for firms in each group, so larger
firms had greater influence on the results by
virtue of their greater production or financial
values.

Accounting and Measurement
Conventions. A number of accounting
conventions were adopted for this analysis in
order to standardize the collection of
information from different firms. Because most
of these firms operate under a cash-based
accounting system, sales and expenses reflect
collections and disbursements made during
the period, respectively. Sales of finished
products purchased brokered for other firms
were deducted from total sales to yield own-
product sales. All assets and liabilities were
evaluated to represent a mid-year position by
averaging the beginning and ending values for
the period (Jan. 1 to Dec. 31). Investments in
buildings, site improvements, machinery and
equipment were taken at book value, i.e.
original cost less accumulated depreciation.
Leased capital assets in land, buildings, and
equipment were estimated at current market
value. Investments in land were generally
valued at the original purchase price, rather
than the current appreciated values.
Depreciation expenses on fixed assets were
taken from company depreciation schedules,
which were computed according to the IRS
Accelerated Cost Recovery System (ACRS)
method (3, 5, or 7 years) for equipment, and
straight-line or double declining balance
methods (10 to 20 years) for buildings and
improvements. Product inventories were
accounted for on an accrual basis, where
changes in inventory values were added to
sales to calculate total value of production and
total income. Inventories were also included
among owned capital investments. In addition


to book values or computed field values for
inventories, plant inventories included an
additional 25 percent of annual sales to adjust
for the value of the established crop beds,
which take 9 months to 1 year to begin
producing and 2 to 3 years to reach full
production. In cases where assets were
personally owned by corporate officers and
leased exclusively to the company, these
assets were taken at book value rather than
market value, and debts to corporate officers
were not included among company liabilities
when there was no intention to repay these
debts. In some cases, lease payments for
land were taken as compensation for
management. For firms that did not have
current records available on their growing
area, the net usable growing space was
estimated at 70 percent of the overall
production area.


RESULTS

Income and Value Produced

Annual Sales. Total annual sales averaged
$902 thousand (K) for all firms and ranged
from $2.11 million (M) for large firms to $296K
for small firms as shown in Table 1. Sales of
own products grown by firms averaged $670K
or 74% of total sales, while sales of finished
products purchased for immediate resale
("brokered") were $233K. Highly profitable
firms and medium firms had a slightly higher
percentage of brokered sales.

Plant Inventory Change and Total Value
Produced. Changes in plant inventory values
during 1997(Jan. 1 to Dec. 31) were positive
for the overall industry average at $17K, and
increased $108K for large firms, but decreased
for all other groups. Total value produced, a
measure of productive effort calculated as the
sum of own plant sales and change in plant
inventory value, averaged $687K for all firms
and ranged from $1.68M for large firms to
$219K for small firms.










Information Collected and Reported. Data
gathered from participating firms included
monthly sales, other income, expenses
itemized in 26 categories, assets and liabilities,
inventory values, value of leased property,
production area, and labor hours or number of
full-time persons employed. Information was
gathered through personal interviews with
management, from company financial
statements, income tax forms, and other
production records. Data was transcribed to
standard worksheet forms (see Appendix) and
entered into computer spreadsheets for
analysis. Results were calculated as weighted
averages for firms in each group, so larger
firms had greater influence on the results by
virtue of their greater production or financial
values.

Accounting and Measurement
Conventions. A number of accounting
conventions were adopted for this analysis in
order to standardize the collection of
information from different firms. Because most
of these firms operate under a cash-based
accounting system, sales and expenses reflect
collections and disbursements made during
the period, respectively. Sales of finished
products purchased brokered for other firms
were deducted from total sales to yield own-
product sales. All assets and liabilities were
evaluated to represent a mid-year position by
averaging the beginning and ending values for
the period (Jan. 1 to Dec. 31). Investments in
buildings, site improvements, machinery and
equipment were taken at book value, i.e.
original cost less accumulated depreciation.
Leased capital assets in land, buildings, and
equipment were estimated at current market
value. Investments in land were generally
valued at the original purchase price, rather
than the current appreciated values.
Depreciation expenses on fixed assets were
taken from company depreciation schedules,
which were computed according to the IRS
Accelerated Cost Recovery System (ACRS)
method (3, 5, or 7 years) for equipment, and
straight-line or double declining balance
methods (10 to 20 years) for buildings and
improvements. Product inventories were
accounted for on an accrual basis, where
changes in inventory values were added to
sales to calculate total value of production and
total income. Inventories were also included
among owned capital investments. In addition


to book values or computed field values for
inventories, plant inventories included an
additional 25 percent of annual sales to adjust
for the value of the established crop beds,
which take 9 months to 1 year to begin
producing and 2 to 3 years to reach full
production. In cases where assets were
personally owned by corporate officers and
leased exclusively to the company, these
assets were taken at book value rather than
market value, and debts to corporate officers
were not included among company liabilities
when there was no intention to repay these
debts. In some cases, lease payments for
land were taken as compensation for
management. For firms that did not have
current records available on their growing
area, the net usable growing space was
estimated at 70 percent of the overall
production area.


RESULTS

Income and Value Produced

Annual Sales. Total annual sales averaged
$902 thousand (K) for all firms and ranged
from $2.11 million (M) for large firms to $296K
for small firms as shown in Table 1. Sales of
own products grown by firms averaged $670K
or 74% of total sales, while sales of finished
products purchased for immediate resale
("brokered") were $233K. Highly profitable
firms and medium firms had a slightly higher
percentage of brokered sales.

Plant Inventory Change and Total Value
Produced. Changes in plant inventory values
during 1997(Jan. 1 to Dec. 31) were positive
for the overall industry average at $17K, and
increased $108K for large firms, but decreased
for all other groups. Total value produced, a
measure of productive effort calculated as the
sum of own plant sales and change in plant
inventory value, averaged $687K for all firms
and ranged from $1.68M for large firms to
$219K for small firms.







Table 1. Income and value produced for Florida cut foliage businesses, 1997.

Large Medium Small Highly
IncomeNalue measure All firms Lae Medium Small profitable
firms firms firms pfitable
firms
thousands dollars
Own produced product sales 670 1,567 544 232 586
Brokered product sales 233 538 213 65 289
Total annual sales 902 2,106 757 296 875
Change in plant inventory value 17 108 (12) (13) (5)
Total value of production 687 1,675 531 219 581
Total income 1.013 2,387 854 317 973


Total Income. Total income was the sum of
plant sales, changes in plant inventory values,
and miscellaneous income from interest on
accounts, rents, and other charges. It
averaged $1.01M for all firms and ranged from
$2.39M for large firms to $317K for small firms.

Monthly Sales. The distribution of monthly
sales is shown in Figure 2. Sales were highest
during the months of January through April,
followed by declining summertime sales, then
a smaller second peak in October. Large firms
had markedly greater seasonal sales.
Presumably the seasonal pattern of sales is
related to the market for holiday floral crops
during this period.


$200o


$150

5 $100
I-


$50o


$0 II I

Month
Figure 2. Average monthly sales per firm for
Florida cut foliage businesses, 1997.


Resources Used

Productive resources of land, labor and capital
used by the cut foliage industry are


summarized in Table 2. Land and capital used
represent averages of beginning and ending
values for the year.

Land. The total farm area of surveyed cut
foliage growers averaged 123 acres. The net
usable area for production of cut foliage
averaged 45 acres for all firms and ranged
from 84 acres for large firms to 21 acres for
small firms. These figures represent growing
beds and fields only; area for aisles, driveways
and other service areas were excluded.

Labor. Labor resources used were measured
in terms of full-time equivalent (FTE) persons
employed-including production,
administrative, sales, and management
S personnel. In most cases, this was calculated
by dividing total labor hours by 2,080 hours per
ms worker-year (52 weeks at 40 hours per week).
The number of full-time equivalent persons
S employed averaged 23 for all firms and ranged
from 58 for large firms to 10 for small firms.

Capital Managed. Both equity and debt
capital, leased assets in land, buildings and
equipment, and working capital represented
capital resources used for operations. Owned
capital in buildings, improvements and
equipment were assessed at book value, while
leased assets were taken at market value.
Total capital managed averaged $1.16M for all
firms and ranged from $2.27M for large firms
to $605K for small firms. As a share of total
managed capital, land represented the largest
component at 42 percent, followed by growing
plants in inventory at 30 percent,
buildings/installations at 12 percent and other
working capital (supply inventory, accounts
receivable, cash on hand) at 12 percent.


.*4.
4. 4.-h
`1* '' '*---~- 4







Table 1. Income and value produced for Florida cut foliage businesses, 1997.

Large Medium Small Highly
IncomeNalue measure All firms Lae Medium Small profitable
firms firms firms pfitable
firms
thousands dollars
Own produced product sales 670 1,567 544 232 586
Brokered product sales 233 538 213 65 289
Total annual sales 902 2,106 757 296 875
Change in plant inventory value 17 108 (12) (13) (5)
Total value of production 687 1,675 531 219 581
Total income 1.013 2,387 854 317 973


Total Income. Total income was the sum of
plant sales, changes in plant inventory values,
and miscellaneous income from interest on
accounts, rents, and other charges. It
averaged $1.01M for all firms and ranged from
$2.39M for large firms to $317K for small firms.

Monthly Sales. The distribution of monthly
sales is shown in Figure 2. Sales were highest
during the months of January through April,
followed by declining summertime sales, then
a smaller second peak in October. Large firms
had markedly greater seasonal sales.
Presumably the seasonal pattern of sales is
related to the market for holiday floral crops
during this period.


$200o


$150

5 $100
I-


$50o


$0 II I

Month
Figure 2. Average monthly sales per firm for
Florida cut foliage businesses, 1997.


Resources Used

Productive resources of land, labor and capital
used by the cut foliage industry are


summarized in Table 2. Land and capital used
represent averages of beginning and ending
values for the year.

Land. The total farm area of surveyed cut
foliage growers averaged 123 acres. The net
usable area for production of cut foliage
averaged 45 acres for all firms and ranged
from 84 acres for large firms to 21 acres for
small firms. These figures represent growing
beds and fields only; area for aisles, driveways
and other service areas were excluded.

Labor. Labor resources used were measured
in terms of full-time equivalent (FTE) persons
employed-including production,
administrative, sales, and management
S personnel. In most cases, this was calculated
by dividing total labor hours by 2,080 hours per
ms worker-year (52 weeks at 40 hours per week).
The number of full-time equivalent persons
S employed averaged 23 for all firms and ranged
from 58 for large firms to 10 for small firms.

Capital Managed. Both equity and debt
capital, leased assets in land, buildings and
equipment, and working capital represented
capital resources used for operations. Owned
capital in buildings, improvements and
equipment were assessed at book value, while
leased assets were taken at market value.
Total capital managed averaged $1.16M for all
firms and ranged from $2.27M for large firms
to $605K for small firms. As a share of total
managed capital, land represented the largest
component at 42 percent, followed by growing
plants in inventory at 30 percent,
buildings/installations at 12 percent and other
working capital (supply inventory, accounts
receivable, cash on hand) at 12 percent.


.*4.
4. 4.-h
`1* '' '*---~- 4







Table 1. Income and value produced for Florida cut foliage businesses, 1997.

Large Medium Small Highly
IncomeNalue measure All firms Lae Medium Small profitable
firms firms firms pfitable
firms
thousands dollars
Own produced product sales 670 1,567 544 232 586
Brokered product sales 233 538 213 65 289
Total annual sales 902 2,106 757 296 875
Change in plant inventory value 17 108 (12) (13) (5)
Total value of production 687 1,675 531 219 581
Total income 1.013 2,387 854 317 973


Total Income. Total income was the sum of
plant sales, changes in plant inventory values,
and miscellaneous income from interest on
accounts, rents, and other charges. It
averaged $1.01M for all firms and ranged from
$2.39M for large firms to $317K for small firms.

Monthly Sales. The distribution of monthly
sales is shown in Figure 2. Sales were highest
during the months of January through April,
followed by declining summertime sales, then
a smaller second peak in October. Large firms
had markedly greater seasonal sales.
Presumably the seasonal pattern of sales is
related to the market for holiday floral crops
during this period.


$200o


$150

5 $100
I-


$50o


$0 II I

Month
Figure 2. Average monthly sales per firm for
Florida cut foliage businesses, 1997.


Resources Used

Productive resources of land, labor and capital
used by the cut foliage industry are


summarized in Table 2. Land and capital used
represent averages of beginning and ending
values for the year.

Land. The total farm area of surveyed cut
foliage growers averaged 123 acres. The net
usable area for production of cut foliage
averaged 45 acres for all firms and ranged
from 84 acres for large firms to 21 acres for
small firms. These figures represent growing
beds and fields only; area for aisles, driveways
and other service areas were excluded.

Labor. Labor resources used were measured
in terms of full-time equivalent (FTE) persons
employed-including production,
administrative, sales, and management
S personnel. In most cases, this was calculated
by dividing total labor hours by 2,080 hours per
ms worker-year (52 weeks at 40 hours per week).
The number of full-time equivalent persons
S employed averaged 23 for all firms and ranged
from 58 for large firms to 10 for small firms.

Capital Managed. Both equity and debt
capital, leased assets in land, buildings and
equipment, and working capital represented
capital resources used for operations. Owned
capital in buildings, improvements and
equipment were assessed at book value, while
leased assets were taken at market value.
Total capital managed averaged $1.16M for all
firms and ranged from $2.27M for large firms
to $605K for small firms. As a share of total
managed capital, land represented the largest
component at 42 percent, followed by growing
plants in inventory at 30 percent,
buildings/installations at 12 percent and other
working capital (supply inventory, accounts
receivable, cash on hand) at 12 percent.


.*4.
4. 4.-h
`1* '' '*---~- 4







Table 1. Income and value produced for Florida cut foliage businesses, 1997.

Large Medium Small Highly
IncomeNalue measure All firms Lae Medium Small profitable
firms firms firms pfitable
firms
thousands dollars
Own produced product sales 670 1,567 544 232 586
Brokered product sales 233 538 213 65 289
Total annual sales 902 2,106 757 296 875
Change in plant inventory value 17 108 (12) (13) (5)
Total value of production 687 1,675 531 219 581
Total income 1.013 2,387 854 317 973


Total Income. Total income was the sum of
plant sales, changes in plant inventory values,
and miscellaneous income from interest on
accounts, rents, and other charges. It
averaged $1.01M for all firms and ranged from
$2.39M for large firms to $317K for small firms.

Monthly Sales. The distribution of monthly
sales is shown in Figure 2. Sales were highest
during the months of January through April,
followed by declining summertime sales, then
a smaller second peak in October. Large firms
had markedly greater seasonal sales.
Presumably the seasonal pattern of sales is
related to the market for holiday floral crops
during this period.


$200o


$150

5 $100
I-


$50o


$0 II I

Month
Figure 2. Average monthly sales per firm for
Florida cut foliage businesses, 1997.


Resources Used

Productive resources of land, labor and capital
used by the cut foliage industry are


summarized in Table 2. Land and capital used
represent averages of beginning and ending
values for the year.

Land. The total farm area of surveyed cut
foliage growers averaged 123 acres. The net
usable area for production of cut foliage
averaged 45 acres for all firms and ranged
from 84 acres for large firms to 21 acres for
small firms. These figures represent growing
beds and fields only; area for aisles, driveways
and other service areas were excluded.

Labor. Labor resources used were measured
in terms of full-time equivalent (FTE) persons
employed-including production,
administrative, sales, and management
S personnel. In most cases, this was calculated
by dividing total labor hours by 2,080 hours per
ms worker-year (52 weeks at 40 hours per week).
The number of full-time equivalent persons
S employed averaged 23 for all firms and ranged
from 58 for large firms to 10 for small firms.

Capital Managed. Both equity and debt
capital, leased assets in land, buildings and
equipment, and working capital represented
capital resources used for operations. Owned
capital in buildings, improvements and
equipment were assessed at book value, while
leased assets were taken at market value.
Total capital managed averaged $1.16M for all
firms and ranged from $2.27M for large firms
to $605K for small firms. As a share of total
managed capital, land represented the largest
component at 42 percent, followed by growing
plants in inventory at 30 percent,
buildings/installations at 12 percent and other
working capital (supply inventory, accounts
receivable, cash on hand) at 12 percent.


.*4.
4. 4.-h
`1* '' '*---~- 4







Table 1. Income and value produced for Florida cut foliage businesses, 1997.

Large Medium Small Highly
IncomeNalue measure All firms Lae Medium Small profitable
firms firms firms pfitable
firms
thousands dollars
Own produced product sales 670 1,567 544 232 586
Brokered product sales 233 538 213 65 289
Total annual sales 902 2,106 757 296 875
Change in plant inventory value 17 108 (12) (13) (5)
Total value of production 687 1,675 531 219 581
Total income 1.013 2,387 854 317 973


Total Income. Total income was the sum of
plant sales, changes in plant inventory values,
and miscellaneous income from interest on
accounts, rents, and other charges. It
averaged $1.01M for all firms and ranged from
$2.39M for large firms to $317K for small firms.

Monthly Sales. The distribution of monthly
sales is shown in Figure 2. Sales were highest
during the months of January through April,
followed by declining summertime sales, then
a smaller second peak in October. Large firms
had markedly greater seasonal sales.
Presumably the seasonal pattern of sales is
related to the market for holiday floral crops
during this period.


$200o


$150

5 $100
I-


$50o


$0 II I

Month
Figure 2. Average monthly sales per firm for
Florida cut foliage businesses, 1997.


Resources Used

Productive resources of land, labor and capital
used by the cut foliage industry are


summarized in Table 2. Land and capital used
represent averages of beginning and ending
values for the year.

Land. The total farm area of surveyed cut
foliage growers averaged 123 acres. The net
usable area for production of cut foliage
averaged 45 acres for all firms and ranged
from 84 acres for large firms to 21 acres for
small firms. These figures represent growing
beds and fields only; area for aisles, driveways
and other service areas were excluded.

Labor. Labor resources used were measured
in terms of full-time equivalent (FTE) persons
employed-including production,
administrative, sales, and management
S personnel. In most cases, this was calculated
by dividing total labor hours by 2,080 hours per
ms worker-year (52 weeks at 40 hours per week).
The number of full-time equivalent persons
S employed averaged 23 for all firms and ranged
from 58 for large firms to 10 for small firms.

Capital Managed. Both equity and debt
capital, leased assets in land, buildings and
equipment, and working capital represented
capital resources used for operations. Owned
capital in buildings, improvements and
equipment were assessed at book value, while
leased assets were taken at market value.
Total capital managed averaged $1.16M for all
firms and ranged from $2.27M for large firms
to $605K for small firms. As a share of total
managed capital, land represented the largest
component at 42 percent, followed by growing
plants in inventory at 30 percent,
buildings/installations at 12 percent and other
working capital (supply inventory, accounts
receivable, cash on hand) at 12 percent.


.*4.
4. 4.-h
`1* '' '*---~- 4







Table 1. Income and value produced for Florida cut foliage businesses, 1997.

Large Medium Small Highly
IncomeNalue measure All firms Lae Medium Small profitable
firms firms firms pfitable
firms
thousands dollars
Own produced product sales 670 1,567 544 232 586
Brokered product sales 233 538 213 65 289
Total annual sales 902 2,106 757 296 875
Change in plant inventory value 17 108 (12) (13) (5)
Total value of production 687 1,675 531 219 581
Total income 1.013 2,387 854 317 973


Total Income. Total income was the sum of
plant sales, changes in plant inventory values,
and miscellaneous income from interest on
accounts, rents, and other charges. It
averaged $1.01M for all firms and ranged from
$2.39M for large firms to $317K for small firms.

Monthly Sales. The distribution of monthly
sales is shown in Figure 2. Sales were highest
during the months of January through April,
followed by declining summertime sales, then
a smaller second peak in October. Large firms
had markedly greater seasonal sales.
Presumably the seasonal pattern of sales is
related to the market for holiday floral crops
during this period.


$200o


$150

5 $100
I-


$50o


$0 II I

Month
Figure 2. Average monthly sales per firm for
Florida cut foliage businesses, 1997.


Resources Used

Productive resources of land, labor and capital
used by the cut foliage industry are


summarized in Table 2. Land and capital used
represent averages of beginning and ending
values for the year.

Land. The total farm area of surveyed cut
foliage growers averaged 123 acres. The net
usable area for production of cut foliage
averaged 45 acres for all firms and ranged
from 84 acres for large firms to 21 acres for
small firms. These figures represent growing
beds and fields only; area for aisles, driveways
and other service areas were excluded.

Labor. Labor resources used were measured
in terms of full-time equivalent (FTE) persons
employed-including production,
administrative, sales, and management
S personnel. In most cases, this was calculated
by dividing total labor hours by 2,080 hours per
ms worker-year (52 weeks at 40 hours per week).
The number of full-time equivalent persons
S employed averaged 23 for all firms and ranged
from 58 for large firms to 10 for small firms.

Capital Managed. Both equity and debt
capital, leased assets in land, buildings and
equipment, and working capital represented
capital resources used for operations. Owned
capital in buildings, improvements and
equipment were assessed at book value, while
leased assets were taken at market value.
Total capital managed averaged $1.16M for all
firms and ranged from $2.27M for large firms
to $605K for small firms. As a share of total
managed capital, land represented the largest
component at 42 percent, followed by growing
plants in inventory at 30 percent,
buildings/installations at 12 percent and other
working capital (supply inventory, accounts
receivable, cash on hand) at 12 percent.


.*4.
4. 4.-h
`1* '' '*---~- 4










Table 2. Productive resources used by Florida cut foliage businesses, 1997.
All Large Medium Small Highly
Resource firms firms firms firms profitable
firms
Total farm area (acres) 123 214 116 73 95
Net usable production area* (acres) 45.0 83.8 45.7 21.1 37.7
Number persons employed (FTE**) 23.2 57.8 14.4 9.5 21.8
Total owned capital (1000$) 883 1,732 695 524 760
Capital leased (1000$) 275 537 321 81 217
Total capital managed*** (1000$) 1,158 2,269 1,016 605 977
* Net usable production area excludes roads within fernery.
** Full-time equivalent person represents 2,080 hours per year.
*** Capital managed is capital owned, both equity and debt capital, plus capital leased.


Productivity, Efficiency and Intensity
Indicators

Value Produced per Acre. The productivity
of cut foliage operation space was measured
by the value of production (annual sales of
own product plus inventory change) per acre of
growing space. Value produced per acre
averaged $15.3K per acre and ranged from
$20.0K for large firms to $10.4K for small firms
(Table 3). Highly profitable firms produced an
intermediate value of $15.4K per acre,
demonstrating that high values of this indicator
are not necessary for profitable operations.
Space productivity is affected by production
area layout and space utilization efficiency
(renovation), plant growth rates and survival,
and inventory turnover.

Value Produced per Worker. Labor
productivity was measured in terms of sales
and value produced per full-time equivalent
(FTE) worker, i.e. per 2,080 labor hours. For
all firms, value of production averaged $29.6K
per FTE, or $14.25 per hour worked. This
value was $29.0K per FTE for large firms,
$36.9K for medium-sized firms, and $23.2K for
small firms. Variations in labor productivity
may result from differences in investment for
labor-saving equipment, labor management
practices, and practices affecting crop
turnover.

Capital Managed per Acre. The intensity of
capital use in relation to production space was
measured as the ratio of capital managed to
growing area (acres). Capital managed per
acre of growing area averaged $25.8K for all


firms and was $27.1K for large firms, $22.3K
for medium-sized firms, and $28.6K for small
firms. Capital managed per acre for highly
profitable firms was close to the average.

Capital Managed per Worker. The intensity
of capital use in relation to labor was
measured as the ratio of managed capital
(owned plus leased) to number of persons
employed. This measure averaged $50.0K per
FTE for all firms and was $39.3K for large
firms, $70.6K for medium-sized firms, and
$64.0K for small firms. The substantially lower
capital-labor intensity for large firms may
reflect economies of scale in cut foliage
production, i.e. the greater efficiencies of
resource use that can be realized for larger-
sized operations through specialization of
tasks and better utilization of technology.

Growing Area Managed per Worker. The
intensity of labor use was evaluated in terms of
production area (acres) per FTE person.
Growing space per FTE averaged 1.94 acres
for all firms and was 1.45 acres for large firms,
3.17 acres for medium firms, and 2.24 acres
for small firms.

Managed Capital Turnover. This indicator
expresses the ratio of annual sales to total
managed capital. Managed capital turnover
averaged 0.78 for all firms and ranged from
0.93 for large firms to 0.49 for small firms. In
general, high capital turnover is desirable
because it indicates greater sales per dollar of
investment. Low turnover rates may result
from low labor, or space, productivity or
excessive capital investment.










Table 2. Productive resources used by Florida cut foliage businesses, 1997.
All Large Medium Small Highly
Resource firms firms firms firms profitable
firms
Total farm area (acres) 123 214 116 73 95
Net usable production area* (acres) 45.0 83.8 45.7 21.1 37.7
Number persons employed (FTE**) 23.2 57.8 14.4 9.5 21.8
Total owned capital (1000$) 883 1,732 695 524 760
Capital leased (1000$) 275 537 321 81 217
Total capital managed*** (1000$) 1,158 2,269 1,016 605 977
* Net usable production area excludes roads within fernery.
** Full-time equivalent person represents 2,080 hours per year.
*** Capital managed is capital owned, both equity and debt capital, plus capital leased.


Productivity, Efficiency and Intensity
Indicators

Value Produced per Acre. The productivity
of cut foliage operation space was measured
by the value of production (annual sales of
own product plus inventory change) per acre of
growing space. Value produced per acre
averaged $15.3K per acre and ranged from
$20.0K for large firms to $10.4K for small firms
(Table 3). Highly profitable firms produced an
intermediate value of $15.4K per acre,
demonstrating that high values of this indicator
are not necessary for profitable operations.
Space productivity is affected by production
area layout and space utilization efficiency
(renovation), plant growth rates and survival,
and inventory turnover.

Value Produced per Worker. Labor
productivity was measured in terms of sales
and value produced per full-time equivalent
(FTE) worker, i.e. per 2,080 labor hours. For
all firms, value of production averaged $29.6K
per FTE, or $14.25 per hour worked. This
value was $29.0K per FTE for large firms,
$36.9K for medium-sized firms, and $23.2K for
small firms. Variations in labor productivity
may result from differences in investment for
labor-saving equipment, labor management
practices, and practices affecting crop
turnover.

Capital Managed per Acre. The intensity of
capital use in relation to production space was
measured as the ratio of capital managed to
growing area (acres). Capital managed per
acre of growing area averaged $25.8K for all


firms and was $27.1K for large firms, $22.3K
for medium-sized firms, and $28.6K for small
firms. Capital managed per acre for highly
profitable firms was close to the average.

Capital Managed per Worker. The intensity
of capital use in relation to labor was
measured as the ratio of managed capital
(owned plus leased) to number of persons
employed. This measure averaged $50.0K per
FTE for all firms and was $39.3K for large
firms, $70.6K for medium-sized firms, and
$64.0K for small firms. The substantially lower
capital-labor intensity for large firms may
reflect economies of scale in cut foliage
production, i.e. the greater efficiencies of
resource use that can be realized for larger-
sized operations through specialization of
tasks and better utilization of technology.

Growing Area Managed per Worker. The
intensity of labor use was evaluated in terms of
production area (acres) per FTE person.
Growing space per FTE averaged 1.94 acres
for all firms and was 1.45 acres for large firms,
3.17 acres for medium firms, and 2.24 acres
for small firms.

Managed Capital Turnover. This indicator
expresses the ratio of annual sales to total
managed capital. Managed capital turnover
averaged 0.78 for all firms and ranged from
0.93 for large firms to 0.49 for small firms. In
general, high capital turnover is desirable
because it indicates greater sales per dollar of
investment. Low turnover rates may result
from low labor, or space, productivity or
excessive capital investment.










Table 2. Productive resources used by Florida cut foliage businesses, 1997.
All Large Medium Small Highly
Resource firms firms firms firms profitable
firms
Total farm area (acres) 123 214 116 73 95
Net usable production area* (acres) 45.0 83.8 45.7 21.1 37.7
Number persons employed (FTE**) 23.2 57.8 14.4 9.5 21.8
Total owned capital (1000$) 883 1,732 695 524 760
Capital leased (1000$) 275 537 321 81 217
Total capital managed*** (1000$) 1,158 2,269 1,016 605 977
* Net usable production area excludes roads within fernery.
** Full-time equivalent person represents 2,080 hours per year.
*** Capital managed is capital owned, both equity and debt capital, plus capital leased.


Productivity, Efficiency and Intensity
Indicators

Value Produced per Acre. The productivity
of cut foliage operation space was measured
by the value of production (annual sales of
own product plus inventory change) per acre of
growing space. Value produced per acre
averaged $15.3K per acre and ranged from
$20.0K for large firms to $10.4K for small firms
(Table 3). Highly profitable firms produced an
intermediate value of $15.4K per acre,
demonstrating that high values of this indicator
are not necessary for profitable operations.
Space productivity is affected by production
area layout and space utilization efficiency
(renovation), plant growth rates and survival,
and inventory turnover.

Value Produced per Worker. Labor
productivity was measured in terms of sales
and value produced per full-time equivalent
(FTE) worker, i.e. per 2,080 labor hours. For
all firms, value of production averaged $29.6K
per FTE, or $14.25 per hour worked. This
value was $29.0K per FTE for large firms,
$36.9K for medium-sized firms, and $23.2K for
small firms. Variations in labor productivity
may result from differences in investment for
labor-saving equipment, labor management
practices, and practices affecting crop
turnover.

Capital Managed per Acre. The intensity of
capital use in relation to production space was
measured as the ratio of capital managed to
growing area (acres). Capital managed per
acre of growing area averaged $25.8K for all


firms and was $27.1K for large firms, $22.3K
for medium-sized firms, and $28.6K for small
firms. Capital managed per acre for highly
profitable firms was close to the average.

Capital Managed per Worker. The intensity
of capital use in relation to labor was
measured as the ratio of managed capital
(owned plus leased) to number of persons
employed. This measure averaged $50.0K per
FTE for all firms and was $39.3K for large
firms, $70.6K for medium-sized firms, and
$64.0K for small firms. The substantially lower
capital-labor intensity for large firms may
reflect economies of scale in cut foliage
production, i.e. the greater efficiencies of
resource use that can be realized for larger-
sized operations through specialization of
tasks and better utilization of technology.

Growing Area Managed per Worker. The
intensity of labor use was evaluated in terms of
production area (acres) per FTE person.
Growing space per FTE averaged 1.94 acres
for all firms and was 1.45 acres for large firms,
3.17 acres for medium firms, and 2.24 acres
for small firms.

Managed Capital Turnover. This indicator
expresses the ratio of annual sales to total
managed capital. Managed capital turnover
averaged 0.78 for all firms and ranged from
0.93 for large firms to 0.49 for small firms. In
general, high capital turnover is desirable
because it indicates greater sales per dollar of
investment. Low turnover rates may result
from low labor, or space, productivity or
excessive capital investment.










Table 2. Productive resources used by Florida cut foliage businesses, 1997.
All Large Medium Small Highly
Resource firms firms firms firms profitable
firms
Total farm area (acres) 123 214 116 73 95
Net usable production area* (acres) 45.0 83.8 45.7 21.1 37.7
Number persons employed (FTE**) 23.2 57.8 14.4 9.5 21.8
Total owned capital (1000$) 883 1,732 695 524 760
Capital leased (1000$) 275 537 321 81 217
Total capital managed*** (1000$) 1,158 2,269 1,016 605 977
* Net usable production area excludes roads within fernery.
** Full-time equivalent person represents 2,080 hours per year.
*** Capital managed is capital owned, both equity and debt capital, plus capital leased.


Productivity, Efficiency and Intensity
Indicators

Value Produced per Acre. The productivity
of cut foliage operation space was measured
by the value of production (annual sales of
own product plus inventory change) per acre of
growing space. Value produced per acre
averaged $15.3K per acre and ranged from
$20.0K for large firms to $10.4K for small firms
(Table 3). Highly profitable firms produced an
intermediate value of $15.4K per acre,
demonstrating that high values of this indicator
are not necessary for profitable operations.
Space productivity is affected by production
area layout and space utilization efficiency
(renovation), plant growth rates and survival,
and inventory turnover.

Value Produced per Worker. Labor
productivity was measured in terms of sales
and value produced per full-time equivalent
(FTE) worker, i.e. per 2,080 labor hours. For
all firms, value of production averaged $29.6K
per FTE, or $14.25 per hour worked. This
value was $29.0K per FTE for large firms,
$36.9K for medium-sized firms, and $23.2K for
small firms. Variations in labor productivity
may result from differences in investment for
labor-saving equipment, labor management
practices, and practices affecting crop
turnover.

Capital Managed per Acre. The intensity of
capital use in relation to production space was
measured as the ratio of capital managed to
growing area (acres). Capital managed per
acre of growing area averaged $25.8K for all


firms and was $27.1K for large firms, $22.3K
for medium-sized firms, and $28.6K for small
firms. Capital managed per acre for highly
profitable firms was close to the average.

Capital Managed per Worker. The intensity
of capital use in relation to labor was
measured as the ratio of managed capital
(owned plus leased) to number of persons
employed. This measure averaged $50.0K per
FTE for all firms and was $39.3K for large
firms, $70.6K for medium-sized firms, and
$64.0K for small firms. The substantially lower
capital-labor intensity for large firms may
reflect economies of scale in cut foliage
production, i.e. the greater efficiencies of
resource use that can be realized for larger-
sized operations through specialization of
tasks and better utilization of technology.

Growing Area Managed per Worker. The
intensity of labor use was evaluated in terms of
production area (acres) per FTE person.
Growing space per FTE averaged 1.94 acres
for all firms and was 1.45 acres for large firms,
3.17 acres for medium firms, and 2.24 acres
for small firms.

Managed Capital Turnover. This indicator
expresses the ratio of annual sales to total
managed capital. Managed capital turnover
averaged 0.78 for all firms and ranged from
0.93 for large firms to 0.49 for small firms. In
general, high capital turnover is desirable
because it indicates greater sales per dollar of
investment. Low turnover rates may result
from low labor, or space, productivity or
excessive capital investment.










Table 2. Productive resources used by Florida cut foliage businesses, 1997.
All Large Medium Small Highly
Resource firms firms firms firms profitable
firms
Total farm area (acres) 123 214 116 73 95
Net usable production area* (acres) 45.0 83.8 45.7 21.1 37.7
Number persons employed (FTE**) 23.2 57.8 14.4 9.5 21.8
Total owned capital (1000$) 883 1,732 695 524 760
Capital leased (1000$) 275 537 321 81 217
Total capital managed*** (1000$) 1,158 2,269 1,016 605 977
* Net usable production area excludes roads within fernery.
** Full-time equivalent person represents 2,080 hours per year.
*** Capital managed is capital owned, both equity and debt capital, plus capital leased.


Productivity, Efficiency and Intensity
Indicators

Value Produced per Acre. The productivity
of cut foliage operation space was measured
by the value of production (annual sales of
own product plus inventory change) per acre of
growing space. Value produced per acre
averaged $15.3K per acre and ranged from
$20.0K for large firms to $10.4K for small firms
(Table 3). Highly profitable firms produced an
intermediate value of $15.4K per acre,
demonstrating that high values of this indicator
are not necessary for profitable operations.
Space productivity is affected by production
area layout and space utilization efficiency
(renovation), plant growth rates and survival,
and inventory turnover.

Value Produced per Worker. Labor
productivity was measured in terms of sales
and value produced per full-time equivalent
(FTE) worker, i.e. per 2,080 labor hours. For
all firms, value of production averaged $29.6K
per FTE, or $14.25 per hour worked. This
value was $29.0K per FTE for large firms,
$36.9K for medium-sized firms, and $23.2K for
small firms. Variations in labor productivity
may result from differences in investment for
labor-saving equipment, labor management
practices, and practices affecting crop
turnover.

Capital Managed per Acre. The intensity of
capital use in relation to production space was
measured as the ratio of capital managed to
growing area (acres). Capital managed per
acre of growing area averaged $25.8K for all


firms and was $27.1K for large firms, $22.3K
for medium-sized firms, and $28.6K for small
firms. Capital managed per acre for highly
profitable firms was close to the average.

Capital Managed per Worker. The intensity
of capital use in relation to labor was
measured as the ratio of managed capital
(owned plus leased) to number of persons
employed. This measure averaged $50.0K per
FTE for all firms and was $39.3K for large
firms, $70.6K for medium-sized firms, and
$64.0K for small firms. The substantially lower
capital-labor intensity for large firms may
reflect economies of scale in cut foliage
production, i.e. the greater efficiencies of
resource use that can be realized for larger-
sized operations through specialization of
tasks and better utilization of technology.

Growing Area Managed per Worker. The
intensity of labor use was evaluated in terms of
production area (acres) per FTE person.
Growing space per FTE averaged 1.94 acres
for all firms and was 1.45 acres for large firms,
3.17 acres for medium firms, and 2.24 acres
for small firms.

Managed Capital Turnover. This indicator
expresses the ratio of annual sales to total
managed capital. Managed capital turnover
averaged 0.78 for all firms and ranged from
0.93 for large firms to 0.49 for small firms. In
general, high capital turnover is desirable
because it indicates greater sales per dollar of
investment. Low turnover rates may result
from low labor, or space, productivity or
excessive capital investment.










Table 2. Productive resources used by Florida cut foliage businesses, 1997.
All Large Medium Small Highly
Resource firms firms firms firms profitable
firms
Total farm area (acres) 123 214 116 73 95
Net usable production area* (acres) 45.0 83.8 45.7 21.1 37.7
Number persons employed (FTE**) 23.2 57.8 14.4 9.5 21.8
Total owned capital (1000$) 883 1,732 695 524 760
Capital leased (1000$) 275 537 321 81 217
Total capital managed*** (1000$) 1,158 2,269 1,016 605 977
* Net usable production area excludes roads within fernery.
** Full-time equivalent person represents 2,080 hours per year.
*** Capital managed is capital owned, both equity and debt capital, plus capital leased.


Productivity, Efficiency and Intensity
Indicators

Value Produced per Acre. The productivity
of cut foliage operation space was measured
by the value of production (annual sales of
own product plus inventory change) per acre of
growing space. Value produced per acre
averaged $15.3K per acre and ranged from
$20.0K for large firms to $10.4K for small firms
(Table 3). Highly profitable firms produced an
intermediate value of $15.4K per acre,
demonstrating that high values of this indicator
are not necessary for profitable operations.
Space productivity is affected by production
area layout and space utilization efficiency
(renovation), plant growth rates and survival,
and inventory turnover.

Value Produced per Worker. Labor
productivity was measured in terms of sales
and value produced per full-time equivalent
(FTE) worker, i.e. per 2,080 labor hours. For
all firms, value of production averaged $29.6K
per FTE, or $14.25 per hour worked. This
value was $29.0K per FTE for large firms,
$36.9K for medium-sized firms, and $23.2K for
small firms. Variations in labor productivity
may result from differences in investment for
labor-saving equipment, labor management
practices, and practices affecting crop
turnover.

Capital Managed per Acre. The intensity of
capital use in relation to production space was
measured as the ratio of capital managed to
growing area (acres). Capital managed per
acre of growing area averaged $25.8K for all


firms and was $27.1K for large firms, $22.3K
for medium-sized firms, and $28.6K for small
firms. Capital managed per acre for highly
profitable firms was close to the average.

Capital Managed per Worker. The intensity
of capital use in relation to labor was
measured as the ratio of managed capital
(owned plus leased) to number of persons
employed. This measure averaged $50.0K per
FTE for all firms and was $39.3K for large
firms, $70.6K for medium-sized firms, and
$64.0K for small firms. The substantially lower
capital-labor intensity for large firms may
reflect economies of scale in cut foliage
production, i.e. the greater efficiencies of
resource use that can be realized for larger-
sized operations through specialization of
tasks and better utilization of technology.

Growing Area Managed per Worker. The
intensity of labor use was evaluated in terms of
production area (acres) per FTE person.
Growing space per FTE averaged 1.94 acres
for all firms and was 1.45 acres for large firms,
3.17 acres for medium firms, and 2.24 acres
for small firms.

Managed Capital Turnover. This indicator
expresses the ratio of annual sales to total
managed capital. Managed capital turnover
averaged 0.78 for all firms and ranged from
0.93 for large firms to 0.49 for small firms. In
general, high capital turnover is desirable
because it indicates greater sales per dollar of
investment. Low turnover rates may result
from low labor, or space, productivity or
excessive capital investment.







Table 3. Resource productivity, efficiency and use intensity indicators for Florida cut foliage
businesses, 1997.

Indicator Al firms Large Medium Small Highlye
firms firms firms firms
firms
Value of production per acre production area (1000$) 15.3 20.0 11.6 10.4 15.4
Value of production per person (1000$/FTE) 29.6 29.0 36.9 23.2 26.7
Total sales per persons employed (1000$/FTE) 38.9 36.5 52.5 31.4 40.2
Sales own plants per person (1000$/FTE) 28.9 27.1 37.7 24.5 26.9
Production area per person (acres/FTE) 1.94 1.45 3.17 2.24 1.73
Persons employed per acre (FTEs) 0.52 0.69 0.32 0.45 0.58
Capital managed per acre (1000$) 25.8 27.1 22.3 28.6 25.9
Capital managed per person (1000$/FTE) 50.0 39.3 70.6 64.0 44.9
Managed capital turnover 0.78 0.93 0.74 0.49 0.90


Expenses and Cost Efficiency
Operating expenses were grouped into the
following categories: employee wages and
benefits, materials, finished products
purchased for resale, facility and equipment,
administrative overhead, capital, and
management/owner compensation. The first
three expense categories were considered
direct production costs, while the other
categories were considered indirect expenses.
Expenses for income taxes or debt principal
payments were not included. Costs are
itemized in Table 4 and summarized by major
category in Figure 3.

Employee Expenses included wages,
salaries, sales commissions, payroll taxes
(social security), workers' compensation
insurance, health insurance, bonuses and
other benefits paid. This was by far the largest
expense category, averaging $368K for all
firms and ranging from $889K for large firms to
$136K for small firms. Employee expenses
represented 41 percent of total costs.

Materials Expenses included plants and
seeds, fuel for cold protection, fertilizer and
lime, chemicals, packing and shipping
materials, and other production supplies such
as tags and small tools. These items are
"direct" expenses or "cost of goods sold".
Expenses for materials averaged $117K for all
firms and ranged from $297K for large firms to
$33K for small firms. These expenses
represented 13 percent of total costs.
Expenses for chemicals, including herbicides,


fungicides and insecticides and dips, averaged
$43K or 5 percent of total expenses.

Finished Product Purchases were for
brokered plant products. Most firms in the cut
foliage industry do some brokerage business.
Expenses for brokered product averaged
$162K, and ranged from $411K for large firms
to $37K for small firms. These expenses were
18 percent of total costs.

Facility and Equipment Expenses included
repairs and maintenance for production and
packing facilities and equipment operating
costs such as fuel and lubrication. Expenses
averaged $30K for all firms and ranged from
$62K for large firms to $15K for small firms.
These expenses represented 3 percent of total
costs.

Administrative Overhead Expenses included
travel and entertainment, property insurance,
telephone, electric power, advertising, property
taxes and business licenses, rent and other
cash expenses such as professional services,
trade association memberships, office
expenses and miscellaneous. Expenses
averaged $105K for all firms and ranged from
$242K for large firms to $31K for small firms,
and represented 12 percent of total costs.

Capital Costs included interest on borrowed
capital in the form of mortgages, promissory
notes and charge accounts, and depreciation
on fixed assets. Total capital costs averaged
$66K for all firms and ranged from $149K for
large firms to $39K for small firms,







Table 3. Resource productivity, efficiency and use intensity indicators for Florida cut foliage
businesses, 1997.

Indicator Al firms Large Medium Small Highlye
firms firms firms firms
firms
Value of production per acre production area (1000$) 15.3 20.0 11.6 10.4 15.4
Value of production per person (1000$/FTE) 29.6 29.0 36.9 23.2 26.7
Total sales per persons employed (1000$/FTE) 38.9 36.5 52.5 31.4 40.2
Sales own plants per person (1000$/FTE) 28.9 27.1 37.7 24.5 26.9
Production area per person (acres/FTE) 1.94 1.45 3.17 2.24 1.73
Persons employed per acre (FTEs) 0.52 0.69 0.32 0.45 0.58
Capital managed per acre (1000$) 25.8 27.1 22.3 28.6 25.9
Capital managed per person (1000$/FTE) 50.0 39.3 70.6 64.0 44.9
Managed capital turnover 0.78 0.93 0.74 0.49 0.90


Expenses and Cost Efficiency
Operating expenses were grouped into the
following categories: employee wages and
benefits, materials, finished products
purchased for resale, facility and equipment,
administrative overhead, capital, and
management/owner compensation. The first
three expense categories were considered
direct production costs, while the other
categories were considered indirect expenses.
Expenses for income taxes or debt principal
payments were not included. Costs are
itemized in Table 4 and summarized by major
category in Figure 3.

Employee Expenses included wages,
salaries, sales commissions, payroll taxes
(social security), workers' compensation
insurance, health insurance, bonuses and
other benefits paid. This was by far the largest
expense category, averaging $368K for all
firms and ranging from $889K for large firms to
$136K for small firms. Employee expenses
represented 41 percent of total costs.

Materials Expenses included plants and
seeds, fuel for cold protection, fertilizer and
lime, chemicals, packing and shipping
materials, and other production supplies such
as tags and small tools. These items are
"direct" expenses or "cost of goods sold".
Expenses for materials averaged $117K for all
firms and ranged from $297K for large firms to
$33K for small firms. These expenses
represented 13 percent of total costs.
Expenses for chemicals, including herbicides,


fungicides and insecticides and dips, averaged
$43K or 5 percent of total expenses.

Finished Product Purchases were for
brokered plant products. Most firms in the cut
foliage industry do some brokerage business.
Expenses for brokered product averaged
$162K, and ranged from $411K for large firms
to $37K for small firms. These expenses were
18 percent of total costs.

Facility and Equipment Expenses included
repairs and maintenance for production and
packing facilities and equipment operating
costs such as fuel and lubrication. Expenses
averaged $30K for all firms and ranged from
$62K for large firms to $15K for small firms.
These expenses represented 3 percent of total
costs.

Administrative Overhead Expenses included
travel and entertainment, property insurance,
telephone, electric power, advertising, property
taxes and business licenses, rent and other
cash expenses such as professional services,
trade association memberships, office
expenses and miscellaneous. Expenses
averaged $105K for all firms and ranged from
$242K for large firms to $31K for small firms,
and represented 12 percent of total costs.

Capital Costs included interest on borrowed
capital in the form of mortgages, promissory
notes and charge accounts, and depreciation
on fixed assets. Total capital costs averaged
$66K for all firms and ranged from $149K for
large firms to $39K for small firms,







Table 3. Resource productivity, efficiency and use intensity indicators for Florida cut foliage
businesses, 1997.

Indicator Al firms Large Medium Small Highlye
firms firms firms firms
firms
Value of production per acre production area (1000$) 15.3 20.0 11.6 10.4 15.4
Value of production per person (1000$/FTE) 29.6 29.0 36.9 23.2 26.7
Total sales per persons employed (1000$/FTE) 38.9 36.5 52.5 31.4 40.2
Sales own plants per person (1000$/FTE) 28.9 27.1 37.7 24.5 26.9
Production area per person (acres/FTE) 1.94 1.45 3.17 2.24 1.73
Persons employed per acre (FTEs) 0.52 0.69 0.32 0.45 0.58
Capital managed per acre (1000$) 25.8 27.1 22.3 28.6 25.9
Capital managed per person (1000$/FTE) 50.0 39.3 70.6 64.0 44.9
Managed capital turnover 0.78 0.93 0.74 0.49 0.90


Expenses and Cost Efficiency
Operating expenses were grouped into the
following categories: employee wages and
benefits, materials, finished products
purchased for resale, facility and equipment,
administrative overhead, capital, and
management/owner compensation. The first
three expense categories were considered
direct production costs, while the other
categories were considered indirect expenses.
Expenses for income taxes or debt principal
payments were not included. Costs are
itemized in Table 4 and summarized by major
category in Figure 3.

Employee Expenses included wages,
salaries, sales commissions, payroll taxes
(social security), workers' compensation
insurance, health insurance, bonuses and
other benefits paid. This was by far the largest
expense category, averaging $368K for all
firms and ranging from $889K for large firms to
$136K for small firms. Employee expenses
represented 41 percent of total costs.

Materials Expenses included plants and
seeds, fuel for cold protection, fertilizer and
lime, chemicals, packing and shipping
materials, and other production supplies such
as tags and small tools. These items are
"direct" expenses or "cost of goods sold".
Expenses for materials averaged $117K for all
firms and ranged from $297K for large firms to
$33K for small firms. These expenses
represented 13 percent of total costs.
Expenses for chemicals, including herbicides,


fungicides and insecticides and dips, averaged
$43K or 5 percent of total expenses.

Finished Product Purchases were for
brokered plant products. Most firms in the cut
foliage industry do some brokerage business.
Expenses for brokered product averaged
$162K, and ranged from $411K for large firms
to $37K for small firms. These expenses were
18 percent of total costs.

Facility and Equipment Expenses included
repairs and maintenance for production and
packing facilities and equipment operating
costs such as fuel and lubrication. Expenses
averaged $30K for all firms and ranged from
$62K for large firms to $15K for small firms.
These expenses represented 3 percent of total
costs.

Administrative Overhead Expenses included
travel and entertainment, property insurance,
telephone, electric power, advertising, property
taxes and business licenses, rent and other
cash expenses such as professional services,
trade association memberships, office
expenses and miscellaneous. Expenses
averaged $105K for all firms and ranged from
$242K for large firms to $31K for small firms,
and represented 12 percent of total costs.

Capital Costs included interest on borrowed
capital in the form of mortgages, promissory
notes and charge accounts, and depreciation
on fixed assets. Total capital costs averaged
$66K for all firms and ranged from $149K for
large firms to $39K for small firms,







Table 3. Resource productivity, efficiency and use intensity indicators for Florida cut foliage
businesses, 1997.

Indicator Al firms Large Medium Small Highlye
firms firms firms firms
firms
Value of production per acre production area (1000$) 15.3 20.0 11.6 10.4 15.4
Value of production per person (1000$/FTE) 29.6 29.0 36.9 23.2 26.7
Total sales per persons employed (1000$/FTE) 38.9 36.5 52.5 31.4 40.2
Sales own plants per person (1000$/FTE) 28.9 27.1 37.7 24.5 26.9
Production area per person (acres/FTE) 1.94 1.45 3.17 2.24 1.73
Persons employed per acre (FTEs) 0.52 0.69 0.32 0.45 0.58
Capital managed per acre (1000$) 25.8 27.1 22.3 28.6 25.9
Capital managed per person (1000$/FTE) 50.0 39.3 70.6 64.0 44.9
Managed capital turnover 0.78 0.93 0.74 0.49 0.90


Expenses and Cost Efficiency
Operating expenses were grouped into the
following categories: employee wages and
benefits, materials, finished products
purchased for resale, facility and equipment,
administrative overhead, capital, and
management/owner compensation. The first
three expense categories were considered
direct production costs, while the other
categories were considered indirect expenses.
Expenses for income taxes or debt principal
payments were not included. Costs are
itemized in Table 4 and summarized by major
category in Figure 3.

Employee Expenses included wages,
salaries, sales commissions, payroll taxes
(social security), workers' compensation
insurance, health insurance, bonuses and
other benefits paid. This was by far the largest
expense category, averaging $368K for all
firms and ranging from $889K for large firms to
$136K for small firms. Employee expenses
represented 41 percent of total costs.

Materials Expenses included plants and
seeds, fuel for cold protection, fertilizer and
lime, chemicals, packing and shipping
materials, and other production supplies such
as tags and small tools. These items are
"direct" expenses or "cost of goods sold".
Expenses for materials averaged $117K for all
firms and ranged from $297K for large firms to
$33K for small firms. These expenses
represented 13 percent of total costs.
Expenses for chemicals, including herbicides,


fungicides and insecticides and dips, averaged
$43K or 5 percent of total expenses.

Finished Product Purchases were for
brokered plant products. Most firms in the cut
foliage industry do some brokerage business.
Expenses for brokered product averaged
$162K, and ranged from $411K for large firms
to $37K for small firms. These expenses were
18 percent of total costs.

Facility and Equipment Expenses included
repairs and maintenance for production and
packing facilities and equipment operating
costs such as fuel and lubrication. Expenses
averaged $30K for all firms and ranged from
$62K for large firms to $15K for small firms.
These expenses represented 3 percent of total
costs.

Administrative Overhead Expenses included
travel and entertainment, property insurance,
telephone, electric power, advertising, property
taxes and business licenses, rent and other
cash expenses such as professional services,
trade association memberships, office
expenses and miscellaneous. Expenses
averaged $105K for all firms and ranged from
$242K for large firms to $31K for small firms,
and represented 12 percent of total costs.

Capital Costs included interest on borrowed
capital in the form of mortgages, promissory
notes and charge accounts, and depreciation
on fixed assets. Total capital costs averaged
$66K for all firms and ranged from $149K for
large firms to $39K for small firms,







Table 3. Resource productivity, efficiency and use intensity indicators for Florida cut foliage
businesses, 1997.

Indicator Al firms Large Medium Small Highlye
firms firms firms firms
firms
Value of production per acre production area (1000$) 15.3 20.0 11.6 10.4 15.4
Value of production per person (1000$/FTE) 29.6 29.0 36.9 23.2 26.7
Total sales per persons employed (1000$/FTE) 38.9 36.5 52.5 31.4 40.2
Sales own plants per person (1000$/FTE) 28.9 27.1 37.7 24.5 26.9
Production area per person (acres/FTE) 1.94 1.45 3.17 2.24 1.73
Persons employed per acre (FTEs) 0.52 0.69 0.32 0.45 0.58
Capital managed per acre (1000$) 25.8 27.1 22.3 28.6 25.9
Capital managed per person (1000$/FTE) 50.0 39.3 70.6 64.0 44.9
Managed capital turnover 0.78 0.93 0.74 0.49 0.90


Expenses and Cost Efficiency
Operating expenses were grouped into the
following categories: employee wages and
benefits, materials, finished products
purchased for resale, facility and equipment,
administrative overhead, capital, and
management/owner compensation. The first
three expense categories were considered
direct production costs, while the other
categories were considered indirect expenses.
Expenses for income taxes or debt principal
payments were not included. Costs are
itemized in Table 4 and summarized by major
category in Figure 3.

Employee Expenses included wages,
salaries, sales commissions, payroll taxes
(social security), workers' compensation
insurance, health insurance, bonuses and
other benefits paid. This was by far the largest
expense category, averaging $368K for all
firms and ranging from $889K for large firms to
$136K for small firms. Employee expenses
represented 41 percent of total costs.

Materials Expenses included plants and
seeds, fuel for cold protection, fertilizer and
lime, chemicals, packing and shipping
materials, and other production supplies such
as tags and small tools. These items are
"direct" expenses or "cost of goods sold".
Expenses for materials averaged $117K for all
firms and ranged from $297K for large firms to
$33K for small firms. These expenses
represented 13 percent of total costs.
Expenses for chemicals, including herbicides,


fungicides and insecticides and dips, averaged
$43K or 5 percent of total expenses.

Finished Product Purchases were for
brokered plant products. Most firms in the cut
foliage industry do some brokerage business.
Expenses for brokered product averaged
$162K, and ranged from $411K for large firms
to $37K for small firms. These expenses were
18 percent of total costs.

Facility and Equipment Expenses included
repairs and maintenance for production and
packing facilities and equipment operating
costs such as fuel and lubrication. Expenses
averaged $30K for all firms and ranged from
$62K for large firms to $15K for small firms.
These expenses represented 3 percent of total
costs.

Administrative Overhead Expenses included
travel and entertainment, property insurance,
telephone, electric power, advertising, property
taxes and business licenses, rent and other
cash expenses such as professional services,
trade association memberships, office
expenses and miscellaneous. Expenses
averaged $105K for all firms and ranged from
$242K for large firms to $31K for small firms,
and represented 12 percent of total costs.

Capital Costs included interest on borrowed
capital in the form of mortgages, promissory
notes and charge accounts, and depreciation
on fixed assets. Total capital costs averaged
$66K for all firms and ranged from $149K for
large firms to $39K for small firms,







Table 3. Resource productivity, efficiency and use intensity indicators for Florida cut foliage
businesses, 1997.

Indicator Al firms Large Medium Small Highlye
firms firms firms firms
firms
Value of production per acre production area (1000$) 15.3 20.0 11.6 10.4 15.4
Value of production per person (1000$/FTE) 29.6 29.0 36.9 23.2 26.7
Total sales per persons employed (1000$/FTE) 38.9 36.5 52.5 31.4 40.2
Sales own plants per person (1000$/FTE) 28.9 27.1 37.7 24.5 26.9
Production area per person (acres/FTE) 1.94 1.45 3.17 2.24 1.73
Persons employed per acre (FTEs) 0.52 0.69 0.32 0.45 0.58
Capital managed per acre (1000$) 25.8 27.1 22.3 28.6 25.9
Capital managed per person (1000$/FTE) 50.0 39.3 70.6 64.0 44.9
Managed capital turnover 0.78 0.93 0.74 0.49 0.90


Expenses and Cost Efficiency
Operating expenses were grouped into the
following categories: employee wages and
benefits, materials, finished products
purchased for resale, facility and equipment,
administrative overhead, capital, and
management/owner compensation. The first
three expense categories were considered
direct production costs, while the other
categories were considered indirect expenses.
Expenses for income taxes or debt principal
payments were not included. Costs are
itemized in Table 4 and summarized by major
category in Figure 3.

Employee Expenses included wages,
salaries, sales commissions, payroll taxes
(social security), workers' compensation
insurance, health insurance, bonuses and
other benefits paid. This was by far the largest
expense category, averaging $368K for all
firms and ranging from $889K for large firms to
$136K for small firms. Employee expenses
represented 41 percent of total costs.

Materials Expenses included plants and
seeds, fuel for cold protection, fertilizer and
lime, chemicals, packing and shipping
materials, and other production supplies such
as tags and small tools. These items are
"direct" expenses or "cost of goods sold".
Expenses for materials averaged $117K for all
firms and ranged from $297K for large firms to
$33K for small firms. These expenses
represented 13 percent of total costs.
Expenses for chemicals, including herbicides,


fungicides and insecticides and dips, averaged
$43K or 5 percent of total expenses.

Finished Product Purchases were for
brokered plant products. Most firms in the cut
foliage industry do some brokerage business.
Expenses for brokered product averaged
$162K, and ranged from $411K for large firms
to $37K for small firms. These expenses were
18 percent of total costs.

Facility and Equipment Expenses included
repairs and maintenance for production and
packing facilities and equipment operating
costs such as fuel and lubrication. Expenses
averaged $30K for all firms and ranged from
$62K for large firms to $15K for small firms.
These expenses represented 3 percent of total
costs.

Administrative Overhead Expenses included
travel and entertainment, property insurance,
telephone, electric power, advertising, property
taxes and business licenses, rent and other
cash expenses such as professional services,
trade association memberships, office
expenses and miscellaneous. Expenses
averaged $105K for all firms and ranged from
$242K for large firms to $31K for small firms,
and represented 12 percent of total costs.

Capital Costs included interest on borrowed
capital in the form of mortgages, promissory
notes and charge accounts, and depreciation
on fixed assets. Total capital costs averaged
$66K for all firms and ranged from $149K for
large firms to $39K for small firms,







Table 3. Resource productivity, efficiency and use intensity indicators for Florida cut foliage
businesses, 1997.

Indicator Al firms Large Medium Small Highlye
firms firms firms firms
firms
Value of production per acre production area (1000$) 15.3 20.0 11.6 10.4 15.4
Value of production per person (1000$/FTE) 29.6 29.0 36.9 23.2 26.7
Total sales per persons employed (1000$/FTE) 38.9 36.5 52.5 31.4 40.2
Sales own plants per person (1000$/FTE) 28.9 27.1 37.7 24.5 26.9
Production area per person (acres/FTE) 1.94 1.45 3.17 2.24 1.73
Persons employed per acre (FTEs) 0.52 0.69 0.32 0.45 0.58
Capital managed per acre (1000$) 25.8 27.1 22.3 28.6 25.9
Capital managed per person (1000$/FTE) 50.0 39.3 70.6 64.0 44.9
Managed capital turnover 0.78 0.93 0.74 0.49 0.90


Expenses and Cost Efficiency
Operating expenses were grouped into the
following categories: employee wages and
benefits, materials, finished products
purchased for resale, facility and equipment,
administrative overhead, capital, and
management/owner compensation. The first
three expense categories were considered
direct production costs, while the other
categories were considered indirect expenses.
Expenses for income taxes or debt principal
payments were not included. Costs are
itemized in Table 4 and summarized by major
category in Figure 3.

Employee Expenses included wages,
salaries, sales commissions, payroll taxes
(social security), workers' compensation
insurance, health insurance, bonuses and
other benefits paid. This was by far the largest
expense category, averaging $368K for all
firms and ranging from $889K for large firms to
$136K for small firms. Employee expenses
represented 41 percent of total costs.

Materials Expenses included plants and
seeds, fuel for cold protection, fertilizer and
lime, chemicals, packing and shipping
materials, and other production supplies such
as tags and small tools. These items are
"direct" expenses or "cost of goods sold".
Expenses for materials averaged $117K for all
firms and ranged from $297K for large firms to
$33K for small firms. These expenses
represented 13 percent of total costs.
Expenses for chemicals, including herbicides,


fungicides and insecticides and dips, averaged
$43K or 5 percent of total expenses.

Finished Product Purchases were for
brokered plant products. Most firms in the cut
foliage industry do some brokerage business.
Expenses for brokered product averaged
$162K, and ranged from $411K for large firms
to $37K for small firms. These expenses were
18 percent of total costs.

Facility and Equipment Expenses included
repairs and maintenance for production and
packing facilities and equipment operating
costs such as fuel and lubrication. Expenses
averaged $30K for all firms and ranged from
$62K for large firms to $15K for small firms.
These expenses represented 3 percent of total
costs.

Administrative Overhead Expenses included
travel and entertainment, property insurance,
telephone, electric power, advertising, property
taxes and business licenses, rent and other
cash expenses such as professional services,
trade association memberships, office
expenses and miscellaneous. Expenses
averaged $105K for all firms and ranged from
$242K for large firms to $31K for small firms,
and represented 12 percent of total costs.

Capital Costs included interest on borrowed
capital in the form of mortgages, promissory
notes and charge accounts, and depreciation
on fixed assets. Total capital costs averaged
$66K for all firms and ranged from $149K for
large firms to $39K for small firms,










representing 7 percent of total costs.
Depreciation expenses averaged $37K for all
firms.

Management/Owner Compensation
represented salaries and benefits paid to
owners and top management. These
expenses averaged $45K for all firms and
ranged from $82K for large firms to $25K for
small firms, representing 5 percent of total
costs.

Total Costs for all items averaged $892K for
all firms and ranged from $2.13M for large
firms to $318K for small firms.

Cost as a Share of Sales. Analysis of
expenses in relation to sales is one of the most
reliable measures of cost efficiency in many
industries. For all firms, costs as a percentage
of sales averaged 40.8% for employee labor,
13.0% for materials, 17.9% for finished
products brokered, 3.3% for facility and
equipment, 11.6% for overhead, 7.3% for
capital and 4.9% for management. Highly
profitable firms generally had lower costs per
unit sales for labor, materials, overhead and
capital, but their costs were not below-average
for brokered plants, facility/equipment, or
management.

Cost per Acre. The cost per unit of growing
space is a useful measure for comparing cost
efficiencies. Total costs per acre of growing
area, excluding brokered plants, averaged
$16.2K for all firms and was $20.5K for large
firms, $12.1K for medium firms, and $13.3K for
small firms (Table 5). Highly profitable firms
had costs per acre ($15.9K) somewhat lower
than all firms.


Figure 3. Distrubution of expenses for Florida cut
foliage businesses, 1997.










representing 7 percent of total costs.
Depreciation expenses averaged $37K for all
firms.

Management/Owner Compensation
represented salaries and benefits paid to
owners and top management. These
expenses averaged $45K for all firms and
ranged from $82K for large firms to $25K for
small firms, representing 5 percent of total
costs.

Total Costs for all items averaged $892K for
all firms and ranged from $2.13M for large
firms to $318K for small firms.

Cost as a Share of Sales. Analysis of
expenses in relation to sales is one of the most
reliable measures of cost efficiency in many
industries. For all firms, costs as a percentage
of sales averaged 40.8% for employee labor,
13.0% for materials, 17.9% for finished
products brokered, 3.3% for facility and
equipment, 11.6% for overhead, 7.3% for
capital and 4.9% for management. Highly
profitable firms generally had lower costs per
unit sales for labor, materials, overhead and
capital, but their costs were not below-average
for brokered plants, facility/equipment, or
management.

Cost per Acre. The cost per unit of growing
space is a useful measure for comparing cost
efficiencies. Total costs per acre of growing
area, excluding brokered plants, averaged
$16.2K for all firms and was $20.5K for large
firms, $12.1K for medium firms, and $13.3K for
small firms (Table 5). Highly profitable firms
had costs per acre ($15.9K) somewhat lower
than all firms.


Figure 3. Distrubution of expenses for Florida cut
foliage businesses, 1997.










representing 7 percent of total costs.
Depreciation expenses averaged $37K for all
firms.

Management/Owner Compensation
represented salaries and benefits paid to
owners and top management. These
expenses averaged $45K for all firms and
ranged from $82K for large firms to $25K for
small firms, representing 5 percent of total
costs.

Total Costs for all items averaged $892K for
all firms and ranged from $2.13M for large
firms to $318K for small firms.

Cost as a Share of Sales. Analysis of
expenses in relation to sales is one of the most
reliable measures of cost efficiency in many
industries. For all firms, costs as a percentage
of sales averaged 40.8% for employee labor,
13.0% for materials, 17.9% for finished
products brokered, 3.3% for facility and
equipment, 11.6% for overhead, 7.3% for
capital and 4.9% for management. Highly
profitable firms generally had lower costs per
unit sales for labor, materials, overhead and
capital, but their costs were not below-average
for brokered plants, facility/equipment, or
management.

Cost per Acre. The cost per unit of growing
space is a useful measure for comparing cost
efficiencies. Total costs per acre of growing
area, excluding brokered plants, averaged
$16.2K for all firms and was $20.5K for large
firms, $12.1K for medium firms, and $13.3K for
small firms (Table 5). Highly profitable firms
had costs per acre ($15.9K) somewhat lower
than all firms.


Figure 3. Distrubution of expenses for Florida cut
foliage businesses, 1997.










representing 7 percent of total costs.
Depreciation expenses averaged $37K for all
firms.

Management/Owner Compensation
represented salaries and benefits paid to
owners and top management. These
expenses averaged $45K for all firms and
ranged from $82K for large firms to $25K for
small firms, representing 5 percent of total
costs.

Total Costs for all items averaged $892K for
all firms and ranged from $2.13M for large
firms to $318K for small firms.

Cost as a Share of Sales. Analysis of
expenses in relation to sales is one of the most
reliable measures of cost efficiency in many
industries. For all firms, costs as a percentage
of sales averaged 40.8% for employee labor,
13.0% for materials, 17.9% for finished
products brokered, 3.3% for facility and
equipment, 11.6% for overhead, 7.3% for
capital and 4.9% for management. Highly
profitable firms generally had lower costs per
unit sales for labor, materials, overhead and
capital, but their costs were not below-average
for brokered plants, facility/equipment, or
management.

Cost per Acre. The cost per unit of growing
space is a useful measure for comparing cost
efficiencies. Total costs per acre of growing
area, excluding brokered plants, averaged
$16.2K for all firms and was $20.5K for large
firms, $12.1K for medium firms, and $13.3K for
small firms (Table 5). Highly profitable firms
had costs per acre ($15.9K) somewhat lower
than all firms.


Figure 3. Distrubution of expenses for Florida cut
foliage businesses, 1997.








Table 4. Operating expenses for Florida cut foliage businesses, 1997.
All Firms Large Medium Small Highly
Expense Item Firms firms Firms Profitable Firms


Employees Salaries and wages
Taxes and benefits
Sub-total

Materials Plants & seeds
Heating fuel
Fertilizers & lime
Packaging supplies
Other production supplies
Herbicides
Fungicides
Insecticides
Nematicides
Other chemicals
Sub-total chemicals
Sub-total all materials

Finished Product Purchased for Resale

Direct Costs Total

Facility & Facility repairs & maint.
Equipment Equipment operation
Sub-total

Overhead Travel
Insurance
Telephone
Electricity
Taxes & licenses
Advertising
Rent-land/buildings
Other cash costs
Sub-total


Capital


Depreciation
Interest costs
Sub-total


Management's compensation

Indirect costs total


Total all costs


321,072
46,977
368,048


655
4,131
15,534
47,640
6,546
4,786
18,418
12,077
3,466
3.892


776,017
112,942
888,959

1,557
8,150
28,490
117,439
14,360
13,614
54,538
36,972
10,377
11.006


233,906
33,116
267,023


798
4,421
15,487
38,594
7,160
2,482
8,463
5,609
1,940
2.277


117,836
18,486
136,322


0
1,488
7,798
12,998
1,367
1,333
4,693
2,313
541
917


279,605
40,340
319,945


884
3,906
12,432
43,158
4,682
4,229
14,899
8,945
2,668
3.942


42,639 126,506 20,791 9,797 34,682
117,145 296,502 87,251 33,447 99,745

161,719 410,878 131,207 36,634 202,363

646.912 1.596.339 485.480 206.403 622.053

14,528 30,493 13,056 6,126 13,569
15,417 31,241 11,260 9,249 10,247
29,945 61,734 24,316 15,375 23,815

3,393 10,287 1,558 723 2,101
7,417 15,847 6,725 2,913 5,187
7,661 13,264 8,272 3,811 5,800
8,608 18,000 7,911 3,530 6,472
8,287 13,162 7,764 5,779 7,814
2,798 6,008 2,723 931 3,081
32,347 67,767 43,092 2,500 23,653
34,172 97,180 15,607 11,218 12,853
104,682 241,516 93,653 31,405 66,962

37,272 78,060 24,046 23,379 20,765
28,740 70,653 13,827 15,523 22,348
66,012 148,713 37,873 38,903 43,113

44,631 81,709 40,760 25,480 45,637

245.269 533.672 196.601 111.162 179.527

892,182 2,130,011 682,081 317,565 801,581


I


I


I


I i


I


Total all costs









Table 5. Cost efficiency indicators for Florida cut foliage businesses, 1997.
Large Medium Small Highly
Cost category All firms firms firms firms pfirsb
Costs as Percentage of Total Sales
Employee labor 41% 42% 35% 46% 37%
Materials 13% 14% 12% 11% 11%
Finished plants 18% 20% 17% 12% 23%
Facility & equipment 3% 3% 3% 5% 3%
Overhead 12% 12% 12% 11% 8%
Capital costs 7% 7% 5% 13% 5%
Management/owner compensation 5% 4% 5% 9% 5%
Costs per Acre of Production Area (thousands $)
Employee labor 8.2 10.6 5.8 6.4 8.5
Materials 2.6 3.5 1.9 1.6 2.6
Facility & equipment 0.6 0.7 0.5 0.7 0.6
Overhead 2.3 2.9 2.1 1.5 1.8
Capital costs 1.5 1.8 0.8 1.8 1.1
Management/owner compensation 1.0 1.0 0.9 1.2 1.2
Total Costs 16.2 20.5 12.1 13.3 15.9


Net Returns and Profitability

Net Firm Income is the difference between
total income and total costs except
management's (owners') compensation. Net
firm income averaged $166K for all firms and
ranged from $339K for large firms to $24K for
small firms (Table 6). Net income for highly
profitable firms averaged $217K.

Net Margin is the ratio between net income
and total income or, in other words, the share
of total income that is net income. Net margin
averaged 16.4 percent for all firms, 14.2
percent for large firms, 24.9 percent for
medium firms, and 7.7 percent for small firms.
Highly profitable firms had net margins
averaging 22.3 percent.

Rate of Return on Assets was calculated by
dividing net income by the value of total
assets. Return on assets averaged 18.8
percent for all firms, 19.6 percent for large
firms, 30.6 percent for medium firms, and 4.7
percent for small firms. Highly profitable firms
had an average return on assets of 28.6
percent.


Rate of Return on Net Worth is the most
comprehensive measure of profitability and
takes into account the financial risk embodied
in the leverage factor (see below). It is
comparable to annualized yields on stocks,
bonds, or savings deposits. Return on net
worth was calculated as the ratio of net income
to net worth. Return on net worth averaged
34.7 percent for all firms, 41.6 percent for large
firms, 48.9 percent for medium firms, and 7.8
percent for small firms. Highly profitable firms
averaged 44.8 percent rate of return on net
worth.









Table 5. Cost efficiency indicators for Florida cut foliage businesses, 1997.
Large Medium Small Highly
Cost category All firms firms firms firms pfirsb
Costs as Percentage of Total Sales
Employee labor 41% 42% 35% 46% 37%
Materials 13% 14% 12% 11% 11%
Finished plants 18% 20% 17% 12% 23%
Facility & equipment 3% 3% 3% 5% 3%
Overhead 12% 12% 12% 11% 8%
Capital costs 7% 7% 5% 13% 5%
Management/owner compensation 5% 4% 5% 9% 5%
Costs per Acre of Production Area (thousands $)
Employee labor 8.2 10.6 5.8 6.4 8.5
Materials 2.6 3.5 1.9 1.6 2.6
Facility & equipment 0.6 0.7 0.5 0.7 0.6
Overhead 2.3 2.9 2.1 1.5 1.8
Capital costs 1.5 1.8 0.8 1.8 1.1
Management/owner compensation 1.0 1.0 0.9 1.2 1.2
Total Costs 16.2 20.5 12.1 13.3 15.9


Net Returns and Profitability

Net Firm Income is the difference between
total income and total costs except
management's (owners') compensation. Net
firm income averaged $166K for all firms and
ranged from $339K for large firms to $24K for
small firms (Table 6). Net income for highly
profitable firms averaged $217K.

Net Margin is the ratio between net income
and total income or, in other words, the share
of total income that is net income. Net margin
averaged 16.4 percent for all firms, 14.2
percent for large firms, 24.9 percent for
medium firms, and 7.7 percent for small firms.
Highly profitable firms had net margins
averaging 22.3 percent.

Rate of Return on Assets was calculated by
dividing net income by the value of total
assets. Return on assets averaged 18.8
percent for all firms, 19.6 percent for large
firms, 30.6 percent for medium firms, and 4.7
percent for small firms. Highly profitable firms
had an average return on assets of 28.6
percent.


Rate of Return on Net Worth is the most
comprehensive measure of profitability and
takes into account the financial risk embodied
in the leverage factor (see below). It is
comparable to annualized yields on stocks,
bonds, or savings deposits. Return on net
worth was calculated as the ratio of net income
to net worth. Return on net worth averaged
34.7 percent for all firms, 41.6 percent for large
firms, 48.9 percent for medium firms, and 7.8
percent for small firms. Highly profitable firms
averaged 44.8 percent rate of return on net
worth.









Table 5. Cost efficiency indicators for Florida cut foliage businesses, 1997.
Large Medium Small Highly
Cost category All firms firms firms firms pfirsb
Costs as Percentage of Total Sales
Employee labor 41% 42% 35% 46% 37%
Materials 13% 14% 12% 11% 11%
Finished plants 18% 20% 17% 12% 23%
Facility & equipment 3% 3% 3% 5% 3%
Overhead 12% 12% 12% 11% 8%
Capital costs 7% 7% 5% 13% 5%
Management/owner compensation 5% 4% 5% 9% 5%
Costs per Acre of Production Area (thousands $)
Employee labor 8.2 10.6 5.8 6.4 8.5
Materials 2.6 3.5 1.9 1.6 2.6
Facility & equipment 0.6 0.7 0.5 0.7 0.6
Overhead 2.3 2.9 2.1 1.5 1.8
Capital costs 1.5 1.8 0.8 1.8 1.1
Management/owner compensation 1.0 1.0 0.9 1.2 1.2
Total Costs 16.2 20.5 12.1 13.3 15.9


Net Returns and Profitability

Net Firm Income is the difference between
total income and total costs except
management's (owners') compensation. Net
firm income averaged $166K for all firms and
ranged from $339K for large firms to $24K for
small firms (Table 6). Net income for highly
profitable firms averaged $217K.

Net Margin is the ratio between net income
and total income or, in other words, the share
of total income that is net income. Net margin
averaged 16.4 percent for all firms, 14.2
percent for large firms, 24.9 percent for
medium firms, and 7.7 percent for small firms.
Highly profitable firms had net margins
averaging 22.3 percent.

Rate of Return on Assets was calculated by
dividing net income by the value of total
assets. Return on assets averaged 18.8
percent for all firms, 19.6 percent for large
firms, 30.6 percent for medium firms, and 4.7
percent for small firms. Highly profitable firms
had an average return on assets of 28.6
percent.


Rate of Return on Net Worth is the most
comprehensive measure of profitability and
takes into account the financial risk embodied
in the leverage factor (see below). It is
comparable to annualized yields on stocks,
bonds, or savings deposits. Return on net
worth was calculated as the ratio of net income
to net worth. Return on net worth averaged
34.7 percent for all firms, 41.6 percent for large
firms, 48.9 percent for medium firms, and 7.8
percent for small firms. Highly profitable firms
averaged 44.8 percent rate of return on net
worth.









Table 5. Cost efficiency indicators for Florida cut foliage businesses, 1997.
Large Medium Small Highly
Cost category All firms firms firms firms pfirsb
Costs as Percentage of Total Sales
Employee labor 41% 42% 35% 46% 37%
Materials 13% 14% 12% 11% 11%
Finished plants 18% 20% 17% 12% 23%
Facility & equipment 3% 3% 3% 5% 3%
Overhead 12% 12% 12% 11% 8%
Capital costs 7% 7% 5% 13% 5%
Management/owner compensation 5% 4% 5% 9% 5%
Costs per Acre of Production Area (thousands $)
Employee labor 8.2 10.6 5.8 6.4 8.5
Materials 2.6 3.5 1.9 1.6 2.6
Facility & equipment 0.6 0.7 0.5 0.7 0.6
Overhead 2.3 2.9 2.1 1.5 1.8
Capital costs 1.5 1.8 0.8 1.8 1.1
Management/owner compensation 1.0 1.0 0.9 1.2 1.2
Total Costs 16.2 20.5 12.1 13.3 15.9


Net Returns and Profitability

Net Firm Income is the difference between
total income and total costs except
management's (owners') compensation. Net
firm income averaged $166K for all firms and
ranged from $339K for large firms to $24K for
small firms (Table 6). Net income for highly
profitable firms averaged $217K.

Net Margin is the ratio between net income
and total income or, in other words, the share
of total income that is net income. Net margin
averaged 16.4 percent for all firms, 14.2
percent for large firms, 24.9 percent for
medium firms, and 7.7 percent for small firms.
Highly profitable firms had net margins
averaging 22.3 percent.

Rate of Return on Assets was calculated by
dividing net income by the value of total
assets. Return on assets averaged 18.8
percent for all firms, 19.6 percent for large
firms, 30.6 percent for medium firms, and 4.7
percent for small firms. Highly profitable firms
had an average return on assets of 28.6
percent.


Rate of Return on Net Worth is the most
comprehensive measure of profitability and
takes into account the financial risk embodied
in the leverage factor (see below). It is
comparable to annualized yields on stocks,
bonds, or savings deposits. Return on net
worth was calculated as the ratio of net income
to net worth. Return on net worth averaged
34.7 percent for all firms, 41.6 percent for large
firms, 48.9 percent for medium firms, and 7.8
percent for small firms. Highly profitable firms
averaged 44.8 percent rate of return on net
worth.









Table 5. Cost efficiency indicators for Florida cut foliage businesses, 1997.
Large Medium Small Highly
Cost category All firms firms firms firms pfirsb
Costs as Percentage of Total Sales
Employee labor 41% 42% 35% 46% 37%
Materials 13% 14% 12% 11% 11%
Finished plants 18% 20% 17% 12% 23%
Facility & equipment 3% 3% 3% 5% 3%
Overhead 12% 12% 12% 11% 8%
Capital costs 7% 7% 5% 13% 5%
Management/owner compensation 5% 4% 5% 9% 5%
Costs per Acre of Production Area (thousands $)
Employee labor 8.2 10.6 5.8 6.4 8.5
Materials 2.6 3.5 1.9 1.6 2.6
Facility & equipment 0.6 0.7 0.5 0.7 0.6
Overhead 2.3 2.9 2.1 1.5 1.8
Capital costs 1.5 1.8 0.8 1.8 1.1
Management/owner compensation 1.0 1.0 0.9 1.2 1.2
Total Costs 16.2 20.5 12.1 13.3 15.9


Net Returns and Profitability

Net Firm Income is the difference between
total income and total costs except
management's (owners') compensation. Net
firm income averaged $166K for all firms and
ranged from $339K for large firms to $24K for
small firms (Table 6). Net income for highly
profitable firms averaged $217K.

Net Margin is the ratio between net income
and total income or, in other words, the share
of total income that is net income. Net margin
averaged 16.4 percent for all firms, 14.2
percent for large firms, 24.9 percent for
medium firms, and 7.7 percent for small firms.
Highly profitable firms had net margins
averaging 22.3 percent.

Rate of Return on Assets was calculated by
dividing net income by the value of total
assets. Return on assets averaged 18.8
percent for all firms, 19.6 percent for large
firms, 30.6 percent for medium firms, and 4.7
percent for small firms. Highly profitable firms
had an average return on assets of 28.6
percent.


Rate of Return on Net Worth is the most
comprehensive measure of profitability and
takes into account the financial risk embodied
in the leverage factor (see below). It is
comparable to annualized yields on stocks,
bonds, or savings deposits. Return on net
worth was calculated as the ratio of net income
to net worth. Return on net worth averaged
34.7 percent for all firms, 41.6 percent for large
firms, 48.9 percent for medium firms, and 7.8
percent for small firms. Highly profitable firms
averaged 44.8 percent rate of return on net
worth.







Table 6. Net returns and profitability for Florida cut foliage businesses, 1997
Large Medium Small Highly
Measure All firms firms firms firms profitable
firms
Net Income: total income less total costs
except management's compensation 166 339 213 24 217
(thousands $)
Net Margin: ratio of net income to total 16.4% 14.2% 24.9% 7.7% 22.3%
income
Return on Assets: ratio of net income to 18.8% 19.6% 30.6% 4.7% 28.6%
total assets
Return on Net Worth: ratio of net income 34.7% 41.6% 48.9% 7.% 44.8%
to net worth


Balance Sheet and Financial Ratios

Assets and liabilities were taken to represent
the mid-year financial position of firms,
calculated as an average of beginning and
ending balance sheet values as summarized in
Table 7.

Assets. Total assets averaged $883K for all
firms and ranged from $1.73M for large firms
to $524K for small firms. Current
assets-including cash on hand, accounts
receivable, and plant and supply
inventories-averaged $482K for all firms and
ranged from $957K for large firms to $253K for
small firms. Long-term assets-including
investments in buildings, machinery, land and
accumulated depreciation-averaged $401K
for all firms and ranged from $776K for large
firms to $271K for small firms.

Liabilities. Total liabilities averaged $405K for
all firms and ranged from $919K for large firms
to $212K for small firms. Current liabilities,
including accounts payable and other liabilities
payable within one year, averaged $102K for
all firms and ranged from $361K for large firms
to $15K for medium and small firms. Long-
term liabilities, including notes payable and
mortgages, averaged $303K for all firms and
ranged from $557K for large firms to $198K for
small firms.

Net Worth. Net worth or equity is the
difference between total assets and total
liabilities and represents the value of the
owners' share of assets. Net worth averaged
$478K for all firms and ranged from $814K for


large firms to $312K for small firms.

Leverage. This measure expresses the ratio
between total assets and net worth and is an
indicator of long-term solvency. Higher values
indicate greater risk, with potential for greater
returns and greater losses. The leverage ratio
averaged 1.85 for all firms, 2.13 for large firms,
1.60 for medium firms, 1.68 for small firms,
and 1.57 for highly profitable firms (Table 8).
Generally, leverage factors below 1.0 are
considered to represent a very safe financial
position. The impact of financial leverage on
profitability can be understood as a multiplier:
leverage multiplied by the rate of return to
capital assets equals the rate of return on net
worth.

Quick Ratio. The quick ratio is a measure of
a firm's ability to meet short-term debts. It was
calculated by dividing cash and accounts
receivable by current liabilities. Cash and
accounts receivable are the most liquid of
current assets, which are usually available on
short notice, but inventories are not included in
this measure because they may not be
immediately salable. A value for this ratio
below 1.0 would indicate an illiquid position.
The quick ratio averaged 1.18 for all firms,
4.08 for small firms, 5.53 for medium firms,
and 0.74 for large firms. Highly profitable firms
had a quick ratio of 1.90.







Table 6. Net returns and profitability for Florida cut foliage businesses, 1997
Large Medium Small Highly
Measure All firms firms firms firms profitable
firms
Net Income: total income less total costs
except management's compensation 166 339 213 24 217
(thousands $)
Net Margin: ratio of net income to total 16.4% 14.2% 24.9% 7.7% 22.3%
income
Return on Assets: ratio of net income to 18.8% 19.6% 30.6% 4.7% 28.6%
total assets
Return on Net Worth: ratio of net income 34.7% 41.6% 48.9% 7.% 44.8%
to net worth


Balance Sheet and Financial Ratios

Assets and liabilities were taken to represent
the mid-year financial position of firms,
calculated as an average of beginning and
ending balance sheet values as summarized in
Table 7.

Assets. Total assets averaged $883K for all
firms and ranged from $1.73M for large firms
to $524K for small firms. Current
assets-including cash on hand, accounts
receivable, and plant and supply
inventories-averaged $482K for all firms and
ranged from $957K for large firms to $253K for
small firms. Long-term assets-including
investments in buildings, machinery, land and
accumulated depreciation-averaged $401K
for all firms and ranged from $776K for large
firms to $271K for small firms.

Liabilities. Total liabilities averaged $405K for
all firms and ranged from $919K for large firms
to $212K for small firms. Current liabilities,
including accounts payable and other liabilities
payable within one year, averaged $102K for
all firms and ranged from $361K for large firms
to $15K for medium and small firms. Long-
term liabilities, including notes payable and
mortgages, averaged $303K for all firms and
ranged from $557K for large firms to $198K for
small firms.

Net Worth. Net worth or equity is the
difference between total assets and total
liabilities and represents the value of the
owners' share of assets. Net worth averaged
$478K for all firms and ranged from $814K for


large firms to $312K for small firms.

Leverage. This measure expresses the ratio
between total assets and net worth and is an
indicator of long-term solvency. Higher values
indicate greater risk, with potential for greater
returns and greater losses. The leverage ratio
averaged 1.85 for all firms, 2.13 for large firms,
1.60 for medium firms, 1.68 for small firms,
and 1.57 for highly profitable firms (Table 8).
Generally, leverage factors below 1.0 are
considered to represent a very safe financial
position. The impact of financial leverage on
profitability can be understood as a multiplier:
leverage multiplied by the rate of return to
capital assets equals the rate of return on net
worth.

Quick Ratio. The quick ratio is a measure of
a firm's ability to meet short-term debts. It was
calculated by dividing cash and accounts
receivable by current liabilities. Cash and
accounts receivable are the most liquid of
current assets, which are usually available on
short notice, but inventories are not included in
this measure because they may not be
immediately salable. A value for this ratio
below 1.0 would indicate an illiquid position.
The quick ratio averaged 1.18 for all firms,
4.08 for small firms, 5.53 for medium firms,
and 0.74 for large firms. Highly profitable firms
had a quick ratio of 1.90.







Table 6. Net returns and profitability for Florida cut foliage businesses, 1997
Large Medium Small Highly
Measure All firms firms firms firms profitable
firms
Net Income: total income less total costs
except management's compensation 166 339 213 24 217
(thousands $)
Net Margin: ratio of net income to total 16.4% 14.2% 24.9% 7.7% 22.3%
income
Return on Assets: ratio of net income to 18.8% 19.6% 30.6% 4.7% 28.6%
total assets
Return on Net Worth: ratio of net income 34.7% 41.6% 48.9% 7.% 44.8%
to net worth


Balance Sheet and Financial Ratios

Assets and liabilities were taken to represent
the mid-year financial position of firms,
calculated as an average of beginning and
ending balance sheet values as summarized in
Table 7.

Assets. Total assets averaged $883K for all
firms and ranged from $1.73M for large firms
to $524K for small firms. Current
assets-including cash on hand, accounts
receivable, and plant and supply
inventories-averaged $482K for all firms and
ranged from $957K for large firms to $253K for
small firms. Long-term assets-including
investments in buildings, machinery, land and
accumulated depreciation-averaged $401K
for all firms and ranged from $776K for large
firms to $271K for small firms.

Liabilities. Total liabilities averaged $405K for
all firms and ranged from $919K for large firms
to $212K for small firms. Current liabilities,
including accounts payable and other liabilities
payable within one year, averaged $102K for
all firms and ranged from $361K for large firms
to $15K for medium and small firms. Long-
term liabilities, including notes payable and
mortgages, averaged $303K for all firms and
ranged from $557K for large firms to $198K for
small firms.

Net Worth. Net worth or equity is the
difference between total assets and total
liabilities and represents the value of the
owners' share of assets. Net worth averaged
$478K for all firms and ranged from $814K for


large firms to $312K for small firms.

Leverage. This measure expresses the ratio
between total assets and net worth and is an
indicator of long-term solvency. Higher values
indicate greater risk, with potential for greater
returns and greater losses. The leverage ratio
averaged 1.85 for all firms, 2.13 for large firms,
1.60 for medium firms, 1.68 for small firms,
and 1.57 for highly profitable firms (Table 8).
Generally, leverage factors below 1.0 are
considered to represent a very safe financial
position. The impact of financial leverage on
profitability can be understood as a multiplier:
leverage multiplied by the rate of return to
capital assets equals the rate of return on net
worth.

Quick Ratio. The quick ratio is a measure of
a firm's ability to meet short-term debts. It was
calculated by dividing cash and accounts
receivable by current liabilities. Cash and
accounts receivable are the most liquid of
current assets, which are usually available on
short notice, but inventories are not included in
this measure because they may not be
immediately salable. A value for this ratio
below 1.0 would indicate an illiquid position.
The quick ratio averaged 1.18 for all firms,
4.08 for small firms, 5.53 for medium firms,
and 0.74 for large firms. Highly profitable firms
had a quick ratio of 1.90.







Table 6. Net returns and profitability for Florida cut foliage businesses, 1997
Large Medium Small Highly
Measure All firms firms firms firms profitable
firms
Net Income: total income less total costs
except management's compensation 166 339 213 24 217
(thousands $)
Net Margin: ratio of net income to total 16.4% 14.2% 24.9% 7.7% 22.3%
income
Return on Assets: ratio of net income to 18.8% 19.6% 30.6% 4.7% 28.6%
total assets
Return on Net Worth: ratio of net income 34.7% 41.6% 48.9% 7.% 44.8%
to net worth


Balance Sheet and Financial Ratios

Assets and liabilities were taken to represent
the mid-year financial position of firms,
calculated as an average of beginning and
ending balance sheet values as summarized in
Table 7.

Assets. Total assets averaged $883K for all
firms and ranged from $1.73M for large firms
to $524K for small firms. Current
assets-including cash on hand, accounts
receivable, and plant and supply
inventories-averaged $482K for all firms and
ranged from $957K for large firms to $253K for
small firms. Long-term assets-including
investments in buildings, machinery, land and
accumulated depreciation-averaged $401K
for all firms and ranged from $776K for large
firms to $271K for small firms.

Liabilities. Total liabilities averaged $405K for
all firms and ranged from $919K for large firms
to $212K for small firms. Current liabilities,
including accounts payable and other liabilities
payable within one year, averaged $102K for
all firms and ranged from $361K for large firms
to $15K for medium and small firms. Long-
term liabilities, including notes payable and
mortgages, averaged $303K for all firms and
ranged from $557K for large firms to $198K for
small firms.

Net Worth. Net worth or equity is the
difference between total assets and total
liabilities and represents the value of the
owners' share of assets. Net worth averaged
$478K for all firms and ranged from $814K for


large firms to $312K for small firms.

Leverage. This measure expresses the ratio
between total assets and net worth and is an
indicator of long-term solvency. Higher values
indicate greater risk, with potential for greater
returns and greater losses. The leverage ratio
averaged 1.85 for all firms, 2.13 for large firms,
1.60 for medium firms, 1.68 for small firms,
and 1.57 for highly profitable firms (Table 8).
Generally, leverage factors below 1.0 are
considered to represent a very safe financial
position. The impact of financial leverage on
profitability can be understood as a multiplier:
leverage multiplied by the rate of return to
capital assets equals the rate of return on net
worth.

Quick Ratio. The quick ratio is a measure of
a firm's ability to meet short-term debts. It was
calculated by dividing cash and accounts
receivable by current liabilities. Cash and
accounts receivable are the most liquid of
current assets, which are usually available on
short notice, but inventories are not included in
this measure because they may not be
immediately salable. A value for this ratio
below 1.0 would indicate an illiquid position.
The quick ratio averaged 1.18 for all firms,
4.08 for small firms, 5.53 for medium firms,
and 0.74 for large firms. Highly profitable firms
had a quick ratio of 1.90.







Table 6. Net returns and profitability for Florida cut foliage businesses, 1997
Large Medium Small Highly
Measure All firms firms firms firms profitable
firms
Net Income: total income less total costs
except management's compensation 166 339 213 24 217
(thousands $)
Net Margin: ratio of net income to total 16.4% 14.2% 24.9% 7.7% 22.3%
income
Return on Assets: ratio of net income to 18.8% 19.6% 30.6% 4.7% 28.6%
total assets
Return on Net Worth: ratio of net income 34.7% 41.6% 48.9% 7.% 44.8%
to net worth


Balance Sheet and Financial Ratios

Assets and liabilities were taken to represent
the mid-year financial position of firms,
calculated as an average of beginning and
ending balance sheet values as summarized in
Table 7.

Assets. Total assets averaged $883K for all
firms and ranged from $1.73M for large firms
to $524K for small firms. Current
assets-including cash on hand, accounts
receivable, and plant and supply
inventories-averaged $482K for all firms and
ranged from $957K for large firms to $253K for
small firms. Long-term assets-including
investments in buildings, machinery, land and
accumulated depreciation-averaged $401K
for all firms and ranged from $776K for large
firms to $271K for small firms.

Liabilities. Total liabilities averaged $405K for
all firms and ranged from $919K for large firms
to $212K for small firms. Current liabilities,
including accounts payable and other liabilities
payable within one year, averaged $102K for
all firms and ranged from $361K for large firms
to $15K for medium and small firms. Long-
term liabilities, including notes payable and
mortgages, averaged $303K for all firms and
ranged from $557K for large firms to $198K for
small firms.

Net Worth. Net worth or equity is the
difference between total assets and total
liabilities and represents the value of the
owners' share of assets. Net worth averaged
$478K for all firms and ranged from $814K for


large firms to $312K for small firms.

Leverage. This measure expresses the ratio
between total assets and net worth and is an
indicator of long-term solvency. Higher values
indicate greater risk, with potential for greater
returns and greater losses. The leverage ratio
averaged 1.85 for all firms, 2.13 for large firms,
1.60 for medium firms, 1.68 for small firms,
and 1.57 for highly profitable firms (Table 8).
Generally, leverage factors below 1.0 are
considered to represent a very safe financial
position. The impact of financial leverage on
profitability can be understood as a multiplier:
leverage multiplied by the rate of return to
capital assets equals the rate of return on net
worth.

Quick Ratio. The quick ratio is a measure of
a firm's ability to meet short-term debts. It was
calculated by dividing cash and accounts
receivable by current liabilities. Cash and
accounts receivable are the most liquid of
current assets, which are usually available on
short notice, but inventories are not included in
this measure because they may not be
immediately salable. A value for this ratio
below 1.0 would indicate an illiquid position.
The quick ratio averaged 1.18 for all firms,
4.08 for small firms, 5.53 for medium firms,
and 0.74 for large firms. Highly profitable firms
had a quick ratio of 1.90.







Table 6. Net returns and profitability for Florida cut foliage businesses, 1997
Large Medium Small Highly
Measure All firms firms firms firms profitable
firms
Net Income: total income less total costs
except management's compensation 166 339 213 24 217
(thousands $)
Net Margin: ratio of net income to total 16.4% 14.2% 24.9% 7.7% 22.3%
income
Return on Assets: ratio of net income to 18.8% 19.6% 30.6% 4.7% 28.6%
total assets
Return on Net Worth: ratio of net income 34.7% 41.6% 48.9% 7.% 44.8%
to net worth


Balance Sheet and Financial Ratios

Assets and liabilities were taken to represent
the mid-year financial position of firms,
calculated as an average of beginning and
ending balance sheet values as summarized in
Table 7.

Assets. Total assets averaged $883K for all
firms and ranged from $1.73M for large firms
to $524K for small firms. Current
assets-including cash on hand, accounts
receivable, and plant and supply
inventories-averaged $482K for all firms and
ranged from $957K for large firms to $253K for
small firms. Long-term assets-including
investments in buildings, machinery, land and
accumulated depreciation-averaged $401K
for all firms and ranged from $776K for large
firms to $271K for small firms.

Liabilities. Total liabilities averaged $405K for
all firms and ranged from $919K for large firms
to $212K for small firms. Current liabilities,
including accounts payable and other liabilities
payable within one year, averaged $102K for
all firms and ranged from $361K for large firms
to $15K for medium and small firms. Long-
term liabilities, including notes payable and
mortgages, averaged $303K for all firms and
ranged from $557K for large firms to $198K for
small firms.

Net Worth. Net worth or equity is the
difference between total assets and total
liabilities and represents the value of the
owners' share of assets. Net worth averaged
$478K for all firms and ranged from $814K for


large firms to $312K for small firms.

Leverage. This measure expresses the ratio
between total assets and net worth and is an
indicator of long-term solvency. Higher values
indicate greater risk, with potential for greater
returns and greater losses. The leverage ratio
averaged 1.85 for all firms, 2.13 for large firms,
1.60 for medium firms, 1.68 for small firms,
and 1.57 for highly profitable firms (Table 8).
Generally, leverage factors below 1.0 are
considered to represent a very safe financial
position. The impact of financial leverage on
profitability can be understood as a multiplier:
leverage multiplied by the rate of return to
capital assets equals the rate of return on net
worth.

Quick Ratio. The quick ratio is a measure of
a firm's ability to meet short-term debts. It was
calculated by dividing cash and accounts
receivable by current liabilities. Cash and
accounts receivable are the most liquid of
current assets, which are usually available on
short notice, but inventories are not included in
this measure because they may not be
immediately salable. A value for this ratio
below 1.0 would indicate an illiquid position.
The quick ratio averaged 1.18 for all firms,
4.08 for small firms, 5.53 for medium firms,
and 0.74 for large firms. Highly profitable firms
had a quick ratio of 1.90.










Table 7. Assets, liabilities and net worth for Florida cut foliage businesses, 1997.
All Large Medium Small prighly
firms firms firms firms profitable
firms
thousands dollars
Assets Cash on hand 26 33 20 26 20
Accounts receivable 94 233 65 34 76
Plant inventory value 348 660 319 185 322
Supply inventory value 13 30 8 8 10
Total current assets 482 957 412 253 429
Land* 212 341 158 177 205
Machinery & equipment* 173 375 140 78 156
Buildings & fixtures* 413 839 264 276 250
Accumulated depreciation (396) (780) (278) (260) (280)
Total long-term assets 401 776 284 271 331
Total Assets 883 1,732 695 524 760

Liabilities Current liabilities 102 361 15 15 51
Long-term liabilities 303 557 245 198 224
Total liabilities 405 919 260 212 275

Net Worth 478 814 435 312 485
Long-term assets valued at original cost.


Table 8. Financial ratios for Florida cut foliage businesses, 1997.
All Large Medium Small Highly
Ratio firms firms firms firms profitable
firms
Asset/debt ratio (total assets/total liabilities) 2.18 1.89 2.67 2.47 2.77
Asset depletion (current value/original cost long- 0.50 0.50 0.50 0.51 0.54
term assets)
Asset turnover ratio (sales/total assets) 1.15 1.38 1.23 0.60 1.28
Accounts receivable/sales 0.14 0.15 0.12 0.15 0.13
Current to long-term liabilities 0.34 0.65 0.06 0.07 0.23
Leverage factor (total assets/net worth) 1.85 2.13 1.60 1.68 1.57
Current ratio (cash on hand/current liabilities) 0.25 0.09 1.30 1.79 0.39
Quick ratio (cash & accounts receivable/current 1.18 0.74 5.53 4.08 1.90
liabilities)







Changes in Business Performance
Between 1996 and 1997

The 12 cut foliage firms analyzed in this report
also provided comparable information for the
previous year (1996). Changes in the
business analysis results between 1996 and
1997 for these 12 firms are summarized in
Table 9. In general, business conditions were
markedly improved, with net income and net
margin increasing by over 100 percent in spite
of a marginal decrease in total sales and
income. This was due to a significant
decrease in total expenses. Production area
increased while labor employed decreased
slightly. Total assets, total liabilities and net
worth were also decreased. Results for
production efficiency indicators were mixed,
with own product sales per acre increasing
while sales per FTE decreased an equivalent
amount.
Table 9. Changes in business indicators for
12 cut foliage businesses in Florida from 1996
to 1997.
Percentage
Measure change 1996
to 1997
Total Sales -8.2
Total Income -1.7
Production Area (acres) 7.9
Labor Employed (FTE) -1.6
Sales per FTE -6.6
Own Product Sales per Acre 6.6
Total Expenses -11.6
Total Assets -11.0
Total Liabilities -3.6
Net Worth -16.5
Net Income 108.4
Net Margin 111.9
Rate of Return on Net Worth 149.6


REFERENCES

Hodges, A.W., L.N. Satterthwaite and J.J.
Haydu. 1998. Business Analysis of Cut
Foliage Businesses in Florida, 1996.
Economic Information Report EIR98-2.
University of Florida, Food & Resource
Economics Department, Gainesville.

Hodges, A.W., L.N. Satterthwaite and J.J.
Haydu. 1997. Business Analysis of
Ornamental Plant Nurseries in Florida,
1995. Economic Information Report EIR97-
3. University of Florida, Food & Resource
Economics Department, Gainesville.

National Agricultural Statistics Service. 1998.
Floricultural Crops 1997 Summary. Sp Cr
6-1(97). U.S. Department of Agriculture,
Washington, D.C.

National Agricultural Statistics Service. 1999.
Census of Agriculture, 1997, Vol. 1,
Geographic Area Series, Part 9, Florida
State and County Data, AC97-A-9. U.S.
Department of Agriculture, Washington, DC.

Stamps, R.H. and C.A. Conover. 1986. Cut
foliage production in Florida. HortScience
21(2):177-178, 343.







Changes in Business Performance
Between 1996 and 1997

The 12 cut foliage firms analyzed in this report
also provided comparable information for the
previous year (1996). Changes in the
business analysis results between 1996 and
1997 for these 12 firms are summarized in
Table 9. In general, business conditions were
markedly improved, with net income and net
margin increasing by over 100 percent in spite
of a marginal decrease in total sales and
income. This was due to a significant
decrease in total expenses. Production area
increased while labor employed decreased
slightly. Total assets, total liabilities and net
worth were also decreased. Results for
production efficiency indicators were mixed,
with own product sales per acre increasing
while sales per FTE decreased an equivalent
amount.
Table 9. Changes in business indicators for
12 cut foliage businesses in Florida from 1996
to 1997.
Percentage
Measure change 1996
to 1997
Total Sales -8.2
Total Income -1.7
Production Area (acres) 7.9
Labor Employed (FTE) -1.6
Sales per FTE -6.6
Own Product Sales per Acre 6.6
Total Expenses -11.6
Total Assets -11.0
Total Liabilities -3.6
Net Worth -16.5
Net Income 108.4
Net Margin 111.9
Rate of Return on Net Worth 149.6


REFERENCES

Hodges, A.W., L.N. Satterthwaite and J.J.
Haydu. 1998. Business Analysis of Cut
Foliage Businesses in Florida, 1996.
Economic Information Report EIR98-2.
University of Florida, Food & Resource
Economics Department, Gainesville.

Hodges, A.W., L.N. Satterthwaite and J.J.
Haydu. 1997. Business Analysis of
Ornamental Plant Nurseries in Florida,
1995. Economic Information Report EIR97-
3. University of Florida, Food & Resource
Economics Department, Gainesville.

National Agricultural Statistics Service. 1998.
Floricultural Crops 1997 Summary. Sp Cr
6-1(97). U.S. Department of Agriculture,
Washington, D.C.

National Agricultural Statistics Service. 1999.
Census of Agriculture, 1997, Vol. 1,
Geographic Area Series, Part 9, Florida
State and County Data, AC97-A-9. U.S.
Department of Agriculture, Washington, DC.

Stamps, R.H. and C.A. Conover. 1986. Cut
foliage production in Florida. HortScience
21(2):177-178, 343.










APPENDIX
Florida Cut Foliage Business Analysis Worksheet

With information requested by this form, the University of Florida will perform an analysis of your firm,
and provide you with a report comparing your business with averages for similar firms in the program.
This analysis will include efficiency indicators for use of land (space), labor and capital, costs of
production, net income, financial position and profitability. Your information will be kept strictly
confidential, but will be used anonymously for compilation of industry averages.

General Instructions

The data submitted should be for the most recently completed accounting year. In order to perform a
correct analysis, information must be provided for all sections of the worksheet. Or, you may submit a
financial statement, and fill in only those sections not covered by the statement (sections 4, 5 and 7, and
possibly part of section 2). You may also authorize an accountant to fill out the form for you.

When completed, return this worksheet to:

Loretta Satterthwaite, Senior Statistician
University of Florida, Institute of Food and Agricultural Sciences
Central Florida Research and Education Center- Apopka
2725 S. Binion Rd.
Apopka, FL 32703-8504
tel: 407/884-2034 x160; fax: 407/814-6186
e-mail: LNS@gnv.ifas.ufl.edu


1 General Information

Firm Name Fiscal Year
Owner/Contact Person Month Ended
Location/Street Address County
City Zip Telephone (

Today's date

la. Crops Grown (percentage of sales): % leatherleaf % tree fern

other (please specify crops and percentages below)








2. Income

A. Total crop sales ....


Jan $

Feb $

Mar $

Qtr $


......................... .... $

By month or quarter

Apr $ July $

May $ Aug $

June $ Sep $

Qtr $ Qtr $


Value of crops resold from outside purchases1

Value of crop from off-site production1 .......

Miscellaneous income ...................


. . . . . $

. . . . . $

. . . . . $


3. Fiscal Year Information


Beginning Balance


Ending Balance


Value of Supplies in Inventory .............

Value of Plants in Inventory2 (includes cooler) .

Original Cost of Land Owned ..............

Current Assets, including Accounts Receivable3

Cash on Hand .........................

Current Liabilities, including Accounts Payable

Long-Term Debt4 .......................


4. Current Market Value of Leased Property5


Beginning Balance


Ending Balance


Current Value of Land Leased .............

Value of Machinery and Equipment Leased ...

Value of Buildings/Installations Leased ......


This amount will be deducted from total sales to give net company-produced crop sales. Outside purchases are from other growers;
off-site production means owned, but not included in acreage or expenses.
2 Plant inventory valued at wholesale price, adjusted for percentage of completion of crops in production. For example, if fernery has
even turnover, inventory averages 50% finished, so inventory value would be the wholesale price discounted 50%.
3 Current assets less cash on hand, item E.
4 Debt due beyond the current fiscal year, including mortgages and notes payable. Debt to officers in closely held (family) corporations
(which is more like a capital investment by the owners than a debt) normally is not included.
5 Assets leased to closely held (family) corporation by stockholders may be treated, at the participant's option, either as leased capital
(this section) or as owned capital (sections 3 and 6).


Oct $

Nov $

Dec $

Qtr $


I


I I I I I ] r ] 1 I I i











5. Production Area

Enter acreage in use at beginning and end of fiscal year for:
Beginning of Year Ending of Year

A. Total farm area (owned & leased) ............

B. Production area (shade & hammock)7 . . ..

C. Acreage renovated this year .................




6. Capital Assets and Depreciation8
Original Cost Accumulated Depreciation
Depreciation this year

A. Machinery & Equipment ...... $_ $ $

B. Buildings & Installations0 ...... $ $ $

Total ........................ $ $ $




7. Work Time"

Total Payroll Hours or Full-time Equivalents

A. Hourly workers.........................
B. Non-hourly workers ......................

Total ..................................



6 All area used for fernery, including roads, offices, packing sheds and parking, as well as growing areas.
7 Net growing area, excluding driveways, walkways, and other non-productive space. Use the facing page as a workspace for listing,
if needed.
8 A depreciation schedule or detailed balance sheet may be submitted in lieu of filling out this section. Use separate sheet to list items,
if needed.
9 Equipment used specifically for business operations. If unsure about proper category for any item, please list it on the facing page.
10 Includes land improvements, wells, irrigation, fences, paving, office furniture and office equipment, as well as buildings.
11 Enter total hours for all workers, including casual labor, part-time labor, piece-work laborers, clerical, salespersons, family members,
and managerss. For non-hourly workers or in cases where records are not available, time may be estimated in terms of full-time
equivalents (2,080 hours/year; 52 weeks @ 40 hours/week).








8. Expenses12
A. Operator's salary or time value" ...............................$
B. Employees' salaries, wages, payroll taxes, and benefits ............. $


production wages


FICA


others (salaried)


unemp. taxes


sales commissions


workers' comp.


health insurance


other


C. Plants and seeds for growing ...........................
D. Fuel for production ...................................
E. Fertilizer .........................................
F. Lim e .... ........................................
G Herbicides .... ....................................
H. Fungicides .........................................
I. Insecticides .......................................
J. N em aticides ........................................
K. Other chem icals .....................................
L. Packing & shipping supplies ............................
M. Other production supplies (ties, plastic, small tools) ..........
N. Facility repairs & maintenance (including shadehouse plastic) ..
O. Vehicle & equipment operating costs (including insurance & tags)
P. Travel, trade shows & entertainment ................... ...
Q. Insurance (property & liability, not employee or vehicle related) .


R. Communications (telephones, fax, radios)


Electric power .......................
Taxes (property, not sales), licenses, bonds
Advertising .........................
Rent (land & buildings) ................
Interest ............................
Other (itemize below, if available) ........


bank charges ...... $
dues & subscriptions $
freight ............ $
miscellaneous ..... $
$
$


. . . . . . $
. ..... ............... $
. . . . . . $
. . . . . . $
. . . . . . $
. . . . . . $
............. ..... $

postage ............. $
professional services .. $
office supplies ....... $
waste removal ....... $
$
_______ r $
.______$


12 A detailed statement of expenses may be submitted in lieu of filling-out this section.
13 This should reflect total value of compensation to owners) and/or managerss.


--


.