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Title: Strawberry budget analysis for west central Florida
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Permanent Link: http://ufdc.ufl.edu/UF00056151/00001
 Material Information
Title: Strawberry budget analysis for west central Florida
Translated Title: Bradenton AREC research report - UF Agricultural Research & Education Center ; BRA1983-10 ( English )
Physical Description: Book
Language: English
Creator: Prevatt, J. Walter
Publisher: Agricultural Research & Education Center, IFAS, University of Florida
Publication Date: 1983
 Subjects
Spatial Coverage: North America -- United States -- Florida -- West Central Florida
 Record Information
Bibliographic ID: UF00056151
Volume ID: VID00001
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 62507495

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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




F-)



SAgricultural Research & Education Center
IFAS, University of Florida
5007 60th Street East
Bradenton, Florida 33508-9324

Bradenton AREC Research Report BRA1983-10 April 1983


STRAWBERRY BUDGET ANALYSIS FOR WEST CENTRAL FLORIDA

J. W. Prevatt1


The 1982-83 crop year appears to be another year of belt tightening and
corner cutting for strawberry producers. Presently, it is something less than
a secret that things are tough, and without some drastic improvements in the
economy, they will remain tough this year. However, the prospects of a mod-
erate economic recovery during 1983 offer some"-e4couragement for an improvement
in the demand for agricultural products.

Regardless of what economic conditions develop, an enterprise budget is
a prerequisite for equipping a grower with the necessary information about
his operation for making decisions. Estimating strawberry operating and
ownership costs is a necessary management tool that will aid growers in making
many financial decisions. The development of this information enables growers
to estimate cost projections which may be used to plan credit needs before
planting the crop. Expected yields and production costs can be used to
evaluate marketing alternatives and break-even prices. A grower can compare
projected costs to records from previous crops to determine business perform-
ance and aid in planning future crops. In addition, enterprise budgets are
extremely useful when identifying cost items that may be reduced and/or more
effectively utilized.

Florida strawberry production acreage has fluctuated greatly during the
last two decades (Table 1). Currently, the total area planted to strawberries
in Florida for commercial production is among the highest ever. Resulting
from the increased number of acres being produced and the research and tech-
nological advances that have been realized in yield, the total number of flats
produced during 1981-82 surpassed 8 million (Fig. 1).

The value of Florida strawberries exceeded $52 million during the 1981-82
production season (this figure does not include processed and U-pick revenues).
The average value per flat during the last decade has varied between approx-
imately $4 and $7 per flat (Fig. 2).

The estimated operating and ownership costs per acre for strawberry
production in west central Florida during 1982-83 are reported in Table 2.
This information was developed with the assistance of participating growers,
extension specialists and researchers. Although an effort was made to
insure the accuracy of these budgets, the fact remains that individual
producers can do things differently (sometimes substantially). Because
of the wide variation of alternative inputs, locations and production
systems, it is important for each grower to develop his own budgets and
understand how to utilize them when making management decisions.



1Farm Management Economist










Estimated break-even prices to cover operating and ownership costs
were calculated for strawberry production during 1982-83, as shown in
Table 3. These break-even prices were computed by dividing the appropriate
costs by the estimated saleable yield. The break-even prices describe the
price per flat necessary to cover the various production costs associated
with a particular level of yield. Growers who estimate production costs
and yield will have the information necessary to make timely financial
decisions and evaluate marketing alternatives as they develop.










Table 1. Strawberries: acre, production, and value,
1960-61 through 1980-81.*


Florida, crop years


Yield Value
Crop Acreage per per Total
year planted harvested acre Production flat value
--- (Acres)------ (Flats)** (L,000 Flats) -($)- ($1,000)


1960-61 1,900 1,800


1961-62
1962-63
1963-64
1964-65
1965-66
1966-67
1967-68
1968-69
1969-70
1970-71
1971-72
1972-73
1973-74
1974-75
1975-76
1976-77
1977-78
1978-79
1979-80
1980-81
1981-82

* Source:


2,000
2,100
2,800
3,400
2,400
2,100
1,900
1,600
1,800
1,600
1,600
1,400
1,300
1,200
1,400
1,500
2,000
2,400
2,500
3,200
5,000


1,900
2,000
2,700
3,300
2,300
2,000
1,900
1,600
1,800
1,600
1,600
1,400
1,300
1,200
1,400
1,500
2,000
2,400
2,500
3,200
5,000


400
592
692
667
692
757
734
667
833
667
917
1,042
1,125
1,128
1,375
1,250
1,211
1,209
1,333
1,583
1,750
1,625


820
1,280
1,492
1,983
2,134
1,742
1,4674-'
1,267
1,333
1,200
1,467
1,667
1,575
1,467
1,650
1,750
1,817
2,417
3,200
3,958
5,600
8,125


Florida Agricultural Statistics: Vegetable


Summary, Florida Crop


and Livestock Reporting Service.


**12 pints.


3.75
4.06
3.95
4.06
3.78
3.97
3.95
3.46
3.91
5.53
4.19
3.79
5.16
4.57
5.08
5.06
4.93
6.89
6.92
7.06
4.98
6.44


2,812
4,740
5,683
7,455
7,678
6,918
5,790
4,378
5,216
4,234
6,142
6,320
8,127
6,706
8,375
8,862
8,960
16,646
22,157
27,930
27,888
52,358






































Product:


Acres


60-61 65-6



Florida Strawberries:


Production/
1,000 flats

S5,500


S5,000

- 4-00



S4,000


S3,500

3,000


2,500


-I_4 -1 I-- 1,
70-71 75-6 80-81



Harvested Acreage and Production
1960-61 1980-81.


Source: Florida Agricultural Statistics: Vegetable
Summary, Florida Crop and Livestock Reporting
Service


Harvested
acreage

3,500


3,000


2,500


2,000


1,500


1,000


Figure 1.


2,000


1,500


1,000





















Figure 2.

Total Value
$1,000
28000


26000

24000

22000


20000

18000


16000


14000

12000


10000

8000

6000


4000


2000


Florida Strawberries: Value 1955-56 1980-81.


Value per
flat

, 7.00


6.00



5.00





4.00




3.00




2.00




1.00


Source: Florida Agricultural Statistics: Vegetable Summary,
Florida Crop and Livestock Reporting Service






Table 2. Estimated operating and ownership costs per
central Florida, 1982-831.


acre for strawberry production, west


Quantity


Price/unit
of material


Price/
cross acre


I. Operating Ccsts


Pre-barvest
Dolcmite
Disk
Plant
Sorghum seec
Rotovate
Lay off rows
Press beds
Fertilizer
14-5-14
Fumiaate
Fumigant (MC-33)
Plastic
Labor (tranE-plants)
Transplants
Labor
Cultiv4ate
Spray
Captan (36 .ppl.)
Benlate (16 appl.)
Dibrom (6 arpi.)
Pliciran (6 appl.)
Phosdrin (12 appl.)
Remove plastic (labor)
Irrigation (elec.)
Interest


May
May
June
June
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Sept.
Oct.
Oct.
Nov.-May
Oct.-Apr.





May
Oct.-Apr.
May-Apr.


Ton
Acre
Acre
Pound
Acre
Acre
Acre
Acre
Ton
Acre
Pound
Thou. feet
Hour
Thousand
Hour
Acre
Acre
Pound
Pound
Gallon
Pound
Gallon
Hour
Acre
Dollar


0.33
2.00
1.00
50.00
2.00
1.00
1.00
1.00
1.50
1.00
175.00
11.00
4.00
23.00
40.00
3.00
36.00
*216.00
16.00
'1.25
-12..00
1.50
4.00
1.00
3,054.75


25.00
9.89
2.90
0.64
9.89
5.80
5.80
5.80
146.00
11.60
0.90
23.58
3.75
45.00
3.75
6.81
3.59
1.56
11.60
48.50
21.50
26.20
3.75
65.00
0.15


8.25
19.78
2.90
32.00
19.78
5.80
5.80
5.80
219.00
11.60
157.50
259.38
15.00
1,035.00
150.00
17.43
129.24
336.96
185.60
60.63
258.00
39.30
15.00
65.00
458.21
$3,512.96


Item


Month


Unit













Table 3. Estimated breakeven prices to cover operating and ownership
costs for strawberry production, west central Florida,
1982-83.


Operating costs Total
Saleable Harvest operating Ownership Total
yield/acre Preharvest & market costs costs costs

Flatsl --------------- Dollars per flat -------------------

1400 2.51 2.85 5.36-' 0.99 6.35

1600 2.20 2.85 5.05 0,87 5.92

1800 1.95 2.85 4.80 0.77 5.57

2000 1.76 2.85 4.61 0.69 5.30


1A flat is composed of 12 pints (10.25 lbs).






Table 2 continued

Harvest

Picking labcr
Labor benefits
Containers
Packing shed labor
Supervision
Transport


NarKeting

marketing charge2

II. Ownership Ccsts/A3


Dec.-Apr.


$/Flat

1.25
0.15
0.65
0.10
0.10
0.10
$2.35

$/Flat


Jan.-Apr.


$0.50

$1,387.00


1The estimated operating and ownership costs described in this table represent a rationalization
among sampled growers, extension specialists and researchers. Individual growers should estimate
their operating and ownership costs, since these costs differ widely among operations.
2Marketing charge is based on handling cost per flat which was approximately 10% of the market price.
3ownerslip costs include depreciation, insurance, repairs, taxes and interest on land and equipment
for strawberry production.




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