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 Copyright
 Per acre production costs
 Per carton production costs
 Conclusion
 Tables






Group Title: Research report - Bradenton Agricultural Research & Education Center - GC1974-10
Title: Production costs for Manatee-Ruskin staked tomatoes, 1974
CITATION PAGE IMAGE ZOOMABLE PAGE TEXT
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00067753/00001
 Material Information
Title: Production costs for Manatee-Ruskin staked tomatoes, 1974
Series Title: Bradenton AREC research report
Physical Description: 2 leaves : ; 28 cm.
Language: English
Creator: Levins, Richard A
Geraldson, C. M ( Carroll Morton ), 1918-
Agricultural Research & Education Center (Bradenton, Fla.)
Publisher: Agricultural Research & Education Center, IFAS, University of Florida
Place of Publication: Bradenton FL
Publication Date: 1974
 Subjects
Subject: Tomatoes -- Economic aspects -- Florida   ( lcsh )
Tomatoes -- Varieties -- Florida   ( lcsh )
Genre: government publication (state, provincial, terriorial, dependent)   ( marcgt )
non-fiction   ( marcgt )
 Notes
Statement of Responsibility: Richard A. Levins and C.M. Geraldson.
General Note: Caption title.
General Note: "November, 1974."
Funding: Florida Historical Agriculture and Rural Life
 Record Information
Bibliographic ID: UF00067753
Volume ID: VID00001
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 - 73268403

Table of Contents
    Copyright
        Copyright
    Per acre production costs
        Page 1
    Per carton production costs
        Page 2
    Conclusion
        Page 2
    Tables
        Page 3
        Page 4
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






6' c AGRICULTURAL RESEARCH & EDUCATION CENTER
"- IFAS, UNIVERSITY OF FLORIDA

BRADENTON AREC RESEARCH REPORT GC1974-10


November, 1974


PRODUCTION COSTS FOR MANATEE-RUSKIN STAKED TOMATOES, 1974


Richard A. Levins and C. M. Geraldson


A survey of
Florida was
tomatoes in
Table 1 and
picking and


several local tomato growers and researchers with the University of -"
recently conducted to estimate the costs involved in produce~ st ed
the Manatee-Ruskin area. The results of the survey are summarizedvif
show the costs to be $986.81 per net acre plus $1.00 per bushel for
hauling. ,.

PER ACRE PRODUCTION COSTS
PER ACRE PRODUCTION COSTS .... ( ':L,
'-------------- '


/-


All of the costs in Table 1 are based on a 200 acre farm using one row and a ditch
(12 1/2 foot spacing). There are only 170 net-acres ("row acres") on the farm since
the rest of the land is used for such non-productive purposes as roadways and
storage areas. The costs in Table 1 are figured per net acre.

The table lists each operation involved in growing the crop and estimates the re-
quirements and costs for these operations. For example, the operation "destroy
plants from previous crop" was estimated to require one-half hour of a driver, 35 h.p.
tractor, and herbicide sprayer. The $4.80 hourly charge includes the driver's time
at $2.50 per hour and a charge for gas, oil, and repairs on the equipment. The
herbicide cost is listed separately.

All labor and tractor driver costs include Social Security. Thus, the $2.10 per
hour labor cost is really $1.95 per hour plus $.15 for Social Security.

You'll notice that in addition to the normal cash production costs shown in Table 1,
there is also a charge for "fixed cost of equipment". This cost is included because
there's more to equipment costs than fuel, oil, and repairs. By the very fact that
you own equipment, regardless of how much you use it, you face fixed costs, the
biggest part being depreciation. If market prices are not enough to cover the fixed
costs of equipment at current prices, the tomato industry will not be healthy for
two reasons. First, growers will be in a financial bind when they are faced with
having to replace worn out equipment. The second reason is that no new growers will
try their luck since they won't be able to justify the large initial investment in
equipment and land.


The fixed costs used here were:
95 h.p. tractor
70 h.p. tractor with cultivator
and fert. distributors
3 60 h.p. tractors
Herbicide sprayer
Transplanters
80" Rotovator
2 Sprayers


1,652

1,578
1,330 ea
151
85
242
480 ea


35 h.p. tractor
80 h.p. front-end loader 1
Pneumatic stake driver
Disk
Well and pump ($10,000 new cost,
8 yrs use) 1
2-ton truck 1


842
,610
340
90

,250
,585


This is a total of $14,375, which, when divided by the 170 net acres, gives the
$84.56 shown in Table 1.


:r ''








PER CARTON PRODUCTION COSTS

The "break-even price" at the F.O.B. level depends on yield, cull rate, and the
packinghouse charge. Break-even prices are shown in Table 2 for a packinghouse
charge of $1.55 per 30 pound carton.

Table 2. Break-even F.O.B. tomato prices


Percent 500 bushels 650 bushels 800 bushels
culls per net acre per net acre per net acre

Dollars per 30 lb. carton
10% 3.20 2.82 2.58
20% 3.41 2.98 2.71
30% 3.67 3.18 2.88


As an example of how the numbers in Table 2 were calculated, consider the price for
a 500 bushel yield and a 10% cull rate. First, since 10% are culled, only 450
bushels are saleable. However, you had to pay $1.00 per bushel to get even the culls
picked. So you've got $986.81 plus $500 picking, a total of $1,486.81, to spread
out over 450 saleable bushels. This comes to $3.30 per bushel. Figuring two 30 lb
cartons per saleable bushel, this gives us $1.65 per carton. Adding the $1.55 per
carton packinghouse charge gives us $3.20, the number in the table.

Remember that the break-even prices are the absolute minimum average prices that
will cover the costs in Table 1. In a healthy industry, market prices will be
higher than the break-even prices to compensate for such things as the risks involv-
ed in growing tomatoes.

CONCLUSION

Although an effort was made to assure that the numbers in Table 1 were reasonably
accurate, the fact remains that everyone does things a little differently and costs
are changing all of the time. If you'll take the time to change Table 1 to what-
ever you think it should be for your farm, you'll have an accurate plan of how much
money you'll need, when you'll need it, and how much return you can expect on your
investment.








PER CARTON PRODUCTION COSTS

The "break-even price" at the F.O.B. level depends on yield, cull rate, and the
packinghouse charge. Break-even prices are shown in Table 2 for a packinghouse
charge of $1.55 per 30 pound carton.

Table 2. Break-even F.O.B. tomato prices


Percent 500 bushels 650 bushels 800 bushels
culls per net acre per net acre per net acre

Dollars per 30 lb. carton
10% 3.20 2.82 2.58
20% 3.41 2.98 2.71
30% 3.67 3.18 2.88


As an example of how the numbers in Table 2 were calculated, consider the price for
a 500 bushel yield and a 10% cull rate. First, since 10% are culled, only 450
bushels are saleable. However, you had to pay $1.00 per bushel to get even the culls
picked. So you've got $986.81 plus $500 picking, a total of $1,486.81, to spread
out over 450 saleable bushels. This comes to $3.30 per bushel. Figuring two 30 lb
cartons per saleable bushel, this gives us $1.65 per carton. Adding the $1.55 per
carton packinghouse charge gives us $3.20, the number in the table.

Remember that the break-even prices are the absolute minimum average prices that
will cover the costs in Table 1. In a healthy industry, market prices will be
higher than the break-even prices to compensate for such things as the risks involv-
ed in growing tomatoes.

CONCLUSION

Although an effort was made to assure that the numbers in Table 1 were reasonably
accurate, the fact remains that everyone does things a little differently and costs
are changing all of the time. If you'll take the time to change Table 1 to what-
ever you think it should be for your farm, you'll have an accurate plan of how much
money you'll need, when you'll need it, and how much return you can expect on your
investment.






TABLE 1. PRODUCTION COSTS FOR MANATEE-RUSKIN STAKED TOMATOES, 1974


COST
Dollars per
net acre
NON-HARVEST COSTS

Land Clearing
Clearing 200 acres will cost $60/acre for bulldozing, $20/acre for labor to 58.82
remove stumps and roots, and $20/acre for fences and dragline work. The
$20,000 cost is for 2 years, or $10,000/year

Destroy plants from previous crop, one time
35 h.p. tractor + driver + herbicide sprayer, 30 min. at $4.80/hr. 2.40
Herbicide, 3/4 qt. at $38.20/gallon 7.16

Burn off plastic mulch and string, one time
60 h.p. tractor + driver, 30 min. at $4.72/hr. 2.36
55 gallons propane at 38 J/gallon 20.90

Remove unburned plastic
Labor, 6 hours at $2.10/hr. 12.60

Remove and stack stakes, one time
Labor, 8 hrs. at $2.10/hr. 16.80

Lime
Six tons per acre are applied in 2 years at $11.00/ton, which includes 38.82
spreading. The lime will cost $13,200 or $6,600 per year

Rotovate, one time
95 h.p. tractor + rotovator + driver, 1 hr. at $6.69/hr 6.69

Disk, three times
95 h.p. tractor + disk + driver, 1/2 hr. each time at $6.18/hr. 9.27

Mark off field and make initial beds, one time 4.72
60 h.p. tractor + driver, 1 hr. at $4.72/hr.

Make ditches, one time
60 h.p. tractor + driver, 1 hr. at $4.72/hr. 4.72

Apply starter fertilizer and finish beds, one time
70 h.p. tractor + driver, 1 hr. at $6.17/hr. 6.17
500 lb. 2-16-4 at $85/ton 21.25
Mole cricket bait, 100 lb. 5% chlordane 18.90

Apply banded fertilizer and lay plastic, one time
60 h.p. tractor + driver, 1 hr. at $4.72/hr. 4.72
Plastic, 1 rolls at $50/roll 75.00
1500 lbs 18-0-25 at $180/ton 135.00
1 helper, 1 hr. at $2.10/hr 2.10

Planting, one time
60 h.p. tractor + driver, 45 mins. at $4.72/hr. 3.54
2 helpers, 45 mins. each at $2.10/hr. 3.15
1500 2" x 2" transplants at 4 J each 60.00






TABLE 1: (Continued)


COST
Dollars per net acre
Replacement stakes
350 stakes at $65.00/1000 22.75

Set stakes, one time
Fork-lift tractor + driver, 30 mins. at $5.65/hr. 2.83
4 helpers, 30 min. each at $2.10/hr. 4.20

Drive stakes, one time
60 h.p. tractor + driver + stake driver, 30 mins. at $6.27/hr. 3.14
4 helpers, 30 min. each at $2.10/hr. 4.20

Apply herbicide to row middles, two times
35 h.p. tractor + herb. sprayer + driver, 30 min. each time at $4.80/hr. #.80
Paraquat, 3/4 qt. each time at $38.20/gallon 14.33

Tieing, four times
Labor, 30 J/100', 14,000' total for four times 42.00
Plastic string, 10 lb. at 95 4/lb. 9.50

Clean ditches, 4 times
60 h.p. tractor + driver, 30 min. each time at $4.72/hr. 9.44

Spraying, 20 times
60 h.p. tractor + driver + sprayer, 15 min. each time at $6.27/hr. 31.35
Insecticides & fungicides 150.00

Irrigation
Diesel fuel, 20 gallons at 50 4/gallon 10.00

Supervisory Labor 58.82
There is one production supervisor at $12,000/year and one foreman
at $8,000/year. This labor charge is for six months, a total of $10,000.

Interest on above expenses, 9% for 4 months 19.80

Fixed cost of equipment 84.56

***Total Non-Harvest Costs are $984.81 per net acre***


HARVEST COST Dollars per bushel

Picking and hauling, contract basis 1.00
$20.00/20 bu. bin (includes bonuses)




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