Group Title: AE series
Title: Eighteen years of citrus costs and returns in Florida, 1931-1949
CITATION THUMBNAILS PAGE IMAGE ZOOMABLE
Full Citation
STANDARD VIEW MARC VIEW
Permanent Link: http://ufdc.ufl.edu/UF00074492/00001
 Material Information
Title: Eighteen years of citrus costs and returns in Florida, 1931-1949
Physical Description: 19 leaves : ; 28 cm.
Language: English
Creator: Savage, Zach
University of Florida -- Agricultural Economics Dept
Publisher: Agricultural Extension Service, University of Florida
Place of Publication: Gainesville Fla
Publication Date: 1950
 Subjects
Subject: Citrus fruit industry -- Florida   ( lcsh )
Genre: non-fiction   ( marcgt )
 Notes
Statement of Responsibility: Zach Savage.
General Note: Cover title.
General Note: "September, 1950."
General Note: AE series - Florida Agricultural Experiment Station ; 50-8
 Record Information
Bibliographic ID: UF00074492
Volume ID: VID00001
Source Institution: University of Florida
Rights Management: All rights reserved by the source institution and holding location.
Resource Identifier: oclc - 81929602

Full Text



AE Series No. 50-8


EIGHTEEN


YEARS


CITRUS


COSTS


AND RETURNS


FLORIDA


1931 1949


Zach Savage
Associate Agricultural Economist
Florida Agricultural Experiment Station
l














Issued by
Agricultural Extension Service, University of Florida
Gainesville, Florida
In Cooperation with County Agents of Citrus Producing Counties


September 1950










EIGHTEEN YEARS
of
CITRUS COSTS AiD RETURNS
in
FLORIDA

1931-49




Through the cooperation of interested citrus growers, the Florida Agri-
cultural Extension Service, which includes County Agents of the citrus-producing
counties, has conducted a citrus costs and returns study since 1931. The study
has included an average of 251 groves each season for 18 seasons, 1931-49. Costs
only have been tabulated for an additional season, 1949-50, as returns from all
groves have not been compiled to date.

The groves included in this study were scattered over the citrus-
producing area of Florida. From 75 to 85 percent of the groves have been in the
four counties of Polk, Lake, Orange, and Highlands, varying somewhat in different
seasons. The location of the 223 groves of all ages included in the 1948-49 sea-
son is shown by counties in Figure 1 and Table 1. During this season 84 percent
of the groves and 85 percent of the acreage were in the four counties named.
Thirteen counties were represented in the study that season.

Averages of data from these groves are by no means taken to represent
averages for the state of Florida. Groves included in these records are those of
cooperators who would supply the records. It is thought that the average of the
growers who will cooperate in supplying copies of their grove records is above
the average for all growers of the state. Consequently it seems plausible to
assume that the average grove of these records was a better grove than the
average for the state as a whole. Therefore, data from these groves are expected
to show more favorable results, in most cases, than comparable data for all
groves of the state. However, it is believed that trends in the averages for
these groves are similar to the trends in averages of all Florida groves of cor-
responding ages.


AGE OF GROVE

Citrus trees produce fruit somewhat in proportion to age. Age of tree
from time of setting in the grove is the easiest and most convenient method of
delineating groves when comparing yields, costs, and returns. From the inception
of this work, groves have been divided into two age groups: groves 10 years of
age and under, and groves over 10 years of age.

Trees seldom produce fruit for the first two seasons after setting.
Some fruit is usually produced during the third season. Substantial increases in
yield are common each season after the third year.






r1phten Years of Citrus Costs and Returns


FLORIDA


Figure 1. -- LOCATION BY COUNTIES
OF CITRUS COST ACCOUNT GROVES
1948-49 SEASON


Table 1. -- LOCATION BY COUNTIES AND AGE GROUPS
OF 223 CITRUS COST ACCOUNT GROVES, 1948-49 SEASON


County 1
P o l k ............ ... .................
L a k e .............................-...
Orange
Highlands ................
Pasco
Pinellas ............
Indian River...........
Brevard ....-.............
Manatee ..................... ...
Osceola ..................
Marion ..... ............
St. Lucie .................
Hillsborough.........
Total ............


Age
0 & Under
3
9
2
0
1
0
2
1
0
3
1
1
0.
23


in Years
Over 10
84
40
25
24
10
7
3
2
3
0
1
0
1
200


All
87
49
27
24
11
7
5
3
3
3
2
1
1
223


Percent
All
39.0
22.0
12.1
10.8
4.9
3.1
2.3
1.3
1.3
1.3
.9
.5
.5
100.0


Page 2


EIPhtFFn YA~2S Of~ Citrus Costs and Returns


4,
y. OY ** '







Eighteen Years of Citrus Costs and Returns


Many groves included in this study had mixed ages of trees. In such
cases the average age is used. This average is weighted by the number of trees
of each age. This procedure often results in some individual groves showing
rather high yields at young ages as well as higher figures for other items for
groves of the quoted age than would ordinarily be expected.

GROVES 10 YEARS OF AGE AND UiND3

Seasonal averages, three 5-year averages, a 3-year average, and the 18-
year average for groves averaging 10 years and under are shown in Table 2. The
numbers of groves of these ages have been rather limited in our records during
recent seasons, although the average for the 18 seasons has been 34 groves per
season. The average age per season has varied from 6 to 9 years, and the average
of all seasons was 8 years. The acreage included has varied from 319 to 3,210
acres per season, with the average being 1,149 acres. Twenty-two percent of the
trees were grapefruit.

The average number of boxes of fruit harvested from this group of
groves was 97 boxes per acre for the entire period. This yield compares very
favorably with the average for all groves 8 years of age during the period of
1931-47, which yielded 98 boxes per acre. The average yield of 97 boxes per acre
is 47 percent of the yield of the older group of groves 21 years of age.

Operating costs per acre averaged $56.72 for the 18 seasons. This aver.
age is 67 percent of the operating costs of the older group of groves which had
an average age of 21 years. The percentage of each item making up the operating
costs of the two groups of groves is shown in Table 3.

Table 3. PERCENT EACH COST ITEM IS
OF TOTAL OPERATING COSTS PER ACRE, 1931-49

Age of Groves in Years
Item of Cost 10 & Under Over 10

Labor, power, and equipment ......... 48 43
Fertilizer materials 34 38
Spray and dust materials .__.. ;-.....- 7
State and county taxes 6 7
Miscellaneous costs 6 5
Total operating costs........ 100 100


Returns from fruit averaged $104.94 per acre for the 18-year period.
This was 49 percent of the returns for the older group. Returns per box were
slightly higher on the younger group. This was due, in part at least, to the
smaller proportion of grapefruit in the younger group, since grapefruit usually
brings a lower price.

Returns above operating costs averaged $48.22 per acre annually for the
period. This was 38 percent of the corresponding figure of the older group.
There was only one season, 1932-33, when returns from fruit failed to pay operat-
ing costs. Per-box returns above operating costs averaged 50 cents for the


Page 3





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18-year period. Upon dividing the first 15 years of this period into three 5-
year periods, the per box returns above operating costs are 16, 29, and 111 cents,
respectively, for the three periods. High fruit prices during the latter period
accounted for the good showing of that period when prices by seasons ranged from
96 cents to $2.02 per box. The last three seasons, 1946-49, averaged 24 cents in
returns above operating costs.

Interest on investment in grove land and trees was calculated from the
grove operator's estimate of the valuation. The estimate requested was for the
investment in land and trees from the point of view of a long-time, fruit-growing
enterprise. Such valuations are often less than prices of grove sales during
periods of high fruit prices,, and are usually higher than grove sale prices
during periods of depressed fruit prices.

Interest on estimated grove valuation at 6 percent averaged $24,96 per
acre for the 18 seasons. This figure was 73 percent of the interest on the older
group of groves.

Total cost without owner supervision includes operating costs and inter-
est on the grove investment. Interest on the grove investment is a production
cost, although many growers do not so consider it. When such is not considered
as a cost, the operating costs figure is the one desired. But for those who con-
sider interest on the grove investment as a production cost, additional calcula-
tions are here shown in order to determine the total cost without owner super-
vision, and the net returns after considering interest as a cost,

Total cost without owner supervision averaged $81.68 per acre, or 85
cents per box. This per-acre figure was 69 percent of the corresponding figure
for the older group of groves. The per-box figure of 85 cents was 49 percent
higher than that of the older groves.

Net returns, after considering interest on the grove investment as a
production cost, averaged $23.26 per acre annually, or 24 cents per box. There
were 9 of the 18 seasons when returns from fruit were less than the total cost
without owner supervision.

GROVES OVER 10 YEARS OF AGE

The number of groves of these records over 10 years of age varied from
45 to 272 per season and averaged 217 (Table 4, pages 8-10). The first two sea-
sons, 1931-32 and 1932-33, had considerably less than the average number of
groves included. The grove acreage varied from 583 acres in 1931-32 to 9,853
acres in 1940-41, and averaged 7,481 acres per season. The latter figure was 2.3
percent of the average acreage in Florida bearing groves over this period.

The acreage per grove included in these records has not varied violently
since the second season. The average acreage per grove was 13 acres for the 1931-
32 season. Since that time the seasonal average has varied from 31 to 37 acres
per grove, and the average for the 18 seasons was 34 acres. The acreage per
individual grove varied from slightly over one acre to 581 acres.

The average age of groves from time of setting the nursery stock has
varied by seasons from 17 to 26 years and averaged 21 years for the 18-year
period. The average age of the 216 groves included in costs for the 1949-50


Eighteen Years of Citrus Costs and Returns


Peoe 7


Page 7




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season was 27 years. (Table 4, pages 8-10.) The age of grove should be kept in
mind when comparing data, as it is accountable for a sizable portion of the
variations between groves or groups of groves of different ages. Over the 18-
year period the average increase per acre of 26-year-old groves over the 17-year-
old groves was:
Number of boxes harvested..... 34 percent
Total operating costs......... 28 "
Returns from fruit............ 34 "
Returns above operating costs. 37 "

The number of trees set per acre remained rather static around 60 trees
for the older group of groves throughout the record period. Such is not true of
the younger group. This group increased from 60 in 1931-32 to 65 trees per acre
in the 1935-36 season, and subsequent seasons were higher than the latter figure.
The two seasons with the largest number of trees per acre were 1943-44 and 1944-
45 with 78 each. The average for this group during the entire period was 69
(Table 2, pages 4-6). The average for the older group was 61.

It should be pointed out that these data include records for some
groves for only one season. Other groves were included for varying numbers of
seasons up to the entire 18 seasons. There were 17 groves included in these data
for the 18 successive seasons. This turnover of the groves making up the records
materially affected the number of trees per acre from season to season. The 5-
year averages for the younger group were 62 during 1931-36, 70 during 1936-41,
and 75 during 1941-46. Thus during recent seasons in the groves of these records,
trees have been set with a larger number per acre. The sample of younger groves
has been rather small of recent seasons, so much so that upon the groves attain-
ing the age of 11 years and transfer into the older group, there have not been
sufficient acreages to increase materially the average number of trees per acre
of the older group.
The percent of trees grapefruit is another important consideration when
comparing the fruit harvested, costs, returns, and/or net returns. Grapefruit
groves usually have higher yields, higher costs per acre, lower returns and net
returns per acre than orange groves of comparable ages. The cost per box is
usually lower for grapefruit due to the higher yields. The lower price usually
received for grapefruit results in lower returns per acre, and lower net returns
per acre and per box.

The percentage of trees grapefruit averaged 31 for the 18 seasons.
Individual seasons varied from 28 to 35 percent grapefruit trees.

Boxes harvested per acre averaged less than 200.each season prior to
1942-43, with the exception of the 1938-39 season when the average was 205 boxes.
Average fruit harvested since that time, 1942-49, ranged from 225 boxes in 1944-
45 -- which was materially lowered by hurricane damage -- to 342 boxes in 1948-49.
The 1948-49 figure was the highest of the 18 seasons and was 7 percent higher
than the second highest, 321 boxes, in 1947-48, and 272 percent higher than the
92-box average in 1933-34. The average age of groves in 1948-49 was 26 years,
which was 1 year older than in 1947-48 and 9 years older than in 1933-34. There
were 10 of the 18 seasons, 56 percent, when less than 200 boxes were harvested
per acre (Table 5).

The average number of boxes harvested for the 5-year period 1931-36 was
126 per acre, 1936-41 175 boxes, and 1941-46 250 boxes. Yield for the third


Sighteen Years of Citrus Costs and Returns


Page 11





ken Yars of Citrus Costs and Returns Page 12
period was double that of the first. Some of the reasons for these increases in
the number of boxes harvested per acre were increases in average age of trees,
better fertilizer practices, larger proportion of fruit harvested due to good
prices and the development in fruit processing; and the increasing proportion of
grove acreage irrigated may have been a factor. Fruit prices were low for some
seasons of the first two 5-year periods, resulting in some of the fruit remaining
unharvested. Less damage from low temperatures and better grove care in general
during the last two periods contributed to higher yields for these periods, and
higher prices together with the development of fruit processing facilities, con-
tributed to.higher proportions of the fruit being harvested.

There were considerable variations in fruit harvested per acre between
different groves for the same season as well as seasonal average variations. The
number of boxes harvested per acre varied from 49 to 831 on 200 groves over 10
years of age in the 1948-49 season (Table 6). Forty-two percent of these groves


Table 5. -- DISTRIBUTION OF SEASONAL AVERAGES
OF BOXES HARVESTED PER ACRE, 1931-49

Number Cumulative
Boxes per Acre Seasons Percent Percent
Less than 100 ..... 1 5 5
100 to 149.......... 4 22 27
150 to 199 .----- 5 28 55
200 to 249 ....-.. 2 11 66
250 to 299...-_- -- 3 17 83
300 to 349 ........... 3 17 100
92 to 342........ 18 100 100




Table 6. -- DISTRIBUTION OF 200 GROVES ACCORDING TO
FRUIT HARVESTED PER ACRE, 194g-49 SEASON
Number Cumulative
Boxes per Acre Groves Percent Percent
Under 100.. 1 *
100 to 149...................... 6 3 3
150 to 199 .................. 14 7 10
200 to 249 ... ............... 19 10 20
250 to 299 ................. 19 10 30
300 to 3 9 ....................... 24 12 42
350 to 399 ........-.......... 35 17 59
400 to 449 ............ .. 33 16 75
450 to 499 ...-........ 21 10 85
500 to 549 ... ............. 12 6 91
550 to 599 ..--.----. -- 7 4 95
600 to 649 ........................ 4 2 97
650 to 699 ..-...... 3 2 99
700 and over.................... 2 1 100
49 to 831 .............. 200 100 100

0.5 percent.





Eighteen Years of Citrus Costs and Returns Page 13

had less than 350 boxes harvested per acre that season, and 75 percent had less
.than 450 boxes. From one-fifth of these groves less than 250 boxes were har-
vested per acre.
Operating costs for the first 8 years of this study, 1931-39, averaged
$57.90 per acre. The following season, 1939-40, such costs were $53.45. There
was an increase in operating costs each year from 1939-40 to 1946-47, an increase
each season for 7 successive seasons. During part of this time the increase was
rather rapid, and these costs were $159.89 per acre in 1946-47. Operating costs
in 1947-48 were only $1.51, or 1 percent, less than for the previous season.
Such costs in 1948-49 were 15 percent less than in 1946-47, and 14 percent less
than in 1947-48. The 1949-50 operating costs were $129.02, or 6 percent less
than 1948-49, and 19 percent less than the high season of 1946-47.

Operating costs per acre and per box decreased each season since the
1946-47 season. However, operating costs in 1948-49 were two and one-half times
the average for the 9 seasons from 1932-41. Furthermore, these 1948-49 costs
exceeded the fruit receipts for all but one (1936-37) of the 9 seasons and aver-
aged $46.44 per acre more, or 51 percent more. In other words, if the costs for
these 9 seasons had been the same as the costs for 1948-49, there would have been
only one of the 9 when the fruit receipts would have equaled or exceeded operat-
ing costs. There would have been a loss in eight seasons and the average loss
would have been $46.44 per acre.

Operating costs exceeded 50 cents per box four times in the 1S seasons,
1931-32, 1933-34, 1944-45, and 1946-47. The average for all seasons was 41 cents.
During the 1939-44 period, when operating costs were increasing on the per-acre
basis, the per-box costs fluctuated from 30 to 33 cents. Such costs were 52 cents
in the 1944-45 season. Hurricane winds materially reduced the fruit harvested in
1944-45, which increased the costs per box. Also, an increase of 25 percent over
the previous season in operating costs per acre further increased the per-box
costs. Eight of the 18 seasons had operating costs of less than 40 cents per box.

Operating costs per acre by individual groves ranged from $42.07 to
$352.88 in the 1948-49 season and averaged $136.72 (Table 7). On 14 percent of
the groves $200.00 or more per acre was spent for operating costs that season.

Table 7. -- DISTRIBUTION OF 200 GROVES ACCORDING TO
OPERATING COSTS PER ACRE, 1948-49 SEASON
Number Cumulative
Cost per Acre Groves Percent Percent
$ 25 to $ 49 .............. 4 2 2
50 to 74............ 28 14 16
75 to 99 .. 33 17 33
100 to 124 .......34 17 50
125 to 149 ....... 31 16 66
150 to 174 ............. 20 10 76
175 to 199 ............. 21 10 86
200 to 224 .............. 14 7 93
225 to 249 ............ 6 3 96
250 to 274 ............. 3 2 98
275 to 299 .._.... 1 98
300 and over..-.... 5 2 100
42.07 to 352.88.200 100 100
0.5 percent.




Eighteen Years of Citrus Costs and Returns


Operating costs were made up of five items: (1) labor, power, and
equipment, (2) fertilizer materials, (3) spray and dust materials, (4) state and
county taxes, and (5) miscellaneous costs. The distribution of the 18-year aver-
ages of these costs is shown in Table 3. Average operating costs by seasons
ranged from $44.90 to $159.89 per acre and from 30 to 55 cents per box (Table 8).


Table 8. -- AVERAGE AND RANGE
OF OPERATING COST ITEMS PER SEASON, 1931-49
Per A c r e Per Box
Cost Items Average Range Average Range

Cents Cents
Labor, power, and equipment...... $ 36.34 $17.33 to $ 76.42 17 11 to 27
Fertilizer materials .......... 32.35 17.74 to 57.33 16 11 to 22
Spray and dust materials........... 6,19 2.99 to 12.47 3 2 to 4
State and county taxes 5.70 4.07 to 11.76 3 1 to 7
Miscellaneous 4.01 .53 to 11.85 2 to 4
Operating costs 84.59 44.90 to 159.89 41 30 to 55

Less than $0.005.


More money was spent for labor, Dower, and equipment than any other
cost item. The average was $36.34 per acre per season and ranged from $17.33 to
$76.42. This-cost exceeded the cost of fertilizer materials in 11 of the 19 sea-
sons shown in Table 4. The spread between the costs of the two items has in-
creased during recent seasons with the cost of labor, power, and equipment in-
creasing faster. There were 10 seasons, 1932-42, when the operating costs did
not amount to as much as the cost of the one item of labor, power, and equipment
for any one of the past five seasons, 1945-50. The increases in the number of
boxes harvested as this period progressed lessened very materially the increases
in costs on a per-box basis. Labor, power, and equipment costs per box were 27
cents in 1946-47, an increase of 4 cents over the previous season. Such costs
were 3 cents less in 1947-48 than in 1946-47, and decreased to 19 cents in 1948-
49 which was 5 cents less than 1947-48. The average for the 18 seasons was 17
cents.

The cost item of second importance was fertilizer materials. This item
was 38 percent of the average operating costs and amounted to $32.35 per acre.
The range in the seasonal cost per acre for fertilizer materials was from $17.74
to $57.33. During 53 percent of' the seasons this cost averaged less than $30.00
per acre. Fertilizer cost was $37.92 per acre in 1931-32 but was not that high
again until the 1943-44 season. These costs increased for the following 3 sea-
sons when the high of $57.33 was reached in 1946-47. There was a reduction of 32
percent in such costs in 1948-49 as compared to 1947-48, and a further reduction
of nearly 4.5 percent in 1949-50 under 1948-49. A major contributing factor was
low fruit prices.

Table 9 shows the distribution of the amount of money spent for ferti-
lizer materials per acre for the 200 groves over 10 years of age in the 1948-49
season. The amount spent varied from $7.85 to $97.34 per acre, and averaged
$39.18. Sixty-two percent of these groves had less than $50 per acre cost for


Page 14









fertilizer, and only 8 percent had such cost of $80.00 or more. On 30 percent of
these groves, the money spent for fertilizer ranged from $50.00 to $79.99,

Fertilizer costs per box varied from 22 cents in 1931-32 to 11 cents in
1939-40 and 1940-41. There were 12 seasons with such costs of less than 18 cents.
Fertilizer cost was 18 cents in 1947-48, which was a decrease of 2 cents from the
previous season; and 1948-49 showed a fertilizer cost Of 12 cents, a decrease of
6 cents under the previous year,

Table 9. -- DISTRIBUTION OF 200 GROVES ACCORDING TO
MONEY SPENT FOR FERTILIZER MATERIALS PER ACRE, 1948-49 SEASON
Number Cumulative
Cost per Acre Groves Percent Percent
Under $20 ............. 8 4 4
$ 20 to $ 29...- 29 14 18
30 to 39..--.. 58 29 47
40 to 49 -.. 30 15 62
50 to 59 ....... 32 16 78
60 to 69. 19 10 88
70 to 79 --.. 4 92
80 to 89,...... 12 6 98
90 to 99 -.... 4 2 100
7.85 to 97.34....... 200 100 100


Nitrogen is an important element in fertilizers added in citrus produc-
tion. The distribution of the groves in the 1948-49 season according to the
amount of nitrogen applied per box of fruit harvested is shown in Table 10. The
range was from 0.11 to 1.32 pounds applied per box, and the average was 0.39
pounds. There were 56 percent of the groves that had less than 0.40 pounds
applied per box, and 77 percent had less than 0.50 pounds. There were 11 percent
of the groves that received 0.60 pounds or more. The usual recommendations as to
the amount of nitrogen to apply range from 0.25 to 0.33 pounds per box of fruit
anticipated. There were 53 percent of these groves that received more than 0.33
pounds of nitrogen per box of fruit harvested, and 9 percent received more than
twice this amount.

Spray and dust material costs averaged $6.19 per acre for the 18 sea-
sons and constituted 7 percent of the operating costs. There were 13 seasons,
72 percent, with spray and dust material costs of less than $8.00. The range-of
the seasonal averages was from $2.99 in 1935-36 to $12.47 in 1946-47. The range
in such costs per box was from 2 to 4 cents, and the average was 3 cents. Six-
teen seasons, or 89 percent, had such costs of 3 cents per box or less.

Spray and dust materials cost $10.91 per acre, or 3 cents per box, in
1948-49. This cost per acre varied from nothing to $52.11 (Table 11). There was
one grove that received no spray or dust. Sixty-four percent of the groves had
such costs of less than $13.00 per acre, and 46 percent had such costs ranging
from $5.00 to $12.99.


Page 15


Eighteen Years of Citrus Costs and Returns







Table 10. -- DISTRIBUTION OF 197 GROVES ACCORDING TO TIE AMOUNT
OF NITROG-N APPLIED PER BOX OF FRUIT HARVESTED
1948-49 SEASON


Lbs. N per Box


to .19........ .
to .29 ........
to .39 -
to .49 ......
to .59 .-------
to .69 ......-.........
to .79 .........
and above....


fNugber
Groves

20
47
44
41
24
10
7
4


.11 to 1.32 ..... 197


Cumulative
Percent Percent

10 10
24 34
22 56
21 77
12 89
5 94
4 98
2 100


100


100


Table 11. -- DISTRIBUTION OF 200 GROVES ACCORDING TO MONEY SPENT
FOR SPRAY AND DUST MATERIALS PER AC.E, 194g-49 SEASON

Number Cumulative
Cost per Acre Groves Percent Percent

No spray or dust. 1 *
$1to$2 .. .. 6 3 3
3 to 4 ........... 27 14 17
5 to 6..... .. 21 11 28
7 to 8 ....-...... 28 14 42
9 to 10 ................... 25 13 55
11 to 12 ..... 19 10 65
13 to 14 ................. 12 6 71
15 to 16 ........... .. 17 8 79
17 to 18 ..................... 5 2 81
19 to 20 ..................... 8 4 85
21 to 22..... 6 3 88
23 to 24 ........... 12 6 94
24 and above........... 13 6 100
0 to 52.11......... 200 100 100
Less than 0.5 percent.


State and county taxes averaged $5.70 per acre for the 18-year period,
or 3 cents per box. The range in such costs per season was from $4.07 per acre
in 1942-43 to $11.76 in 1931-32. The seasonal average was less than $6.00 in 14
seasons, or 78 percent of the time. The second highest season was 1948-49 at
$9.05 per acre. Such costs for the 1949-50 season were $9.61.

Miscellaneous costs averaged 5 percent of operating costs for the 18-
year period, or $4.01 per acre. This amounted to 2 cents per box, Variations in


.10
.20
.30
.40
.50
.60
.70
.80


Page 16


Eighteen Years of Citrus Costs and Returns


]







seasonal averages were from $0.53 per acre in 1934-35 to $11.85 in 1948-49. The
average for 1949-50 was $4.26, 64 percent lower than in 1948-49. Miscellaneous
costs include such items as overhead, trees for replacement, drainage district
assessments, and fuel for grove heating.

Returns from fruit averaged $212.46 per acre for the entire period, or
$1.03 per box. Seasonal averages per acre varied from $50.10 in 1932-33 to
$544.94 in 1945-46. The per-box averages varied from 38 cents in 1932-33 to
$2.02 in 1944-45. Returns from fruit amounted to $136.41 per acre in 1947-48,
the lowest since 1940-41. However, there were 8 of the 18 seasons with lower
returns per acre. The price received for fruit in 1947-48 was 43 cents per box,
the third lowest of these seasons. There were 12 seasons in which the per-acre
returns were less than the average for the period and a like number of seasons in
which the per-box returns were less than the average. Fruit returns were $391.03
per acre in 1948-49, an increase of 187 percent over the previous season, and the
highest returns since 1945-46. Likewise the returns per box showed an increase
from 43 cents in 1947-48 to $1.14 in 1948-49, an increase of 165 percent.

Yield and price determine the per-acre returns from fruit. High yields
and high fruit prices resulted in pyramided returns per acre during the war years,
so much so that the 5 seasons of 1942-47 pulled the average of the 18 seasons
above any of the other 13 seasons except one, 1948-49. Returns per acre for this
5-year period were more than 4 times that of either of the first two 5-year
periods.

There were 2 of the 18 seasons when operating costs were higher than
the returns from fruit. The operating cost figure for 1948-49 was larger than
the returns from fruit for any one of 9 seasons. Twelve seasons, 67 percent, had
less than $200.00 in returns from fruit. The remaining 6 seasons, 33 percent,
were chiefly during the war period. There were 7 seasons, 39 percent, when
returns from fruit were less than 60 cents per box, and 13 seasons, 72 percent,
when less than $1.10 per box.

There were no groves in the 1948-49 season from which the fruit cost
the grove operators more money to market than they received for it (Table 12).

Table 12. -- DISTRIBUTION OF 200 GROVES ACCORDING TO
RETURNS FROM FRUIT PER ACRE, 1948-49 SEASON
Number Cumulative
Returns per Acre Groves Percent. Percent
$ 1 to 99 ......................... 4 2 2
100 to 199 .................... 24 12 14
200 to 299 ................ 41 21 35
300 to 399 ............................ 34 17 52
400 to 499 33 17 69
500 to 599 .. ................. 24 12 81
600 to 699...--......... 13 6 87
700 to 799 14 7 94
80 to 899 4 2 96
900 to 999 4 2 98
1000 and above ...................... 5 2 100
68.36 to 1323.99 .. 200 100 100


Page 17


Eighteen Years of Citrus Costs and Returns





Eighteen Years of Citrus Costs and Returns Page 18

Often groves do not pay operating costs, and some seasons when fruit prices are
low it costs the grower more money to market the fruit than he receives for it.
In such cases the amount of the operating costs constitutes just that much addi-
tional loss.

There were 4 groves in 1948-49, 2 percent, that had returns from fruit
less than $100.00 per acre, and 28 groves, 14 percent, with returns from fruit
less than $200.00 per acre. Thirty-eight percent of the groves had from $200.00
to $399.99 returns from fruit per acre. The range was from $63.36 to $1323.99
per acre, and the average was $391.03. The average on-tree price received was
$1.14 per box, the highest since the 1945-46 season.

Returns above operating costs dropped from $407.33 per acre in 1945-46
to $56.09 the following season, a drop of 86 percent. Yet there were S of the 18
seasons of these records that averaged lower returns above operating costs than
in 1946-47. There were 6 seasons, 1941-46 and 194S-49, with income above operat-
ing costs exceeding the average for all seasons. These same 6 seasons and one
additional, 1936-37, had incomes above operating costs per box higher than the 62-
cent average. There were 2 seasons, 1932-33 and 1947-48, when operating costs
exceeded returns from fruit. The returns above operating costs per acre ranged
from -$21.97 in 1947-48 to $425.07 in 1943-44, and averaged $127.87. There were
12 seasons, 67 percent, when returns above operating costs were less than $100.00
per acre, and 9 seasons, 50 percent, when they were less than 40 cents per box.

There was considerable difference between the average returns above
operating costs per acre for the first 10 seasons, $40.07, and for the remaining
8 seasons, $237.62. The latter figure is about 6 times the former. Average
returns above operating costs per box for the latter period were 330 percent of
the former period (89 and 27 cents, respectively). There was one season in each
period with negative returns above operating costs.

Returns above operating costs were the lowest in 1947-48 of the 18 sea-
sons, when the returns from fruit lacked $21.97 of paying operating costs. On a
per-box basis the loss was 7 cents. During this season there were 141 groves,
65 percent, on which the fruit did not return operating costs. However, the
following season, 1948-49, only 5 groves, 2.5 percent, failed to return operating
costs (Table 13).
Table 13. -- DISTRIBUTION OF 200 GROVES ACCORDING TO
RETURNS ABOVE OPERATING COSTS PEP ACRE, 1948-49 SEASON
Number Cumulative
Net Returns Groves Percent Percent
-$100 to -$ 1....... 5 2 2
O-to 99 ...................... 28 14 16
100 to 199 ................... 41 21 37
200 to 299 .............- 45 23 60
300 to 399 ...-.... 28 14 74
400 to 499............ 20 10 84
500 to 599 ........... 16 8 92
600 to 699.. 8 4 96
700 to 799 ... 2 1 97
800 to 899...... 4 2 99
900 to 999...................... 1 99
1000 and above ................... 2 1 100
-91.66 to 1114.76..... 200 100 100






EigheenYeas ofCitus ostsandRetrnsPage lq


At the rate of returns above operating costs in 1946-47, 53.5 acres of
grove would be necessary to return $3,000.00 to the owner for interest on the
grove investment, interest on borrowed money, his own supervision, and profit, if
any. However, at the 1948-49 rate of returns above operating costs only 11.8
acres would be required for a return of $3,000.00. There were 8 of these 18 sea-
sons when returns above operating costs were lower than in 1946-47 and 13 when
they were lower than 1948-49. The averages for these two groups were $18.21 and
$43.32 per acre, respectively. At $18.21 per acre returns above operating costs,
164.7 acres would be necessary to net $3,000.00, while 69.3 acres would be nec-
essary at the rate of $43.32 per acre, and 23.5 acres at the 18-year average of
$127.87.

Interest on grove valuation has been figured at 6 percent since the
inception of this project. The cooperators were asked for their estimate of the
valuation of their grove when considered as a long-time fruit growing enterprise.
The results were that conservative figures were given and there has been a reluc-
tance on the part of the cooperator to change his valuation even after a substan-
tial change in fruit prices and grove sale prices. Interest on grove valuation
by seasons varied from $28.87 per acre in 1940-41 to $46.69 in 1931-32. The
average was $33.97 for the 18 seasons. Interest per box varied from 10 cents in
1943-44 to 40 cents in 1933-34, and averaged 16 cents.

Total cost without owner supervision is made up of the 5 items included
as operating costs plus the item of interest on estimated grove valuation. This
item of interest added 40 percent to the operating costs on the average. Another
way of stating the same thing is that on the average the total cost without owner
supervision was 40 percent higher than the operating costs. This increase varied
from 23 percent in 1945-46 to 80 percent in 1934-35 and did not amount to less
than 47 percent until the 1942-43 season. During the past 6 seasons, 1944-50,
this increase amounted to 30 percent or less.

There are growers who do not consider interest on grove valuation as a
part of production costs, while there are others who do so consider it. Hence,
the reason for presenting both calculations of costs and returns to the grower.

Net returns in this study mean the amount left to the grower of his
returns from fruit after paying operating costs and interest on the grove valua-
tion. It is the amount left for owner supervision and profit, if any. There
were 6 of the 18 seasons when returns from fruit failed to pay total cost without
owner supervision. There were 2 of these seasons when operating costs were more
than returns from fruit. Net returns per acre ranged from -$61.76 in 1947-48 to
$395.18 in 1943-44, and averaged $93.90. The first 5 years of these records,
1931-36, averaged (minus) -$1.70 per acre for net returns. The 1936-41 period
averaged $13.39, and 1941-46 $291.95 per acre. There were 11 seasons, 61 percent,
with average net returns of less than $50.00 per acre. There were 10 seasons, 56
percent, with net returns of less than 20 cents per box, and 2 seasons had net
returns of $1.36 per box.




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Eighteen Years of Citrus Costs and Returns




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