Title: Citrus grove returns above operating costs by seasons, 1931-48
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Title: Citrus grove returns above operating costs by seasons, 1931-48
Physical Description: Book
Creator: Savage, Zach.
Publisher: Agricultural Extension Service, University of Florida
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Bibliographic ID: UF00074504
Volume ID: VID00001
Source Institution: University of Florida
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Resource Identifier: oclc - 123349078

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Issued by
AGRICUJLTtRAL EXTISION SERVICE, UNIVERSITY OF FLORIDA
Gainesville
I4 COOPERATION WITH YOUR COUNTY AGENT




CITRUS GROVE RETURNS ABOVE OPERATING COSTS BY SEASONS, 1931-48


By
Zach Savage
Associate Agricultural Economist
Florida Agricultural Experiment Station


Operating costs in the study of citrus costs and returns by the Florida
Agricultural Extension Service include all cash costs other than interest on
borrowed money. However, interest and depreciation on grove equipment and buildings
are included. Interest on the estimated investment in land and trees is not con-
sidered an operating cost, although it is considered a production cost.

Returns above operating costs is the amount left of returns from fruit
after paying operating costs. Seasonal averages per acre and per box of returns
above operating costs are shown in Table 1 and Chart 1 for 17 seasons for orange,
grapefruit, and mixed groves. Orange groves are groves made up of 90 percent or
more orange trees. Grapefruit groves are groves made up of 90 percent or more
grapefruit trees. All other groves were classified as mixed groves and averaged
31 percent grapefruit trees for the 17-year period. The mixed grove figures include
S all groves--including orange and grapefruit groves.

Returns above operating costs dropped from $407.33 per acre in 1945-46 to
$56.09 the following season on mixed groves, a drop of 86 percent. Between the
same seasons these figures dropped 83 percent on orange groves and 99 percent on
grapefruit. Yet there were 8 of the 17 seasons when mixed groves averaged lower
returns above operating costs per acre than in 1946-47. Similarly there were 9 sea-
sons when orange groves averaged less returns above operating costs than in 1946-47,
and 6 seasons in the case of grapefruit groves. There were 5 seasons, 1941-46, with
income above operating costs exceeding the average for all seasons in each of the 3
groups of groves. These same 5 seasons and one additional, 1936-37, had returns
above operating costs per box as high or higher than the respective averages of
orange and mixed groves. In the grapefruit groves these 5 seasons exceeded the
average for all seasons but the 1936-37 season was less than the average.

The 1947-48 season was the only season in which all 3 groups of groves
/ failed to return operating costs. That was the only season when orange groves
averaged in the red. There was one other season, 1932-33, when mixed groves were
in the red. There were 5 seasons when grapefruit groves failed to return operating
costs.

On a per-acre basis orange groves averaged highest, mixed groves second,
and grapefruit groves lowest in returns above operating costs. This was the order
for each individual season except three: in 1941-42 grapefruit groves averaged
highest and in 1939-41, 2 seasons, averaged second. There were 8 seasons when the
average returns above operating costs were less than $100.00 on orange groves, and
12 seasons each in the cases of mixed, and grapefruit groves. The average for
mixed groves for all seasons was 63 percent of orange groves and grapefruit groves
41 percent. The season when returns above operating costs were highest was 1945-46
for orange and grapefruit groves and 1943-44 for mixed. The figure for each of the
three groups was lowest in 1947-48 when neither group returned operating costs.

On a per-box basis the standing for all seasons was in the same order as
per-acre, and in each season the standing was the same except that in 1939-40 mixed
and grapefruit groves were the same, 17 cents. There were 7 seasons when returns
above operating costs were less than 40 cents per box on orange groves, 9 seasons on
mixed and 12 seasons on grapefruit groves. There were 4 seasons when this figure
for orange groves was less than 25 cents per box, 8 seasons for mixed and 12 seasons
for grapefruit groves. Similarly, there was one season when this figure was less










Chart 1, -- RETURNS ABOVE OPERATING COSTS
ON ORANGE, GRAPEFRUIT, A1D MIXED GROVES, 1931-48
Groves Averaging Over 10 Years of Age
1 I I I I 1 i 1
Dollars



700 -



600 -

PER ACRE

500 -



400- ,
I \ / I
A A


300



200 .
/






Orange

100 M / ed




0


Grapefrui
-100 -










.Mixed
.00- Orange ,
........... i.






1/..50- \ \












S, -- Grapefruit
-I00 -'










- 50 I I t


-.50-






-1931- 1933- 1935- 1937- 1939- 1941- 1943- 1945- 1947-
32 34 36 38 40 42 44 46 4s


Page 2


Returns Above Operating Costs by Seasons, 1931-48









Table 1. -- RETRIIS ABOVE OPERATING COSTS, 1931-48
Groves Averaging Over 10 Years of Age
Mixed Groves Orange Groves Grapefruit Groves
Season Per Acre Per Box Per Acre Per Box Per Acre Per Box
1931-32 $ 78.56 $.46 $114.02 $.82 $ 1.51 $.01
1932-33 -7.94 -.06 18.51 .13 -4o.s9 -.s1
1933-34 20.98 .23 44.43 .40 8.02 .06
1934-35 24.09 .20 49.54 .35 5.72 -.02
1935-36 65.23 .57 128.74 .81 -20.37 -.15
1936-37 89.23 .64 183.84 1.09 7.78 .16
1937-38 26.14 .17 40.97 .21 25.13 .10
1938-39 20.82 .10 57.37 .23 -39.03 -.10
S1939-40 31.94 .17 65.17 .29 45.24 .17
1940-41 51.50 .26 90.82 .40 57.36 .13
1941-42 128.34 .69 193.48 ,83 250.99 .59
1942-43 315.34 1.23 424.05 1.48 198.46 .61
1943-44 425.07 1.40 503.32 1.52 297.03 .84
1944-45 336.42 1.50 499.15 1.87 245.70 .89
1945-46 407.33 1.47 712.68 2.05 333.51 .73
1946-47 56.09 .19 121.42 .37 2.66 .01
1947-4S -21.97 -.07 8.02 -.02 -114.15 -.25
Average 120.42 .61 190.55 .83 77.66 .24



than a nickel on orange groves, 2 seasons on mixed, and 7 seasons on grapefruit
groves. The average for mixed groves, 61 cents, was 73 percent of orange groves and
for grapefruit groves, 24 cents, or 29 percent. The season when returns above
operating costs were highest per box was 1945-46 for orange, 1944-45 for mixed, and
1943-44 for grapefruit groves. The lowest season for each group was 1947-48,

There was considerable difference between the average returns above
operating costs per acre for the first 10 seasons and for the succeeding 5 seasons.
In the case of orange groves, the figure for the latter period was 6 times that of
the former, for mixed groves 8 times, and for grapefruit 25 times. At the rate of
returns above operating costs for the first 10 years of this study 31.5 acres of
orange grove would be required to return $2,500 to the owner for interest on the
grove investment, interest on borrowed money, his own supervision, and profit. Like-
wise, 62.4 acres of mixed or 235.8 acres of grapefruit grove would be necessary to
S return the same figure. At the rate of returns above operating costs for the 17-year
S period, 13.1 acres of orange, 20.8 acres of mixed, or 32.2 acres of grapefruit grove
would be'necessary to return $2,500 above operating costs.

Groves that Failed to Return Operating Costs
A high proportion of individual groves that do not return operating costs
is necessary for the average of all groves for the season to be less than operating
costs. However, there have not been many seasons when there were not groves operat-
ing in the red (Table 2 and Chart 2). There were no seasons when each mixed grove
returned its operating costs, but there were 3 seasons when each orange, and 4 sea-
sons when each grapefruit grove returned its operating costs. The highest propor-
tion of groves operating in the red for any season was 50 percent for orange, 66 per-
cent for mixed, and 100 percent for grapefruit groves. The 17-year average for
orange groves was 17 percent, mixed 21 percent, and grapefruit 33 percent. This
means that over this period there was one out of 6 orange groves that operated in
the red, one out of 5 mixed, and 1 out of 3 grapefruit groves. There were 5 seasons
when in excess of 33 percent of the orange groves failed to return operating costs.
Similarly, there were 4 seasons in the case of mixed and 9 seasons in the case of
grapefruit groves when in excess of 33 percent failed in this regard.


Returns Above Ooeratinz Costs by Seasons. 1931-48


Page 3




Aet-Seturns Above Operating Costs by Seasons, 1931-43


Table 2. PERCENT OF GROVES TEAT DID
OPERATING COSTS, 1931-4S


NOT RETURN


Groves Averaging Over 10 Years qf Age


Season
1931-32
1932-33
1933-34
1934-35
1935-36
1936-37
1937-38
1938-39
1939-o40
1940-41
1941-42
1942-43
1943-44
1944-45
1945-46
1946-47
1947-4s
17-Year Averag


Mixed Groves
20
56
25
35
21
5
31
29
39
10
4
1

3
1
26
66
:e 21


Orange Grapefruit
0 40
50 100oo
13 50
39 62
16 89
2 0
39 56
17 75
41 22
11 10
6 O
4 9
0 0
4 18
0 0
14 58
.44 89
17 33


* Less than 0.5 percent.


Chart 2. -- PERCENT OF GROVES THAT DID NOT RETURN
OPERATING COSTS, 1931-48
Groves Averaging Over 10 Years of Age


100


ZS:ia AgriEconExt
12/21/49 400


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