Group Title: Computing production costs of fruits and vegetables
Title: Computing production costs of fruits and vegetables for "pick-your-own" operations
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Permanent Link: http://ufdc.ufl.edu/UF00086778/00001
 Material Information
Title: Computing production costs of fruits and vegetables for "pick-your-own" operations
Physical Description: Book
Language: English
Creator: Kelsey, M. P.
Motes, J. E.
Publisher: Cooperative Extension Service, Michigan State University
Place of Publication: East Lansing, Mich.
Publication Date: March, 1976
 Notes
General Note: MSU extension bulletin E-941
 Record Information
Bibliographic ID: UF00086778
Volume ID: VID00001
Source Institution: University of Florida
Holding Location: University of Florida
Rights Management: All rights reserved by the source institution and holding location.

Full Text

Extension Bulletin E-941


for "Pick- Your-Own" Operations


Computing Production Costs


of Fruits and Vegetables


strawberries

sweet corn
tomatoes

snap beans

cabbage


By: M. P. Kelsey and J. E. Motes
Departments of Agricultural Economics and Horticulture, respectively


VEGETABLE CROP PRODUCTION for a pick-
your-own operation requires special management
considerations if the grower expects to provide a
good supply of high-quality, pick-your-own vegeta-
bles throughout the season. Variety and pesticide
selection are two examples of important manage-
ment factors.
Pesticides
Pick-your-own vegetable farms usually produce a
wide selection of vegetables requiring the use of
many different pesticides. Pesticide use can cause
problems in contamination and residues if proper
planning is not conducted. You can avoid herbicide
residues by using weed control chemicals which
do not cause toxic carryover to subsequent crops.
Registered insect and disease control chemicals
should be selected that have few or zero days be-
tween application and safe harvest. This minimizes
the number of days customers must be restricted
from fields.
When several crops are planted in close proxim-
ity, they are subject to contamination from drifting
pesticides that may not be registered for the par-
ticular crop. Therefore, pesticide drift during ap-
plication must be prevented by the use of proper
application equipment and technique.


Early Varieties
Fresh vegetables available early in the season
can attract customers and lengthen the season.
Selection of early maturing varieties and the use of
plastic soil mulches and plant and row covers will
permit earlier planting and hasten the maturity of
warm-season crops. Sweet corn, tomatoes, peppers
and vine crops all respond favorably to mulches
and protective plant covers. These require addi-
tional investment, but benefits from their use ex-
ceed costs by attracting customers early in the sea-
son.
Since early varieties of most vegetables are not
usually as high in quality as longer-season vari-
eties, they should be planted only for the first
early production. Mid-season varieties are usually
of higher quality, and main season varieties are
highest in quality. After an initial planting of early,
middle and late season varieties, only main season
varieties are suggested for successive planting due
to better quality and higher yield.
Planting
Successive plantings of main season varieties
should be made according to the weather and par-
ticular by temperature conditions. Snap beans and


COOPERATIVE EXTENSION SERVICE MICHIGAN STATE UNIVERSITY


March 1976





sweet corn should be planted each week except in
the cool early season and in planting for late sum-
mer and fall production. In early season, the inter-
val between plantings should be longer than one
week. For fall production, the time interval be-
tween plantings should be less than one week due
to the seasonal differences in temperature.

Weed Control
Good weed control is necessary for top produc-
tion and to retain customers. Searching for snap
beans, tomatoes and other crops in weeds is not
pleasant. Weeds often harbor plant diseases and
insects which lower production and quality. Also,
snakes in weedy areas may frighten customers.

Row Spacing
Standardization in row spacing is necessary
when several crops are grown using one set of farm
machinery. This requires some crops to be grown
at row spacing differing from that for optimum pro-
duction. A tractor with a wheel spacing of 6 feet
(wheel center to wheel center) can operate in 2-, 3-,
4- and 5-foot rows. These row spacings will ac-
commodate most crops. Row spacing requirements
must be considered for other farm equipment, such
as a cultivator, used in most crops. Ease of harvest-
ing by customers should also be a consideration in
selecting the best row spacing for a particular crop.

Irrigation
Irrigation is essential in maintaining schedules.
It not only supplements rainfall during dry periods,
but should be used to insure timely emergence of
seeded crops. With irrigation, a production
schedule can be followed closely to provide a con-
tinuous supply of pick-your-own vegetables.
Irrigation water and pesticides may need to be
applied in the late evening during the harvest
season when customers are not generally in the
field.
Extension publications which should be con-
sulted for specific production recommendations in-
clude the following:
E-154 Fruit Pesticide Handbook
E-312 Control of Insects, Diseases and
Nematodes on Commercial Vegetables
E-433 Chemical Weed Control for Horticultural
Crops.
E-550 Fertilizer Recommendations for Michigan
Vegetable and Field Crops
E-675 A to T Commercial Vegetable Recom-
mendations for Michigan
E-682 Commercial Strawberry Culture in
Michigan


Evaluating Production Costs
Vegetable crop budgets are given in the follow-
ing tables as guidelines for the physical inputs,
man-hours, costs and possible production involved
in producing crops for pick-your-own operations.
The tables have been developed for easy adapta-
tion to individual situations. They are not provided
as recommendations on practices of materials.

Each crop budget includes a table giving hours
and cost of labor, machinery time and operating
costs and materials and costs for each growing op-
eration. Most labor has been budgeted at $2.75 per
hour, which results in a cost of $3.00 per hour
when the employee's share of Social Security and
Workman's Compensation are added. Out-of-
pocket costs will be reduced where the operator
and his family provide these labor functions.

Machinery costs are shown in Table 1, assuming
the equipment line and amount of use on an 80-
acre farm. Variable costs per hour include repairs,
gas and oil as shown in the three right-hand col-
umns. Operating costs for gas and oil are estimated
at 0.06 times the PTO or rated engine horsepower
times gasoline cost of $0.29 per gallon. For exam-
ple, the first item in Table 1 is a 54 H.P. tractor x
0.06 = 3.3 x $.29 = $.94.

Repair costs per hour were estimated, using the
wear-out lives and total repair estimates given in
Table 2 and Figure 1. It was assumed that all
equipment was at the mid-point of its wear-out life.
Repair costs per hour equal the percent of total
purchase price obtained from Figure 1 at total ac-
cumulated hours of 50 percent of lifetime hours.
Multiply percentage by the purchase price, and
then divide by one half the estimated hours of
wear-out life for that kind of equipment. For exam-
ple, the large tractor has an estimated wear-out life
of 12,000 hours of use, and during that period of
time total repairs on the average will equal 120
percent of the current list price. At 50 percent of
wear-out life, using Repair Curve 1, the applicable
percentage is 42. Forty-two percent times current
purchase price of $7,000 equals $2,940 of total re-
pairs. This figure divided by 6,000 hours of use at
the midpoint of its wear-out life equals $0.49 repair
cost per hour.

Overhead machinery costs were calculated,
using depreciation per hour of use on each crop.
Interest was charged at 8 percent times the total
machinery invested divided by the number of
acres operated. Other overhead costs such as taxes
and insurance have been detailed in the overhead
cost table. Subsequent tables include an estimate
of overhead costs and harvesting cost if sold
wholesale rather than pick your own.






Table 1 Equipment and Building Costs
(Assumed for an 80 Acre Fruit Farm Southwest Michigan, 1974)


Depreci-
Purchase Years Salvage Average Annual Annual ation Variable cost per hour
Item cost of value value depreci- Hrs. use per unit
usage ation for farm* use Repairs Operating Total
Large tractor (50-60 HP) $7,000 10 $ 700 $3,850 $630 500 $1.25 $0.49 $0.94 $1.43
Small tractor (40 HP) 5,400 10 540 2,970 486 500 .97 .33 .70 1.03
2-ton truck (used) 2,400 10 240 1,820 216 3,000/M .07/M .04/M .07/M .11/M
Weed sprayer 500 10 50 275 45 100 .45 .16 .16
Row crop sprayer 500 10 50 275 45 150 .30 .40 .40
Well and tank 2,000 20 0 1,000 100 450/MG .22/MG .05/MG .12/MG .17/MG
Fertilizer spreader 500 8 50 275 56 75 .75 .30 .30
Trailer 400 15 40 220 24 100 .24 .06 .06
High pressure sprayer 200 15 20 110 12 50 .24 .25 .25
Disk, (8 ft) 900 15 90 495 54 50 1.08 .40 .40
Drag, (12 ft) 180 15 90 11 50 .22 .08 .08
Wiggle hoe 100 10 10 45 5 50 .10 .08 .08
Transplanter (2-row) 900 10 a 90 495 81 50 1.62 .40 .40
Culti-mulcher 1,200 15 120 660 72 100 .72 .50 .50
Cultivator 400 10 40 220 36 100 .36 .20 .20
Irrigation (10 A) 12,000 15 2,000 8,000 667 200/Al 3.33/Al 2.75/Al 2.75/Al
Rotary mower 1,000 15 100 550 60 100 .60 .30 .30
Plow (3B) 800 15 400 27 100 .27 .40 .40
Planter (2-row) 1,200 15 120 660 72 50 1.44 .50 .50
Rotary hoe 800 10 80 440 72 50 1.44 .26 .26
$22,850

*Annual usage is based upon a farm with 80 acres of fruit. Units are hours except when followed by "M" which indicates miles; "MG"
thousand gallons; "Al" acre inches; and "MD" man days.


120----------------------------- --
12c 0



100

90 / !



70--

S60


o
40 - -





10-- y ^ -


Table 2. Machinery Schedule for Estimated Wear-Out
Life and Repairs

Estimated Total repairs Repair
wear-out in wear-out curve
Item life life % list (Figure 1)
(hours) price

Stationary power unit .. 12,000 120 1
Tractor (2 wheel drive) 12,000 120 1
Wagon or tractor ....... 5,000 100 2
Mower, rotary .......... 2,000 60 3
Fertilizer equipment (dry) 1,200 120 1
Mower ................ 2,000 120 1
Seeding equipment .... 1,200 100 2
Sprayers, mounted ..... 1,200 100 2
Tillage tools ........... 2,500 120 1
Truck ................. 2,000 60 3


50 60 70 80 90 100


Total Accumulated Hours,
Percent of Lifetime Hours
Figure 1. Total Accumulated Repair Costs for Farm
Tractors and Implements.


0 10 20 30 40






Table 3 Variable Cost of Growing Snap Beans

Labor Equipment Materials

Hours Cost Total
Operation Labor Wage of Per Variable
Hours Rate Cost Equipment Used Use Hour Cost Item Cost Cost

Lime (1 yr cost) .5 TIA @ $6.60/T $3.30 $ 3.30
Plow .6 $3.00 $1.80 Large tractor .6 $1.43 $ .86 2.90
Plow .6 .40 .24
Disc (twice) .6 3.00 1.80 Large tractor .6 1.43 .86 2.90
Disc .6 .40 .24
Fertilize .5 3.00 1.50 Small tractor .4 1.03 .41 300 Ib 10-20-20 @ 27.00 29.03
Fertilizer spreader .4 .30 .12 $9.00/cwt
Pre-emerg weed control .5 3.00 1.50 Small tractor .4 1.03 .41 3 Ib Eptam/A @ $2.70/lb 8.10 10.13
Fertilizer spreader .4 .30 .12
Drag .2 3.00 .60 Large tractor .2 1.43 .27 .89
Drag .2 .08 .02
Plant 2 3.00 6.00 Small tractor 2 1.03 2.06 75 Ib Seed/A @ $1.10/lb 82.50 110.08
Planter 2 .50 1.00 200 lb 10-20-20 @ 18.00
$9.00/cwt
1 Ib granular Di-Syston/A
@ .52/lb .52

Cultivate (3 times) 5 3.00 15.00 Small tractor 5 1.03 5.15 21.15
Cultivator 5 .20 1.00
$28.20 $12.76 $139.42 $180.38


Overhead Cost for Snap Beans


Machinery depreciation

Machinery insurance

Building depreciation

Building operating cost

Taxes

Interest Machinery

Building

Real estate

Operating funds

(180.38 x 8%x .25)

Total

Total overhead


Cash Noncash

21.84

2.48

2.50

2.00

12.00

28.35

1.28

60.00

3.61



$16.48 $117.58

$134.06


Your Farm


Per Acre Cost of Growing and Harvesting Snap Beans
(300 Bu)


Variable growing cost

Labor

Machinery

Fertilizer

Seed

Herbicide

Spray material



Overhead cost

Total variable & overhead

Harvest cost

Total cost


Per acre

$ 28.20

12.76

48.30

82.50

8.10

.52

$180.38

134.06

$314.44

804.00

$1,118.44


Per bu













$ .60

.45

$1.05

2.68

$3.73


Snap Beans Harvest Cost (300 Bu)

Labor- 250 hr @ $2.18 545.00

50 hr @ $3.00 150.00

Machinery 9.00

Materials (baskets @ $.40) 100.00

$804.00


Your farm






Table 4 Growing Operations and Related Variable Costs for 10 Acres of Strawberry Production
(Southwestern Michigan 1974)

Labor Machinery Materials
Total
Labor Hr. Hours Cost per Cost Cost
Operation per 10 Wage Cost Equipment of hour of Cost Item per 10 per 10
Acres rate used use use acres acres


Fall (Soil building)

Plow

Disc (twice)

Drag

Seeding rye

Fumigation

Culti-mulch

Growing year
Plow-down
fertilizer
Plow

Disc (twice)

Drag

Planting
acre/hr
Tractor driver

Hourly (4)
Regular




Weed spray
(2 times)

Wiggle hoe



Cultivation
(6 times)

Hoeing
(4 times)

Pinch blossoms
(2 times)

Spraying (4 times)
1. 50 gal/A



2. 50 gal/A


6 $3.00 $18.00

6 3.00 18.00

2 3.00 6.00

3 3.00 9.00



3 3.00 9.00



3 3.00 9.00

6 3.00 18.00

6 3.00 18.00

2 3.00 6.00



14 3.00 42.00

56 $2.18 $122.08
14 3.00 42.00




8 Hr/ 3.00 48.00
Spray-
16 Hr
2 men x 2.18 130.80
15 Hr/
Hoeing
60 Hr


3-Plow tractor
Plow
Disc
3-Plow tractor
3-Plow tractor
Drag
2-Plow tractor
Fert. spreader
Custom application

3-Plow tractor
Culti-mulcher


2-Plow tractor
Fert. spreader
3-Plow tractor
Plow
3-Plow tractor
Disc
3-Plow tractor
Drag


3-Plow tractor
Transplanter

2-Plow tractor
Trailer
3-Plow tractor
Seed sprayer
Truck
2-Plow tractor
Weed sprayer

2-Plow tractor
Wiggle hoe


14 Hr/ 3.00 252.00 1 2-Plow tractor


Cultiv
84 Hr
1 A/10 2.18 872.00
Hr/day
400 Hr
V1 A/ 2.18 697.60
man/day
320 Hr

2 men @
5 hr ea.
5 3.00 15.00
5 2.18 10.90
2 men @
5 hr ea.
5 3.00 15.00
5 2.18 10.90


Cultivator


3-Plow tractor
High pressure sprayer


3-Plow tractor
High pressure
sprayer


6 $1.43 $8.58
6 .40 2.40
6 .40 2.40
6 1.43 8.58
2 1.43 2.86
2 .08 .16
3 1.03 3.09
3 .30 .90
15.00/A 150.00

3 1.43 4.29
3 .50 1.50


3 1.03 3.09
3 .30 .90
6 1.43 8.58
6 .40 2.40
6 1.43 8.58
6 .40 2.40
2 1.43 2.86
2 .08 .16


$28.98

28.98

9.02

Rye 2B/A @ 3.00/B $60.00 72.99

30 Gal DD/A or Vorlex @ 725.00 875.00
$72.50/A
14.79



400 lb 11-48-0 @ $150/T 300.00 312.99

28.98

28.98

9.02


14 1.43 20.02 4,500 plants/A planted
14 .40 5.60 21/ x 4 @ $35.00/1,000


7 1.03 $7.21
7 .06 .42
2 1.43 2.86

Mi .11 3.30
16 1.03 16.48
6 .16 2.56

30 1.03 30.90
30 .08 2.40


14 1.03 86.52
84 .20 16.80









5 1.43 7.15

5 .25 1.25

5 1.43 7.15

5 .25 1.25


_______________ .1. a


1575.00 1820.49

$122.08
55.79


12 Ib Dacthal/A sprayed @ 134.40 201.44
$1.40/lb. Spray .4 of
area/spray
164.10



600 lb 11-48-0 @ $150/T in 450.00 805.32
2 side dressings

872.00


697.60



2 pt. Guthion/A @ $1.26/pt. 60.00 94.30
1 Ib Cyprex/A @ $3.48/lb


Same as above


60.00 94.30






Table 4 (Strawberries) Continued
Labor Machinery Materials
Total
Labor Hr.Equipment Hours Cost per Cost Cost
Operation per 10 Wage Cost used of hour of Cost Item per 10 per 10
Acres use use acres acres

3. 200 Gal/A 5 $3.00 $15.00 3-Plow tractor 5 $1.43 $7.15 Kelthane 2/2 Ib/A @ $2.30/lb $117.50 $141.65
Row crop sprayer 5 .40 2.00 Guthion 2 pt/A @ $1.26/pt
Cyprex 1 Ib/A @ $3.48/lb
4. 200 Gal/A 5 3.00 15.00 3-Plow tractor 5 1.43 7.15 2 pt Guthion/A @ $1.26/pt 60.00 84.15
Row crop sprayer 5 .40 2.00 1 Ib Cyprex/A @ $3.48 Ib
Irrigation 20 2.18 43.60 2-Plow tractor 10 1.03 10.30 54.50
set-up equipment Trailer 10 .06 .60
One half Al 1/10 hr/Al 3.00 9.00 Irrigation equipment 30 Al 2.75 82.50 102.90
(6 times) Pump 30 Al .38 11.40
Cutting runners 10 3.00 30.00 2-Plow tractor 10 .20 2.00 42.30
in fall Cultivator 10 .20 2.00
Labor cabins for
219 man days of
labor @ .55 120.45 120.45

Cost up to first fruiting year $2,602.33 Machinery $561.00 Materials $3,541.90 $6,705.23


First Fruiting year

Set up of irrigation
equipment
Broadcast fertilizer

Frost control
(5 times) 7 hr/night
First cover spray
200 gal/A
Herbicide spray


Herbicide spray

Second cover spray

Third cover spray

Pre-Harvest spray

Pre-Harvest spray

Hoeing (1 time)
Irrigation
1/2 Al (6 times)


Broadcast fertilizer

Mulching: 1 man
2 men


Setting straw off rows
Labor cabins for 73 man
days of labor @ $.55
Variable cost to harvest
first fruiting year
Variable cost for growing
and first fruiting year


80 2.18 174.40

40.15
Labor $985.71

Labor $3588.04


2-Plow tractor
Trailer
2-Plow tractor
Fert. spreader
Irrigation equipment
Pump
Weed sprayer
2-Plow tractor
Weed sprayer
2-Plow tractor

Weed sprayer
2-Plow tractor
Row crop sprayer
3-Plow tractor
Row crop sprayer
3-Plow tractor
Row crop sprayer
3-Plow tractor
Row crop sprayer
3-Plow tractor


Irrigation equipment 30 Al
Pump 30 Al


1.03
.06
1.03
.30
2.75
.38
.16
1.03
.16
1.03

$ .16
1.03
.40
1.43
.40
1.43
.40
1.43
.40
1.43


10.30
.60
3.09
.90
110.00
15.20
1.28
8.24
1.28
8.24

$1.28
8.24
2.00
7.15
2.00
7.15
2.00
7.15
2.00
7.15


2.75 82.50
.38 11.40


20

3

35

7

8


8

5

5

5

5

160
1/10
Hr
Per Al
3
3

16
32


2.18

3.00

3.00

3.00

3.00


$3.00

3.00

3.00

3.00

3.00

2.18
3.00



3.00

3.00
2.18


Machinery $370.58

Machinery $931.58


200 Ib 12-12-12 per A @
$106/T


6 Ib Captan/A @ .69 Ib

8 lb 50% WP Tenoran/A
sprayed @ $2.60/lb. Spray
.4 area
12 Ib Diphinamid/A @
$2.63/lb. Spray .4 area
2 Ib Thiodan/A @ $2.40/lb
1 Ib Benlate/A @ $8.90/lb
1 Ib Benlate/A @ $8.90/lb

1/2 Ib Benlate/A @ $8.90/lb
1 Ib Thiodan/A @ $2.40/lb
1/2 Ib Benlate/A @ $8.90/lb


1 lb Benlate/A on 3 irriga-
tions @ $8.90/lb
2 qt Guthion/A @ $2.52/qt
on 3 irrigation
50 Ib 46% Urea/A @ $200/T

2 T straw @ $30/T


54.50

106.00 118.99

230.20

41.40 71.92

83.20 116.72


$126.24 $159.76

137.00 161.15

89.00 113.15

68.50 92.65

44.50 68.65

348.80
418.20 521.10


43.60

9.00

105.00

21.00

24.00


$24.00

15.00

15.00

15.00

15.00

348.80
9.00



9.00

48.00
69.76


Materials $1764.04


62.99

785.20



174.40

40.15
$3120.33


Materials $5305.94 $9825.56


3
3
16
16
(Rent @
$5/A)


3.09
.90
16.48
.96
50.00


50.00

600.00


2-Plow tractor
Fert. spreader
2-Plow tractor
Trailer
Straw spreader






Overhead Cost for Growing Strawberries.


Item

Depreciation on machinery ..

Taxes (2 years) ..............

Building operating cost ......

Building depreciation .......

Machinery insurance ........

Interest on machinery .......

Building ................

Real estate (2 years) .....

Operating funds .........

T otal .....................

Total overhead ............


Cash Noncash

$130.47

$24.00

7.18


$38.24


80.66

5.92

120.00

58.84

$403.29

$441.53


Strawberry Harvest Cost (400 crates)

Labor Piecework .................... $753.00

Other ................... ........... 244.00

M achinery ............................. 17.00

Crates and baskets ..................... 600.00

$1,614.00


Your Farm


Per Acre Cost of Growing and Harvesting Strawberries
(400 crates)


Variable growing cost Per acre

Labor Piecework ......... $195.90

Regular ................... 162.90

Machinery .................. 93.16

Fertilizer ................... 60.60

Plants ...................... 157.50

Herbicide ................... 34.38

Spray material .............. 139.61

Other ....................... 138.50

Total ..................... $928.55

Overhead cost .............. 441.53

Total variable & overhead ... $1,424.08

Harvest cost ................ 1,614.00

Total cost .................. $3,038.08


Per crate Your farm


$2.46

1.10

$3.56

4.03

$7.59






Table 5 Variable Cost of Growing Sweet Corn
Labor Equipment Materials

Hours Cost Total
Operation Labor Wage Cost Equipment used of per Cost Item Cost variable
hours rate use hour cost

Plow-down fertilizer .5 $3.00 $1.50 Small tractor .5 $1.03 $ .52 400 Ib 10-20-20 @ 36.00 $38.17
Fertilizer spreader .5 .30 .15 $9.00/cwt
Plow .6 3.00 1.80 Large tractor .6 1.43 .86 2.90
Plow .6 .40 .24
Disc (twice) .6 3.00 1.80 Large tractor .6 1.43 .86 2.90
Disc .6 .40 .24
Soil insecticide .5 3.00 1.50 Small tractor .5 1.03 .52 3 lb granular Diazinon/ 15.75 17.92
Fertilizer spreader .5 .30 .15 A @ $5.25 per Ib
Active ingredient
Drag .2 3.00 .60 Large tractor .2 1.43 .27 .89
Drag .2 .08 .02
Plant 2 3.00 6.00 Small tractor 2 1.03 2.06 10 Ib Seed @ $1.45/lb 14.50 41.56
Planter 2 .50 1.00 200 Ib 10-20-20 @ $9.00 18.00
/cwt
Pre-emergence herbicide .5 3.00 1.50 Small tractor .4 1.03 .41 1 Ib Bladex/A @ $3.40/lb 3.40 12.88
Weed sprayer .4 .16 .07 2 lb Lasso/A @ $3.75/lb 7.50
Rotary hoe .3 3.00 .90 Small tractor .3 1.03 .31 1.29
Rotary hoe .3 .26 .08
Cultivation (2 times) 4 3.00 12.00 Small tractor 4 1.03 4.12 200 Ib ammonium nitrate 38.92
Cultivator 4 .20 .80 @ $11.00 cwt (applied 22.00
once)
Spray (3 times) 1.5 3.00 4.50 Small tractor 1.5 1.03 1.54 1.5 Ib Sevin/spray @ 2.40 9.04
R. C. sprayer 1.5 .40 .60 $1.60/lb
$32.10 $14.82 $119.55 $166.47


Overhead Cost for Growing Sweet Corn


Hr/hourly rate Cash

Depreciation on machinery ..
Taxes, insurance and
repairs on buildings ...... $ 2.00
($2,000 avg. value
x 8% x 1/80)
Depreciation on buildings ...
($4,000 purchase price +
20 yrs. + 1/80)
Taxes (land) ................ 12.00

Interest on real estate .......
($750 x .08) (land value)
Interest on buildings ........
($2,000 x .08 x 1/80)
Interest on operating funds ..
(166.47 x 8% x .25)
Interest on machinery .......
(22,850 x .08 x 1/80)
Insurance on machinery ..... 2.00
(22,850 x .007 x 1/80)
Total ..................... $16.00

Total overhead ...........


Noncash

$18.09




2.50




60.00

1.28

3.33

22.85



$108.05

$124.05


Your farm


Sweet Corn Harvest (Variable Cost)

Labor 26 hr per A @ ..... $3.00 = $ 78.00

Small tractor 3 hr @ ...... $1.03 = 3.09

Trailer 3 hr @ ........... $.06 = .18

Sacks (150 5 doz) @ ...... $.30 = 45.00

$126.27

Per-Acre Cost of Growing and Harvesting Sweet Corn.
(750 doz)


Variable growing cost

Labor (10.7 hr @ $3.00) ...

M achinery ...............

Fertilizer ............... .

Seed .....................

Herbicide and sterilant ...

Spray material ............

T otal ...................

Overhead cost ..............

Total variable & overhead

Harvest cost .............. .

Total cost ..................


Per acre

$ 32.10

14.82

76.00

14.50

26.65

2.40

$166.47

124.05

$290.52

126.27

$416.79


Cost
per doz













$ .22

.17

$ .39

.17

$ .56


Your farm






Table 6 Variable Cost of Growing Fresh Market Tomatoes
Labor Equipment Materials

Hours Cost Total
Operation Labor Wage Cost Equipment used of per Cost Item Cost variable
hours rate use hour cost


Lime (1 yr's cost)
Disk cover crop

Seed cover crop

Plow

Fertilizer

Weed spray

Disk (twice)

Drag

Planting
Tractor driver

Hourly (4)
Regular


Cultivate (5 times)


Hand hoe
Spray (first)

Spray (second)

Spray (third)

5 sprays








3 Sprays


.4 $3.00 $1.20

.3 3.00 .90

.6 3.00 1.80

.3 3.00 .90

.5 3.00 1.50

.6 3.00 1.80

.2 3.00 .6Q


3.00 9.00

2.18 26.16
3.00 9.00


7 3.00 21.00


2.18 8.72
3.00 1.50

3.00 1.50

3.00 1.50

3.00 7.50


1.5 3.00 4.50





$99.08


Large tractor .4 $1.43
Disk .4 .40
Small tractor .3 1.03
Fertilizer spreader .3 .30
Large tractor .6 1.43
Plow .6 .40
Large tractor .3 1.43
Fertilizer spreader .3 .30
Small tractor .4 1.03
Weed sprayer .4 .16
Large tractor .6 1.43
Disc .6 .40
Large Tractor .2 1.43
Drag .2 .08

Large tractor 3 1.43

Transplanter 3 1.43
Small tractor 3 1.03
Trailer 3 1.06
Truck 6 mi .11
Small tractor 7 1.03

Cultivator 7 .20

Small tractor .5 1.03
RC sprayer .5 .40
Small tractor .5 1.03
RC sprayer .5 .40
Small tractor .5 1.03
RC sprayer .5 .40
Small tractor 2.5 1.03

RC sprayer 2.5 .40


$ .57
.16
.31
.09
.86
.24
.43
.09
.41
.07
.86
.24
.27
.02

4.29

4.29
3.09
3.18
.66
7.21

1.40

.52
.20
.52
.20
.52
.20
2.58

1.00


Small tractor 1.5 1.03 1.55

RC sprayer 1.5 .40 .60



$30.54


.5 T/A @ $6.60 $3.30 $3.30
1.93

2 B Rye seed @ $3.00/B 6.00 23.80

150 Ib Ammonium nitrate 16.50 2.90
@ $11.00/cwt
400 Ib 5-20-50 36.00 37.42
@ $9.00/cwt
1.5 Treflan @ $3.75/pt 5.25 7.23

2.90



5,000 plants 50.00 111.58
@ $10.00/1,000
20 lb 10-50-10 (@ $.40/lb 8.00


500 lb 11/48-0
@ $14.00/cwt
(applied once)

1 Ib Dieldrin (a $3.00/lb

2 lb Maneb (a $1.30/lb
2 Ib Thiodan (a $2.80/lb
2 lb Maneb (a $1:30/lb

2 Ib Maneb/spray
@ $1.30/lb
1.5 lb Copper/spray
( $1.20/lb
5 lb Epson salts/spray
(C, $.02/lb
1 pt Guthion/spray
(C $3.60/pt
3 lb Nutrileaf/spray on 2
sprays (d $.45/lb
2 Ib Maneb/spray
(n $1.30/lb
1.5 Ib Copper/spray
() $1.20/lb
5 Ib Epsom salts/spray
(- $.02/lb


70.00 99.61


8.72
3.00 5.22

2.60 10.42
5.60
2.60 4.82

13.00 54.28

9.00

.50

18.00


2.70
7.80 20.15

5.40

.30

$265.55 $395.17


_________ .1 ____________ 1 _____________________











Machinery depreciation

Machinery insurance

Building depreciation

Building operating cost

Taxes

Interest Machinery

Building

Real estate

Operating funds

(395.17 x 8% x .25)_

Total

Total overhead


Noncash Your farm


34.25

2.48

2.50

2.00

12.00

22.85

1.28

60.00

7.90



$16.48 $134.28

$150.76


Tomato Harvest Cost (500 Bu)

Your farm

Labor Piecework $282.00

Other 219.00

Machinery 52.00

Materials 388.00

$941.00


Per-Acre Cost of Growing and Harvesting Tomatoes
(500 Bu)


Variable growing cost

Labor Regular

Hourly

Machinery

Fertilizer

Plants

Herbicide

Spray material

Other

Total

Overhead cost


Total variable and overhead

Harvest cost


Total Cost


Per Acre Per Bu

64.20

34.88

30.54

117.30

50.00

5.25

70.50

6.00


$395.17

150.76

545.93

941.00


$ .79

.30

1.09

1.88


$1,486.93 $2.97


Overhead Cost for Tomatoes


Cash


Your farm






Table 7 Variable Cost of Growing Cabbage
Labor Equipment Materials

Hours Cost Total
Operation Labor Wage of per variable
hours rate Cost Equipment used use hour Cost Item Cost cost

Plow .6 $3.00 $1.80 Large tractor .6 $1.43 $ .86 $ 2.90
Plow .6 .40 .24
Disc (twice) .6 3.00 1.80 Large tractor .6 1.43 .86 2.90
Disc .6 .40 .24
Drag .2 3.00 .60 Large tractor .2 1.43 .27 .89
Drag .2 .08 .02
Spread fertilizer .5 3.00 1.50 Small tractor .4 1.03 .41 500 lb 10-20-20 @ $45.00 47.03
Fertilizer spreader .4 .30 .12 $9.00/cwt
Pre-emergence .5 3.00 1.50 Small tractor .4 1.03 .41 1 lb Treflan per acre @ 7.50 9.48
weed control Weed sprayer .4 .16 .07 $7.50/lb
Disc in materials .3 3.00 .90 Large tractor .3 1.43 .43 1.45
Disc .3 .40 .12
Planting
Tractor driver 3 3.00 9.00 Large tractor 3 1.43 4.29 14,000 plants @ $10.00 269.78
Hourly (4) 12 2.18 26.16 Transplanter 3 .40 1.20 per thousand 140.00
Regular 3 3.00 9.00 Small tractor 3 1.03 3.09 200 Ib 0-45-0 @ 22.00
$11.00/cwt
Trailer 3 .06 .18 10 Ib 10-50-10 @ $.20/lb 2.00
Truck 6 mi. .11 .66 2 lb Guthion/A @ $3.60/lb 7.20
30 lb PCNB/A @ $1.50/lb 45.00
Cultivation (3 times) 5 3.00 15.00 Small tractor 5 1.03 5.15 100 Ib Ammonium Nitrate 32.15
Cultivator 5 .20 1.00 @ $11.00/cwt 11.00
Hoeing 10 2.18 21.80 Dipel 1 lb 3.2% WP/A @ 21.80
$9.20/lb 3 sprays 27.60
Insecticide spray 3.5 3.00 10.50 Small tractor 3.5 1.03 3.60 Lannate 1/2 gal/A @ $17.00 115.43
(7 times) R.C. sprayer 3.5 .40 1.40 per gal 6 sprays 51.00
Parathion 1/2 lb/A @
$2.75/lb. 7 sprays 9.63
Maneb 11/2 Ib/A @
$1.30/lb. 6 sprays 11.70
$99.56 $24.62 $379.63 $503.81





Overhead Cost for Growing Cabbage


Cash


Depreciation on machinery

Building depreciation

Building cost

(2,000 x 8% x 1/80)

Machinery insurance

Taxes

Interest on machinery

Building

Real estate

($750 x .08)

Operating funds

(503.81 x.08x.25)

Total

Total overhead


Noncash Your farm


$ 28.39

2.50



$ 2.00

2.48

12.00

28.35

1.28

60.00



10.08



$16.48 $130.60

$147.08


Per Acre Cost of Growing and Harvesting Cabbage
(10,000 head)


Variable growing cost


Labor

Machinery

Fertilizer

Plants

Herbicide

Spray material

Total

Overhead cost

Total variable & overhead

Harvest cost

Total cost


Per acre


$ 99.56

24.62

80.00

140.00

7.50

152.13

$ 503.81

147.08

$ 650.89

427.63


Cost/I100
head


$3.60

1.05

$4.65

3.05


$1,078.52 $7.70


Cabbage Harvest Cost (10,000 head)


Labor 80 hr @ $3.00 $240.00

Small tractor 7 hr @ $1.03 7.21

Trailer 7 hr @ $.06 .42

Sacks (600 @ $.30) 180.00

$427.63


Cooperative Extension Service Programs are open to all without regard to race, color, creed, or national origin. Issued in furtherance of cooperative extension work in agri-
culture and home economics, acts of May 8, and June 30, 1914, in cooperation with the U.S. Department of Agriculture, Gordon E. Guyer, Director, Cooperative Extension
Service, Michigan State University, E. Lansing, MI 48824. Price 35 cents. IP-5M-3:76-WP


Your farm




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